The ‘Cheap’ iPhone Scam (Factory Price My Ass)
Lately, i’ve been spotting Ads on Instagram reviewed by some popular kids posting about some IG shops selling cheap iPhone6 and other apple products. Now, logically speaking, how many times have you seen an Apple store selling a new product at a discounted price? That’s right, the answer is ‘Never’. So why is it these shops can sell you the phones at 15% – 20% below market value. Well their claim is that they buy it directly from the factory..
What do you think?
Suddenly, this reminded me of a scam that happened during my teenage years.. and though that was some 15 years ago, i remember it quite clearly in my mind.
There was a syndicate back then, claiming that they can get phones tax free and therefore sold phones at a cheaper price. A lot of people started buying from them as they were actually getting stocks for the discounted price. The scam only unfolded only when people got greedy, thinking that they could buy these phones in bulk and then sell them and still make money. This is how it works.
The scammer sells a product (let’s say it’s an iPhone6, 64GBs) at RM 2,400.00 (Shelf price RM 2,700.00) and about 5 people buy’s the phone from them. They will buy the phone at RM 2,700.00 and sell at RM 2,400.00 which means they loose RM 300.00 per phone. By selling 5 Phones, they loose RM 1,500.00. Then they advertise by giving a famous instagrammer 1 phone to get publicity. Now their loss is RM 1,500.00 + RM 2,700.00. But they have gained first of all 5 Testimonials and also 1 famous review on Instagram for RM 4,200.00
Their next step is to take orders. You will notice that there is no COD in this business and no payment of deposit. You have to order and pay up-front. Let’s say because of their marketing strategy, they receive 20 orders this time. At this point, it’s up to the scammers if this is enough of profit or not. For example, 20 X RM 2,400.00 = RM 48,000.00 and at this point they can just disappear with the money and make a clean profit of about RM 40,000.00
The people who suffer from this scam would be :
- The people who saved up RM 2,400.00 just to buy an iPhone and got scammed
- The people who reviewed that post for a Free iPhone (Credibility Lost)
- The people who gave testimony on receiving their iPhone from the seller
Now my friends, i know most of you who are planning to buy an iPhone or has been saving up for one, would get super excited when you see a deal like this and this clouds your judgement but please… think twice before you pay full amount for a product in which the seller does not allow COD (Cash On Delivery) or pickup of product from shop.
There are a lot of scammers out there and i chose to write this post today because i don’t want YOU to be the one Scammed.
And to the Instagram reviewers, please be careful of what you review. Thankfully, one of my company’s #ParanormalMY reviewers came and ask me whether it’s ok to review something like this and thankfully i’m aware of things like these. Imagine if her 200+ Thousand followers would have seen her Ad and bought an iPhone from that seller. We never know what could have happened.
Remember, it’s ok to make money from Reviewing products and services, but you have to consider the credibility of the brand or business and how it might effect your followers.
Have a great 2015 and hopefully i’ll have a bit more time to blog some interesting things in 2015.
Take care, – MB