24 Replies Latest reply: May 12, 2014 2:01 PM by C Spire Liz RSS

EXPENSIVE DEVICE REPLACEMENT FEE

Illuminated

why is it that the device replacement fee is so much? i think since i have been a customer for almost 10yrs i should get some kind of discount on the replacement fees!!!!!

  • Re: EXPENSIVE DEVICE REPLACEMENT FEE
    C Spire Kat CommunityModerator

    Have you registered for our percs program yet? If not, you can do so at http://www.cspire.com/rewards . Once you have registered, please allow up to 24 hours for your status level to update. Also note that there is a difference between  percs points and Status percs. PERCS points are rewards for things you do such as download apps from SCOUT, engage with us in CIRCLE or simply manage your account online. percs are rewards just for being you.Move up in status by getting more PERC Points or by simply being a loyal customer. 5+ year customers immediately qualify for Premier Status PERCS, and 10+ year customers immediately qualify for Elite Status PERCS. You can also see what rewards you can receive just based on your status.

  • Re: EXPENSIVE DEVICE REPLACEMENT FEE
    Vibrant

    Yea 10+ years you get rewarded but I agree thats a bit much and due to the fact you pay for insurance and still have to pay $150 is outrageous to me

    • Re: EXPENSIVE DEVICE REPLACEMENT FEE
      C Spire Kat CommunityModerator

      @Courtney Fields Wiith phone insurance, as with any other insurance, there is a deductible which must be met. We realize that $150 seems like a lot to pay considering that's probably close to what you paid for your phone when you upgraded, but keep in mind that when you "upgrade", you are taking advantage of the 2 year upgrade pricing and getting a tremendous discount on the new device in exchange for your committing to a new 2 year service agreement. If you are not eligible for upgrade and had to replace your lost, stolen or damaged smartphone, a new phone would cost you well over $400. With that in mind, the $150 deductible that the insurance company charges for a replacement phone is really not bad.

    • Re: EXPENSIVE DEVICE REPLACEMENT FEE
      sexi Enlightened

      IInsurance isn't worth it to me because you still have to pay out of pocket

      • Re: EXPENSIVE DEVICE REPLACEMENT FEE
        C Spire Liz CommunityModerator

        sexi, device insurance is very similar to car insurance. You pay a small premium every month, and when you file a claim, you have to pay a deductible. Although this may seem very expensive, it's costs much less than purchasing a phone at it's full retail value. You may not realize it, but phones actually cost much closer to $600 than to the $199 or less promotional price when you sign a two year contract.

  • Re: EXPENSIVE DEVICE REPLACEMENT FEE
    Shining

    It hardly matters if you are a customer for 2 years or 22 years.

     

    Each time you sign a new contract, you create a new and seperate agreement.  Any loyalty perceived is on you.  No company is truely loyal to their customers. Customers tend to be loyal to companies however. Case in point: Apple.

     

    You get 'new' customer benefits when your contract runs out but 2 weeks or 30 days (whatever the grace period is) afterwards, you are locked into the contract for the next 24 months, with the fee dropping after 12 months and every 3 months afterwards.

     

    The problem is that people forget that a 5 inch long 1/4 inch thick slate of plastic and glass does not really costs 49.99, let alone 199.99 or even free. You are getting a HUGE discount on piece of technology that really costs $400-800.

     

    So yeah, your Early Terminiation Fee/ Device Replacement Fee is going to be high because of that discount and until you fufill your obligation from the contract, you're stuck paying it.

     

    Lest you go contract free which with a CDMA carrier like CSpire, VZW or Sprint, is moot.

    • Re: EXPENSIVE DEVICE REPLACEMENT FEE
      Vibrant

      Agreed

    • Re: EXPENSIVE DEVICE REPLACEMENT FEE
      THOMAS WALLACE Beaming

      ? $400 - 800 my foot...jaybreeze

       

      The new Nexus 7 costs only $160 to make, and is being sold at $199.  Do you honestly think that the MSRP on phones is reflective of their actual cost/value? 

       

      Sorry I don't buy the $400-800 for a phone.  That's absurd, especially with as late as Cspire typically gets these phones.  They pay at most twice the contract cost they offer you, which they make up relatively quickly do to the new pricing plans. 

       

      So sorry, I don't buy the new DRF policy or the logic behind it.  And not just from that absurd arguement but also from the practical standpoint that it will push their customers to the END of their contracts before upgrading.  The whole point of early upgrades after a year into contract is that it helps retain customers...

