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why Koodo is charging more than retail price for Pixel 4a

  • 10 September 2020
  • 6 replies
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Pixel 4a is sold by Google at 479 CAD and Koodo is charging a retail price of 540 CAD (480 Tab + 60 Tab discount). How can you sell a phone for more than it retail price on  2 year commitment plan/contract,

it should be on $15 Tab and not $20 Tab !!

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Best answer by nim4165 10 September 2020, 20:29

Does Google allow you to spread your payments over 24 months with no interest? You are being offered an opportunity to spread your payments with an effective price ($480) which is similar to Google’s.  

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Userlevel 7

Does Google allow you to spread your payments over 24 months with no interest? You are being offered an opportunity to spread your payments with an effective price ($480) which is similar to Google’s.  

Does Google allow you to spread your payments over 24 months with no interest? You are being offered an opportunity to spread your payments with an effective price ($480) which is similar to Google’s.  

Does Google puts you into a 2 years contract earning profit on your monthly service bills..No right so why would Google offer any discount or installment, it should be service providers offering you discounted device and installment. And for your information Koodo offer discount on devices I am surprised how you are unaware of this, I am questioning this why no discount on Pixel 4a.

Userlevel 7
Badge +4

I think the short answer to the question is “Because they can”. Fido is doing the same with the pixel 4a at $560 https://www.fido.ca/phones/google-pixel-4a?flowType=nac&colour=black&storage=128gb&tierType=financing

Carriers aren’t in phone selling business, they want to sell cellular plans with subsidized device. If customers are looking to buy at retail price, they should buy directly from the manufacturer of the device.

Userlevel 7

Quick google check. Both Rogers and Bell charge $480 spread over 24 months. Bell even advertise the device full price as $560. There is high demand for this new phone and the mobile companies match the price to the demand like in any other market.

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I’m not going to mince my words.  I abhor what the carriers have done with these artificially inflated phone prices.

The carriers have all gotten creative.  Since the elimination of contracts and only needing to pay back the price of the phone, carriers now inflate the price, then discount it when you buy the phone on tab.  But if you decide to leave, then not only do you pay back any remaining tab on the (discounted but really the retail) price, they make you pay back the discount amount of the inflated price. 

This in fact turns tabs from all carriers into contracts that become very prohibitive to break (contrary to the objectives of the Wireless Code), thus locking customers in with fictitious debt.  Kind of like human traffickers. 

The Google Pixel 4a, 4a5g and 5 are all relatively new phones.

TL;DR best to wait if you want a good deal, else buy at MSRP from Google.

The simple strategy here is to either*

  1. Buy with cash-upfront from the Google store and use a decent BYOPhone plan 
  2. Wait for the device to have more availability and be part a “incentivized-campaign” to sell more phones.

Just FYI, the the 4a is sold-out at the Google store Canada. Pixel 4a 5g and Pixel 5 are still on pre-order. Generally, Google has done a poor job of pre-stocking with their makers (LG or HTC for 1stgen, others after that) because they had poor predictions of demand. Pixel 3s were overstocked and had some amazing deals for a Pixel 3XL near end-of-life (2 year contract, 24 x 10 dollars a month for phone with a 65 dollar data plan).

My gut feeling is that they (Google) did a safer strategy this time around with “test volume” for Q4 2020 with their manufacturers Foxconn.  They are likely going to ramp up stock for the phone if 4a/4a5g/5 do well this year. Currently, they simply don’t have the volume available for a discounted campaign for Canadian carriers to push. Possibly next year or perhaps just before Christmas they will be pushing orders.

Hope that helps others make an informed decisions.