Can Customers Profit with Best Buy’s New Program?

According to Forbes, customers buying smartphones at a promotional price-or even free with a two-year agreement-can turn a profit under Best Buy's new buy-back program.

After rumors swirled last week about Best Buy Company, Inc., initiating a new buy-back program, the company officially announced the launch on Monday, prompting new rumors that customers can turn a profit under the program.

The program allows customers to sell back devices, including laptops, netbooks, tablets, mobile phones, and televisions. Customers will initially have to pay $69.99 to get into the program and will receive Best Buy gift cards in exchange for their used products.

The products can be returned up to two years after the purchase with the exception of televisions, which can be sold back up to four years after purchase.

According to Forbes, customers can actually turn a profit when using the program to sell back mobile phones-and Best Buy is aware of the loophole.

This is how it works: Customers purchase a mobile phone at a promotional price-or even free with a two-year agreement-and opt into the company's buy-back program. Under the program, the customer is credited for the full retail price of the phone. Therefore, even after the customer pays an early termination fee and the opt-in program fee, they can still turn a profit by selling back the phone for 50 percent of the retail price.

Steve Pieper, the finance director for Best Buy Mobile, told Forbes that people can profit “a very small percentage of the time,” and doesn't expect many customers to do so because “it would be a lot of hoops to go through.”

To read more in Forbes, click here.