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Does Verizon even care about customer loyalty anymore?

I can't believe this and I don't think I'm wrong either. Verizon has structured their new plans in such a way we are screwed no matter what we do. I currently have an older best of Everything Plan with 3 lines. 2 are still on "Edge" plans and 1 is paid in full. I'm currently getting a $25 discount for each of the "Edge" line which means my line access is $15. The Paid in full line is $40. The plan is $70. They want me to change to a "new Plan" and say I'll save $16.66 per month. Which Is actually more like $10 because 2 of my lines will actually cost more. But here is where it gets really scary.

If I were to take the deal I get a $408 phone, for 99.99, (If I choose a new 2 year contract) so I would save $308, but Verizon is going to turn around and charge me an additional $480 (Because the line access fee goes up from $20 to $40 if you don't have a payment plan), so I don't save anything. OR... I take the new Plan which saves me 10-16 per month, They say $16.66 but I think it's closer to $10 but the payment plan means I pay $408 for the phone. so I save $399 but pay $408. And that $399 is actually probably $240. So either way I pay more. I've gone around and around on this with at least 3 different Verizon reps and they will not budge, nor will they even admit that I end up paying more no matter how I go. Customer loyalty is worthless I guess.

Comments

VDPszonek

To answer your question, no they do not care. My VzW account was hacked and an iPad mini was ordered and shipped to a state I don't even live in! The hackers also were able to change my calling plan. This happened in mid July. After weekly calls to Verizon lasting at least an hour +, I decided to write a letter and send it to Ronan [Removed] in the Basking Ridge, NJ office. That was on Oct. 25 - and still no response!

Monday I received a call from a "Chelseaa" whom I've been trying to call back now for 2 days, also to no avail.

After 22 years of being a loyal customer, I'm so done. Bad or poor customer service does not even begin to describe what I would call it. I'm so angry, I even cancelled my iPhone 7.

Thank god my contract expires in Jan. 2017 - AT&T, here i come!

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Verizon_Support

We absolutely care you remaining our valued customer, immto. I’d like to be sure we clear everything up regarding your plan and phone options so I’ve sent you a Private Message here in the forum. Please access https://community.verizonwireless.com/inbox to continue.

JenniferH_VZW
Follow us on Twitter @VZWSupport
If my response answered your question please click the "Correct Answer" button under my response. This ensures others can benefit from our conversation. Thanks in advance for your help with this!!

Weth

Of course if you get a new phone, one way or the other you will pay the full price for that phone. You do not need to buy a new phone every 2 years. This is a big reason people pay so much. Before the cost of the phone was cooked into the rates, but now it is much more evident how much all these new olives every two years costs you.

If if you just switch plans, you don't need to get a new phone. As your other lines come off device payments, switching to the Verizon plan makes more and more financial sense for you.

Even now, being slightly net ahead, you should switch. Plus you will get overage protection with safety mode and carryover of data for 1 extra month. Just hold off getting phones until you really need one. Then buy outright if you can, it on payment plan. Buying on 2 year contract rarely makes sense with the Verizon plan even though the phone seems cheaper, as you have calculated already.

Momma23dogs

What does it have to do with caring or not caring?

Verizon is a business. They are responsible to their stock holders. They also must adapt to the changing times. The profit margin on phones is smaller than it used to be. In order to stay in business all carriers (T-mobile was first) the service and equipment both must be paid for.

The alternative was all carrier would have to raise line fees to $50 each to cover cost of phones.

Sprint looks like a bargain? Not if you look at the actual costs on contracts with them. Line fees on lower data plans are $45 a month, and you pay almost half the phone cost up front.

One way or another you pay for your Phone and service.

adr1997

Listen, the Device Payment Plan is the best option, unlike the 2 year you have no interest, and you can upgrade at anytime you want on the DPP as long as you buyout your phone to pay it off in 24 months, with DPP your line access fee is only 20$ a month vs $40 a month with 2 year. and realistically now that we have the new Verizon plan, most plans that are not the New Verizon plan actually cost you more in the long run. But you have to realize with technology growing at a rapid rate, all businesses must up their game whether or not you like it. all other companies are the same in those terms. so you can either grow up and not upgrade your phone and move on or you can just upgrade and get with the times. the more tech grows the more demand companies get, which means the more companies will deliver to keep consumers happy. even at the cost of whiny customers. take your business elsewhere if you do not like Verizon.

sincerely,

a happy customer on the New Verizon Plan.

immto

I did as you request, but you'll be the 4th Rep I've talked with. I guess we'll see what you have to say.

immto

How long have you been a wireless user? It used to be common understanding that agreeing to a contract meant you got a benefit. Anyone who has been using wireless for more then a few years knows that. The carriers are getting more and more stingy. First unlimited, didn't mean unlimited anymore, now it does again, sort of... And why are these phones so expensive? What is the actual invoice cost, what is the cost? I have a feeling there is some funny business going on here.

