Explain The Fee: "Premium Data"
- Thread starter th3gh05t
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If you were my salesman, and failed to convince me why I have to pay this $10 fee, like you are now, then I would just use my Sprint phone's live search to find the nearest AT&T or verizon store. You've convinced yourself you should give sprint more money without receiving any extra service. I work too hard for my money to give it away for nothing.
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It's not really for nothing, its to help get 4g up and running everywhere, as well as give sprint a good infusion of cash.
Sprint is a private business, and if they need my money for an infusion of cash then they better offer me a good reason for it. As far as I can tell they are asking for my money but don't wish to provide anything extra for it. When they activate 4g in my area I will gladly pay them the extra $10 a month, until then I would rather spend my $10 on other, more important items.
You should take a business course, as ANY business does not have to tell you anything. They have to get you to buy what they are selling.
Everyone knows emotion sells more than reasons.
If I have a product with a low supply but a very high demand, you bet I am going to charge them an arm and a leg (as much as the competition will let me) and tell them as little as possible.
I am currently studying business at one of the top rated business schools in the nation, I know how business generally works. The thing here is I don't work on emotion, I work on reason. If Sprint cannot offer a good reason for me to pay for nothing then they won't get it.
study this -
Why Sprint is charging you an extra $10/month
To reach that number, the company is in the midst of a high-speed build-out. Last year the company put up 5,000 cell sites at a cost of $130,000 to $150,000 each. "That broke the record," says Morrow, 50. "This year we're doubling that in terms of the number of sites we're constructing." In 2010, Clearwire will spend up to $3.2 billion, the bulk of that on capital expenditures.
Consider what's involved in putting up a single tower: leasing or buying real estate: winning community support and zoning permits, sometimes over fierce opposition; and paying as many as 25 workers to erect structures up to 400 feet high. The process takes from nine months to three years, says Dave Cloud, co-owner of NuHites Construction Services in Arkansas, which has installed equipment for Clearwire. "The task and the resources to do this build-out are enormous," says technology consultant Chetan Sharma. He figures Clearwire is putting up a tower an hour—including weekends.
How Craig McCaw Built a 4G Network on the Cheap - BusinessWeek
Why Sprint is charging you an extra $10/month
To reach that number, the company is in the midst of a high-speed build-out. Last year the company put up 5,000 cell sites at a cost of $130,000 to $150,000 each. "That broke the record," says Morrow, 50. "This year we're doubling that in terms of the number of sites we're constructing." In 2010, Clearwire will spend up to $3.2 billion, the bulk of that on capital expenditures.
Consider what's involved in putting up a single tower: leasing or buying real estate: winning community support and zoning permits, sometimes over fierce opposition; and paying as many as 25 workers to erect structures up to 400 feet high. The process takes from nine months to three years, says Dave Cloud, co-owner of NuHites Construction Services in Arkansas, which has installed equipment for Clearwire. "The task and the resources to do this build-out are enormous," says technology consultant Chetan Sharma. He figures Clearwire is putting up a tower an hour—including weekends.
How Craig McCaw Built a 4G Network on the Cheap - BusinessWeek
Sense you are studing business, then you know that emotion sells MORE than reason.
You also know about supply and demand.
The fact that you work on reason is not really relevant when a big company is trying to sell things. They look at the supply, and the demand, when they set their price.
You many work on reason, as you know, because you are studying business, that Sprint will sell more if they sell on emotion, so that is what they are going to do.
They looked and the supply and demand, they looked at how many people are emotion over the phone .. and acted accordingly, by charging MORE.
They know they are not going to get everyone by selling on emotion, but they ALSO know that will make up for that by charging MORE.
Thats all fine and dandy, but I don't pay for something that I don't know when or if I am going to get it. Provide me for the service, and I will pay for it. Don't provide it? Then don't ask for me to pay for it.
Yes, but you are one person.
They are NOT going to provide you with something else. There are people that are excepting this. They are going to say, its for "Rich data experience" and you have to
EXCEPT IT OR NOT!!
Sense you told me you work on reason, thats the most logical way I can explain it to you.
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in layman's terms: $70 a month= oops we fudge up lets make up something about premium data to regain profit margin, $80 a month= competitive, maintain profits.
Only other major carrier I know that has $80 a month plans for smartphones is T-Mobile and thats without contracts. Don't think of it as a Added Premium fee like Sprint fool-heartily is trying to trick you into believing. Think of it as they are trying to hide their bad management and that they fudged up their numbers.
Only other major carrier I know that has $80 a month plans for smartphones is T-Mobile and thats without contracts. Don't think of it as a Added Premium fee like Sprint fool-heartily is trying to trick you into believing. Think of it as they are trying to hide their bad management and that they fudged up their numbers.
