Former Wireless Store Manager: 12 Tips to Save Money on Smartphones
Have you ever felt like you were being finessed when buying a cell phone or signing up for free phones at a new cellular service carrier? It’s because you are. Most cell phone representatives work for commission, are force-fed a script to regurgitate to unsuspecting customers and have an agenda when you come through the door. Don’t fret, I have some legit tips to save money on smartphones.
I was a sales associate turned manager for one of the big three. Let me help prepare you for their tactics while saving you money on your cell service with the inside scoop.
Door Swings
While I cannot confirm that all wireless carrier stores operate similarly, I would approach them as if they do. The company I worked for has a metric system called “door swings” that it holds its employees to. Every person who comes through the door counts as a swing.
If you have a ton of door swings without new lines of service and upgrades, the district managers chastize the staff, especially the store managers. It’s your job to sell service. It’s challenging because many people come in to pay their bills and nothing more, but that’s an “excuse,” and they won’t accept excuses. It’s your job to sell.
Unfortunately, that type of atmosphere creates unrelenting pressure, which leads to some associates implementing unethical practices to meet quotas and earn commissions.
The Back Room
The back room is where the phone inventory is, but it’s also an excuse for employees to game-plan how to sell to the customer. After you’ve asked the questions to find the money and verify credit, it’s common to meet with the manager to see what else can be pitched to maximize store-generated profit.
On my first day on the floor, my manager pulled me into the back room and instructed me on how to approach a customer’s need by bypassing typical protocol to take advantage of a free phone offer with a prepaid card purchase.
The company caught on to these false activation lines because customers would immediately replace the prepaid SIMs with their actual SIM cards, and the new service lines weren’t being used.
All associates who participated were written up. As a natural leader who strives to be the best at every job, I was devastated. I’d never been disciplined at any place of employment and had followed my manager’s instructions. I didn’t know what I was doing was wrong. It’s a shady workplace.
The entire business model makes me sick. It’s the only time I worked for commission, and I couldn’t do it for long. It brings out the worst in people, and it becomes more challenging to continue doing that job without losing integrity. You are the company you keep.
I fear some people lose themselves in it. Nonetheless, I deem it important to clarify before I move on: I made some incredible friends there. Not all employees operate that way.
Tips to Save Money on Smartphones
Now that you have a better understanding of the environment you are entering, you can take precautions by following these tips. My purpose in sharing this is to educate you about predatory practices sincerely, arm you with the knowledge you need to defend yourself and get you the best deal on a smartphone. Here are my best tips to save money on smartphones.
1. Understand the Representative’s Work for a Commission
That means they are trained with a script to sell to you. Remember, these are not cellular service representatives as much as they are sales associates whose paychecks depend on your commission. Go armed with that knowledge and research products so they don’t mislead you. The carrier’s customer service phone representatives also work for commission.
2. Shop for Phones Before Visiting the Cellular Store
Buying a cell phone doesn’t have to mean financing it for 24 months through your cellular carrier, but many people default to that practice without doing the slightest research. Sometimes, you can find significantly better deals than at the carrier store.
I realize that not everyone has $1,000+ to spend on their smartphone upfront. They are faced with two decisions: buy an affordable alternative while saving up cash for their desired upgrade or finance it and pay for it for two years. One is the better financial decision. The latter is more American.
3. Buy Accessories on Amazon Before Purchasing Phones
Don’t be fooled by the sales pitch regarding phone cases and glass protective screens for your phone “bundles.” They might even say, “Don’t buy cheap ones on Amazon. We’ve seen a ton of phones come in with broken screens.” It was a script; I fell for it, but I have since learned it’s nonsense.
For example, you might pay as much as double for an Otter Box at the store versus on Amazon. If you know you are buying the latest iPhone or Samsung, come prepared with the cases and screen protectors.
If the store refuses to help you apply the screen protector because “it’s a liability,” you can get three in a pack for cheaper than the price of one at the store. You can do it. I will validate a need for them, as I genuinely did process countless insurance claims on broken phones that had no outer protection.
4. Don’t Fall for Zero Percent Financing
Remember, just because it’s zero-percent financing doesn’t mean it’s financially sound to add all the extras. Three dollars on the case, two on the screen protector, and five on a wireless charger quickly evolve into another $10 monthly debt per line.
That’s how you inflate your bill and have no idea how suddenly your four lines of service for $100 cost you $300 monthly. Life happens. You have no idea what the future holds and what creating unnecessary financial obligations for two years might cost you financial headaches later. If you can’t pay for the speakers outright, skip them.