       

      Phones are no more expensive than they were 2 or 3 years ago to the cell provider. 

      • Re: EXPENSIVE DEVICE REPLACEMENT FEE
        Shining

        Well, I'm not debating the value of the devices. I didn't say anything about the actual value or actual manufacturing costs and R&D.

         

        I'm mentioned their COSTS. The MSRP.  Manufacturer Suggested Retail Price. Key words: Manufacturer Suggested. So the contract price where people getting the huge discount.  However, it is not explained well when people sign the contract verbally, but it's in the contract if people bothered to read it.

         

        Businesses are about profit. So yeah, they are going to sell you something for more than it costs to make it to make a profit. Otherwise, they are going to lose money. That's Business 101.  Give away the razor, but sell the blades.

         

        But let's look at things since you brought up a tablet...

         

        Let's use the iPad, also a tablet to put things in perspective.

         

        The iPad 16GB Wifi is $499

        The iPad 16GB Cellular is $629

         

        We have a difference of $130 here.

         

        That buys you a GPS radio and an LTE cellular radio for Verizon or AT&T, the key difference between these models.

         

        Now, let's look at the iPod touch 8GB, the closest thing to the iPhone 4(s).

         

        iPod touch 8gb is $199.00

        iPhone 4 8gb off contract MSRP is $549.

         

        A $350 difference in price.

         

        That buys you a GPS radio and a 3G cellular GSM radio, the key difference between these models.

        Why is that so much more than the difference between the Wifi iPad and cellular iPad? I'm no expert, but something tells me it has to do with some phone telecommunication licensing and perhaps the rights to use certain patents which ramp up the cost, along with profits.

         

        This is where your absurd 400-800 price comes from.

         

        Still not convinced? Let's take a look at Amazon's unlocked phone prices. These are all contract free phones with no subsidies....

         

        The Galaxy S III International GSM Version: $649.99

        http://www.amazon.com/Samsung-GT-i9300-Unlocked-Android-Smartphone/dp/B0080DJ6CM/ref=sr_1_1?ie=UTF8&qid=1342188926&sr=8-1&keywords=galaxy+s3

         

        Sony Xperia S: $475

        http://www.amazon.com/Sony-26i-Android-Factory-Unlocked/dp/B007HHHQ8I/ref=sr_1_1?s=mobile&ie=UTF8&qid=1342188969&sr=1-1&keywords=Sony+Xperia+s

         

        Samsung Nexus S: $339

        http://www.amazon.com/Samsung-Nexus-Unlocked-Phone--U-S-Warranty/dp/B004USPRM4/ref=sr_1_1?s=mobile&ie=UTF8&qid=1342189016&sr=1-1&keywords=Nexus+S

         

        HTC One X: $525

        http://www.amazon.com/HTC-Beats-Unlocked-Android-SmartPhone/dp/B0078LXM4A/ref=sr_1_1?s=mobile&ie=UTF8&qid=1342189042&sr=1-1&keywords=HTC+one+x

         

        Do some hunting around and you can find these phones within 10-25 cheaper or higher but they are going to hover around these prices.

         

        That is the real world price of the phones.  That's how much the technology costs. It may not but what it is actually worth but, that's the cost.  Buying in bulk, carriers may get a few dollars off of these but Samsung, Sony , HTC and Apple set the prices of the carriers too.

         

        For example Sprint paid 15.5 Billion dollars for the iPhone. That cost HAS to trickle down to the customers.

        http://online.wsj.com/article/BT-CO-20120515-716616.html

         

        Phones prices are about the same as they were +5 years ago before the iPhone came along, when we were all on Razrs and little Nokia feature phones. I know for a fact that I paid $125 for my black AT&T Razr but balked at the $250 price for that phone when it first came out. But today, baristas will line around the block to give Apple $199 for an iPhone 4S and will do the same for the 2012 iPhone. $200 for a phone is like selling something on TV for $19.95. It's a generally accepted price where people feel that they are getting a decent value for that price but it is not the TRUE price. It's the price WITH the contract where you are going to end up spending around $2000 for smartphone plan service for the next 24 months.

         

        Also, phones do more now  and we expect more out of them than we did than we did in 2007 and our phone bills are here to prove it because those prices have gone up too because we have data which before, we used to just talk and texting used to be free.  Blackberries and Windows Phones were only for business types then, but the landscape has changed as more and more people have adopted smartphones.  Not only that, if all we did was talk on the phones, there would be little need for LTE and 4G. But as more and more people use data, the carriers have to spend money upgrading their networks to keep up with demand and competition. 

