BuyBack Guarantee is NOT A Smart Decision! Here is Why?

Flipkart, Amazon, the more I talk the more I feel sceptical about these corporations. Come on, they have such weird policies, cashback schemes, bank offer, discount coupon, exchange offers and the recent one, buyback guarantee. I mean, what is that thing? What kind of proposal is that? Is this a brand-new lollipop to lure the customer or an actual lollipop that may taste delicious? What do you prefer because I’m on the safe side here, I don’t like a lollipop?

What they say

They say that this is a golden opportunity for you because with a mere 100 to 1000 bucks you can assure your new smartphone to be purchased back by Flipkart on a fixed price. So, here is how it works:

1. You purchase a smartphone
2. Add a buyback guarantee scheme
3. Wait for 8-12 months 
4. Buy a new smartphone
5. Claim your buyback guarantee
6. Get a fixed discount
7. Return the old phone
8. You have a new expensive phone at a less expensive price; Voila
9. Brag about this exclusive deal to your friends

Trust me, I’m not saying this, this is what I could gather from their website. At first, this amazing deal looked awesome to me but then the light came and I started writing.

This is what I say

There are few major points that the deal doesn’t cover and that is money. They did a huge effort to make the customer understand the benefit of this deal but it seems like their own Ad campaign lacks clarity. I’m not against any marketing strategy at all, but there could have been a better advertisement. I’m just saying.

Let’s do the math first. Let’s say in a hypothetical situation you buy a hypothetical smartphone that is worth 30k, and with the buyback guarantee, you get a 15k discount in case you buy a new hypothetical smartphone. Now, you bought a new hypothetical smartphone worth 40k and you claim your buyback guarantee and get that 15k awesome discount, so what’s the price you’ll have to pay- Answer 25k. Does it sound like an awesome deal to you? Of course, it is, you have a new hypothetical smartphone that was priced at 40k and you bought it in just 25k. Are you muddled?

Let me point out the flaw

You see, there is one thing they and you both missed. This buyback guarantee is only valid for a certain period of time, which means you’ll have to purchase a new smartphone in 8-12 months. After that time, the buyback guarantee expires.

And that is the problem because you’re bound to purchase a new smartphone even if you don’t want to. Suppose, you’re happy with your smartphone and you don’t want a new one. Suppose, you don’t have enough money to buy a new smartphone. You can’t gamble your way out of this, this deal is limited, it will expire, you have to buy a new smartphone or that awesome five-digit discount will vanish in thin air.

So, how many options you’re left with? Have you ever questioned that? No, you don’t, you just see a charming opportunity to throw your old smartphone and purchase a new one, that’s it.

Why am I saying all this?

The reason I’m saying all this is because I’m frustrated with today’s marketing schemes like exchange policies and buyback guarantee, Yes, I am. Even though I’m their potential customer, I still am. Corporations like Flipkart offers these smart options to the customer. And please don’t call me anything anti, we already have too much anti-whatever in India.

Do you think Amazon and Flipkart in some sort of loss? What happens to your old smartphone when you exchange it? An article published on Businessinsider says that most of the companies directly refurbish the old smartphone and sell them back on their own websites at a minimised cost, some are sold in bulk order to developing countries and only a few are broken down and recycled. So, they are making a profit, by buying a good quality smartphone at 15k and selling back to you at 20k. And I’m not against at it, they are corporation they should make a profit. That is what business means, making a profit from scrap metals.

What I’m against is how they are marketizing it? How they are proposing it? You need to understand that a Smartphone that you have bought is a piece of tech, and jumping from one smartphone to another in a mere 8 months is not going to do any good. This is not a technical generation jump, there is no new tech coming in the market that may or may not revolutionise your smartphone experience, I mean what are you thinking?

Why you should use your tech item for as long as possible?

If any Tech-YouTuber, Smartphone reviewer says that you should change your smartphone within 6 months, do one thing immediately, unsubscribe him/her. That is not the way technology should be, at least the way I understand it. There has to be a certain generation gap between your previous smartphone and your future smartphone, not because there is no innovation or something but because of the return of investment. Use your smartphone at an optimum level.

The hardware upgrade is another factor that plays a vital role in terms of change. First, new hardware is not coming like cats and dogs and second, they are expensive, really expensive. So, wait for a certain time till the hardware is widespread, at least most of the competitors have adopted it. Because that is when you get to know, what is the right kind of investment for you. Don’t fall in the trap of these co-called manufactures, when they say, world first this or world first that. Stick with your idea of a traditional purchase.

 I seriously hope you got something. There is just one request, please be informative when you purchase a new smartphone, do not get blinded by advertisement and marketing strategies. Make your investment worth count.

Also, if you have any suggestion or question please do drop them in the comment section below. That was my time.