I all ready gave you a reason for the $10.00 premium data.... iPhones make up 5 - 10% of AT&T's customer base yet they consume between 80 - 90% of the Data being consumed on their network. The iPhone is the MAIN reason AT&T dropped unlimited Data before the release of the latest iPhone 4.
EVO customers are going to make up a very small % of Sprint data customers (Blackberry will be the largest % of smartphone customers on any network) but EVO customers are more likely to take advantage of the data network. Thus the additional charge. It's completely justifiable based on history (Droid users take up more data than any other Verizon data customers as well, it's why Verizon is talking about limited/capped data as well)
Based off Bret's constant complaints so far I can make a very easy prediction. Once Bret gets his EVO he will instantly complain about battery life.... If he gets 12 hours of battery he will claim he only gets 6, next he will complain that some other feature does not work as well as his old phone (WiFi, touch screen, something) and then he will hammer Sprint over the $10 and try to convince them that he does not live in a 4G area and in his 3G area the battery does not last him a full day so he is losing out on a lot of daylight with a dead battery, the WiFi isn't perfect and drops signal even while next to the router both at work and in his home and threaten to move to the iPhone 4 which he will claim has better battery life (Even though he does not have one) and does not have WiFi issues (Even though Steve Jobs had WiFi connection issues while trying to show off the video chat feature and then blamed everyone for clogging up the network instead of making sure he had a dedicated router set up JUST FOR HIS iPhone and HIS PHONE ONLY)
Sprint will offer to replace his phone under warranty but they are not going to eat the $10 charge unless it is the main and number one reason THOUSANDS of customers don't buy the EVO. As long as the EVO is sold out and people are not returning them in droves $10 premium data....
I also predict this will become the norm with Sprint on all high end data phones coming out from here forward. The EVO is easily 20 - 30 times what the instinct is, 10 times what the Hero is and 5 - 10 times what the Pre is....
Even though Brett will be excited about how much better his experience is with the EVO vs his Instinct he will be a thorn in the side over $10.
PLEASE..... PLEASE!!!! Go preorder an iPhone 4 and switch to AT&T.... Then you can come back to these same forums and tell how great and how much greener the grass is over at AT&T and Apple.... Then when you go over the 200mb they offer you and get hammered with $10 for each 200mb you consume you will realize you had a deal over at Sprint with the EVO....
There is no problem with the $10.... Sprints biggest problem was they didn't market it and word it correctly. If I were running Sprint I would have announced all new data plans.... Keep the $69.99 and 99.99 plans but make them capped data plans but make it reasonable since even AT&T states than 90% of their data consumers will save money on their 200 mb plan. Do the same thing and then offer unlimited data for $10 more per month no matter what phone you get.
Let your current customers keep their $69.99 and 99.99 plans as is as long as they don't upgrade to a new phone and sign a new contract... As long as you have that 2008 instinct you can keep your unlimited $69.99 and 99.99 plans.
Then do what Sprint use to do on minute plans... If you exceed say 200 mb per month of data you automatically bump up the $10 that month to the unlimited data... If you exceed 200 mb per month 3 months in a row your switched to the unlimited plan going forward... One of Sprints promo's in the past was that if you exceeded your minutes instead of charging you per minute over you just got bumped to the next minutes plan.
Under this plan Brett keeps his $69.99 or 99.99 plan and only pays the $10 if he exceeds the cap limits. But some thing tells me he would still bitch and complain because he use to get unlimited for $69.99 and now he is capped for the same price he was paying...
Oh well..... Phones change, Plans Change, The Weather Changes, The Car in the driveway changes....... PEOPLE change....
Well stated!
Everything is negotiable. Don't fool yourself into believing otherwise.
Is this how you react when you receive a tough customer? You obviously aren't paying attention because the only complaint I have so far is paying for 4g service when I don't have it in my area. If sprint makes good on that for me they will keep this decade long customer relationship. Otherwise they will lose it. If you have a customer that has been with you for as long as you have been in sales would you just kick them to the curb over a small disagreement? If so you're in the wrong career.
I am very much looking forward to you negotiating Sprint's standard form of contract that everyone else has to sign for Sprint's service on the EVO.
I suggest you may want to bring an attorney.
gksmithlcw
Software Engineer
- Jun 5, 2010
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You're not paying for 4G service. You're paying for Sprint to give you truly unlimited data. Other plans are unofficially capped, the premium data fee waives that cap. It is really that simple and, if you don't like it, you don't have to buy it. Why are we all wasting so much time and effort an debating and arguing here?
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