Offer more device choices without needing a lot of extra stock in-store

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I'm aware that this isn't the first time that someone has posted a "more devices" idea. But, maybe this is a new spin on the subject that may be of interest to Koodo.

I don't think that there can be much debate around the fact that Koodo's true competitors (at least where I live), are Fido and Virgin. I don't know what the subscriber base is exactly, but judging by a convenience sample of friends/family, Koodo is dead last (I know that my sample is hardly the gold standard, but anything is better than nothing at this point).

Both Fido and Virgin offer more choice when choosing a new phone. This is something that has been brought up a lot ever since I've joined this community.

I do realize that carrying extra stock comes with an extra cost, but what about the old saying "you've gotta spend money to make money"? So, my idea here is to mitigate the extra cost by offering certain devices "online-only". This can be an effective way to gauge consumer interest in an unproven device. If a device is then proven to be popular enough, Koodo can then seed some of the larger centres with in-store stock.

And before someone else brings up the fact that manufacturers have limits on order numbers, I'm sure that Telus has the purchasing power to secure some special treatment for Koodo.
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Ivan, Mobile Master

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Posted 5 years ago

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Myke

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"Online Only" purchases still require the phone to be stocked in a warehouse, which still presents the extra cost(assuming there is a cost).

I am all for having more of a selection, but it's a simple matter of, we have no idea how it works on the back end ard could be completely missing something, which might be key to this whole entire situation.
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Ivan, Mobile Master

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Of course they require stock in the warehouse, but that's the only place that has to stock them. I think it would be cheaper than sending stock to every store.

Stock the stores with the popular iPhones, Galaxies, BlackBerries and such, and the warehouse with limited stock of the less popular colours, different memory capacities (if applicable), and the HTC, Sony, and Nokia devices.
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Myke

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The stores get the stock from the warehouse, afaik.
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Ivan, Mobile Master

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Yeah, but if you only stock the warehouse with limited stock, then you don't need as much stock as you would need if sending the phones to every store.
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mattjs

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Maybe Apple has a minimum order amount per colour and Koodo is only able to commit to a single order. Although I'm curious if the order to Apple to would even be from Koodo themselves. I'm tempted to think that Telus communications would place the order on behalf of Telus mobility and telus communications. Regardless, Fido & Virgin have both found a way to offer not just multiple colours, but mutiple sizes as well, so it's entirely possible. Maybe Koodo just can't be bothered..?
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Some random Mobile Master, Mobile Master

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I'm going with my gut feeling here, but although I agree with you Ivan, I think it's ultimately Telus that's pulling the strings regarding Koodo's selection. They'd much rather have someone sign up with Telus than with Koodo (ARPU and all that stuff). If they make Koodo just that little bit more appealing, Telus loses on those customers who would otherwise say "But Telus offers me THIS phone, and I want it so much, gimme gimme".

A good example of Telus calling the shots at Koodo is 2012's Galaxy S2X. Not a smashing success or anything special on the Telus lineup. Probably sitting on a lot of unsold stock, unable to move them. What happened? Slash the price in half, send all stock to Koodo and BOOM! The S2X probably was only second to the Ace2X in sales last year for Koodo. They could have done the exact same without sending Koodo all those S2X's, but they probably did not want to admit it was a flop in their lineup and make people think "Hey Telus is finally having a fire sale... Maybe [insert phone model here] will be discounted too in a couple of weeks, I shall wait and see!".

So yeah, that's only my guess. Ultimately, the money ends up in the same pockets and Koodo customers are indirectly Telus customers, but the mothership probably doesn't want to dilute itself too much, hence the weaker selection on Koodo.
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mattjs

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I think you're probably right. Says a lot about how Telus sees Koodo, and the direction Koodo is headed tbh. It's interesting that Rogers and Bell aren't taking this approach with their discount brands, both have the iPhone 5S in multiple colours and sizes, and you can even preorder them. Looks like the days of Koodo being competitive are seemingly gone, it seems they're content to price themselves in line with Virgin & Fido even while offering fewer services/features/selection, in the hope that it turns enough potential customers onto Telus. Risky business.
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Some random Mobile Master, Mobile Master

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Maybe Rogers' and Bell's approach is simply to lock in a maximum number of customers, regardless of who they sign up with (main brand or flanker). Telus' approach is obviously different, and maybe the board of directors likes this better, we don't know for sure.

There is one major thing to consider though: a vast number of people don't even know what they're buying when they're getting a phone. They drop at a kiosk saying they want an iPhone. When asked if they'd want a 4S, 5C or 5S, and the size, these people simply reply "give me the free one" and that's the end of it, so in a sense, Koodo's limited selection maybe only has an impact on the more mobile-educated customers who'd go for the faster/more capacious models. A funny example of how much people don't care is the Nexus4 @ $300. For as long as I can remember the Nexus4 has been $300 at Koodo, while the iPhone4 also was $300. We all know how much better a phone the N4 is compared to the old iP4, yet, people kept posting "I'm interested in the iPhone4".

Anyway! That was my opinion only :P
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John Lee

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I definitely agree. I believe that Telus is holding Koodo back from devices so more consumers would sign up with Telus than Koodo.
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Ivan, Mobile Master

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I'm just saying that customers who are shopping Koodo are more likely to shop Virgin/Fido than Telus. So whatever Telus' reasoning is, I think it's a mistake.
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Some random Mobile Master, Mobile Master

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Completely agreed Ivan! It seems to work well enough for Bell and Rogers.
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delSol97

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Bring your own device in, you get credit on your monthly plan in addition to ...
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Ivan, Mobile Master

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I do bring my own device, but most people don't. Plus the BYOD discount is a pittance compared to a subsidy.

Let's say that I'm a prospective buyer and I want an iPhone 5C on an entry-level smartphone plan.

Option 1 - Virgin: I pay $370 and go on the $45 Gold Plan. I will have spent a total of $1450 before taxes over 2 years.

Option 2 - Koodo: I pay $600 at the Apple store and go on the $40 plan. The BYOD discount reduces my monthly cost to $36. I will have spent a total of $1464 before taxes.

If Koodo offered the desired colour, then it would go like this: $325 for the phone on Tab M, and $45/month. $1405 over 2 years before taxes. BYOD is not a cheaper option.

Again, all I'm doing here is trying to look at this from a potential customer's perspective.
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rikkster, Mobile Master

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Agreed and well put.
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Andy Yue

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agree

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