Upgrade Fee Should be Renamed Churn Fee

ickybro
Member

I almost bought a phone from Verizon today. Made it all the way to the shopping cart and then noticed a barrier. There is a new (old but recycled) upgrade fee. Apparently VZW would like to charge me $20 for me to have the privilege of handing over a few hundred dollars for a phone.

Luckily, I have some options. I can buy the phone from some other entity and incur no upgrade fee. Or, since my line is not in a contract, I can simply go elsewhere at no cost. I have been using vzw for 14 years, so I guess I should probably test out something new anyways. Could be that all the Tmobile, ATT and US Cellular folks are getting a better deal than me. Thanks Big Red for giving me the incentive I needed for change. Change is hard, but when barriers are put in the way, new paths open up.

Is there anyway I can get this barrier to purchase removed and finish my checkout? Maybe a promo code? I am human and generally like to avoid change if possible.

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Re: Upgrade Fee Should be Renamed Churn Fee

mcm1994
Member

Because Verizon now has the device payment plan more and more people are upgrading, due to operational cost changes associated with upgrading and activating devices a charge was added to keep up with all the upgrades Verizon has been getting. AT&T has a $40 upgrade fee and sprint has a $38 upgrade fee. I would rather pay $20

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Re: Upgrade Fee Should be Renamed Churn Fee

Weth
Sr. Leader

This was just added. Do as I will do, buy somewhere else. I am shocked at the audacity to charge someone $20 to buy a full priced phone so I can take a SIM card from my old phone and put it in the new phone.

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Re: Upgrade Fee Should be Renamed Churn Fee

mcm1994
Member

Because Verizon now has the device payment plan more and more people are upgrading, due to operational cost changes associated with upgrading and activating devices a charge was added to keep up with all the upgrades Verizon has been getting. AT&T has a $40 upgrade fee and sprint has a $38 upgrade fee. I would rather pay $20

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Re: Upgrade Fee Should be Renamed Churn Fee

Weth
Sr. Leader

I could possibly see with a device payment plan since there is a loan involved and Verizon has to put up the initial cost of the phone while you pay it back interest fee. However, there is no excuse for having an upgrade fee on a phone that you pay full price for. I would like to see what you mean by operational cost changes with upgrading. Most phones today you just take SIM from old phone and put it in the new phone. Software does the rest in seconds at pennies cost.

Verizon made the decision to go away from contracts

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Re: Upgrade Fee Should be Renamed Churn Fee

mcm1994
Member

Verizon got rid of the contracts because the customers did not like it, and what do you thing goes in to activation or upgrading a device? you have the processing of the device, you pay for the device to work on the Verizon network, now there are systems that Verizon has to pay for to use to do all of this and pay the people running theses systems, so because more and more people are upgrading at a faster rate (because the phone companies that make the phones are turning them out quicker then ever) the charge for upgrade is getting more and more expensive , hence the upgrade fee Smiley Happy

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Re: Upgrade Fee Should be Renamed Churn Fee

Tidbits
Sr. Leader

I could see operational costs if the monies made went to employees when on contracts or payment plans. Buying a device outright may not yield any commissions then the fee was for that commission then I could see this fee as being valid, but we all know Verizon probably isn't going to hand the rep any kind of money for that sale whether third party or commissioned employee.

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Re: Upgrade Fee Should be Renamed Churn Fee

Weth
Sr. Leader

mcm1994 wrote:

Verizon got rid of the contracts because the customers did not like it, and what do you thing goes in to activation or upgrading a device? you have the processing of the device, you pay for the device to work on the Verizon network, now there are systems that Verizon has to pay for to use to do all of this and pay the people running theses systems, so because more and more people are upgrading at a faster rate (because the phone companies that make the phones are turning them out quicker then ever) the charge for upgrade is getting more and more expensive , hence the upgrade fee


Putting SIM in old phone into new phone and turning it on and an automated process switches things around costs how much -- yes a few cents. Your smileys don't really help the thick cloud you are stating. It is not paying operational costs and I bet not a single cent more gets to the employees. It is just a profit grab - extracting $20 for no purpose.

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Re: Upgrade Fee Should be Renamed Churn Fee

mcm1994
Member

This is true but the systems that are used to active your phone coat money

to use you are missing that point. It may be a few cents but it adds up.

And I never said v erizon employees get that money. You do know there is a

strike for better pay going one right?

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Re: Upgrade Fee Should be Renamed Churn Fee

Weth
Sr. Leader

Yes, that is why it is being brought up.

Well I guess we disagree that a few cents adds up to $20. You will see my posts generally positive. This is beyond what is rational charge though. It is only done because they can. I am not arguing they cannot do it, they clearly can. It just some decisions are rational, and others are irrational greed. This falls in the latter category.

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Re: Upgrade Fee Should be Renamed Churn Fee

Ann154
Expert

Those ($40 & $38) are the contract upgrade fees. At AT&T, it is also $20 to purchase a new phone at the full retail price or on the installment payment option just like Verizon Wireless.

I'm most definitely NOT a VZW employee. If a post answered your question, please mark it as the answer.