The C word
A lot of the recent threads have involved discussion of contract renewals, rate plan changes, and the question of when you become eligible for a new phone at discounted pricing. So I’ve decided to pontificate a little bit on this issue.
The claim that a contract would not be necessary if the carrier provided top-notch service is a compelling argument. And this is exactly how it works for many consumers. There are in fact thousands of customers at VZW and other carriers who are out of contract and quite satisfied with their service. They continue their service with the same carrier, without a contract term, precisely because they are satisfied with their service and see no reason to jump ship. Some of these customers continue without a con...
(continues)
The claim that a contract would not be necessary if the carrier provided top-notch service is a compelling argument. And this is exactly how it works for many consumers. There are in fact thousands of customers at VZW and other carriers who are out of contract and quite satisfied with their service. They continue their service with the same carrier, without a contract term, precisely because they are satisfied with their service and see no reason to jump ship. Some of these customers continue without a con...
(continues)
...
Verry well said. And with that said, I feel you explained it very good where most people can understand how the system works.
But, I will still stay month to month after feburary. Even though as you say it is still a contract, it is so as I am willing to pay for it, I am free to do as I wish. I dont know if I have explained this or not, but having the freedom to shut service down if I need to is not the only thing that I want by not being under contract, I also have the freedom to buy a new phone and not hear the words that you are not eligible yet, and yes, I realize that I can buy a phone at retail even if I am under contract, but, it is a mind over matter deal, I dont want to pay retail for a phone and still be under a contract, if ...
(continues)
But, I will still stay month to month after feburary. Even though as you say it is still a contract, it is so as I am willing to pay for it, I am free to do as I wish. I dont know if I have explained this or not, but having the freedom to shut service down if I need to is not the only thing that I want by not being under contract, I also have the freedom to buy a new phone and not hear the words that you are not eligible yet, and yes, I realize that I can buy a phone at retail even if I am under contract, but, it is a mind over matter deal, I dont want to pay retail for a phone and still be under a contract, if ...
(continues)
...
I know the way the system works now; the cellular companies need to have you sign a one or two year contract to subsidize the cost of the phone--such as giving you a $200 phone for $69. Then they have plans like NE2 where you can get a new phone at a highly discounted price after 22 months, but must sign another contract.
Why not just give users credits toward new phones based on usage, which they can use at any time? For example, for every $10 you spend, you get $1 toward the cost of a new phone, which you can opt to get at any time. Most of us hate to wait 2 years to get a new phone. Why not reward heavy users (high revenue customers, as well as everyone else), kinda like a rewards program. For example, if after one year, if you have...
(continues)
Why not just give users credits toward new phones based on usage, which they can use at any time? For example, for every $10 you spend, you get $1 toward the cost of a new phone, which you can opt to get at any time. Most of us hate to wait 2 years to get a new phone. Why not reward heavy users (high revenue customers, as well as everyone else), kinda like a rewards program. For example, if after one year, if you have...
(continues)
...
Not a bad idea. Something like this may be implemented at some point. At least one market is examining the idea of a "scaled" New Every Two discount.
As I commented in a post from a couple weeks ago, the basic concept is this: the discount you get on a cell phone is a function of two variables. One is the amount of revenue generated by your account, and the other is the amount of time since you last received a discount.
Customer service reps already have some flexibility to allow some discounts, even if you are technically "not eligible." See my new post on early upgrades.
Bear
As I commented in a post from a couple weeks ago, the basic concept is this: the discount you get on a cell phone is a function of two variables. One is the amount of revenue generated by your account, and the other is the amount of time since you last received a discount.
Customer service reps already have some flexibility to allow some discounts, even if you are technically "not eligible." See my new post on early upgrades.
Bear
...
Another factor in contracts is that the company uses contracts to project earnings and revenues for budgeting purposes. Someone on a one year contract at a certain level of rate plan is a guaranteed amount of revenue for that year, whereas someone who's month to month can NOT be counted on as guaranteed revenue for the year. Being able to project earnings allows carriers to figure out way ahead of time what phones to bid for, how much they can afford to bid for them, and also drives rate plan changes and promotions. When TMo offers the nationwide 1000 minute plan with unlt'd N/W for 45.99, we are betting that a boatload of customers who're paying 39.99 for 600 minutes are going to jump on the promo rate plan, thereby ensuring a large body...
(continues)
(continues)
...
RichardM said:...
Why not just give users credits toward new phones based on usage, which they can use at any time? For example, for every $10 you spend, you get $1 toward the cost of a new phone, which you can opt to get at any time. Most of us hate to wait 2 years to get a new phone. Why not reward heavy users (high revenue customers, as well as everyone else), kinda like a rewards program.
For example, if after one year, if you have spent $1,200 on service, you get $120 towards the cost of a new phone, which you can get at any time. If you spent $2,000, you get $200 toward a new phone regardless of if you have a contract, and not having to wait for 22 months. If you spent $2,000 in six months, you'd get $200 cre
(continues)
...
I would love to see that implemented, Bear, put it in the suggestion box.... 😁
...
One of the best explanations I've ever heard. And I completely didn't know that you could get a no contract plan right up front. Excellent info, bear. 🙂
...
that part isn't true. any new line of service requires a one year contract. however if you don't want to renew your service and switch to current pricing you can do so but you're giving up your n/w minutes and your in network minutes.
...
Amen to all that. Too many customers do think they can get something for nothing, that somehow the rules of capitalism dont apply anymore. Hey, the phone's free, shouldnt everything else be? 🙄
Really though, we got to blame ourselves for a lot of it. We market like wireless is one big giveaway show, then complain when the customer actually believes it.
Really though, we got to blame ourselves for a lot of it. We market like wireless is one big giveaway show, then complain when the customer actually believes it.
...
