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Upgrade fee
Dennis17851
Member

Why charge $40 to give a $200 discount on the purchase of a new phone?

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Re: Upgrade fee
Dennis17851
Member

Thank you for your time and some good advise, but what I really wanted to know was; why not just tell the customer they're getting a 160 dollar discount (in my case) instead 200 and then charge 40?

Pherson's response earlier might be correct but I've never been to SAM's and I guess I would ask them the same question (If I cared).

after hitting a "related article" link I guess I found what I was looking for.

Re: Why an upgrade fee?

This fee and couple other items were capable of taking me to a level of misery only my daughter's mother was able to do.  So, if you can imagine, getting this answered was important to me.

Thanks again.   

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Re: Upgrade fee
pherson
Leader

Same reason why Sams charges a yearly fee to enjoy discounts on household products.

Re: Upgrade fee
Dennis17851
Member

And why not mention this fee when offering the discount?

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Re: Upgrade fee
pherson
Leader

It is mentioned in all sales outlets.

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Re: Upgrade fee
Dennis17851
Member

It's a 40 minute drive to my sales outlet. So, I called first. (Mistake #1).

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Re: Upgrade fee
Ann154
Expert

The upgrade fee was raised to $40 a few years after this press release was issued. Upgrade Fee

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

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Re: Upgrade fee
Dennis17851
Member

I'm new at this. (Believe it or not).  This is my first upgrade with my 2nd phone. (I was on your prepaid plan with my very first phone). The concept of charging a fee for offering a discount seems alien to me.

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Re: Upgrade fee
Ann154
Expert

It might have new to you, but wasn't new to the business. At the time Verizon Wireless added the fee, the three other major carriers all had an upgrade fee. T-Mobile has since dropped theirs completely in favor of their version of the device payment option. AT&T and Sprint still have one, but push their device payment options in favor of the two year contract pricing. Depending on which phone you purchase, the Device Payment Plan on Verizon Wireless also ends up less expensive over the two ownership costs then the two year contract price. Perhaps you should do the math for you purchase and determine if you choose the best path for you.

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

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Re: Upgrade fee
Dennis17851
Member

Thank you for your time and some good advise, but what I really wanted to know was; why not just tell the customer they're getting a 160 dollar discount (in my case) instead 200 and then charge 40?

Pherson's response earlier might be correct but I've never been to SAM's and I guess I would ask them the same question (If I cared).

after hitting a "related article" link I guess I found what I was looking for.

Re: Why an upgrade fee?

This fee and couple other items were capable of taking me to a level of misery only my daughter's mother was able to do.  So, if you can imagine, getting this answered was important to me.

Thanks again.   

View solution in original post

0 Likes
Re: Upgrade fee
sprmankalel
Leader

The upgrade fee is to help pay for the time spent by reps in the store to set up and teach you features of your new phone. It also helps VZW recover lost revenue for subsidizing the device. You should have been given the option to use the device payment plan in which case you could have most likely saved yourself a good bit of money and I can break the math out for you if you're interested. All you need to do is let me know what plan you are on and what phone you purchased.