Pay full price ==> cheaper rate?

mgabel_pi · 09/21/2009, 10:21 PM

I'm waiting to be able to upgrade my Centro to a Pre at a discount. The logic of my having to wait is that Sprint subsidizes the phones and so my monthly payments go in part to cover that phone cost. That is, they still need to recoup some money for my Centro. That will happen in December for that is when I can upgrade.

So, how come if I decide to pay full price in December (and thus Sprint would not be subsidizing the new Pre) I still pay the same rate for service?

Shouldn't there really be two monthly rates: a "high" one if you want a discount on the phone and then a less expensive rate if you choose to pay full price for the phone.

And, if you do decide to get the discount for the phone (and thus pay the higher rate) shouldn't that rate go down when enough months have gone by so that they have recouped the phone cost? So, for me, this December, if I keep the Centro, shouldn't my rate go down?

Just wondering.

rastataoist · 09/21/2009, 10:27 PM

I think you're looking at it the wrong way... a subsidy doesn't equal credit. They're not giving you the phone for cheaper because you're paying for it over the life of the contract. They're giving it to you for cheaper because they're guaranteed to make the money back from you through other means (i.e. a contract). So technically, even after you're contract is up, you've only paid the subsidized price from the phone, but the company is ok with that because they've made the money back through your service.

mgabel_pi · 09/21/2009, 10:29 PM

-- but once they've "made the money back" they should not keep making the money back.

rastataoist · 09/21/2009, 10:34 PM

Quote:

Originally Posted by mgabel_pi

-- but once they've "made the money back" they should not keep making the money back.

Right, but you're also not obligated to give them any money. The contract and the cost of the plan are mutually exclusive. You don't pay more just because you're under contract. The cheaper phone is a "courtesy" to you guaranteeing them 2 years of your patronage.

philburkhardt · 09/21/2009, 10:38 PM

Quote:

Originally Posted by mgabel_pi

-- but once they've "made the money back" they should not keep making the money back.

Money is the only reason Sprint (or any business trying to survive) does anything. THEY keep making it back because YOU signed a contract agreeing to let them.

I see and agree with your reasoning, but things just don't work that way.

Jvalen85 · 09/21/2009, 10:46 PM

i paid $225 no tax and the guy at sprint store waived my activation fee. So with mail in rebate it came out to $125. amazing deal eh?

Centro85 · 09/21/2009, 11:13 PM

Quote:

Originally Posted by mgabel_pi

-- but once they've "made the money back" they should not keep making the money back.

Um, that's how business works bud... With no profit, why be in business? By your reasoning, if you go to Burger King, you should only pay what it costs to buy the food, prepare it, and get it to you some way shape or form. Once BK charges enough to pay for all that, than adds some (profit), by your reasoning they "should not keep making the money back." If they ONLY made enough money to cover the cost of getting you your meal, and no profit, where is the incentive to stay in business? In other words, if the dude who made BK from the ground up, invented the meal you enjoy, in a convenient location etc. is working for free, why bother doing ALL that work for nothing? Why not just force you to make your own darn burger?

Without incentive, there is no business. Without business, society cannot advance. Without advance, society stalls. Without the means to "jump start" the system after a stall, society crumbles.

It's easy to create an "exception" to a common sense philosophy. The problem is, if you make the exception once, you must make it again. Eventually it snowballs. You got to step back and look at the big picture. Sprint makes a profit to stay in business, period. Without profit, there is no business.

Luckily, this is (for the time being) a (kind of) free country. If you don't agree with the way Sprint, or any other cell company does business, you DO have the right to try it your way. You think you have a better business model, more power to you!! Give it a shot!

sivan · 09/22/2009, 12:08 AM

The whole contract scheme is meant to lock you in and dictate terms to hardware manufacturers under the false pretense of a necessary subsidy.

nilemann · 09/22/2009, 12:20 AM

last I checked, sprint isn't registered as a non-profit. Has everyone forgotten that our economic system is capitalistic? Since when is profit bad? You choose to pay for service. All you people complaining on here probably are afraid of socialism too ... See the irony ... Probably not ...

Tubal · 09/22/2009, 12:22 AM

Quote:

Originally Posted by nilemann

last I checked, sprint isn't registered as a non-profit. Has everyone forgotten that our economic system is capitalistic? Since when is profit bad? You choose to pay for service. All you people complaining on here probably are afraid of socialism too ... See the irony ... Probably not ...

No doubt. If you think it costs too much, don't buy it.

If you think a provider is not being fair, don't patronize them.

Darn capitalism. Funny how it works.

mgabel_pi · 09/22/2009, 12:52 AM

squashed!

deparson · 09/22/2009, 01:01 AM

If you are off contract and willing to sign a new 2 year Sprint will be more than happy to give you an account credit which is, in effect, a rate reduction paid as a one time bulk payment. Just call and ask and know that the amount of the credit is up for discussion between you and Sprint.

Quote:

Originally Posted by mgabel_pi

-- but once they've "made the money back" they should not keep making the money back.

windzilla · 09/22/2009, 01:01 AM

Quote:

Originally Posted by sivan

The whole contract scheme is meant to lock you in and dictate terms to hardware manufacturers under the false pretense of a necessary subsidy.

then do a pay as you go plan
For my money the contract works, sprint is the cheapest best value. They now provide service in exchange for my money, I feel it is appropriate, but would go elsewhere if a better deal came along.

Jvalen85 · 09/22/2009, 07:43 AM

sprint is actually the cheapest way to go for me as well. Currently the plan i have is the $69.99 everything data plan. It only has 450 anytime minutes but when sprints new addition that allows you to call any cell phone carrier without deducting from your minutes it makes the plan really good. I don't see any reason to get a more expensive plan unless you call a lot of landlines. And with AT&T the prices are way to expensive with an iPhone. Also verizon's plans suck but there blackberrys are fine. The only other decent cell phone carrier that I know of is T-mobile but I dont really like there phone selections.

CGK · 09/22/2009, 08:46 AM

Do you not have (I know it's CDMA) similar plans to Sim only - where you supply your own phone and as a result the plan is much cheaper?

KallDrexx · 09/22/2009, 09:20 AM

This is why I laugh at everyone who parades around Nokia phones talking about how great they are and how everyone should get one, when for the most part most most carriers don't subsidize their phones. Sure, it gives you the freedom to leave carriers whenever you want but you still payed a hefty premium for that privilege. There really isn't any reason not to get a subsidized phone unless you think you will be switching carriers every couple of months, and hell even with the Pre it's cheaper to get it subsidized and then pay the EFT.

That being said, I did buy my pre outright on ebay because I fell in love with it and I would have had to wait a year and a half to get it subsidized (and I hated my dumb phone). I wouldn't outright buy another phone again though.