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early upgrades from basic phone to smartphone

Can anyone explain the following to me? My wife and I both have basic phones, her last upgrade was in December 2012. I called Verizon to see if they would let me upgrade my wife's phone to a Iphone 5c, they told me I would have to pay full retail price and they would not allow an early upgrade. This is the part I don't understand. If Verizon allowed this upgrade they would get $99 for the phone, $30 for the activation fee, and $30 a month for two years for the data plan which we currently don't have. The total for this is $850, that's how much more money Verizon would make if they allowed me to upgrade her phone early, even if the price of the phone is a wash, its still $750. Can anyone explain to me why this wouldn't be a sound business move by them? I have been a loyal customer for 10 years, but as soon as our contract is over I think I'm taking my business elsewhere.

Comments

rcschnoor

It is not a sound business move because Verizon pays MORE for the phone than the $99 you would like to pay for it.

Before you say "but I am signing a 2 yr contract for service" during which time they can make their money back, you ALSO signed a service contract in December of 2012 for 2 yrs during which time Verizon could make their money back in exchange for giving you a discount off the full retail price of THAT phone. NOW you would like to cut that 2 yr contract down to a 9 month contract(December 2012 thru September 2013). What is to keep Verizon you won't want to do the same in another 9 months?

If you want the phone, pay full retail.

football48

Ok--they pay more for the phone--that doesn't cover the $700+ they make from the data plan for the upgrade from basic to smart--nor the business they will lose when i switch to someone else. Also, if every five months i am asking for an early upgrade i can see your point, but a one time thing doesn't hurt a multi-billion dollar corporation like Verizon and builds customer satisfaction and loyalty. They should never wonder why people get fed up and move on! One last thing, the smugness and pompous tone of your answer just proves my point--Thanks!

rcschnoor

First of all, how the tone of MY post has anything to do with proving your point is a mystery to me. I am just another Verizon customer reading yet another request for an early discounted upgrade LESS THAN A YEAR after receiving a discount on a phone in exchange for signing a contract. Quite possibly there are quite a few people getting fed up with others wanting special treatment and not wanting to pay for what they want. Hey, I wouldn't mind getting a discount on a phone every 9 months, either.

Second, when you say "if every five months i am asking for an early upgrade i can see your point, but a one time thing doesn't hurt a multi-billion dollar corporation like Verizon and builds customer satisfaction and loyalty" WHAT is to make Verizon think this is going to be a "one time thing"? Are you going to sign a contract agreeing to that? If so, it appears you are trying to get around the contract you signed in December of 2012, why not this one?

People are ALWAYS looking for a better deal and to get out of their obligations. How is allowing that to go on "a sound business move"?

More and more, it appears companies are moving away from offering discounts on phones because more and more customers are unwilling to fulfill their obligations before asking for another "one time" exception to the rule. For example, if you decide to go with T-Mobile, you will be paying a minimum of $528 for that iPhone 5c, NOT the $99 you want to get it for from Verizon.

As to "customer satisfaction and loyalty", how is what you are asking going to build up "customer satisfaction and loyalty" to the customers who actually fulfill their contracts before getting another discounted upgrade when they see Verizon giving this special treatment to others when they don't receive the same? Think THEY may get "fed up", too???

It is one thing to ask a question and receive an answer you don't like and quite another to ask a question and feel you are entitled when you receive the answer you don't like. And then to accuse another customer of being "smug" and "pompous" because they don't agree with your assessment? Pot, meet kettle. Kettle, meet pot.

Good luck with your new provider.:smileyhappy:

SydneyK

It wasn't smug and pompous ... it's just not what you want to hear.

By the way, Verizon offers payment plans now for customers who purchase phones off contract. With Edge, you can split the cost among 24 payments. Then just sell the basic phone and put that toward the cost of the 5C. It might be worth it to have a happy wife. :smileyhappy:

football48

your right how stupid of me, thanks for setting me straight.

football48

thanks for setting me straight, how stupid of me.

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