Why does the same product cost so much less from mobiles.co.uk

[Dubz]

Hi,

I'm due a phone upgrade and i'm looking at the iPhone 8. I checked the options on the O2 site and the best offer was about £37 per month over 36 months, total cost £1332. I can reduce the term to 24 months and pay £150 up front and it comes down to £39 per month, total cost £1086.

From mobiles.co.uk I can get the same phone and contract with O2 for £150 up front and £24 per month over 24 months, total cost £726.

I can't really fathom how the exact same product costs £360 more when i buy it through O2. I called customer services to see if they could do a better deal but they can't, the guy just told me about how O2 have the overheads of network and customer service etc etc. But i'm buying a contract from O2 so it's using their network and their customer services right??! 

Basically it seems i'm paying extra for the luxury of a refresh contract which yields me no apparent benefit since i don't regularly upgrade my phone or make changes to my contract. Is that right? The deal from mobiles.co.uk just seems to good to be true given how expensive O2 is?!

Cheers

Dave 

[MI5]

Yeah as I think open is a max of 20%

[pgn]

Up to 40% if you happen to be in the teaching profession, @MI5:

https://www.cable.co.uk/news/o2-offers-teachers-up-to-a-40-discount-on-refresh-phone-plans-700002553...

And O2 are still pushing O2 Priority as one of the perks, although you get that with any O2 phone, regardless of whether COntract from O2 or from 3rd party, or even PAYG.

[MI5]

Yeah, but it's pants though!

[pgn]

That's putting it mildly, yes!

[gmarkj]

I completely understand your confusion @Dubz.
o2's pricing policy does not follow any conventional logic - no doubt they would have some reasoning for it, but nothing that any customers would understand.
Ultimately it comes down to what is the best deal for you - if, as mentioned by others, you are able to access any of the discounts that o2 offers and that matches or beats the offer from mobiles.co.uk then I would suggest taking that (as you at least have the option of paying off the contract).
If not, then mobiles it is!
Some words of advice: if you do go the 3rd party route, make sure you have paid off the last month of whatever contract you currently have. o2 will not transfer you number across until it shows as paid.
Also, when you do need to transfer make sure you call the customer services team rather than use chat.
Other than that, good luck and welcome to the community!

[davethorp]

It’s the same for most of the major networks with 3rd party stores often having the better deals

It does defy logic as buying direct from a network cuts out the middleman so that saving should be passed onto the consumer but it isn’t and in fact the opposite is true

O2 will of course argue that you miss out on benefits such as O2 refresh and flexible plans by not going direct. If those features do not hold value to you then its a no brainier and you should go for the cheapest deal

[jonsie]

Changing suppliers is the very essence of our disposable income today. Gas and electricity, tv, broadband so why not phone suppliers. Advantages and disadvantages to any supplier and the onus is on ourselves to opt for the best deal to suit our income.