Verizon Wireless to Eliminate One-Year Contracts
1 Year option - What ifs?
I understand the logic of eliminating the 1 year option as it stands now. The price difference between a year one agreement and a two year agreement is not enough to cover the lost revenue of an additional year of service. With subsidies going through the roof on almost every smart phone is does make sense. It doesn't make people happy when choice is eliminated but the choice now is not a good deal for the company.
The what if lies in the difference of the price. Would you as consumers choose a 1 year agreement if the discount was more reflective of the revenue difference on the subsidized handset? The pricing model now is flawed. Paying $30 or $50 more to eliminate an entire year of revenue is not an equitable pricing model when th...
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The what if lies in the difference of the price. Would you as consumers choose a 1 year agreement if the discount was more reflective of the revenue difference on the subsidized handset? The pricing model now is flawed. Paying $30 or $50 more to eliminate an entire year of revenue is not an equitable pricing model when th...
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This is not the reason Verizon has chosen to do this. Verizon sees the comming storm with the merger of AT&T/T-Mobile. People are going to be leaving both of those carriers for one reason or another. Verizon wants to make sure that any newcommers are going to come and stay for atleast 2 years. In part, this will act as a deterent for people that are just panicing and running from the situation. The other part, Verizon knows that AT&T-mobile will offer things to keep or regain these customers and they don't want all of the churn after 1 year. With 2 year plans, this helps with stabilization and Verizon truly capitalizes on the situation. However, I don't believe that this will be good for current customers. I fully expect VZW to not offer ANY...
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While I am sure a portion of their decision is based upon potential effects of the proposed purchase of T-Mobile is disagree that it is the driving force behind the decision.
Secondly, this particular thread is about the what-ifs of the proposed pricing scenario. Verizon is quite confident (arrogant?) that if you sign up to their network you will stay. If they can attract customers by offering a choice that remains profitable why would they not do it? This question is posed to those who swear by one year agreements.
If you want to have a discussion as to the theory as to why then please start another thread.
Secondly, this particular thread is about the what-ifs of the proposed pricing scenario. Verizon is quite confident (arrogant?) that if you sign up to their network you will stay. If they can attract customers by offering a choice that remains profitable why would they not do it? This question is posed to those who swear by one year agreements.
If you want to have a discussion as to the theory as to why then please start another thread.
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...every time I see you do that I think "his new handle should be Texsuffersnofools".
In any event, I posted my last response before reading this far and apologize for not answering the question posed. The answer is no. If I have to pay that much for a one year contract then I would rather pay the full retail price or a slightly reduced Ebay price.
In any event, I posted my last response before reading this far and apologize for not answering the question posed. The answer is no. If I have to pay that much for a one year contract then I would rather pay the full retail price or a slightly reduced Ebay price.
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Yeah, I hear that often. No time for it anymore.
I do get to listen in and contribute to some pretty high levels meetings and it is interesting how decisions are made. Nothing I would ever share here but I don't think the "conspiracy theories" so many espouse are even remotely true.
I do get to listen in and contribute to some pretty high levels meetings and it is interesting how decisions are made. Nothing I would ever share here but I don't think the "conspiracy theories" so many espouse are even remotely true.
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It depends upon what my resources were. When I got the incredible I could not afford to pay one year or full retail price. I only upgraded because my windows seven netbook did not support the XV6900 for VZAM. Unless something unforeseen occurs I plan on having the Incredible for five years or more. I had the XV6900 for three.
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In my opinion, the entire system is flawed.
The manufacturer makes a killing on a phone - much more than they make on most another other electronic product. And they pass that killing on to the distributor, who adds a little bit for their own trouble. Then the carrier takes the price they paid and rounds it up slightly, knowing they're going to subsidize it down the line. That initial inflated cost get's absorbed, in part, by the carrier. The other part is passed onto the customer - not so much on the price of the device, but in the monthly plans that make the carrier decent profits.
Carriers wouldn't have to subsidize so much if the manufacturer wasn't raking in the dough on their mobile phones. If carriers didn't have to sub...
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The manufacturer makes a killing on a phone - much more than they make on most another other electronic product. And they pass that killing on to the distributor, who adds a little bit for their own trouble. Then the carrier takes the price they paid and rounds it up slightly, knowing they're going to subsidize it down the line. That initial inflated cost get's absorbed, in part, by the carrier. The other part is passed onto the customer - not so much on the price of the device, but in the monthly plans that make the carrier decent profits.
Carriers wouldn't have to subsidize so much if the manufacturer wasn't raking in the dough on their mobile phones. If carriers didn't have to sub...
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Thanks for the response.
Being in the electronics industry and now wireless I would say all electronics are priced this way. Manufacturer to distributor to retailer. Typical margin on electronics is 35%-40% at retail price. Take a Droid X, if you add 35% to the current cost it is MUCH higher that the price available non-subsidy. Very few retailers sell their product just above cost.
The $1000 Flat screen probably only costs best buy $600-$650. Yes Samsung is making a hefty profit on a $650 flat screen, production cost may be in the $300 range. But how much R&D goes into a TV compared with wireless? I don't know the answer but I would believe the figure is far less than wireless.
I guess I don't have a problem with a company m...
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Being in the electronics industry and now wireless I would say all electronics are priced this way. Manufacturer to distributor to retailer. Typical margin on electronics is 35%-40% at retail price. Take a Droid X, if you add 35% to the current cost it is MUCH higher that the price available non-subsidy. Very few retailers sell their product just above cost.
The $1000 Flat screen probably only costs best buy $600-$650. Yes Samsung is making a hefty profit on a $650 flat screen, production cost may be in the $300 range. But how much R&D goes into a TV compared with wireless? I don't know the answer but I would believe the figure is far less than wireless.
I guess I don't have a problem with a company m...
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This forum is closed.
