Peanuts to Profits With Thor Schrock
Peanuts to Profits With Thor Schrock

Remember the gold old days when you could get a free computer as long as you agreed to pay a monthly dial-up provider like AOL $30 a month for slow, overpriced Internet access?

Well grab your credit cards and put on your bifocals! The deal has returned courtesy of Best Buy and Sprint, but this time the screen is a bit smaller.

ZDNet is reporting that the two companies are partnering to offer a Compaq-branded HP Mini 110c netbook for only 99 cents when you sign a two-year 3G Internet contract.

These free computer offers are REALLY tempting because consumers in a recession-battered economy get what they want right now – a new computer – by signing a promise to give more money later.

Breaking Down the Numbers

Under this deal, you get the $389 retail value netbook for only $.99. The contract costs about $60 a month, so if you multiply that by 24 months, you would find that the contract will cost you $1,441 over its two year term.

Obviously the Sprint 3G connection is portable, so you are paying a price premium on your Internet connection to be able to take it with you anywhere you go. Additionally, there are limits to how much Internet connectivity you can use before additional charges get lumped in.

For the sake of comparison, the cost for you to buy this netbook and use it on a budget cable modem or DSL connection would be much, much less expensive.

Try $20 a month for the DSL Internet connection and $389 for the netbook. The total cost over 2 years is only $869 – a savings of $572 over two years (nearly $24 a month).

A new commercial questions the quality of Geek Squad’s technicians by highlighting their willingness to hire warm bodies over qualified technicians.