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Upgrade Fee?!

What matters in life are relationships. Apparently, Version Wireless has the notion that the longer a customer stays with them, devoted customers should incur additional expenses, such as a $30.00 "upgrade fee." Most relationship I have been in, look for ways to improve the relationship, make circumstances more enjoyable, and add something that keeps you wanting to come back. But, not Version. Very disappointing, that after being with the company since it was Airtouch, over one decade ago, Verizon choose to reward this longtime relationship, and many people who use their service with what is now called an "upgrade fee." Poor business decision, from my perspective.

Comments

koocamunga

Woooooow....this thread again, let me be the first to tell you this is not that new anymore and has been discussed many times on this site, the upgrade fee assessed with the purchase of a new device at the two-year contract price is a valid charge. It is now charged by verizon and is charged by many other companies including AT&T/Sprint and in fact Verizon is the last service provider to adopt this charge so if you're thinking of jumping ship just beware this is not the last you will see of this fee. Just consider this, would you rather pay 200.00+30.00 for the IPHONE 5S on an upgrade or 649.99+tax for the full retail device? When you look at the upgrade fee you also have to look at how much Verizon discounts the device verizon sells most devices at a 450.00+ discount even with a 30.00 upgrade fee and an etf amt if you were to disconnect your line now you still would not have paid full retail for it 199.99+30+350=579.99, this upgrade fee not only compensates for some of the loss on the price of the device but providing classes in stores for new/old customers who need assistance with new smartphones and for helping to upgrade towers that we all require, Personally I have upgraded three of my lines this year and paid this fee on all of them and hold no ill will towards Verizon for it.

sandiegodad

Some broader perspective may be in order:

Dodging Verizon's New $30 Upgrade Fee (MarketWatch.com) - "Verizon's excuse for adding the charge is pretty rich."

Get Out of Verizon's (and Other Carrier's) New $30 Upgrade Fee (LifeHacker.com)

Verizon Profit Rises 40% as Wireless Gains - NYTimes.com - "Verizon reported a third-quarter profit of $2.23 billion, or 78 cents a share, compared with $1.59 billion, or 56 cents a share, a year earlier."

Is Verizon Wireless 'Profit Pumping,' Dumping Expenses Into the Wireline Networks? Time to Investigate (Huffingtonpost.com)- "[I]t would appear that each is now taking a slice out of the customer's pocket book"
We need to "cultivate connections with our clients" (How to Increase Customer Loyalty and Referrals, Patrick Galvin)

sandiegodad

Verizon and AT&T grow fatter in America as mobile prices plunge in Europe - "American consumers are sleepwalking into being permanently locked to ever-rising phone bills from monolithic incumbents" (BGR.com).
In Verizon’s Monopoly Game, we all lose (UnitedNY.org)

pherson

San Diego Dad wrote:
What matters in life are relationships. Apparrelationshipsion Wireless has the notion that the longer a customer stays with them, devoted customers should incur additional expenses, such as a $30.00 "upgrade fee." Most relationship I have been in, look for ways to improve the relationship, make circumstances more enjoyable, and add something that keeps you wanting to come back. But, not Version. Very disappointing, that after being with the company since it was Airtouch, over one decade ago, Verizon choose to reward this longtime relationship, and many people who use their service with what is now called an "upgrade fee." Poor business decision, from my perspective.

What matters is relationships....huh? Lets look at this:

Ive had a relationship with Sunoco Gas, Nissan, Wendys, my wife, etc for years. Gas prices have risen. We keep buying gas. Car prices have risen. Keep buying them - advanced they are. Burgers have gone up - gotta eat. The price of date nights gone up - havent tossed the wife.

20 to 30 years ago, computers took up huge spaces in buildings and rooms. Now you can have in the ppalm of your hand. And the prices have dropped!!!! Customer denand. But on the flip side you pay a lil more for the service and to upgrade....but its still better and cheaper than years past.

