Upgrade pricing for New versus loyal customer

Scholar

Upgrade pricing for New versus loyal customer

[ Edited ]

I have heard "taht is the way it is" way too many times. I have chatted with Sales, called customer support, called the store and now have left a message on a secret number I have and I consistenly get the same response "that is just the way it is"! I have been looking at the Galaxy S4 Active and my point doesn'r really matter what phone it is. You can go to Samsung.com and get routed to AT&T ot go directly to ATT.com and you get $199.99 for the phone. I have 3 cell phones, two IPads and have Uverse internet, TV and home phone. ATT.com keeps telling me I am eligible for an upgrade. I am also a Business Direct Premier member and guess what my price is correct $199.99.

 

This does not make ANY sense to me. Upgrade, loyal customer doesn't make any difference. You get the same price as anybody else walking off the street. I am getting a little tired of the attitude.

Message 1 of 28 (2,582 Views)
Professor

Re: Upograde pricing for New versus loyal customer

What price would you like to see? $199.99 is the subsidized contract price. That's a heck of a lot better than the $594.99 you'd pay without a contract.

 

AT&T has to pay Samsung for the phone, so they can't very well give it away.

Message 2 of 28 (2,551 Views)
Scholar

Re: Upograde pricing for New versus loyal customer

Someting better that what everyone can get. Is my business not worth anything?

Message 3 of 28 (2,547 Views)
Expert

Re: Upograde pricing for New versus loyal customer


tthomaso wrote:

Someting better that what everyone can get. Is my business not worth anything?


You are getting the same price as a new subscriber, same as the other carriers

Message 4 of 28 (2,514 Views)
Scholar

Re: Upograde pricing for New versus loyal customer

Right and that is my problem. Once again nothing special for a long time didicated cutomer! You have the same attitiude everyone esle has and can't see the customer perspective.

Message 5 of 28 (2,515 Views)
Scholar

Re: Upograde pricing for New versus loyal customer

Somebody tell me what the advantage is to waiting 2 years to upgrade when anybody can get the same price you do???

Message 6 of 28 (2,485 Views)
Professor

Re: Upograde pricing for New versus loyal customer

Most places charge the same prices to all customers.  I buy bottled water from CVS and have been doing so for many years.  I still get charged the same thing that any other customer who walks into the store gets charged. 

 

There are other businesses that do the opposite.  I drive a Chevrolet.  Right now, Chevrolet is offering current Toyota and other car manufacturer owners $3,000 off of select models of a new Chevy.  In this case, I get punished for being a Chevy owner.  Chevrolet is entitled to run whatever specials they want to and I'm entitled to choose not to spend my money with them again.  You may not like the phrase, but that's the way it is.

 

I hear what you are saying, but I don't understand the logic of it.

Message 7 of 28 (2,476 Views)
Scholar

Re: Upgrade pricing for new versus loyal customer

[ Edited ]

The point you missed is that I am talking about non customers getting the same price. I do not understand why this seems to be rocket science nor what it has to do with buying water or cars?? I am a customer that has been checking for the opportunity to upgrade on a regular basis with the expectation that I would have an opportunity to get special pricing when it came that time. Maybe I falsely assumed that but if that is not the case why should I wait for an upgrade, why give me the option to check if I am eligible? I guess I maybe able to get a better price on last years phone?

 

Yes I have the opportunity to buy the phone at the same price as everyone else. Is that supposed to make me excited about being an AT&T customer? I do not understand why every customer that thought there was an advantage to staying with the some vendor might eventually give you an advantage.

 

I have been in the customer service business for a lot of years but I guess I have work for companies that had to work to retain customers. The AT&T Next campaign is, in my opinion a slap in the face unless there is an advantage that I can't see. Pay us now $5xx.00 and we will give you a free phone (only pay the tax) multiplied by 3 lines and that puts the price at over $1,500.

 

I understand AT&T has to pay for the phones. Has anybody heard of volume buying? What is your guess as to what AT&T actually pays for a phone? You really think they pay $199.99? I am really tired of them nickle and diming me to death but I also ealize that threating AT&T does NO good!

Message 8 of 28 (2,461 Views)
Professor

Re: Upgrade pricing for new versus loyal customer

You don't understand what it has to do with buying water or cars; why should buying a phone be any different?

 

During the attempted AT&T buyout of T-Mobile, data showed that carriers pay at least $400 for smartphones (iPhones were the most expensive) so yes, the carriers pay more than $199 for the smartphone that you are referring to.

 

None of this is rocket science.  The price for the phone is shown on the card next to the phone or on the website.  It's not hard to figure out the price of any phone available for sale by AT&T.

