IDEA - $30 Upgrade Fee Resolution

[rcschnoor]

Elector wrote:

But that is a continuous tangible savings. These stores allow you to shop with no card. But they tack on 15% or more on your purchases. For my paying that $50 or less to these companies my shown savings amount to 100's of dollars off in savings. I never said WHAT type of savings or whether or not they were continuous. I simply pointed out 3 examples of companies where you PAY the company in order to take advantage of the savings. Nothing has changed.

Now a $30 upgrade fee could be said is saving the customer money. However even though there is a $400-$500 off the device it is not real savings since the customer has a two year contract fir service to actually pay off that device. The $30 fee if you can believe verizon is for tutorial and superior customer service. You don't even get owners manuals in the box today, if you get one its from the web. So the customer can read the manual. And if they are lazy go to a class at one of the cirporate stores. However most customers do not do this, and as this forum can attest Verizons customer service is nothing people can call superior. So the fee should for the sake of everyone just be attached to the price of the device. then all these complaints about upgrade fees will go away.

As to your highlighted statement, IF one company started doing this, the complaints WILL start because the discounted price of their phones ARE more expensive than those of the companies which charge the upgrade fee. You don't think THOSE complaints would start???? You will get complaints either way. Doesn't really matter.

[B33]

Yup. it's there anyway you slice it..

[#3]

Funny I am using a tablet, and its a pain to highlight any text. wonder how that happened?

You did not state it as apples to apples but its actually Apples to Oranges. As I pointed out via paying my fees to BJ's and Sams Club my $50 gets me proof savings. Paying and upgrade fee does not produce tangible beneft of savings. No way to dance around that.

The so called upgrade fee can be removed and incorporated in the subsidize cost of the phone rather than be tacked on as it is now as a seperate fee. Companies do this sneaky tactic all the time. You do realize as an example only, when Staples has a 40% off sale on laptops and accessory purchases you are still not over paying? You are. Believe me I have an account executive at Staples who can attest to it.

In another form of payment no matter what provider it may be yes some pkaces are going to have higher device costs that is how business works. But if that $30,$35 or $38 upgrade fee is inclusive in the phone upgrade (hidden) you should not see all the posts on upgrade fees. but you are correct it would then be whining about the costs of the upgrade devices. You just cannot win  ha

[rcschnoor]

Elector wrote:

Funny I am using a tablet, and its a pain to highlight any text. wonder how that happened?

You did not state it as apples to apples but its actually Apples to Oranges. As I pointed out via paying my fees to BJ's and Sams Club my $50 gets me proof savings. Paying and upgrade fee does not produce tangible beneft of savings. No way to dance around that.

It is STILL paying a fee in order to realize a discount. The poster I was responding to knew of NO examples and I provided some.

As to "paying an upgrade fee does not produce tangible benefit of savings" that is your opinion and not one which I can agree with.

For example, 16 GB iPhone 5s WITH upgrade fee is $229.99. Full retail price is $649.99. Tangible savings of $420 plus tax savings on that $420 in MOST states($33.60 in NY which by itself is greater than the upgrade fee!). EVEN if you were to cancel service the very next day and pay the FULL ETF of $350, you would STILL have a "tangible benefit of savings" of $70. No way to dance around that.

IF someone accepts the discounted price for the phone, at least in THIS case, there IS a savings over paying full retail.

However, in SOME cases there MAY not be a savings. Those would be cases where the DISCOUNT is LOWER than the ETF for the device which is purchased. In cases such as those, I would advise against accepting the discount.

[B33]

Darn Elector you don't have a Mouse thing-a-ma-jig to Run that Tab just kidding.. heck with my Razr I can set into it's HD station and run my R-Max with my mouse that i run my computer with ha ha..

[#6]

No tangible benefit of a savings. If I paid $199.00 for the device (retail costs say $650.00 ) + $30.00 upgrade fee and tax, we will use ours $229.00x 8% =$18.32 wich comes to $247.32 from the full retail $650.00 - $247.32 = $402.68

Now that is the initial savings. However you are locked into a contract for 24 months. which pays off the phone in those two years or more. Now lets use your mindset, I leave and I now owe a $350 etf. so I saved $52.68 overall. But, the phone is not usable any place else (maybe Sprint but I doubt it) so its now a paperweight. No dancing around that.

I understood your examples with the stores. However there is a tangible savings fir the $50 yearly fee. I am not paying 15-20% more on my purchases at Costco, Sams Club or BJ's which for that fee I saved $100's or $1,000's of dollars a year depending on my spending habits. Again you gave examples but not one that relates to the upgrade fees. per se.

[SusanSch]

The comparison to BJ's, Sams etc is disingenuous.  People sign up for these in order to get discounted prices.  And the value of the available discounts is unlimited.  Because of the nature of these businesses, they cannot predict how much an individual will save.

Verizon and other cellphone companies can make such a prediction once a particular phone is chosen.  Why not just tell it like it is, and advertise these upgrades at the real price to consumers.

>

[#8]

ha ha I am sitting next to two tablets (one android and one ipad) I use the Sony Tablet. However I have my two laptops on so on occasion I do just roll around and use them But mostly my tablet.

Numerous spelling errors when I use my virtual keyboard. Very few if on my laptops. I also can use my wifes imac which has a great keyboard or my wifes desktop which is Windows 8 and of course 2 android phones and 1 Apple iphone .

And my lord my gaming system has internet web access. But I just love my tablet. But I cannot uses html tags, or color changes, or animation on this forum with it.

[rcschnoor]

Let's use real numbers here. $247.32 for the cost of discounted phone with tax. $701.99 for the cost of full retail phone with tax. Total savings of 454.67 .

Now THAT is the initial savings. Yes, you are now locked into a contract for 24 months. So, say for some unfathomable reason I leave Verizon immediately. Remember I was ONLY using this as an example that there would STILL be a savings EVEN IF I left immediately. Not really sure WHY someone would sign up only to leave immediately, but we will still show that it exists. $454.67 - $350 = $104.67 which would have been saved overall vs doing the same thing while paying full retail. You are correct that the phone is a paperweight not usable anywhere else THE SAME AS IF IT WAS PURCHASED AT FULL RETAIL. Difference is you have paid  $104.67 LESS than if you purchased it at full retail. No dancing around that. On the bright side, you can sell EITHER of the phones as mint condition on a site such as swappa.com for near retail price. However, there would be no difference in the price received from the discounted phone or the full retail phone.

Now, if you are to continue with Verizon as I would assume MOST would do when actually purchasing a phone, rather it be full retail OR discounted and under contract, the money saved will only INCREASE for each month you complete with the contract.

[rcschnoor]

And people sign contracts with Verizon in order to get discounted prices. Both examples have fees associated with the process. The comparison IS NOT disingenuous. Yes, you have the possibility of getting more of a discount, but BOTH have discounts which come at a cost.

Why don't they just tell it like it is? Because IF one does not do so, then the others who DO are at a disadvantage because people will complain that their phone prices are higher. It is the same result, though, the prices of the phones are higher. Not sure why it bothers people that they are paying $229 for a phone or $199 with a $30 upgrade fee. It IS the same price. If they all charge upgrade fees for discounted phones, everyone is getting complaints for the same reason.