immto

Do you know what the profit margins are? Because I've done some actual research on this and found that profit margins on high end smart phones in some cases is over 200% compare this to Porsche who sells high end cars, their profit margin is 20%. I think the only reason companies like Samsung, Apple and LG are able to keep this up is because we have been too stupid. We have not yet started demanding answers to the question, how much does this phone actually cost? And now the carriers have determined that so many people wlll line up to pay out the nose for a "new phone", that they can start charging us full price and we won't bat an eye, they roll it into some fancy sounding payment plan and make it seem like it's a good deal, when it's really not.

immto

So many problems with your comment, where do I begin. First of all, the 2 year contract only costs more, because they raise the rate. The service isn't costing them more, they are providing the same service whether you pay $20 or $40, they are just deciding to charge you more, it's that simple. That is at the heart of my initial issue, is there value in customer loyalty or not? It used to be, you got a benefit it you stayed with a carrier, but that doesn't seem to be the case any longer.

Next, technology always improves and essentially becomes less expensive. You make it sound like it's costing them more and more as technology grows "at a rapid rate". that means chips, and LCD screens and parts, become cheaper to manufacture, not more expensive...

"Upgrade and get with the times"? [Removed]

"the more tech grows the more demand companies get" Are you familiar with a term Supply and Demand? Yes, the companies will deliver more as demand goes up, but unless supply falls, the price should also fall. There is no shortage of Galaxy phones, or iPhones, anyone who wants one can have one today, So why does the price keep rising? Something is not right about this.

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Weth

I have been a cellular user for 26 years. The cost was always baked into the total cost of service giving one a false sense of getting something when they did not. It has always been smoke and mirrors.

Your research is wrong on profit margin for phones. Apple, which has the best profit margin by far, has 40% margin. Resellers like Verizon make very little on reselling smartphones.

Go with what makes most sense to you, that is the beauty of competition. Verizon will be forced to change if enough people leave.

My my advice was sound, keep costs lower by not getting a new phone every 2 years. That advice works on any carrier.

immto

Well I've been a user for about 20 years and I know the price has always been worked into the cost of the service, but the carriers have never been so bold as to charge you more, if you commit to a contract. Back in the day, you got your free or deeply discounted phone in exchange for a committed term. If I dropped the cash to buy a phone, the phone belonged to me and I could take the service and leave it whenever I wanted, with no penalty. Now it's totally different, they want you to pay full price for the phone, AND, they want to charge you MORE, if you dare commit to a contract, and take the little discount they pretend to give you.

I would like to see where you are getting your 40% profit margin information. I've seen reports for Bill of Materials from isuppli, which show the costs of phones like the Galaxy S series costing in the low $200's. And Samsung also makes many of it's parts, so the cost is mostly internal. Those figures are a little outdated and Samsung has done much in the way of improvement and automation in the last few years, so those costs could actually be even lower today. Iphones have a much larger portion of the market share, I would find it very hard to believe that an iphone is costing more than $200 to build.

Momma23dogs

immto wrote:
Do you know what the profit margins are? Because I've done some actual research on this and found that profit margins on high end smart phones in some cases is over 200% compare this to Porsche who sells high end cars, their profit margin is 20%. I think the only reason companies like Samsung, Apple and LG are able to keep this up is because we have been too stupid. We have not yet started demanding answers to the question, how much does this phone actually cost? And now the carriers have determined that so many people wlll line up to pay out the nose for a "new phone", that they can start charging us full price and we won't bat an eye, they roll it into some fancy sounding payment plan and make it seem like it's a good deal, when it's really not.

The profit margins are dropping BECAUSE we are being asked to pay for our phones at full price. The carrier profit is about 20%, that is way down from typical retail which was double the wholesale price from just 3 years ago. That is if the phones sell at full price. And phones are preordered in bulk.

The sales figure for phones have dropped. ATT sold 500,000 fewer phone during first quarter of 2016 when the stopped offering contracts. Sales have not picked up.

Apple help the trade in sale on the debut of the iphone 7 because it was afraid the phone would flop. Had they know the Note 7 would go down in flames, they might have been more confident.

The market for unlocked, used phones and low cost phones is booming. Best thing the market did was drop contract sales. Forcing competition in a market that really has had none in 20 years.

Momma23dogs

immto wrote:
Well I've been a user for about 20 years and I know the price has always been worked into the cost of the service, but the carriers have never been so bold as to charge you more, if you commit to a contract. Back in the day, you got your free or deeply discounted phone in exchange for a committed term. If I dropped the cash to buy a phone, the phone belonged to me and I could take the service and leave it whenever I wanted, with no penalty. Now it's totally different, they want you to pay full price for the phone, AND, they want to charge you MORE, if you dare commit to a contract, and take the little discount they pretend to give you.

Don't know what plan your on, but that is not the case. Your plan and service are now separate. You pay a fair market price for each.

