Phone pricing.

[Evole]

Hi,

Im trying to add an iphone 11 to my account. When i look at the phone it is saying the price is $30 a month. down from $36 a month. But when i go to check out it is now $40 a month.

I presume there is a credit on each bill that takes the price down from 36 to 30?

The next thing is why are they adding tax on to the monthly price on the phone, and then taxing it again for the phone + plan. its turning a $720 dollar phone into $960 phone. I could buy cheaper directly from apple??

Evole

[Evole]

Thanks Cawtau,

Might i recommend you guys talk to someone to make the website reflect all this a little more clearly? It appears this question does get asked quite a bit.

Something a long the lines of what you have shown. but also include showing the taxes on the phone seperately aswell?

Thanks,

Evole.

[Cawtau]

Hello again,

  I don't actually work for Fido, but perhaps @FidoSolutions could pass your suggestion along.

Cheers

[Cawtau]

Hello Evole,

  Welcome to the community!

  It's a common misconception that the monthly cost of the phone was reduced. However, that was technically not the case. The device cost shown on the website was calcuated after bill credit. The monthly cost of the phone remained the same but customers were getting a credit on their bill to offset the cost of the phone.

  Without knowing further details, assume your plan for services cost $50 and you lived in an area with 10% taxes for easy math:

Monthly plan $50

Monthly discount $6.46

Subtotal: $43.54

Subtotal including taxes: $47.89

Monthly phone financing payment: $40.11 (including taxes)

Your regular monthly costs would be: $47.89 + $40.11 = $88

  Note that would be the same total cost if the monthly financing payment was $30 as advertised after bill credit. That is, $50 + $30 = $80. With taxes, it would be $88. As mentioned above, that advertised after bill credit cost is calculated and not the actual monthly financing cost.

  I don't think they are charging double taxes. Yes, the provide the monthly payment for device financing with taxes. However when they provide the summary, the taxes are only on the monthly plan for services. As you note, the monthly installments they show already includes taxes. I provided an explanation of their breakdown here.

  If you do the math, I think you'll also note that the taxes are only charged once for the device financing and once for services.

Hope this helps 😀

Cheers