         

        So yeah, most of us know that the plastic and metal rectangle doesn't contain that much value inside of it. That's part of the confusion that people have with the actual costs of the phones. Carriers only advertise the cheaper; on contract price because they know that that is the price most people will accept and pay. That price, which is drastically cut, leads to the mentality that that is the actual price of the phone when it is not. Then people are surprised when they have an issue with the phone on the 13th month when they are out of warranty and don't have insurance and that to get a replacement, they have to pay the rest of the contract off to get the phone at the new customer price or buy another phone out right.

         

        Fact of the matter is, these slabs of plastic are expensive, even if they are not 'worth' their price and to think that anyone is entitled to cheaper prices just because they have been a loyal customer for decades is naive.

        • Re: EXPENSIVE DEVICE REPLACEMENT FEE
          Vibrant

          Yea but by buying a bundle how much is the phone and thats what CS pays and other companies. Its not the cost for consumers its the cost CS paid per phone and what we pay. Two totally diff numbers

          • Re: EXPENSIVE DEVICE REPLACEMENT FEE
            C Spire Kat CommunityModerator

            @Courtney Fields The two year contract price for our phones is actually two to four times below our cost. We subsidize this by your agreeing to have service with us for two years. So we make an initial investment on the front end and make it up monthly thereafter. The Device Replacement Fee is our way of recouping that up front investment in the event that you decide to replace your phone again after only 12 months.

        • Re: EXPENSIVE DEVICE REPLACEMENT FEE
          Vivid

          I agree with you completely!!! Some people just don't understand. My advice to those who don't like the drf is to just by the phone outright and see how you like that. Also comparing cspires plans to others I don't see how they can make up the differences with that.

          • Re: EXPENSIVE DEVICE REPLACEMENT FEE
            Vibrant

            Its hard to understand paying more money period its like gas to me its up and I have to but I don't like it. IDK who likes paying extra. Even 3d makes you pay for glasses even if you kept the glasses from the last film. I understand its just no matter what I dont like to pay.

            • Re: EXPENSIVE DEVICE REPLACEMENT FEE
              Vivid

              Of course no one likes paying money period.but if you want nice things they cost money. Lol. It is a pain having to pay fees but understandable. I try and keep my phones as long as possible so my drf ain't a whole lot

      • Re: EXPENSIVE DEVICE REPLACEMENT FEE
        suthunrose Bright

        Agreed! I would love to say more on here to those who totally agree with this DRF concept but I'm going to be nice. I have worked with a cell company and know that it's all about the money. For those that love paying the DRF, it's because money is no object to you. You just throw it on the table and keep going. For people like myself, I prefer to keep both arms and legs.

  • Re: EXPENSIVE DEVICE REPLACEMENT FEE
    BILLY SMITH Brilliant

    Honestly I dont even know why I stuck around with CSpire this DRF is high some company dont even Have this in place I unserstand that they,are a regional company but they keep trying to compete with major companies and for the most part its okay but I just dont know about being here to much longer

    • Re: EXPENSIVE DEVICE REPLACEMENT FEE
      C Spire Kat CommunityModerator

      @Billy Smith It’s important to us to continue to provide our customers an option to upgrade after fulfilling twelve months of a 2 year agreement.  In light of increases in the costs of devices, we did increase the device replacement for some categories.  This helps us continue to offer such a competitive upgrade policy.

  • Re: EXPENSIVE DEVICE REPLACEMENT FEE
    Illuminated

    I want to know the know the samething. Why should the company charge more for wanting to continue business with them?

  • Re: EXPENSIVE DEVICE REPLACEMENT FEE
    Enlightened

    I totally agree that the fees that they charge for replacing a phone is rediculous. I also think that a two year contract is a way to trap customers into paying a fee for upgrading. Phones change every year and they charge you some rediculous amout to sign another 2 year contract. Was thinking that people who bought phones outright were nuts but in the end you still pay close to the amount they pay for the original price of the phone!!! Got to love Capitalism!!!

    • Re: EXPENSIVE DEVICE REPLACEMENT FEE
      C Spire Kat CommunityModerator

      It’s important to us to continue to provide our customers an option to upgrade after fulfilling twelve months of a 2 year agreement.  In light of increases in the costs of devices, we did increase the device replacement for some categories.  This helps us continue to offer such a competitive upgrade policy.

  • Re: EXPENSIVE DEVICE REPLACEMENT FEE
    Enlightened

    I agree!