Message 9 of 28 (2,437 Views)
Community Manager

Re: Upgrade pricing for new versus loyal customer

[ Edited ]

Hello tthomaso,

 

I apologise for any confusion with the upgrade process and what it means, let me clarify couple of points.

 

I will use Samsung Galaxy S4 Active as an example. The phone in question is priced at $594.99, this is the actual retail price of this device.

 

It's been a common practise in US for carriers to give their customers an opportunity to get a lower subsidised price on any phone by committing to a 2 year service contract, in this scenario the price will be reduced to $199.99, AT&T will cover the rest, and in return customers agree to use their service for full 24 months or pay a termination fee if canceled earlier. While under this commitment, if customer wants to buy another phone, the price they'll have to pay will be the full retail price of $594.99, they have to fulfil their existing contract before a carrier will subsidize another device. The point of time when contract is fulfilled and new subsidy is available is called the "Upgrade".

 

So the Upgrade means that you can buy a phone at subsidized price of $199.99 (instead of $594.99!), sign another contract at this time, and the cycle starts over.

 

"I am a customer that has been checking for the opportunity to upgrade on a regular basis with the expectation that I would have an opportunity to get special pricing when it came that time."

 

You were checking to see when you'll be able to buy a phone for $199.99 instead of $594.99, that's what term "Upgrade" means. New customer's price is $199.99, new customer doesn't have a contract which is equal to fulfilling your contract and becoming eligible for the Upgrade, and the price is the same. In both cases (Upgrade or New), a customer will be committing to the same 2 year contract in exchange for the same subsidy on equipment.

 

Please review: Wireless Customer Agreement. It explains everything in more details.

 

Please let me know if you have any other questions.

 

Thanks,

Dmitriy

 

Screenshot:

 

 

 


Rethink Possible


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Message 10 of 28 (2,422 Views)
Community Manager

Re: Upgrade pricing for new versus loyal customer

AT&T Next is a different option, it is designed for people that don't want to be signing any contract and want to be able to buy a phone every year instead of waiting 2 years to "Upgrade".

 

In this scenario, carrier doesn't subsidize any equipment costs since there is no service commitment, the phone price will be a full retail of $594.99, divided by 20 months, so instead of paying this price in full at the time of purchase, customer will pay their sales tax and then have a payment of $29.75 every month until the phone is paid off. And it gives you an option to trade-in you phone for a new one after 12 installment payments.

 

You can find more about it here: AT&T Next.

 

Thanks again,

Dmitriy


Rethink Possible


Did a post have a solution that worked for you? Help other people find solutions faster by marking posts that helped you as an "Accepted Solution". Learn about accepted solutions: Learn More.

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Message 11 of 28 (2,415 Views)
Highlighted
Contributor

Re: Upgrade pricing for new versus loyal customer

@Thomas - your display of outright entitlement is astounding.   As consumers our job is to get the best deal at the time of purchase as we can arrange.  At any given time that may be different.  All that is fair and relevant is what is available or you can negotiate at the time of purchase.

 

As retailers, their job is to communicate clearly the options available at the time of your purchase.  It is not their job to cater to all purchases ever made or the feelings of said purchasers.  They're retailers, they're selling stuff.  Clear communication is still their only requirement.

 

If this entitlement rant "I'm an AT&T loyal customer and that alone means I should always get better pricing" is your sole negotiation tactic, then I can recommend a lot of good negotiation books.

 

 

TIP: When the best price you can get is still unsatisfactory, but it IS the best price you can find, look at other options to increase the value of the $ you may spend.  A local rep may give you an additional deal on the phone covers, for instance, if you negotiate politely, and not from a position of entitlement.

 

This whole thread of yours makes me a little sad.

Message 12 of 28 (2,401 Views)
Tutor

Re: Upograde pricing for New versus loyal customer

I don't feel entitled but I WISH that there was a loyal customer discount every two years. Then I wouldn't have to check every other provider when it's time to renew my contract - I'd happily stay with att. As it is my "upgrade" is coming up so it's time to look around. Not much fun but kinda what you have to do if you want the best deal. My insurance company does loyal customer perks so I stick with them automatically. I guess I'm not sure I have the best deal but it actually makes me feel loyal so I stay. Att could potentially have the same loyalty but obviously doesn't want to.
Message 13 of 28 (2,347 Views)
Professor

Re: Upograde pricing for New versus loyal customer

I guess people don't see a 66% discount as anything special? Seems like a pretty good deal to me.

Message 14 of 28 (2,343 Views)
Scholar

Re: Upograde pricing for New versus loyal customer

All I can say that even if I but the S4 it will not be from AT&T even if I have to pay more for it. I always have been happy with the way AT&T has treated my concerns but this time they have fallen way short.

Message 15 of 28 (2,283 Views)
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