Yes, Verizon customers pay a $40 upgrade fee when purchasing a phone with a ~$400 discount in price.
You can get out of paying that $40 upgrade fee by purchasing the phone on Edge or paying full retail cost up front.
The upgrade fee is pretty much standard with all carriers, unless paying full retail price on a phone. It's been around for many years, over 3 years with Verizon (who was the last to implement this cost).
I love how some of you act as if he's being ridiculous for asking the question..the upgrades used to be FREE..now they're not. VERIZON is one of the Most Expensive cell phone carriers so they shouldn't charge this ridiculous fee..or maybe they should lower their rates and then the extra fees wouldn't seem so redundant!
They haven't been "free" in over 3 years. And you do realize that unless paying full price, all carriers charge an upgrade fee, right? Also, the price you pay for service is just for those services (call, text, data) and there are still free phones to choose from; the upgrade fee is separate from the cost of the phone. A carrier doesn't have to provide a way to get a phone or offer subsidized prices. Not saying he's wrong for asking the question, but it's been over 3 years now and people toss around the loyalty word like they are owed something. A person pays for a service, they get that service... Unsatisfied? Go elsewhere... That's the luxury of having various companies for services and not have a monopoly - choices.
Well, when you consider that Verizon has to pay for the phone and makes no profit from the sell since profits come from access fees and data charges along with add-on features and accessories, the upgrade fee is a way to make profit since some people may only be upgrading the phone and not the service.
I love how some of you act as if he's being ridiculous for asking the question..the upgrades used to be FREE..now they're not.
This is just not true. SOME phones used to be free when signing a contract. SOME still had a cost required when signing a contract. It would depend on the phone. The more expensive phones would have an additional cost when signing a contract while many of the lower models would not. Just because more phones NOW are of the expensive variety OR because people are no longer interested in the lower priced phones does not mean that ALL upgrades used to be free. When I was upgrading my Verizon phones 10+ years ago, there were some phones I shied away from because of the additional cost even when signing a contract. Verizon has NEVER offered ALL upgrades when singing a contract. This is nothing new.
Upgrade fees were added to Verizon upgrades when signing a contract. This has become an industry standard and Verizon one of the last, if not THE LAST one to adopt this practice. Verizon has also been among the lowest in how much their upgrade fees were compared to other providers. They may be more on par with the other providers now that they have increased their upgrade fees to $40.
Regardless, the upgrade fee does not take away the fact that you CAN still find some phones which are free when signing a contract. You simply have to pay the upgrade fee. If this is a problem, pay full retail for the phone up front OR on Edge and you won't have to pay the upgrade fee. You ALSO may make out in the long run on price depending on your plan/data allowance.
Yes I realize that some carriers charge an upgrade fee to "help pay" because of new phone technology...I also realize that they don't have to help pay to create the new phone technology so why are we paying them for it? The money also goes to "pay for the technical support of new phone technologies" but don't we pay for that with our huge monthly bills? Other carriers offer lower monthly bills which at least counteract miscellaneous fees.
Verizon offers discounted phones to Appeal to the the customer..to get them to sign a contract..it has almost nothing to do with actual customer satisfaction and anyone with a brain knows that.
Being satisfied with a service doesn't mean one should have to Pay So Much and also incur fees for things the company previously offered for free. They could afford to do it then..and let's face it, the bills are going up Up UP..so they should be able to afford it now. But why do that when they can shove that burden onto their customers..