They're joining a very competitive niche, so people wonder why they wouldn't set competitive prices.
(PRWEB) October 16, 2013
Wal-Mart announced Tuesday that it will offer a trade-in program for smartphones, offering customers up to $300 in credit for their old devices. The trade-in program will be available at all Wal-Mart and Sam's Club stores according to a CNN Monday article "Wal-Mart launches smartphone trade-in program ahead of new iPhone."
However, the values offered for used phones are not the best on the market, according to CNN (09.10.2013). Wal-Mart's price for an iPhone 5 is beat out by competitors Target, Gazelle and Apple.
Jason Hennessey, co-founder of marketing firm EverSpark Interactive, says there is a strategy behind Wal-Mart's program – and that the low values are part of it.
“They're joining a very competitive niche, so people wonder why they wouldn't set competitive prices,” Hennessey said. “But there's a Wal-Mart in every town. They are relying on accessibility.”
That accessibility could be a crucial advantage in an age when consumers often seek to trade in their phones before their contract has expired.
“There's a new generation of your favorite phone available yearly,” Hennessey said, “No one wants to just throw away their last investment, but holding onto one phone for two years isn't always feasible.”
Hennessey says that's why trade-in programs are a growing market, and why consumers don't always seek out the best value.
Because of its wide customer base, Hennessey says Wal-Mart's program will likely succeed – and maybe even put new devices in the hands of people who otherwise wouldn't get them.
“People who wouldn't necessarily drive to an Apple store are at Wal-Mart every week,” he said.
EverSpark Interactive is an all-in-one SEO, marketing and online media firm that specializes in creating gripping, keyword-laden copy that will attract attention from both search engines and live customers. The company can be reached at (770) 481-1766.