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Handset Upgrade Fees

GummentCheez

Aug 24, 2009, 4:30 PM
I dont often relate to customers but... To tell a customer that "(insert company) is willing to give $150 off the purchase of a new phone" then charge them $18 for accepting the offer is MADNESS. Why not just deduct the $18 from the discount amount and honestly tell the customer your only getting $132 off??? Doesnt that make more sense? P.S. im new and im sure this thread has been done before but...
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Verde321

Aug 24, 2009, 4:44 PM
Because then there would be no free phones and the crying would be unreal.
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GummentCheez

Aug 24, 2009, 4:47 PM
I dont get it what you mean. If they took the upgrade fee out of the upgrade discount, customer picked a phone thats free after upgrade discount, then there would be no crying.
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Verde321

Aug 24, 2009, 11:18 PM
GummentCheez said:Why not just deduct the $18 from the discount amount and honestly tell the customer your only getting $132 off???


Phone is 150 retail. You get 150 off for upgrading with an 18 dollar upgrade fee on the next months bill.

With what you are proposing, the free phone now becomes 18 dollars in store.

🙂
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GummentCheez

Aug 25, 2009, 10:41 AM
No! Your not getting it. If they offered the discount for what it really is the customer wins. They know that they're only getting $132 off the phone so if they pick a phone thats $150 they will have to pay the remaining balance. Instead of saying you can get a $150 phone for free and then charging them $18 afterwards for accepting the offer. HOW DO YOU NOT UNDERSTAND?
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Menno

Aug 25, 2009, 10:49 AM
Because he is going at it from the customers point of view.

A customer wants a FREE PHONE. Meaning that the sale price is as close to 0 as possible. That $18 makes the phone $18. But I can guarentee you that if you just sold the phone at $18 instead of free with an upgrade fee, you would sell less handsets.

No, it doesn't make sense, but that is how the customer thinks.

In our store, we call it a Device Initiation Fee, and with it we set up the phone the way they like it, set up email (if applicable), transfer contacts, and go over the basics of customizing the phone (in addition to obviously activating it).

It highly depends on region, but up here it's well received once you explain it to them. Heck, a lot of customers are j...
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GummentCheez

Aug 25, 2009, 10:53 AM
That makes since. It really does. It sounds like you're actually giving them a service for their money. Here where I work the upgrade is nothing more than a penalty in my opinion for accepting the offer. Of course we swap out your devices but we do that all day for free. It would still be easier to be up front in my opinion but thats cool how your company does it.
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Verde321

Aug 25, 2009, 11:07 AM
I don't think you are getting it either. ^_^

Currently

Phone: Nokia 2600
Retail Price: $150
Upgrade Price: FREE
Upgrade Fee: $18


What you want to do

Phone: Nokia 2600
Retail Price: $150
Upgrade Price: $18
Upgrade Fee: FREE

If upgrade fees were removed...the customer would not save any money. It would be the same. BUT having a phone that is "free" in store hooks so many people.

Am I at least making it clear what I am trying to say now? ^_^ 😛
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tmochicka24

Aug 25, 2009, 11:03 AM
Because when you say "you get $150 off a new phone and all you have to do is is pay $18 for an upgrade fee" it sounds better than saying $132...
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GummentCheez

Aug 25, 2009, 11:06 AM
But it makes no sense. When you put it like that and the customer goes "Okay can you take the $18 out of the $150 your gonna give me?" How do you respond?
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tmochicka24

Aug 25, 2009, 11:12 AM
Do they make them pay $18 w/ a card or is it billed to the acct?
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GummentCheez

Aug 25, 2009, 11:17 AM
It billed to account
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tmochicka24

Aug 25, 2009, 11:22 AM
Its just all in the way a customer hears something...weird as it sounds...but would you rather hear "you get $150 off" ...but then again they should just say " you get $132 off and you don't have to pay a thing!"
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GummentCheez

Aug 25, 2009, 11:23 AM
EXACTLY! Chika you feelin me now
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tmochicka24

Aug 25, 2009, 11:26 AM
Can't you just start saying that or would u get in trouble?
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GummentCheez

Aug 25, 2009, 11:29 AM
Well I dont sell phones. I work in a call center that handles billing calls. So my deep hatred for handset upgrade fees comes from people calling asking me to explain the fee. Our customers only get the fee if they order through telesales or buy the phone in store. Im pretty sure its a comission(sp?) for the agent or rep who sold the phone but I cant tell them that.
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tmochicka24

Aug 25, 2009, 11:35 AM
do u work for tmo cust care? lol
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GummentCheez

Aug 25, 2009, 11:39 AM
No Sprint
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tmochicka24

Aug 25, 2009, 11:39 AM
ew i'm sorry lol
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GummentCheez

Aug 25, 2009, 11:40 AM
Yeah right we kick much ass.
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tmochicka24

Aug 25, 2009, 11:42 AM
Tmo is rated higher if memory serves me correctly lol
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GummentCheez

Aug 25, 2009, 11:45 AM
Yeah but what do customers know? We're on the same level apparently so I know you know customers are idiots. Your rating means nada
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amirageldy

Aug 25, 2009, 6:53 PM
I think the upgrade fees suck too and i'm comming from a retail rep stand point. I sell for sprint and the only time you get a fee is if you buy the phone in store. Telesales are allowed to waive the fees and the internet sales do too last I knew. We can't do any credits for fees anymore and the only time a customer gets out of the fee is if they have a discount that waives the fee. I always try to get at least the AOL discount on the account before I upgrade because it waives act/up fee. Really it's not as simple as saying, here, when you sign a new two year i'll give you $150 off this $150 phone to make it free and you then just have $18.00 on your next bill for 'administrative fees'. Our phones are more like:
Blackberry 8350i
Regul...
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dualitycomplex

Aug 25, 2009, 8:42 PM
I'm glad here at vzw i dont charge an upgrade fee. The upgrade is 50 in store with a 50 mail in rebate, back when I worked at cingular I would just list it as said above a "new phone maintence fee" or something it was years ago, where I would transfer phone numbers set up their voice mail, email, pair any bluetooths and perform account maintence at the time of purchase. i never had a problem with a customer in store swallowing that pill. and all were happy when they left the store with their new device in tip top working order.
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