If you still have and choose a contract option, the price of the phone will be built into your monthly fee. what you did NOT get back in the day, is a discount on the line fee if you did buy a phone outright. That was The ripoff, not the current plans.

immto

It's arguable if we're really getting a "fair market price" on the phone, but that's not the point I was making. Back in the day they did not give a line fee discount, you're correct, BUT, the line fee stayed the same, whether you paid for your phone or took the discount. Now they are giving you a line fee discount if you pay for the phone, or if you take a payment plan, BUT, not, if you take a discount on the phone. So in other words, they are NOT giving us a benefit for staying a loyal customer.

Weth

I just got 8 GB monthly for free for being a "loyal" customer. By loyal, I assume you mean you pay your bills. Before you were paying for the phone even after it was paid off on the contract. That wasn't fair. Not it is more transparent and fair. When the phone is paid off on the contract, your costs go down. You keep thinking you were actually getting a phone for 99 cents and you never were. It was all smoke and mirrors marketing ploy. Then after 2 years if you did not get a new phone, you still kept paying a higher fee for that line than it otherwise would have been.

There is no reason to do a contract today. Usually the best deal is the payment plan. Times change, things change, adjust. Back in the day I paid $50 a month for 100 minutes, no text messages, no data. Things are better now.

immto

No, I was not paying for the phone even after it was paid off, because the fee was paid for up front, and then it was done, the costs, as we already discussed were built into their contract pricing, or cost of doing business. The overall costs of having a mobile phone have not really come down, in fact they have steadily gone up, so it's not like the carriers are really giving us anything. I can remember 10 years ago I was paying for 4 lines and my bill never went over $200. Today I'm paying over $200 for 3 lines. Yes, it's better service, and yes the phones are better, but also as we discussed, technology is always improving and as such, it should be getting less expensive over time. Somehow, people like you are under the impression that this progression should not flow down to those of us who pay for the service, our service should always get more expensive and we should always get less in return, according to your philosophy. I'm starting to wonder if you're not a paid troll who just defends Verizon all day.

immto

Update to my situation. Verizon is not going to budge on Customer loyalty at this time. They are satisfied with keeping me as customer as long as I keep paying them, but they are not giving me anything in return to stay with them. I am however choosing to keep the service on the new plan and I will see if "Cost savings" are really as advertised, but if I choose to purchase new equipment, I will need to either be bound into a payment plan paying full price for an overpriced device, or pay out the nose for the same level of service I would get otherwise if I take the contract discount. Verizon may be following suit with the rest of the industry but this does not make the practice any more appealing. I will be shopping the other carriers for opportunities, it may become a situation where it is actually beneficial for us as consumers to switch back and forth and around between the carriers, if this is really the direction they are going to stick with. I would urge everyone who is in a position to renew/upgrade, to voice their concerns over this new pricing strategy. It may appear we are getting better service and packages, but in the end we are all just benefiting from their expanded network which we are paying for after all.

nowayout07

After today's incident speaking and chatting with multiple people over the phone and online to the point of tears since 4 am I am DONE, I am BEYOND DONE and I'm [Removed] They say they care, I say [Removed] They screwed up numerous things with my account and don't take responsibility and I am still waiting for the [Removed] phone call ........They should just tell you right out to [Removed] instead of wasting my entire [Removed] day waiting by the phone and endless amounts of time between chatting and calling because I'm trying to fix my [Removed] cell phone so I can use it.. 17 years of loyalty between my husband and myself with their wireless, internet, and residential service. Not to mention the promotional [Removed] of bundle this and that and we will give you a discount. Frauds

Ann154

Good luck with the new carrier.

Momma23dogs

Those are NOT your only options. Unless you have to have the newest device.

I purchased a mint Samsung GS7 off eBay for $380. A Moto pure edition for $250 at Best Buy.

Best buy also has other options like the Nexus 6p.

As they say, "the definition of insanity is to do the same thing over and over and expect a different result." If you've been picking A or B, then you should look at option C.

Ive written this before, either set yourself free of continue to be a slave to the carrier. I've been able to switch for better price and options because I own my own universal phones. If you think the big promotions are a good deal, then you didn't read the fine print.

adr1997

none of us are paid. this is a community forum where customers come and discuss things. there are no Verizon employees here unless you count moderators and the occasional employee (which will be verified by their name). I wish I got paid to defend Verizon. who doesn't. as far as everyone is concerned I believe we are all consumers not employees. and good luck with whoever you switch to. nothing will change they are all the same

immto

OK, sure...

Ann154

Out of the 28 replies in this thread, only one was an official VZW rep. They offered to review your phone and plan options by sending you a private Direct Message through the community forum inbox.

Sherfanang

You may rest assured Verizon could not care less about your loyalty or anyone else’s for that matter. I’ve been with them for 25 years straight. I know what I’m talking about.

[Deleted User]

Due to the age of this thread, it will be locked in order to keep discussions current. If you have the same or a similar question/issue we invite you to start a new thread on the topic.

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