T-Mobile changes dealer compensation

Per a recent post on “X” (Twitter), T-Mobile has (as they store owner put it) Reinvented Payment Terms.

Dealer comp has changed from providing 100% first month to 60%, dropping down to 25%.

But, as the dealer points out, their expenses (rent, payrolls, operating expenses) still operate under the old-fashioned expectation of being paid in full and on-time.

Quirky, right? I tried explaining to my landlord and the utility companies about our innovative slow release payment plan, suggesting we spread this month’s due over the next year. Oddly, they seemed uninterested in being avant-garde financial pioneers.

In addition, dealer compensation is now retention of pay over 12 months.

To quote this dealer:

Nothing says “We value you” quite like holding back what one has earned, essentially giving a whole new meaning to “deferred gratification”. It’s a bold move, turning payroll into a long-term savings plan we never asked for. Who needs cash flow when you can have a financial trickle, right?

The post was signed, A very concern Authorized Retailer, and of course all retailers (as well as NWIDA) are concerned over these changes.