5. Say No to the Free Tablet
New activation lines are the highest-paying commission and the ultimate goal of every associate helping you. It’s what’s being drilled down the line from the district managers. One way reps can achieve that with already established customers is by offering free tablets.
The tablet technically does not add a finance payment to your bill, but you will see an additional line of service on your bill for at least two years when you can safely cancel it.
It’s crucial to understand that cellular companies’ ‘no contract’ approach can be misleading. If you decide to cancel the line of service early, you’ll still be liable for the tablet. The same applies if you switch carriers and still have outstanding device payments. Additionally, most of the ‘free’ tablets are of lower quality. Countless people attempt to return them without success.
6. Don’t Insure Phones That Are $300 and Under
Many insurance add-ons are absolute financial scams, and insuring a cell phone that costs $300 or less is one of them. The deductible on a claim can be $75-$250, making the insurance a complete waste of money, especially considering you’ll be given a refurbished replacement phone that may have its own issues. I’ve witnessed it a handful of times.
7. Drop Insurance on High-End Phones After Six Months
Warranty phones are also usually refurbished on brand-name devices. The only time you might see a new device replacement is if the phone is defective from the start.
Say your phone payment is $30 (average), and your insurance is $15; that’s $270 in six months. You’ll still need to pay $175-$250 for higher-end device deductibles and be given a refurbished phone that does not hold the same value as what’s left financed on your device.
If your financial health is such that you do not need insurance on the phone, don’t add it. Still, always put a case and screen protector on it. Apple and Samsung’s standard device warranties cover hardware defects for a year. If you relentlessly drop your phone and refuse to replace protectors, I’m not talking to you.
8. Ask for an Itemized Breakdown of Your Bill and Keep It as Insurance
Ensure you know precisely how much your monthly bill will be before leaving the store. That way, there are no surprises, and you have insurance if the sales rep working with you is one of the shady ones engaging in unethical practices to pad their commission checks.
Please don’t fall for them telling you they can’t give you exact numbers. They know how to calculate the bill. Depending on your carrier, they may not correctly account for taxes, but the carrier I worked for was “no fees, no taxes.”
Dealing with round numbers makes it simple to give you an accurate monthly bill expectation. If you don’t listen to me and add cases, headphones, PopSockets, charging cords, and speakers to your bill without securing this information, you’re in for a rude awakening when you get your first bill (and it will be too late).
9. Set Up Autopay
Set up autopay to enjoy discount benefits monthly and add this fixed expense to your budget. The autopay discount for the carrier I was employed with was $5 per line. So, for a family of four, that’s $20 monthly or $240 annually. After they’ve given you written clarification of your bill’s breakdown, agree to set up autopay to save significant money.
10. Check Your First Cell Phone Bill
As previously noted, this field attracts an unfortunate number of shady people. Some associates take no issue with adding insurance to cell phone lines without even asking the customers they sign up. The reality is that many people don’t look at their bills and might not notice for a while why their bills are higher than they thought they would be.
Where I worked, if something was activated for three months, you (the representative) could not receive a chargeback. This means that after three months, the thieving employee was paid a commission for the insurance and would not lose the money made when you canceled it.
Customer care will often reverse those charges within the first three months, and I’ve heard a couple of representatives use that reasoning to justify this unethical practice.
11. Pay Your Bill Online
Avoid predatory sales practices by paying your bill online or in the app. You can also pay by calling customer service if you need to set up payment arrangements, but that may be doable in the app, depending on the carrier. Remember, if you’re only paying your bill, you are costing them a door swing, and you may find yourself caught up in a sales plan to get you to spend more or increase your bill by adding more accessories.
12. Prioritize Anything Financed as Debt
If you’re in a jam and feel you have no other option but to finance the case and screen protector, prioritize that debt as debt to pay off in your budget. Your cell phone bill is typically a fixed expense; you want to keep those payments as low as possible.
If you finance a $100 bundle, aim to pay it off the bill the following month. You must clarify that for the representative who collects the payment; otherwise, they will apply it to your bill, not the financed balance. Keep your wireless service bill payments to the cost of service only.
The Bottom Line
Wireless stores have predatory sales practices due to wielding pressure to meet sales performance goals from district and store managers. Unfortunately, it leads to dealing with some dishonest people who see you as nothing more than their commission check. These tips to save money on smartphones will also help guard you against unethical business tactics.
Elizabeth Ervin helps people embrace a change in money mindset to achieve their financial goals. After struggling for a decade as a single mother, consumed by the American debt cycle, she recognizes the value of financial education and lifestyle changes and aspires to motivate others to make those changes to obtain financial freedom. She heavily advocates for praying about and over your finances and speaking positive money affirmations to manifest abundance.