What therefore are you complaining about??!!!

harvardale

Verizon is the most expensive service out there. If you want to be successful as a business long-term, you don't add an upgrade fee just because everyone else is doing it. Look at T-Mobile, they have changed their business plan by thinking outside of the box, and they are growing because of it. Verizon will struggle in the long run by just following the crowd. I agree that you shouldn't charge loyal customers a $30 upgrade fee, I would rather them just add it to the cost of the device itself rather than hide fees to make easy money.

pherson

harvardale wrote:
Verizon is the most expensive service out there. If you want to be successful as a business long-term, you don't add an upgrade fee just because everyone else is doing it. Look at T-Mobile, they have changed their business plan by thinking outside of the box, and they are growing because of it. Verizon will struggle in the long run by just following the crowd. I agree that you shouldn't charge loyal customers a $30 upgrade fee, I would rather them just add it to the cost of the device itself rather than hide fees to make easy money.

Whether the 30 dollars is added to the cost of the phone or its itemized separately as a fee, its still 30 dollars in their bottom line. And despite their higher prices honda toyota are still the best. Yeah hyundai is catching up or good but they will never surpass the best. Verizon has the network and can charge what they want. Just lime 30 bucks can give the connotation of being unwise, not charging it or having cheaper service gives the connotation of being not as good.

harvardale

I would disagree that Verizon has the best network. Yes, they may have the best x1 service, but they don't have the best data service anymore. Over the past year, I have experienced a higher number of dropped calls, longer texting times, and slower LTE speeds (slower than AT&T or T-Mobile 3g speeds). What is the point of the vast LTE coverage if it is only slightly faster than 3g? A good friend of mine who has AT&T has seen a significant jump in network/service quality over the past few years.

Ann154

harvardale wrote:
Verizon is the most expensive service out there. If you want to be successful as a business long-term, you don't add an upgrade fee just because everyone else is doing it. Look at T-Mobile, they have changed their business plan by thinking outside of the box, and they are growing because of it. Verizon will struggle in the long run by just following the crowd. I agree that you shouldn't charge loyal customers a $30 upgrade fee, I would rather them just add it to the cost of the device itself rather than hide fees to make easy money.

Sprint and AT&T both have a higher upgrade fee and have them for much longer than Verizon Wireless. T-Mobile used to have an upgrade fee, but now you have to pay full price for the phones on their network. If you wanted to avoid the upgrade fee on Verizon Wireless, you can buy full retail price either up front or through the Device Payment Plan. It's your choice to choose the best course for you and your family.

harvardale

As I said before, Verizon's practice of 'following the crowd' just isn't a good excuse.

unknown

Actually Hyundai took top honors this year. They have a new sports car line which the auto industry is taking notice.

And because something is expensive does not make it the best. Just look a prescription name brand medicines. The companies hold 10 year rights to their name brands, then generic medicines are then produced which by law have the same benefits of a name brand drug. So to say Verizon is the best, is like comparing the name brand drug to the generic drug. Its pure spin. Just like Toyota and Honda. Pure spin doctoring to produce positive sales. Yet both these car brands have had fatal recalls.

Verizon can charge what they want that is true, but eventually with the other carriers catching up it will come down to best price for that service. Verizon will then lose customers. Just in the last two quarters a number four carrier like T-Mobile gained almost 2 million customers, they have no contracts, no upgrade fees since you pay full price, no huge global fees like Verizon makes 90% profit on. (free data and texting internationally and only .20¢ a minute for calls. no other carrier is doing it. Then T-Mobile came out with the Jump plan, then Verizon and the others Jumped on the bandwagon, and yet AT&T and Verizon require contracts for the plans but not TMobile.

So there is no excuse for Verizon to price gouge the customers except for insane profits. And yes my wife and I own Verizon stock which is very high right now.

j337usa

I called Verizon today and they told me the upgrade fee on my bill was to pay for the my verizon app, classes at the store, changing your contacts over, paying online, etc. What a bunch of bs. You wait the 2 years to get the reduced upgrade on the phone for 199.99. Then they tell you to pay 30.00 per phone extra for these services. I don't use these services. Apparently they are using the current trend in the US to take care of everyone else and for that you must pay a fee for everyone even if you don't utilize those services. False advertising is what it is period. I think a class action law suit is in hand to have them pay a fee for the bs they are slinging. What a bunch of crooks. If you can't be up front about it at the time of purchase your lying to your customers. I am done with this company at the end of the contract.!!

