Paying 2 year contract for over years!

d123

ErnestEntrepreneur wrote: »

It just seems that if I kept charging people a higher rate for something they bought in my shop I'd feel very guilty about it, because it's morally wrong,

Not a very good analogy.

If you were selling Calor gas refills in your shop for £20 and had a customer who had an agreement with you to deliver a refill every month would you decide to drop the price to £10 a month after 2 years because you think they’ve paid enough and should have it cheaper?

It really is simple, if your minimum term for your mobile, gas, TV service or broadband is up you take some personal responsibility and look around for more competitive offerings.

boatman

d123 wrote: »

Not a very good analogy.

If you were selling Calor gas refills in your shop for £20 and had a customer who had an agreement with you to deliver a refill every month would you decide to drop the price to £10 a month after 2 years because you think they’ve paid enough and should have it cheaper?

It really is simple, if your minimum term for your mobile, gas, TV service or broadband is up you take some personal responsibility and look around for more competitive offerings.

The monthly phone contract price comprises of line rental and the cost of the "free" phone. The 'free' phone cost is recouped within 2 years.

In your gas refill example there is only 'line rental', there are no freebies included. So it is not a suitable analogy.

PHK

boatman wrote: »

The monthly phone contract price comprises of line rental and the cost of the "free" phone. The 'free' phone cost is recouped within 2 years.

In your gas refill example there is only 'line rental', there are no freebies included. So it is not a suitable analogy.

I disagree, there's the cost of the bottle over the length of the contract.
Another analogy, would you expect your broadband to go down in price once you've paid off the cost of the router?
I'm not saying mobile phone companies shouldn't let people know when their two year term is up. But it doesn't make the lack of a price decrease wrong or unusual.

d123

boatman wrote: »

The monthly phone contract price comprises of line rental and the cost of the "free" phone. The 'free' phone cost is recouped within 2 years.

In your gas refill example there is only 'line rental', there are no freebies included. So it is not a suitable analogy.

That’s your interpretation, I would suggest if you check the terms and conditions there is no payment for the “free” phone included.

boatman

PHK wrote: »

I disagree, there's the cost of the bottle over the length of the contract.
Another analogy, would you expect your broadband to go down in price once you've paid off the cost of the router?
I'm not saying mobile phone companies shouldn't let people know when their two year term is up. But it doesn't make the lack of a price decrease wrong or unusual.

I guess you could ask for a discount after 2 years and do without the gas bottle, don't think you'd get much gas though..



The only reason to not inform customers at the end of a 2 year deal is the hope the customer keeps paying at that rate. This is when the company makes money, and allows them to offer good deals to new customers, almost certainly why a few on here are keen for companies not to be forced to inform customers their contracts are up! They want cheap deals..

boatman

d123 wrote: »

That’s your interpretation, I would suggest if you check the terms and conditions there is no payment for the “free” phone included.

If there was payment, it wouldn't be free.



But we all know its accounted for in the inflated line rental.

d123

boatman wrote: »

But we all know its accounted for in the inflated line rental.

Obviously, yes, but there is no handset charge actually specified in the contract (unless you sign up for something like o2 Refresh).

You sign a service agreement for £xx a month that includes a “free” phone.

boatman

d123 wrote: »

Obviously, yes, but there is no handset charge actually specified in the contract (unless you sign up for something like o2 Refresh).

You sign a service agreement for £xx a month that includes a “free” phone.

Hence why after the 2 year minimum term, the price should go down, the 'free' phone is paid for, you should only pay for the cost of line rental from then on.

Dean000000

Would it assist people to view it as follows:

Tesco provide you with a free phone (at their cost) on the basis that they hope to (but are not necessarily guaranteed) to recoup their outlay against the profits accrued from your line rental and phone call charges.

They might win on some, and lose on others (that’s their risk)

On this occasion they have probably ‘won’ which is offset in part by those they lose on - as long as they win more than they lose their business model will profit....

pmduk

boatman wrote: »

Hence why after the 2 year minimum term, the price should go down, the 'free' phone is paid for, you should only pay for the cost of line rental from then on.

But the two charges are never specified separately. Canny customers will go to one of those networks which offer these deals or better still, for their pockets, do it themselves by buying the handset and a SIMO deal. Surely consumers are used to paying extra for convenience and laziness?

Any customer who chooses a contract with an ongoing combined price can't complain when that is exactly what they get!