Friday, June 25, 2010

It's not the price of the phone

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With the iPhone 4 just released I'm reminded of buying my first iPhone. I was not much of a cell phone user. My goal was 24 hour anywhere net access. So when I was contemplating (read: trying to talk myself out of the purchase) buying the phone I was really looking at going from ZERO dollars per month to $80.

The price of the phone was nil compared to the two year contract/commitment I had to make.

This post from Seth Godin brings up that exact point. It's not the $195 price tag on the phone, it's the $2400 service agreement.

Seth goes on to cite other examples of the hidden and not so hidden costs of buying and selling. I think it's a really thoughtful essay and well worth reading.
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