How the heck can Plusnet justify this - talk about a loss leader

[#1]

[#2]

12 month free + £50 cash back 

[#3]

At first glance it looks too good to be true but:
18 month contract so actually they 'make' 6 x £9.99 over the 18 month period = £59.99 (less the £50 cashback of course = £9.99 for 18 months), looks a great deal on the face of it.
Now factor in the line rental that you must take to get the deal £15.95 x 18 months = £287.10 so the real total is £297.09 for broadband + line rental or £16.50 per month.
I bet you could find separate line rental and broadband as cheap elsewhere (the line rental being the difficult part but it's still possible to find it for a lot less than £15.95/month).
This type of advertising annoys many existing customers because it appears like Plusnet are giving the world to new customers but it's usually an effective way of increasing customer numbers.
Note, a certain number of people taking this offer will change product (fibre upgrade being a prime example) and therefore potentially loose part of the 'discount'.
I'd still love to see Plusnet spread the discount/cashback/marketing fund among all customers and advertise along the lines of 'ALL our customers get the same GREAT deal', I believe that this would not only attract customers but would keep more as well.

[#4]

you can of course still take the LRS

[#5]

Yes, but Plusnet LRS is no longer the great deal it once was (slightly better if you're still rolling on the old LRS).
The point is that Plusnet, along with the majority of providers, clearly make most of their money on line rental charges one way or another.

[#6]

Actually I need to check on that as I am on the old LRS - with Evening and Weekend Calls - but with Anytime as well
I can't actually see what my present renewal prices are as it may be worth me switching to the new one
I did look at dropping to LRS E&W only but it is very marginal given that my better half tends to phone during the day

[#7]

Quote from: w23

make most of their money on line rental

Something that if Ofcom has any teeth they'd do something about!  It seems fairly clear that line rental & voice services are subsidising the cost of broadband (you only have to look at the wholesale costs to see the disparity) so this unfairly penalises customers, primarily of BT Retail, who don't need broadband...

[#8]

Quote from: pwatson

unfairly penalises customers, primarily of BT Retail, who don't need broadband...

But there's nothing stopping them going elsewhere, e.g. Madasafish@ £11.99, Post Office @ £12.00/month with LRS, Zen @ £12.30/month with rolling monthly contract, all reputable enough for phone services, I'm sure there will be plenty of others too.

[#9]

With all the issues they have with Cashback, one would think they'd just discount the price...
2 Year deal...
Free Bb for 12 months, then £X there after
Phone £2 off per month for 24 months.
Simples, no messy emails, clear offer, no small print...

[#10]

Quote from: w23

But there's nothing stopping them going elsewhere

You mean apart from the £2/month surcharge?

[#11]

Surcharge?  For users who don't need broadband?