Are early upgrades still possible on Verizon?

[SmithlandCart]

If the customer is paying $200 up front for example, that's money that that comes out of pocket. That $200 is part of the price of a retail phone as well. It's going to be paid either way. So you're not paying double, you're "only" paying the difference over and above the subsidized price "twice".

Make sense?

Let's use a 32GB Note3 as an example that retails for $700.

Subsidized price is $330 + tax since you have to pay the upgrade fee. Based on used Android phone sale prices from swappa, at the end of the 2 years you have a phone that should fetch you at least that much when you go to sell it if it is in excellent condition. After fees and shipping, the net for the transaction ($330 - swappa profit) would be less than $50 out of your pocket. With iPhones you would do much better due to their higher resale value, for sure breaking even unless the phone is in poor condition, maybe even making a profit if the phone is in excellent condition.

Under the Edge program if you have 10GB or more of data, basically you get a $240 discount off the $700 price due to the $20/mo discount on your wireless service so the price for a Note3 is $460 + tax on $700. When you go to resell it in 2 years time, you are going to have much more out of pocket cost even with an iPhone you won't be able to break even.

 

[SmithlandCart]

Yes he can call retention and try his luck but I wouldn't hold my breath since they don't have to do anything. Also sometimes going to another store might yield different results . When I was with Sprint there was one store that everyone avoided due to the horrible customer service even on normal tasks.

The Verizon store managers no longer have the authority to change upgrade dates. So he can spend $200 in gas driving from store to store to store and it won't get him an early upgrade.

 

[anon24860]

Let's use a 32GB Note3 as an example that retails for $700.

Subsidized price is $330 + tax since you have to pay the upgrade fee. Based on used Android phone sale prices from swappa, at the end of the 2 years you have a phone that should fetch you at least much when you go to sell it. After fees and shipping, the net for the transaction would be less than $50 out of your pocket. With iPhones, you would do much better due to their higher resale value, for sure breaking even, maybe even making a profit.

Under the Edge program if you have 10GB or more of data, basically you get a $240 discount off the $700 price due to the $20/mo discount so the price is $460 + tax on $700. When you go to resell it in 2 years time, you are not going to be able to break even even with an iPhone.

I wasn't implying breaking even, just that you aren't paying double. Not even close if you consider resale value. But even if you don't ever resell the phone and just toss it in the trash, you still have to knock off the amount that a subsidized customer pays because that's paid regardless. It's the difference between that payment and retail that is the subsidized amount, not the full retail price.

PS, the equipment purchase plan hasn't been well promoted by VZN. Not all reps, or even managers are very familiar with the plan. Plus, if you're on unlimited data, and you get a rep to find out how to do it, it's wise to make sure he processes it properly in order to keep the plan AS IS. I had to hold my rep's hand through the whole thing. I made him verify and re-verify, especially at the point of hitting send. This is something that I definitely wouldn't do on-line.

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[anon24860]

I think the main difference between Edge and epp is that epp is only for a year. This helps with resale. In fact, as I pointed out, you can finish paying off the phone the next month if you are so inclined. You can't pay ahead though, you can only pay off the balance at any time.

You're going to pay more a month for the privilege but that's only because the cost is divided by 12 instead of 24. The only additional cost is $12 for the year, which is nothing really.

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[SmithlandCart]

I wasn't implying breaking even, just that you aren't paying double. Not even close if you consider resale value.

Resale value of the phone would be the same regardless of whether you paid full retail or subsidized price. But yes, if your point is the subsidy is not the full retail price since you do have to pay something out of pocket for the phone, I agree.

So if you buy a subsidized Note 3, the subsidy is $700 - $330 = $370. So if you don't use your subsidy and pay full retail, you are really paying $370 + $700 = $1070 for the Note 3, which is not double but is 53% more for the phone than full retail.

 

[fofjjsr]

I think the problem here is SmithlandCart is basing everything relating to Edge of you keep the phone for 2 years, which it is not designed for. My article I posted also breaks down how companies make up the subsidized pricing, it takes two years hence either 2 year contract. The other issue I see is everything regarding edge is being based off of the rally high end phones.

