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Tutor

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5 Messages

Thu, Jul 17, 2014 6:54 PM

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Penalty for giving you more business

I recently purchased a new IPhone and renewed my 2 year contract. And for this offer to give AT&T more business I was assessed a $40 penalty as a processing fee. How is this justified? Is not my monthly 2 year commitment enough? Is not my monthly data plan for 2 iPads enough? Is not my monthly Uverse subscription enough? What exactly is another $40 applicable towards ? Please explain, if you can.

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MicCheck

ACE - Expert

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9.1K Messages

6 years ago


@Rob7416 wrote:
I recently purchased a new IPhone and renewed my 2 year contract. And for this offer to give AT&T more business I was assessed a $40 penalty as a processing fee. How is this justified? Is not my monthly 2 year commitment enough? Is not my monthly data plan for 2 iPads enough? Is not my monthly Uverse subscription enough? What exactly is another $40 applicable towards ? Please explain, if you can.

Fees charged are not a penalty. AT&T (and every other provider I'm aware) charges an upgrade if you choose to upgrade your device. You can avoid upgrade fees by not upgrading, using the Next program, or purchasing a phone outright.

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*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Tutor

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5 Messages

6 years ago

With all due respect, that's not really an answer. I bought a new phone because the previous one broke. In doing so I decided to give AT&T more business by signing a 2 year contract. Why then is there another $40 assessed? As I asked, do not my monthly fees cover whatever non-existent effort it takes for AT&T to accept more business from me, the customer? If it's not a penalty then is it a surcharge for AT&T to accept more money from me? To purchase the phone outright would be almost triple the contact price, a nice pricing structure created between AT&T and Apple. Granted, the low purchase price is subsidized by AT&T but with my plan I spend in excess of $120/ month just on my phone. That's close to almost $3k by the time the contract is up inclusive of usage, taxes, fees, etc. I'd have to think that more than makes up for the original phone plan price. Regardless of what other carriers do or do not do for customers, my question is to the provider I pay, AT&T.
kdfederer

ACE - Expert

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12.2K Messages

6 years ago

The upgrade fee is the charge for paperwork for a new contract. Almost all of the cell providers have an upgrade fee. If you want to upgrade, you have to pay the fee.

I think that it would be better if they just added the charge to the phonein the first place, no one would care. Customers only see it as another "fee".

This is a user to user forum. I am a user, just like almost everyone else on the site.
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*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.
21stNow

Professor

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2.7K Messages

6 years ago

It's similar to shopping clubs (like Sam's and Costco) that charge a fee to shop there for the privilege of the lower prices that are offered.  As others have stated, if you don't take the discount on the device, you don't have to pay the upgrade fee.  If you want AT&T to give you a discount on the device, you have to pay a fee for the privilege.

Tutor

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5 Messages

6 years ago

I wouldn't call it an upgrade, it's a renewal of my contract from a monthly to a 2 year plan with a new phone. There's nothing there that doesn't benefit AT&T. And it is just a fee - it does not cost them $40 per customer to add a new phone to an existing customer who has Uverse, data plans, cell phones for the entire family, etc. i guess it doesn't bother anyone else here but being nickeled and dimes to death with little "fees" is getting old. A company should make a profit and they do.... An added $40 is just a 100% pure profit stream with no return to the customer.
MicCheck

ACE - Expert

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9.1K Messages

6 years ago


@Rob7416 wrote:
With all due respect, that's not really an answer. I bought a new phone because the previous one broke. In doing so I decided to give AT&T more business by signing a 2 year contract. Why then is there another $40 assessed? As I asked, do not my monthly fees cover whatever non-existent effort it takes for AT&T to accept more business from me, the customer? If it's not a penalty then is it a surcharge for AT&T to accept more money from me? To purchase the phone outright would be almost triple the contact price, a nice pricing structure created between AT&T and Apple. Granted, the low purchase price is subsidized by AT&T but with my plan I spend in excess of $120/ month just on my phone. That's close to almost $3k by the time the contract is up inclusive of usage, taxes, fees, etc. I'd have to think that more than makes up for the original phone plan price. Regardless of what other carriers do or do not do for customers, my question is to the provider I pay, AT&T.

Why is there another $40 assesed? Because that's how much the upgrade fee is.

 

I'm not sure what other answer you're looking for. 

 

 

" If it's not a penalty then is it a surcharge for AT&T to accept more money from me?"

 

Welcome to capitalism!

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*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Tutor

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5 Messages

6 years ago

This obviously isn't going anywhere so spin it as you will, it's a ridiculous fee especially for long term , repeat customers. At one point it was the company's " privilege" to have dedicated customers, now we're just an endless cash stream that can go take a leap if we don't like it. Cheers
GLIMMERMAN76

ACE - Expert

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20.3K Messages

6 years ago

did you get new equipment on contract?  Yes you did.  Then you UPGRADED your phone to a new one.  When you signed the paper work that fee was right there in your face.

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*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Tutor

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5 Messages

6 years ago

I know the fee was there, that's why I'm bringing it up. I didn't realize everyone here was on retainer with AT&T
21stNow

Professor

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2.7K Messages

6 years ago

Speaking for myself, I'm not on "retainer" with AT&T.  I don't like the upgrade fee myself, but I don't pay it because I buy devices at full price upfront.  I don't do this to avoid the upgrade fee, but it is a nice perk since I am not using AT&T to get a discount on the device anyway.

 

You pay $40 to save ~$400.  Most people wouldn't call that a bad deal.

Tutor

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5 Messages

6 years ago

I'm not on retainer and I agree that it is B S plain and simple.  How much does AT&T pay their office staff per hour?  ANd how many hours does it take to click a button and electronically accept a new contract?    Yea, bogus. 

MicCheck

ACE - Expert

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9.1K Messages

6 years ago

If I'm on retainer to AT&T, they are seriously delinquent on their payments to me!

 

I just realize that companies charge for their products and services. If there wasn't an "upgrade fee", the price of equipment would be higher, or the monthly services fees would be higher, etc. Like I said, welcome to capitalism.

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*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Tutor

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5 Messages

6 years ago

Then why not add it into the cost of the phone- which typically costs a couple of hundred dollars and not call it an upgrade fee?  

 

 

Contributor

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2 Messages

6 years ago

In my case, I did not take any new equipment. The charge was not even mentioned verbally, or in the quote, of which I have a signed copy. But I was charged the amount. And I do not know if I'll have to pay that amount even if I cancel the service after a week of use.

lizdance40

ACE - Sage

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78.1K Messages

6 years ago

I recently left Verizon for AT&T.. Verizon also charges an upgrade fee. The fee covers the extra paperwork. Yes, it feels like we are nickel and dimed to death. Too bad, but this is how it is. If you add a line in a store, you pay a $35 fee for the paperwork for that also.

After trying to get a fair deal from Verizon after 19 years, I learned the best way to get a fair deal and I got a better deal from AT&T.
1. Pay for the phone out-right, which did not mean from AT&T, I bought from Amazon.
2. make changes during promotions. I moved us over during the early days of the $160 promotion when there was no new line fee and a $100 rebate for each new line.
3. if you follow these suggestions you can leave any time you start feeling abused or taken advantage of.

🐾 I don’t work for AT&T or any carrier. Never have, never will. My replies are based on experience and reading content available on the website. If you posted personal information, please edit and remove.

Award for Community Excellence 2020 Achiever*
*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

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