YA Killin Yourself..sprint
First let ME start off... I'm Fine with paying more but as a business owner I think with the progress you made with EVO the strategy for the Epic 4G is far from smart. The extra $50 makes new (not upgrade) customer think twice about switching.The argument that we are paying more for a better phone is not valid because the out-right price is or was the same as any new flagship that sprint has released the past few years $499..(the evo since epic pre-order started has dropped down to $449)which is smoke and mirrors to make you believe the extra $50 is justified. So the argument by people saying your paying more for the slide out feature and front facing camera and flash is B.S. cause the outright cost for samsung galaxy s on the other cell phone companies is (ugh umm) $499 too. and thats what I have to go by, if your outright prices are the same thats telling me that they are costing you if not exact, close to the same. If your logic that the phone cost you more and thats why its $50 more on contract, then the out-right price should be more. Why would you squeeze all you can from a contract sale that will bring in long-term revenue and not want it on a less profitable sale.
Now lets deal with strategy. If your the number 3 cell phone company in America and you want to become number 1 and with the EVO you see your new subscriber growth is up and this is from a great phone at a common high end phone price $199. But instead of building on that you make a decision that people will really question. You now have people looking at $350 w/tax $375ish up front(damn now that i"m looking at it I question it) for a phone. Maybe If you don't wanna take the price down do instant rebate for $250 upfront no mail in needed, that will satisfy current and new customers and put you higher is customer satisfaction and the recognition that a major cell company is giving an instant rebate on a flagship phone which shows you really want our business. I guarantee that if they would have OR do this, sprint will do better number than with the current price policy. The Epic will do good but with this plan it will do better. Sprint Holla at me if you need some marketing strategies..FOR REAL
- 08-12-2010, 08:56 AM #2
- 08-12-2010, 09:50 AM #4
I was actually very close to buying an Evo actually and probably would bought one if the Epic had not been announced by this Friday.
- 08-13-2010, 07:16 PM #5
Seriously, WTF, when are the absurd claims on sprint pricing going to stop? Especially by people saying they are business phone buyers. Most flagship qwerties on sprint recently have been WAY more.
touch pro was $300 and Touch Pro 2 was $350 They sold EXCELLENTLY
- 08-14-2010, 08:54 AM #7
the reason i mentioned you said you were a business owner, is that TP and TP2 were more oriented to business than say instincts, and were priced well over $200, something you said didn't occurd, when in fact +250 is more the rule than the exception for top sprint business phones.
You are making the assumption tiat it was the fact that it was $199 vs $250 that accounted for Evo's sales and I don't see any evidence. I think it 4G that sold the EVO and they would have sold just as many at $250.
yes it is record that sprint recorded it biggest new subscriber growth in years in the quater that the evo was released. It could of been 4g or jus the evo any way you look at it the new feature plus price of product worked for you. So why change the formula.. I cans see if they were number 1 then you can play step out on a limb. But when the endgame is to attract new and hold on to current customers, I don't see this way being the right choice. In the end people will buy but a people also will not and with the people who will not will cite the price as the decideing decision and upfront cost are what many (not all) NEW customers look @ when they choose cell phone companies
- 08-14-2010, 02:35 PM #9
It's simple economics. Sprint is only going to have a finite number of Epics available. They are going to sell every one. They could probably charge more if they wanted to and they would sell them out.
Their true strategic flaw is not having enough 4G phones available to meet demand. So much for stealing subscribers with the lure of 4G service. Better to flood the market with 4G phones they could have sold for $149 or $199 and added lines than a limited amount at $250. How the hell did they not have a 4G Blackberry ready?
The sell price of the epic is the least of their mis-calculations.
Last edited by Bitter13; 08-14-2010 at 05:03 PM.
- 08-14-2010, 03:01 PM #10
A. The $499.99 price point reflects Samsung's MSRP (which it doesn't)
B. The Epic 4G's MSRP is the same as the Evo's
According to radio shack, the SRP of the Epic is $699.99. RS's retail price is $549.99 and BB is selling it @ $649.99 so that $699 figure surely seems reasonable. According to what I've been able to dig up the Evo's SRP is $600.00 from HTC so Sprint is losing $50 more per handset on Epic sales despite the $50 price hike. They would need to sell the Epic @ $300 just to match the Evo's net loss. But noooo...they should be willing to take a $500.00 loss on a handset just to match an arbitrarily-derived price point of $ 199.99, amirite?
- 08-14-2010, 09:30 PM #12
- 08-14-2010, 09:50 PM #13
Last edited by miamithrice; 08-14-2010 at 09:53 PM.
- 08-15-2010, 12:42 AM #15
$249.99 is for new customers and/or upgraders.
$499.99 is for existing sprint customers that are either not eligible for an upgrade at the time or don't want to renew their contract.
No deal for those not under contract.
Edit: I never implied that a consumer could buy the phone directly from Samsung either.
Last edited by miamithrice; 08-15-2010 at 02:51 AM.
- 08-15-2010, 01:38 AM #16
- 08-15-2010, 02:40 AM #17
- 08-15-2010, 03:11 AM #18
- 47 Posts
- 08-15-2010, 07:13 AM #19
Last edited by Aero; 08-15-2010 at 07:18 AM.
- 08-15-2010, 07:16 AM #20
The fact is that sprints top smartphones are $250 to $350 generally. they made an exception for EVO to launch 4G. They found they could not keep any in stock even with the huge increase in price to customers of $260 after tax for 4g alone.
People are not going to mind paying another 1 to 2% over a couple of years to have an EPIC over an EVO considering the EPICS several compelling advantages.
If you think they will not sell out epic yo are wrong.
Last edited by Aero; 08-15-2010 at 07:21 AM.
- 08-15-2010, 07:22 AM #21
- 08-15-2010, 10:14 AM #22
2. you stated samsung msrp as if they were selling it and that is the reason i checked samsung website because they would only put a sale price up if they were going to sell it. And you did not answer where did you see SAMSUNGS msrp it sure wasnt on their site
3. the pre is $549 msrp FROM SPRINT and it was sold on release day @199 and now is going for $149 and verizon has had the upgraded pre for less time and the msrp is $599 and giving it to you for $29 which proves my point again they dont make money off the phone they make money of the 2yr contact they tie you into.
and in a final note let say they actually pay $300 - $400 a phone. If they subsidize it @ $199 and loose at most $200 it wouldn't matter because they are making like $2,000 off the two yr contact and thats why you have the cancellation fees. to recover things like phone subsidies but if you buy the phone out-right you dont have to sign a 2yr contract
- 08-15-2010, 02:44 PM #24
Verizon can subsidize their phones more because they charge more for everything. Sprint phone prices generally do not change much because the plan prices are low and would be foolish to lose more money on the phones. Look at Sprint financial report and they are continuously losing money. You are acting as if Sprint is making a ton of money when they are not. I mean if $50.00 extra bothers so much why bother with the phone? Their are many other phones that cost less.
- 08-15-2010, 04:50 PM #25