Penalty for giving you more business

Tutor

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.
Message 1 of 20 (968 Views)
ACE - Professor
Solution
Accepted by beckyww (Administrator)
‎09-30-2015 1:39 AM

Re: Penalty for giving you more business


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.

*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.
Message 2 of 20 (926 Views)
Tutor

Re: Penalty for giving you more business

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.
Message 3 of 20 (921 Views)
ACE - Expert

Re: Penalty for giving you more business

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.
*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.
Message 4 of 20 (909 Views)
Professor

Re: Penalty for giving you more business

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.

Message 5 of 20 (906 Views)
Tutor

Re: Penalty for giving you more business

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.
Message 6 of 20 (898 Views)
ACE - Professor

Re: Penalty for giving you more business


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!

*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.
Message 7 of 20 (893 Views)
Tutor

Re: Penalty for giving you more business

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 <br>
Message 8 of 20 (887 Views)
ACE - Master

Re: Penalty for giving you more business

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.

*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.
Message 9 of 20 (880 Views)
Tutor

Re: Penalty for giving you more business

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
Message 10 of 20 (876 Views)
Professor

Re: Penalty for giving you more business

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.

Message 11 of 20 (863 Views)

Re: Penalty for giving you more business

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. 

Message 12 of 20 (859 Views)
ACE - Professor

Re: Penalty for giving you more business

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.

*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.
Message 13 of 20 (848 Views)

Re: Penalty for giving you more business

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?  

 

 

Message 14 of 20 (819 Views)
Contributor

Re: Penalty for giving you more business

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.

Message 15 of 20 (804 Views)
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