Big Red Note 3

 

[anon24860]

Resale value of the phone would be the same regardless of whether you paid full retail or subsidized price. But yes, if your point is the subsidy is not the full retail price since you do have to pay something out of pocket for the phone, I agree.

So if you buy a subsidized Note 3, the subsidy is $700 - $330 = $370. So if you don't use your subsidy and pay full retail, you are really paying $370 + $700 = $1070 for the Note 3, which is not double but is 53% more for the phone than full retail.

I agree that there is a higher cost. It's just not double.

You're rarely going to recoup what you've paid in any situation, even subsidized. There is going to be a financial cost involved when it comes time to switch phones.

You just have to consider part of the value the actual use of the phone during that period. That doesn't change whichever method you use, but it's hard to quantify. In the case of epp especially, there's a value in "cutting the cord" early. Also hard to quantify. That's why each person has to do a cost benefit analysis, and they have to consider more than pure dollars. It's a similar analysis that you do when deciding whether to wait until the price drops a few months after the introduction. Is the loss of use of the phone worth it? It depends. I used to buy my phones on the back end of the curve. I wasn't willing to pay full subsidized price just to have the newest phone. I paid as little as .01 for the original Moto DROID right before they were going to come out with the new model. I cut the curve a bit with the Razr but not as drastically (I only paid $99 for it but didn't have to keep my DROID X until the the Razr was ready to be replaced).

This is the first phone that I've bought at the beginning of the curve. It was worth it to me to upgrade at full retail and still keep unlimited data. I'm anticipating mitigating some of that cost when the Note 4 comes out. I will have paid a price, that's for sure. But I'll have the option when the time comes.

Of course, the factor I didn't mention is that upgrades to models have been cut by a few months over the old days. They seem to come quicker. This changes the calculus.

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[SmithlandCart]

You're rarely going to recoup what you've paid in any situation, even subsidized.

iPhones are the only exception to that rule.

 

[anon24860]

iPhones are the only exception to that rule.

But I'd have to want an iPhone <g>. The one downside is that you'll never get a discount on them. So you'll lose the option of waiting until the price drops. Unless that's changed in recent years.

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[anon24860]

It's ironic though. I still have my white Razr. I could probably recoup the actual cost that I paid by selling it on eBay. The only reason I haven't is because I haven't decided whether to sell it with a new battery or as is (the battery is obviously shot after 2 years, plus, do I sell it with OEM, which costs close to $50 but fits perfectly or 3rd party, which is half again as expensive but is smaller).

I should probably decide soon!

PS, Verizon Note 3 are still getting $600+ (obviously not all). I don't expect them to drop much more than $100 in 10 months. Could be wrong though.

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[SmithlandCart]

But I'd have to want an iPhone <g>. The one downside is that you'll never get a discount on them. So you'll lose the option of waiting until the price drops. Unless that's changed in recent years.

Subsidized iPhones are $50 off at Best Buy and have been pretty much since black friday. Plus if you signed up for the BB reserve gift card you can get another $50 off.

 

[anon24860]

Subsidized iPhones are $50 off at Best Buy and have been pretty much since black friday. Plus if you signed up for the BB reserve gift card you can get another $50 off.

I guess vendors can offer side incentives, although I thought that Apple forbade that. I guess it's only for carriers. I used to get my android discounts through Let's Talk, which were very aggressive with discounting. With certain phones, you'd actually get money back upon purchase!

Lately though, they haven't been all that great.

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[SmithlandCart]

PS, Verizon Note 3 are still getting $600+ (obviously not all). I don't expect them to drop much more than $100 in 10 months. Could be wrong though.

you can tell how much they will drop by looking at what the Note 2's are selling for. Last good condition Note 2's sold for $255 - $315 + accessories on swappa. That is what you can expect to get for a good condition Note 3 + accessories this time next year.

Compare that to a 32GB iPhone 5 - last good condition one sold for $390 without any accessories.

