Anybody know why different packages for new/upgrade customers

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radicool

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I see there have been one or two other threads on this, but I was hoping somebody official *cough* :p could provide a proper reason for why upgrading customers always receive the short end of the stick when it comes to packages?

I don't understand why loyal customers who have been supporting the network for years get worse offers than new customers. Obviously they are trying to entice new customers, but why not offer those same packages to existing customers and keep everybody happy? As it is, upgrading customers have to pay an "admin" fee which isn't usually charged to new customers.

Is it the networks that decide, or is it the retailers themselves? And if it is the retailers, why would they choose to exclude potential customers? Do the kickbacks from the networks mean they make less money, which perhaps doesn't cover the costs of the better offers?

Surely if I port to another network, or even just another service provider, they will consider me a new customer? And then after 2 years, just port back to the original service provider/network. Surely now that porting is available, the whole idea of separate packages for new versus upgrading customers is out of date and should be eliminated?

And of course, calling anybody at Vodacom leads down alley after alley of dead-ends, because "that's just the way it is".
 
On that note, what i want to know is:

What is the difference between:

(a) Upgrading your contract [effectively taking out a new 2 year contract]
vs.
(b) Cancelling your contract [at the end of it]
and then taking out a brand new contract.


In (a) i imagine they actually DO NOT do all the paperwork again [no credit checking etc] . You probably don't get a new SIM either, and probably no "Activation" process either [even though you are paying for it..another rip-off].

In (b) it's the works, credit check, all the paperwork which needs to be processed by the provider. New SIM , new activation process etc etc.


So somewhere there's a performance/kick-back system that is totally out of whack. I assume you get 1 point for a upgrade and 2 points for a new customer....and so everyone just ignores the overheads involved .
 
I'm about to upgrade (voda) for the 5th time and it seems that when upgrading - being loyal, or being with them for sometime time doesnt gain you any benefits at all.

I'm on talk 240 and have tried to wrangle these guys but just cant seem to get any better deal - (vodashop)

So it looks like i'm getting PSP & sony Ericcson v630 with pay-in of R239.. i've tried to get the R239 waived, through my loyality, but nothing.
 
I've been with Vodacom SP since before they even existed, having been absorbed into them from Teljoy - 9 years with the same company, with the same number, plus I have second newer contract on the same account.

All I want is one of the packages which includes a laptop so that I can give the laptop to a family member - not the data package DELL though. Incredible Connection have a decent Toshiba Satellite deal at the moment, but "new contracts only, there's no deal sheet for upgrades" :(
 
I suspect...

radicool said:
I see there have been one or two other threads on this, but I was hoping somebody official *cough* :p could provide a proper reason for why upgrading customers always receive the short end of the stick when it comes to packages?
Click to expand...
The difference is they have you where they want you with an upgrade... your options are lose your number or take an upgrade.
 
Boodles said:
I'm about to upgrade (voda) for the 5th time and it seems that when upgrading - being loyal, or being with them for sometime time doesnt gain you any benefits at all.

I'm on talk 240 and have tried to wrangle these guys but just cant seem to get any better deal - (vodashop)

So it looks like i'm getting PSP & sony Ericcson v630 with pay-in of R239.. i've tried to get the R239 waived, through my loyality, but nothing.
Click to expand...

You been with them for 10 years and they didnt give you a R200 discount?
Try another vodashop, one of them will definatly give a discount, if not pm me, ill suggest a shop to get it at.
 
Onepostwonder said:
The difference is they have you where they want you with an upgrade... your options are lose your number or take an upgrade.
Click to expand...

That's why I say that the differentiation between new and upgrade contracts should disappear, because now you can keep your number. So surely it's not unreasonable to provide the same offers to upgrading and new customers?!
 
Not really

radicool said:
That's why I say that the differentiation between new and upgrade contracts should disappear, because now you can keep your number. So surely it's not unreasonable to provide the same offers to upgrading and new customers?!
Click to expand...

You can't keep your number and sign a new package from your current service provider. They still have you where they want you.
 
Yes, they still have you by one of the proverbial b*lls, but at least now you can change to another service provider, even in the same network, and still be considered a new client. And since it's so much easier to do, you'd think they'd make the effort and let you get a "new" package deal.

I'm still hoping someone from the industry that might happen to be on the forums ;) could provide some insight as to why it works the way it does. Maybe if there's a really valid reason we can at least understand and stop thinking we're being hard done by.
 
Ok, I have the answer if anybody wants to know. The retailers get annuity income on any new contracts they sign up. In other words, they make a % the actual amount that you spend each month for the rest of eternity. So that helps cover the costs of the better deal.

Therefore if you signed a new contract at Retailer A, they keep making money off you further down the line. So when you go to Retailer B, he won't give you the same offer because he's not making money from you. However, if you went back to Retailer A and ask him nicely, he would probably let you have one of the new packages on an upgrade deal, since it's in his best interests for you to continue with your current contract, because as soon as you change your contract by porting or something, he'll stop making his percentage from your monthly spend.
 
radicool said:
Ok, I have the answer if anybody wants to know. The retailers get annuity income on any new contracts they sign up. In other words, they make a % the actual amount that you spend each month for the rest of eternity. So that helps cover the costs of the better deal.

Therefore if you signed a new contract at Retailer A, they keep making money off you further down the line. So when you go to Retailer B, he won't give you the same offer because he's not making money from you. However, if you went back to Retailer A and ask him nicely, he would probably let you have one of the new packages on an upgrade deal, since it's in his best interests for you to continue with your current contract, because as soon as you change your contract by porting or something, he'll stop making his percentage from your monthly spend.
Click to expand...

You right to a certain extent, but no store will turn you away from upgrading with them, they also make a % by keeping you for another 2 years.

Discounts can be given, BUT there are a few rules about it.
Alot of people just want to threaten all the SPs with porting, I already heard thats its getting old, some really stupid people start with their empty threats just to get what they want and end up stuck with a worst SP for 2 more years just because they want to be smart.
 
JK8 said:
You right to a certain extent, but no store will turn you away from upgrading with them, they also make a % by keeping you for another 2 years.

Discounts can be given, BUT there are a few rules about it.
Alot of people just want to threaten all the SPs with porting, I already heard thats its getting old, some really stupid people start with their empty threats just to get what they want and end up stuck with a worst SP for 2 more years just because they want to be smart.
Click to expand...

A couple of months ago, I was unhappy with a deal from VC, I asked what I would need to cancel my contract, and I was promptly helped through the steps. They were very friendly. Now there is one more phone out there without a contract. Certainly they make more from PAYG than from contracts.
 
They get more for new contracts than they do for upgrades. The networks know once you have signed a contract that they have you by the balls so they can afford to offer you sh*t specials because most users need to keep their number. BUT, if you make a loud enough noise they can always make a plan. And MNP is also an option, just watch the catches as there are always catches, even with MNP.
 
radicool said:
I've been with Vodacom SP since before they even existed, having been absorbed into them from Teljoy - 9 years with the same company, with the same number, plus I have second newer contract on the same account.

All I want is one of the packages which includes a laptop so that I can give the laptop to a family member - not the data package DELL though. Incredible Connection have a decent Toshiba Satellite deal at the moment, but "new contracts only, there's no deal sheet for upgrades" :(
Click to expand...

This is what i am looking for as well! Do u know if anything like this still exists?
 
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