How do you know when it’s a good time to switch to a new mobile phone deal? Should you stick with the same network provider? And most importantly, how can you squeeze the maximum amount of savings out of your new deal?
Save without Switching Networks
If you already own a contract phone and your contract is coming to an end, you’ve got a powerful bargaining tool. Your mobile phone company doesn’t want to lose your business, and you’ve got nothing to lose by asking them to give you a great deal to tempt you into staying. Tell them you want to stick with them for a new contract, but will have to leave if they can’t offer you the deal you want.
Most network providers are willing to bend over backwards to retain their customers, simply because the mobile phone market is reaching maturity, and customer retention has now become more important than obtaining new customers. They might say no, but if you’re planning to switch networks anyway, you have nothing to lose. Just remember to try bargaining shortly before your contract expires, to give you maximum bargaining power. If they do say no and you’re not really sure you want to cancel, just tell them that you’ll think about it and call them back. Easy!
Switching Networks when your Existing Contract is Still Running
If you’re switching networks and still have an earlier contract running, there’s not much you can do. You can’t cancel the contract, and will have to pay the monthly fee till it runs out. You can save on monthly fees, however, by reducing your package to the lowest possible tariff.
Getting the Best Deal on a New Contract
In the long term, the factor that affects the costs of operating a mobile phone more than anything else is the tariff you pay. Finding the cheapest tariff that gives you the features you want will allow you to save the most. This applies to pretty much every mobile phone user—the only exceptions are people who use them very infrequently.
With this in mind, it’s important to ignore the distraction of cash-back deals, and to ignore the temptation to buy a particular model of phone just because it looks good. Cash-back deals are unreliable, and that cool-looking phone most likely comes with a high tariff that’s going to cost you plenty in the long term.
Once you’ve sorted out the tariff you want, it’s simply a matter of finding the best combination of discounts to give you the cheapest overall price. The huge variety of discounts available means that each network offers virtually the same tariff at very different prices.
Not all discounts are created equal, however. There are three main types:
- Reduction in your monthly fee (for example, you might pay half price for the first three to six months)
- Cash-back deals (notoriously difficult to claim—if you get a cash-back deal, read the terms and conditions thoroughly and call the cash-back company if there are any aspects you’re unsure of)
- Automatic cash-back deals (easier to claim, as you receive a cheque automatically, but they pay less than a non-automatic deal)
Don’t forget that the tariff is the most important aspect of the whole deal—always let the tariff be your guide to maximize your savings.
