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    Verizon Edge....WHY?

    u90401

      I just checked out the Verizon Edge program and I cannot understand why anyone would choose this program. I'm interested in buying the Samsung Galaxy 4 and the 2yr agreement price to purchase is $199 plus the stupid $30 upgrade fee. Then I looked at the Edge program which allows you to pay for it over 24 months with no contract, but the price is $599.99. No why would anyone sign up for this program? What is verizon thinking? This company is sucking the consumer dry all because they can. Yes, I do like their service as I very seldom have any problems with the service, but what about providing a good product at an affordable price for the consumer? They continue to find ways to disguise the costly fees and programs that they are creating and adding to our bill by not telling you the truth. Always research before you buy because most times what they are selling isn't always in your best interest. My opinion, don't purchase any phone under this Edge program. Hopefully the program will fail and Verizon will reconsider and develop a better program for the customer. I say, just get rid of the upgrade fee. You make money on the service and keeping customers long term; not on the phones!!!!

        • 1. Re: Verizon Edge....WHY?
          rcschnoor

          While I agree the Edge program is NOT a very cost effective way to purchase a phone, I can see why some will sign up.

           

          As you say, the Samsung GS4 is $199 on contract($229 with upgrade fee). With the Edge program, that cost at point of purchase drops to $25 + tax on the full $600. That is considerably lower than $229 + tax. These people don't really pay attention to the fact they will be paying $25/month for the next 24 months. If they upgrade after paying off 50% of the full retail price, they don't pay attention to the fact they must return the current phone. They don't pay attention to the fact when the current phone is returned, it MUST be in good working condition or the remaining balance will most likely be charged on top of the cost of the new phone. It is basically a VERY expensive rental program.

          • 2. Re: Verizon Edge....WHY?
            Cloudlv9

            *Slow Clap* Where did you get your Business Doctorate  anyway? I mean you must have one if you think you know how to run one better than a company that is worth billions. You realize that VZ makes absolutely no money on the phones right? They buy them at full retail pricing and then discounts them for the contracts. Verizon Edge is an OPTION for people who have the money to upgrade every six months if they want to, but that is just the thing its just an option and one that Verizon makes no money on, it is a courtesy. You can just upgrade as normal if you want, the options just not for you, deal with it rather than pointing fingers.

            • 3. Re: Verizon Edge....WHY?
              rcschnoor

              Cloudlv9 wrote:

               

              *Slow Clap* Where did you get your Business Doctorate  anyway? I mean you must have one if you think you know how to run one better than a company that is worth billions. You realize that VZ makes absolutely no money on the phones right? They buy them at full retail pricing and then discounts them for the contracts. Verizon Edge is an OPTION for people who have the money to upgrade every six months if they want to, but that is just the thing its just an option and one that Verizon makes no money on, it is a courtesy. You can just upgrade as normal if you want, the options just not for you, deal with it rather than pointing fingers.

              I would certainly have to disagree with the highlighted portion of your statement. I think Verizon certainly does make money on every single phone sold via the Edge program.

               

              THESE phones are not discounted in price. They are sold at full retail cost. If someone purchases the phone on the Edge program and then upgrades after 6 months on the Edge program again, they must return the original phone to Verizon in working order with little or no visible physical damage to the phone after having paid a minimum of 50% of the full retail value of the phone. If there is more than what Verizon would consider normal wear&tear on the phone or it is not in working order, the customer would then be charged.

               

              Verizon can then use that same phone(only 6 months old) to give someone as a warranty replacement OR sell it as a refurbished phone at a price considerably higher than 50% of full retail which had already been paid by the initial purchaser of the device.

               

              On the contrary, I think the Edge plan will be a HUGE moneymaker for Verizon if a lot of people take advantage of it.

              • 4. Re: Verizon Edge....WHY?
                Cloudlv9

                So giving someone a phone and then they turn it in after only 50% of the cost is paid (losing the other 50% after having paid after Verizon paid 100%) is making money? The Refurbished cost for the phone would not be 50% of full retail. So there is still no money being made, just lost.

                • 5. Re: Verizon Edge....WHY?
                  rcschnoor

                  First of all, the phone is turned in after a MINIMUM of 50% of the cost of the phone has been paid. It CAN be more, depending on when the phone is turned in.

                   

                  Second, refurbished phones on Verizon's website ARE listed at a price greater than 50% of the full retail value of the phone. Currently, a refurbished LG Spectrum is listed at a price of $412.99 when the full retail price is $699.99, 58% of full retail.

                   

                  Lastly, MSRP is a price GREATER than what Verizon pays for the phone. Verizon makes money by selling a phone at MSRP, unlike when they sell a phone at a greatly reduced price when selling a phone on contract.

                   

                  So yes, I would say Verizon WILL make money on phones sold via the Edge plan.

                  • 6. Re: Verizon Edge....WHY?
                    rcschnoor

                    Another refurbished phone currently selling on Verizon's site is the LG Revolution with a beginning MSRP of $559.99 and selling as a refurbished phone at $391.99, 70% of full retail.

                    • 7. Re: Verizon Edge....WHY?
                      Cloudlv9

                      Anything less than 100% paid would be a loss. I severely doubt anyone will be paying that full retail pricing for a CPO. Verizon pays the same full retail pricing for the phones as they are available to the public. So the potential money maker would be if someone is dumb enough to pay full retail pricing for a CPO, seems like an awful large longshot to make a few bucks on this big of program. This program was designed and aimed for customers who conistently ask for another upgrade option to upgrade more often or to save on initially payment of the phone for a two year contract, it is a courtesy program.

                      • 8. Re: Verizon Edge....WHY?
                        B33

                        Rc as this Plan was Described to me it don't sound too bad and I may take nod and go with it come Feb. but for now it's something i'm just tossing around..   b

                        • 9. Re: Verizon Edge....WHY?
                          rcschnoor

                          Cloudlv9 wrote:

                           

                          Verizon pays the same full retail pricing for the phones as they are available to the public.

                          That is very doubtful. When purchasing in bulk, wholesale prices will be paid and ARE lower than MSRP. Granted, they are NOT as low as the prices Verizon sells its contract phones but they ARE lower.

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