Ann154

http://www.verizonwireless.com/news/2012/04/bl2012-04-11.html

That's the official notice.

unknown

Alas the US Supreme Court struck down class actions. Only single right of action is now allowed.

Good Luck

Verizon_Support

I'm sorry you found out about the upgrade fee on your bill j337usa. I don't want to lose you with our family and truly apologize this was not provided to you at the time of purchase. How did you upgrade? Did you go to the store, online via My-Verizon, or over the phone? We do provide customers with information about any fee implemented before being charged. The information provided by Ann 154 is awesome because we also post information about fee's and other processes. I hope we can discuss this further and I can clear up any information not provided. I hope you enjoy your new phone!

KinquanaH_VZW

Follow us on Twitter @vzwsupport

j337usa

I purchased the phones at a premium retailer. I was not shown a copy of the contract or told about the fee at the time of purchase. I gave up unlimited data on 4 phones in the process. I do believe the fee is false advertising, for example if I buy a phone at full price every two years for twenty years I will never pay the fee, but if I upgrade I will pay the fee each time. Strange because I was told the fee wasn't for the phone but for other services provided to customers such as the my verizon app when I called to question this on my bill. This Doesn't seem fair across the board for all customers in fact does seem discriminatory.

Also Your customer service agent was rude and argumentative when I called about the fee on my bill. An apology could have been a good start. And finally I guess I wasn't expecting to get swindled by a billion dollar company, my bad I guess.

I have 4 smart phones on my contract and I will be looking elsewhere in the future if these furtive sales tactics continue in the future.

It seems pretty ridiculous for a company to anger their customers with a 30.00 phony fee and lose their business which generates your companies profits and growth.

Tidbits

All major carriers charge a fee to upgrade. It isn't the first time they starting charging an upgrade fee. Been happening on all carriers for years. Should be common knowledge by now if you take subsidization for a device they charge this processing fee. Buy a house or a car and you'd be ironically charged a similar fee.

Verizon_Support

Hi j337usa,

Thanks for the info! We do appreciate your business and that you have upgraded 4 lines on your account. I apologize if the upgrade fee was not disclosed to you. It is in the agreement that you did sign. Do you still have your copy? The upgrade fee does cover a lot of things. It provided many enhancements to our self serve options that we provide our customers My Verizon, Back Up Assistant, Wireless Workshops etc. If you do upgrade at full retail, there would not be an upgrade fee. I don't want you to feel cheated in any way. You can trade in your old devices to help offset the cost. Please check out our trade in program. http://bit.ly/WxxPFc

Thanks, BobbyS_VZW

Follow us on Twitter @VZWSupport

Magpul83

They got me for 35 to activate a new line, after i acted a fool they took it off.

jayvan

That's an activation fee. Completely different from the $30 upgrade fee that was being discussed.

unknown

Verizon Wireless started charging their upgrade fee in April of 2012. It's 2014 now so get over it!

chrisf86571

I'll agree that it's been out for awhile, and people need to do their research, OR ask for the itimzed total WHEN they sign a contract.

However, I will at least state an "upgrade fee", no matter if it's Verizon, AT&T, etc. isn't right. It's mostly another way to ring more profit out of the customer. Keeping your business with a company should not cause you to be charged more.

When you factor in all the costs, Verizon STILL comes out on top with major profit (along with the Device manufacturer - phones don't cost anywhere near $600+ to build and sell) if the customer fullfills the 2 year contract. So why charge an upgrade fee? If someone wants Workshops for learning the device, charge it there and not to people who don't use it.

unknown

You know I liked how you wrote your post.

I was just thinking, I read last year companies like GE, AT&T and Verizon paid Zero Taxes. Yet each customer has been hit with State, Local, City taxes and franchise fees. There is also a line on there for some sort of cost recovery for taxes paid by verizon. They paid no taxes, why would they need cost recovery fees just to collect or pay taxes? Very strange.

You will also note that Administrative Fees on your invoice. That is pure profit. If they increase the fees by a Pennie per customer per month, it is huge profits. Think about it.

Good Luck

unknown

I've heard they're waiving the upgrade fee for some people who don't have smartphones yet and get one.

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