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    Posted Jul 29, 2013
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    Upgrade pricing for New versus loyal customer
    Edited by ATTDmitriyCM on Jul 30, 2013 at 1:30:15 PM

    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.

    Upgrade pricing for New versus loyal customer

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    Jul 29, 2013 12:56:03 PM
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    Professor

    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.

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    Jul 29, 2013 1:06:25 PM
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    Scholar

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

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    Jul 29, 2013 2:14:25 PM
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    Expert

    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

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    Jul 29, 2013 2:23:05 PM
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    Scholar

    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.

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    Jul 29, 2013 5:49:34 PM
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    Scholar

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

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    Jul 29, 2013 6:35:49 PM
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    ACE - Professor

    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.

    *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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    Jul 29, 2013 8:45:24 PM
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    Edited by tthomaso on Jul 29, 2013 at 8:47:21 PM

    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!

    Re: Upgrade pricing for new versus loyal customer

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    Jul 30, 2013 5:20:34 AM
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    ACE - Professor

    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.

    *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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    Jul 30, 2013 7:14:37 AM
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    Community Manager
    Edited by ATTDmitriyCM on Jul 30, 2013 at 10:15:06 AM

    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:

    active.JPG

     

     

     


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    Re: Upgrade pricing for new versus loyal customer

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    Jul 30, 2013 7:29:13 AM
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    Community Manager

    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

    For account specific help, please send a private message to ATTCustomerCare

    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 here.

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    *I am an AT&T employee and the postings on this site are my own and don’t necessarily represent AT&T’s position, strategies or opinions.

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    Jul 30, 2013 8:11:57 AM
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    @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.

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    Jul 30, 2013 11:25:29 AM
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    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.

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    Jul 30, 2013 12:18:48 PM
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    Professor

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

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    Jul 31, 2013 11:55:03 AM
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    Scholar

    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.

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    Jul 31, 2013 1:15:45 PM
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    tthomaso wrote:

    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.


    Sounds like you are either going to purchase a unlocked version at full retail or go to a different carrier. In any respect, sprint and verizon do the same exact thing, as a loyal customer that fulfilled the two year contract comminment at the other two carriers, you get the same exact loyalty price - the same exact price a new cusotmer pays.

     

    One other thing to keep in mind, just becasue you can upgrade does not mean your contract is complete, you still have about 4 months lefts so if you decide to move factor in the balance of the etf.

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    Aug 1, 2013 7:05:28 PM
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    Scholar

    I didn't say anything about leaving AT&T. Like I said I have no issues with the services I have including cell, Ipad and Uverse. I have 1 issue and I think I have stated it in the subject and through out this conversation. Bestbuy offers the same deal so I will buy it from them just as a protest. All vendors may do the same thing but that doesn't mean that they all aren't wrong for not honoring a better deal to keep a customer. AT&T makes everything sound good from a marketing position and advertising but I still think they need a better concentration on what they do for a customer that pays a sweet price every month.

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    Aug 1, 2013 11:52:29 PM
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    Teacher
    Bestbuy is still a retail partner with AT&T, in fact AT&T loses less money when you buy from stores like Bestbuy, as they have a better bargaining position with the OEM dealing with every single other major carrier. The discount for the contact remains the same from AT&T's standpoint. So your protest only serves to allow AT&T to spend less money to keep you under contract.

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    Aug 2, 2013 3:31:00 AM
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    TitaniumMettle wrote:
    Bestbuy is still a retail partner with AT&T, in fact AT&T loses less money when you buy from stores like Bestbuy, as they have a better bargaining position with the OEM dealing with every single other major carrier. The discount for the contact remains the same from AT&T's standpoint. So your protest only serves to allow AT&T to spend less money to keep you under contract.

    would be interesting to see your backup documentation on the commecnt that "ATT loses less money", can you supply it?

