HOW TO SAVE MONEY ON MOBILE PHONES
by comparing whole life costs
a RED DOOR money saving page
PURCHASING RESEARCH
Buying a mobile phone is not as straightforward as many other gadgets or things that you need for day to day use. This is because the cost of a mobile phone is made up of the cost of the phone itself, the cost of line rental on the phone, the cost of calls, texts and now data, and also the potential cost of losing your phone (which can be covered by insurance). Therefore, when looking for a phone, you should consider the overall cost of ownership for the whole time you expect to keep that particular phone or deal. MOBILE PHONE CONTRACTS
One of the main decisions you have to make is whether to choose a pay as you go arrangement, or a contract. Contracts usually tie you to the phone company, the phone and the deal for at least twelve months, although eighteen month and even twenty four month contracts have increasingly become the norm. To help you decide between a pay as you go arrangement, or a contract, you can estimate your monthly cost by thinking about how much you think you will use the phone, and if it is more than the lowest contract offer, it is generally worth choosing the contract. For contract deals, you can work out the overall cost of each option for comparison, by multiplying the monthly contract cost by the contract length, and adding any extra cost for the handset. This method is particularly useful to avoid being caught out by deals that advertise a low monthly contract cost, when in fact this cost only applies for part of the contract length (e.g. `half price for first three months`). INVESTIGATE THE OFFERS
SOMETIMES SUPPLIED WITH MOBILE PHONES
If you are thinking about buying any other electrical items at the same time, it is worth checking whether these can be bought more cheaply as part of a phone package. For example, you may be able to get items such as PlayStations or televisions `free` as part of a phone deal. These are likely to come at a higher monthly fee or with less minutes than a standard deal, but you can use the method explained in the previous paragraph to work out the overall cost of the deal and compare this with buying the phone and electrical item separately. IT'S A BUYERS MARKET FOR SAVY BUYERS
While contracts have traditionally offered the best value for high usage customers, they do require commitment and for you to pass a credit check. As the phone market is so competitive, pay as you go mobile phones have become available on better value offers, such as giving you bonus texts and minutes when you top up a certain amount. You can check what offers the different providers have available to help you work out how much usage you will be given if you top up your planned amount. The savings using these offers may enable you to choose the phone you really want - although you should also check the provider you`re looking at offers the model you want.
RECHAGING BATTERY - DON'T LEAVE A MOBILE PLUGGED IN TOO LONG. Many people leave their phones on all night to recharge. This is expensive in electricity costs and could harm some phone batteries. 2 to three hours should be sufficient for any recharge. It has been calculated that in the UK £40 million pounds per annum's worth of electricity is wasted by people leaving their phones on recharge too long.
"Using buying skills turns cash poor Shoppers into rich Buyers - see buyer v shopper page "
Now a word for Career Buyers and Procurement Managers
If you are a professional buyer you are probably well aware of the pitfalls that people can fall into in the mobile phone market. However if you find yourself surrounded by internal customers that drive you mad because they think that they are clever buyers when in fact they are just amateur shoppers for items like mobile phones. My book (see below) will provides practical solutions to stop amateur rogue buying. As an organisation
Buying Skills can also provide professional Purchasing training courses for career buyers & procurement managers. For example on our "New to buying training course" we introduce the Buyer/Shopper concept in our introduction in order to wet the candidates appetite for adopting a more professional objective approach. Interested? then go to our purchasing training page.
PURCHASING PERFORMANCE
MEASURING, MARKETING & SELLING THE PURCHASING FUNCTION A Book by Derek Roylance, MCIPS, MIP3. Published by Gower Press
For more information or to purchase click on either book cover
Reviews
'The practical advice provided throughout this book is presented in a no-frills, snappy style that ensures the essential information is not lost in a clutter of unnecessary detail. ...This is an excellent volume that in every sense is a handbook for procurement specialists and beginners alike.' Economic Outlook and Business Review (Dec 06)
'An ideal guide for any buyer that aspires to be a procurement manager. It goes beyond the mere process manual and explains purchasing’s role at the heart of a successful organisation. I particularly approve of the way that Roylance stressed the need for purchasing to act as an example of good practice in business ethics. It distills a lifetime of experience in purchasing into an easily digestible read full of wisdom.'
Trevor Kitching, Director, ACS Supply Chain Consultancy Ltd
'Written in Roylance's humorously dictatorial style, the book condenses a year's worth of instruction into one handy volume. It covers everything you need to know and consider when engaging your internal customers on procurement's offer to your company. ...Well done.' Supply Management (CIPS Members magazine)'.
Contents
Introduction; The management role; The profit and loss measurement system; Measuring and improving buyer performance; Measuring supplier performance; Marketing theory; Presentation and selling skills; The practical application of marketing and sales theory; Market research questionnaire - sample questions; Reverse marketing; Body language (non verbal communication); Technology comes to our aid; Ethics; Conclusions; Appendices; Index.
Useful reference links for purchasing professionals
