why is the prepaid phone extra money?

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  • Updated 4 years ago
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The nexus 5 is 350$ under phones, but under prepaid it's 500$. Why is it so much more? And can't I just buy the phone from google and get a koodo simcard?
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Geoffrey Norton

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Posted 4 years ago

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Curtules

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I think it's because Koodo makes more money on monthly plans than prepaid so they're trying to make it more attractive.

But yeah, you can buy the phone from Google directly.
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Daniel Gunn

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Most devices tend to be more expensive on prepaid due to having to buy the phone outright, while the ones on subsidy tend to be a bit cheaper, same thing goes for the Moto G, it's $150 on postpaid but $200 on prepaid. If you wanted to buy it directly from Google that would be entirely your choice, it would be easier that way cause you could save $150. Just a thought.
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Jake

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Also, if you want the Nexus 5 32GB version, then you're kind of stuck with buying from Google Play, since Koodo only sells the 16GB version.
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Ahmad

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You are certainly more than free to purchase it from Google and use a koodo sim card with it
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John Lee

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It's because recently in the past, a lot of people have been purchasing phones from Koodo Prepaid since they were cheap and then instead of activating a Prepaid account, they would unlock and go to another carrier/use it for something else. Obviously this isn't right but it's not fair for Prepaid customers who genuinely just want to purchase a device and use it with Koodo Prepaid.
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Ivan, Mobile Master

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I disagree. People buy the phone outright and it's their property - meaning that they're free to unlock and take it elsewhere if they so choose.

People can still buy outright on a monthly plan and cancel immediately, making the phone cost still much cheaper than prepaid.

It'd be simpler if the prepaid cost of the phone was only slightly more expensive (say monthly outright price + cheapest monthly plan).
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Jake

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According to the Koodo website, both the prepaid and postpaid versions of this phone can only be purchased in-store, not online.

But when you go into a store (for example Black's Photography, which is now owned by Telus) you only see the one price - $350 for the 16GB model, and not $500.

So in theory, there's nothing stopping you from buying one at the store and not being forced to activate then and there (especially if you can show them you already have an active prepaid SIM with Koodo).
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Sophia, Mobile Master

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Yes Jake, exactly. That is why this artificial gap between postpaid and prepaid prices is so ridiculous... as Ivan said a reasonable amount is not (too) objectionable, say $50 on top of the postpaid price to cover the potential loss. But $150 difference on a $350 phone is sheer madness, imo.

Edit: and don't even get me started on the lack of quality phones in the prepaid section, GRR!!! Not even the Moto G can be bought on prepaid!
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Grover

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Hey Guys – great feedback.

John Lee is absolutely correct. In the past we have seen a very high “walk away” rate on certain devices when sold on prepaid. There is a premium on most prepaid devices for this reason. One thing to remember is that the prepaid price is tied to the price of a device when it is off promotion. This price is often higher than what you see in market at times like this.

The higher prepaid price is definitely not meant to disadvantage our prepaid customers – it is more of a business necessity. Prepaid customers can also bring their own device and activate at Koodo to avoid paying a premium.

Cheers,

KM
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Jake

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Grover,

Just wondering if it still makes sense for the price of a prepaid N5 to be $500 when Google Play sells it for $349.99?

Also, if the N5 is not available online and can only be purchased at a bricks and mortar store, then why is only the $350 price given (I was in a store a few days ago, and that was the only price listed, not the $500).

Thanks.

J
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Jake

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@John - that's a fair point, and it may have been in the case back when the N5 first came out and Koodo first started to offer it for sale.

But given that you can now buy the 16GB N5 directly from Google for $349.99 and the 32GB N5 for $399.99, it just doesn't make sense any more.
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Beth Standen

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I saw the Koodo Moto G prepaid phone on sale for $130 this week at Walmart.
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Grover

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For those asking about the Nexus 5 specifically - the prepaid price dropped today to $450. A move in the right direction!
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Sophia, Mobile Master

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A small move - but a good one :D Thanks Grover!
Try to coax Koodo into dropping it another $50 and it would be perfect :D
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Don Blacklock

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This still doesn't make sense, with no contract I can walk away with a monthly plan too. I'm looking at a $200 difference with G3 monthly vs prepaid. Would the monthly phone not work as a prepaid?
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Sophia, Mobile Master

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Yes it would Don, and that is what people do now. They take the cheapest plan for a month, then port over to prepaid and still have the phone cheaper that way.

That is why several of us complained to Koodo about this crazy arrangement, and with you (and others) adding their voices hopefully we can make ourselves heard :)

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