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    Aug 2, 2013 7:19:40 AM
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    Employee

    tthomaso wrote:

    I didn't say anything about leaving AT&T. Like I said I have no issues with the services I have including cell, Ipad and Uverse. I have 1 issue and I think I have stated it in the subject and through out this conversation. Bestbuy offers the same deal so I will buy it from them just as a protest. All vendors may do the same thing but that doesn't mean that they all aren't wrong for not honoring a better deal to keep a customer. AT&T makes everything sound good from a marketing position and advertising but I still think they need a better concentration on what they do for a customer that pays a sweet price every month.


    Just curious, can you name any service provider (cellular, satellite, cable, isp or anyone) that gives a better deal to existing customers than they offer new customers? I sure don't know of any.

     

    *I am an AT&T employee and the postings on this site are my own and don’t necessarily represent AT&T’s position, strategies or opinions.

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    Aug 2, 2013 1:01:09 PM
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    ACE - Professor

    Sandblaster, you're hitting on the concept that I would like to see become a reality.  The cellular service providers should be service providers only and stop selling devices, period.  That would also eliminate the arguments based on "upgrade pricing".

    *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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    Aug 2, 2013 5:59:22 PM
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    Scholar

    Well Sprint just blew the "everyone is offering the same price" out of the water! They are advertising $199.99 buy 1 get 1 free! I hate Sprint but maybe they have done us a favor?

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    Aug 2, 2013 6:52:12 PM
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    tthomaso wrote:

    Well Sprint just blew the "everyone is offering the same price" out of the water! They are advertising $199.99 buy 1 get 1 free! I hate Sprint but maybe they have done us a favor?


    Sprint is foundering badly financially to the tune of 6.67 a share at market close today. They have to do something to get people to want to be on their service. It is all marketing. They rank third on 3G network speeds and dead last on LTE

     

     

    LTE Speeds.PNG

     

    Add to teh fact the Japanese carrier softbank is in final negotiations to buy sprint. Both ATT and verizon has made the same type of offer in the past.

     

    Now for the kicker - New verses loyal customerSmiley Happy

     

    http://www.itechpost.com/articles/11080/20130729/sprint-samsung-galaxy-s4-buy-one-free.htm

     

    Sprint is running a Back to School promotion for the Samsung Galaxy S4.  If you buy one Galaxy S4 for $199.99 when signing a new 2-year contract, you'll receive another S4 for free, after a $50 mail-in rebate. The promotion runs now through August 15th. If you've been thinking about getting a Galaxy S4, this might be the best time to take the plunge. So loyal customers do not get that deal, just new service customers

     

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    Aug 3, 2013 4:48:07 AM
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    ACE - Professor

    The Sprint offer is for existing Sprint customers that are upgrade eligible, as well.

    *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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    Aug 3, 2013 7:24:54 AM
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    21stNow wrote:

    The Sprint offer is for existing Sprint customers that are upgrade eligible, as well.


    interesting not what the article states

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    Aug 3, 2013 9:04:11 AM
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    ACE - Professor

    Sprint's website shows the offer for existing customers.  You know what you always say about information from outside sources. Smiley Happy

    *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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    Aug 3, 2013 10:05:14 AM
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    Edited by wingrider01 on Aug 3, 2013 at 6:28:46 PM

    21stNow wrote:

    Sprint's website shows the offer for existing customers.  You know what you always say about information from outside sources. Smiley Happy


    Shot a email off to our sales weasel at sprint that handles the business account, will see what she says getting that pricing. If this is true I have 7 developers that are in need of upgrades for their phones, will save a ton of money and have a the new hire's phone handled at the same time.

     

    Besides the only sites that I rail primarily on are those that publish unvalidated, uncontrolled and "impartial" surveys for customer support  that people take as 100 percent accurate - *cough* *cough* the initials CR come to the forfrontSmiley Happy

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    Aug 6, 2013 3:52:42 PM
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    Professor

    OK, I can see your point. However, things are not like they used to be.

     

    Also, $400.00 discount on a phone is a pretty darn good deal if you ask me.

     

    Nextel always offers that buy one get one free with devices that are nearing the end of their life cycle with the manufacturer. But, it is a good deal if you can take the lack of speed and signal strength that Sprint gives their users.

     

    Good luck to you with your decision.

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