Why are upgrades dearer ?

[mactronix]

I'm in the uk and have recently started looking into what phone to get once my contract runs out in a couple of months. I have decided to leave it until last minute in case something good comes out.
What I cant understand is why upgrades cost more than new deals. Don't they want to retain customers these days ?
I don't think I'm even going to bother to listen to offers when the time comes just cancel the contract and start a new one. Seriously the S3 is £20 on a new contract and £26 on upgrade ??

Confused
Mac

 

[unoriginal1]

I'm not sure if it's the same in the UK as it is in the states... But it probably follows the same type of logic.

So... New customer. They are typically trying to "win" that customer from another company. Most everyone (with the exception of young children) are not first time buyers and are looking at their options. Hence the great deals.. Hook line and sinker to try and capture new business.

Upgrades. They already have your business.. A LOT of people get "comfortable" and don't like change. Also. The upgrade process is designed so that it retains the customer long before the contract is even over. For instance... You need a new phone.. But you still have 6 months on your contract and looking at a $250 early termination fee if you leave. You can get an upgrade for $200 and your upgrade availability is typically available 3-6 months before the contract expires. So if you jump ship your looking at paying the $250 which is slightly more then your upgrade would have costed. Regardless of the excellent new deal price at the other company. SO for most.. It's worth just staying aboard and paying the upgrade price. Plus.. like i said people get comfortable. They already know and understand the system of company X. They also don't want to hassle with porting over their number etc. It's really just simple marketing schemes and it works very well.

 

[mactronix]

I will have to look into the actual terms of my contract but I see no reason why I just cant cancel and set up a new contract. Maybe the same carrier wouldn't wear that, however there are a couple that have pretty good coverage where I use my phone most so I have some choice in it.
I guess what your saying is they try to charge what they can get away with and bring the price down only if you complain, that makes it a bit stupid to advertise upgrade and new contract prices on the same website to me anyway.
Thanks for the reply.
Mactronix

 

[unoriginal1]

No problem. That's exactly what it is to be honest. I worked for AT&T for years. We would get a lot of questions to my department (worked with a ICU resolution team that delt with high escalation cases) People would bring up exactly what you said. What stops me from cancelling and starting a new contract. Our answer? Couldn't keep your same number . lol. Some BS I know. But.. It was true, the way the system was designed We couldn't port a number to another AT&T account we could only port it to or from another carrier etc.

Good luck. My advice.. Is push the issue to management and beyond. There are things they can do, people have the power to apply discounts etc and match pricing. You just have to get passed the button pushers to the people who actually have some administrative decision making abilities.

 

[mactronix]

Will do thanks for the info.

Mactronix