 

[anon24860]

you can tell how much they will drop by looking at what the Note 2's are selling for. Last good condition Note 2's sold for $ 255 - 315 + accessories on swappa. That is what you can expect to get for a good condition Note 3 + accessories this time next year.

Compare that to a 32GB iPhone 5 - last good condition one sold for $390 without any accessories.

They're going for between $400 - 500 on eBay (completed sales).

http://m.ebay.com/sch/i.html?kw=not...2053742.m2428.l1313.TR10.TRC1.Xnote+2+verizon

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[SmithlandCart]

They're going for between $400 - 500 on eBay (completed sales).

If you are selling on ebay, then you would go by ebay's prices. I sell on swappa when I sell so I look to swappa's prices. And my guess is a few of those ebay sales went to international buyers and I won't take the risk of shipping out of country nor would I pay the added shipping expense.

But the point is - if you sell on swappa that is what you can expect. If you sell on ebay, look on ebay for what to expect. Ebay has higher listing fees, too so you have to take that into account. Swappa is only $10 flat fee.

The other point is that an iPhone will always have a higher resale value than a comparable Android.

 

[anon24860]

If you are selling on ebay, then you would go by ebay's prices. I sell on swappa when I sell so I look to swappa's prices. And my guess is a few of those ebay sales went to international buyers and I won't take the risk of shipping out of country nor would I pay the added shipping expense.

But the point is - if you sell on swappa that is what you can expect. If you sell on ebay, look on ebay for what to expect. Ebay has higher listing fees, too so you have to take that into account. Swappa is only $10 flat fee.

The other point is that an iPhone will always have a higher resale value than a comparable Android.

Fortunately, you don't have to eat the shipping cost unless you choose to. Plus, the safety advantage is to the seller. You don't ship until you receive payment and if you say that all sales are final, there's very little risk, especially if you describe your phone accurately. Of course, this will end up costing about $40 more than Swappa, but this still puts more money in your pocket.

Agreed about iphone. But that's a non-issue.

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[SmithlandCart]

Fortunately, you don't have to eat the shipping cost unless you choose to.

But if you tack on shipping costs, buyers tend to be willing to pay less for the phone. So it all evens out.

Plus, the safety advantage is to the seller. You don't ship until you receive payment and if you say that all sales are final, there's very little risk, especially if you describe your phone accurately. Of course, this will end up costing about $40 more than Swappa, but this still puts more money in your pocket.

The risk is the 45 day paypal dispute period but that is the same on swappa as on ebay. However, the thing I like the most about swappa is that many of the people are repeat buyers and they use their gmail accounts with their real names by and large so many times you can find information about the buyer before you complete the sale. It makes me feel more comfortable knowing who I am selling to.

Agreed about iphone. But that's a non-issue

Well its a non-issue if you are comparing ebay to swappa, but I was making broader points in my earlier post and was referring back to that.

 

[anon24860]

I meant that iPhone values are a non issue if you aren't in the market.

Shipping costs for a Note are minimal, even with insurance.

As long as you describe the Note accurately and indicate that there are no returns, you're quite safe. But only if you insure the package for the full amount.

I've done eBay since 98. I've only had to dispute one transaction and that was as a buyer. You have to screw up your listing pretty badly or commit some sort of fraud for a buyer to get recourse. The key is a description of any flaw, and, pictures help a lot.

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[donc13]

Also, there is the "more everything plan" and they do give you a $10 credit per month on any edge phone. They also throw on an extra GB of data to your plan.






sent from my Note 3

You all do realize that the EDGE network is NOT the full Verizon network. Any place that is considered "the extended network" is not usable on the Edge plan.



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[chriscw81]

I got them to move my date 2 weeks earlier by calling their 1-800 number and asking. It was simple. I told them my wife's phone wasn't working(and we bought it from wirefly) and we needed a new phone ASAP. They moved mine also. I ended up with a shiny new N3. I think the edge program is a bad deal for most folks so don't go that route unless you're sure that's what you want

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