O2 Upgrade Scheme Discount - Red Herring?

Micilin Muc

I am entitled to an O2 Silver Upgrade discount.

If I buy a Nokia N97 as an upgrade, it costs €299.

If a new customer buys a Nokia N97 under the same price plan, it costs €269.

How is that a discount?

ardmacha

It is a discount on the full price of the phone, which might be €400. Because someone else gets a bigger discount doesn't mean that it is not reduced.

Micilin Muc

ardmacha wrote: »

It is a discount on the full price of the phone, which might be €400.

When does one pay the full price?

Nonoperational

If you were to buy sim free from the manufacturer. Would be about €500+

Micilin Muc

gpf101 wrote: »

If you were to buy sim free from the manufacturer. Would be about €500+

Maybe this thread is more suited to the Consumer Issues forum.

If a business advertises the price of a product as a discount, surely it's a discount off their own prices rather than that of a third party

Micilin Muc

Here's the relevant legislation I believe:

Consumer Protection Bill 2007
Part 3 - Commerical Practices
Chapter 2 - Misleading Commerical Practices

Section 43
6 (a)

if the commercial practice involves a representation or
creates an impression (whether in advertising, marketing
or otherwise) that a product was previously offered at a
different price or at a particular price, consideration shall
be given to whether the product was previously offered
openly and in good faith at that price and at the same
place for a reasonable period of time before the representation
was made

PoleStar

I totally understand where the OP is coming from.

I am with O2 and entitled to an upgrade. Upgrading to an iPhone for me would cost 79 euro (and I have not the top but the second best upgrade entitlement).

Thats my reward for being a loyal O2 customer and giving them my money over the last couple of years.

A new customer to O2 however can get an iPhone for free.

SO let me get this, they reward current customers by charging them more than new customers?

Im so close to switching to vodafone over this!

Maybe some of the O2 guys on here could give their opinion?

Walkman

If you were with Vodafone it world be exactly the same, same with Meteor and 3

ardmacha

Giving new customers a bigger discount than existing customers may grate for existing customers (of which I am one). However there is nothing misleading about it, if you are entitled to an upgrade and you sign a contract then you can purchase a phone more cheaply than on the open market. It is a real discount, just other people get more. Considering the N97 is €499 on prepay you cannot deny there is a discount and phone companies have always operated this way. Insurance companies etc often also offer a better deal to new customers.

thebiglad

Move to another supplier for a sim only contract for 1 month then come back to 02 as a new customer and get the discount.

You might even get some free credit for the month from the new supplier.

If that is too much hassle (02 hope it is) then just cough up the extra and be happy to be getting any subsidy - as previous poster has suggested check the sim free cost of the phone and see how good a deal it really is.

Whilst you are at it, make sure your tariff with 02 which is now 1 year old is still the best option - this you can change.

Our man in Havana

I do agree you are best to game them each year by moving away for 1 month and coming back as a new customer. Applies to all the networks.

Mad_Mike

What I don't get, and what really bugs me, is if they can knock up to €200 off the N97 for a silver upgrade, why on earth are all the sub €100 phones not FREE on a silver upgrade????

Look at this for a joke!!!!
You only save €10 over Speakeasy AND have to re-sign for a minimum 12 month contract!

Our man in Havana

It justs go to show how they treat their existing customers with contempt.

_Kaiser_

Not just phone companies that do this though.. Sky for example regularly offer new subscribers things like free boxes/installation that existing customers have to pay for.

Just business I'm afraid. Once they have you locked into a contract that's all that matters.

Rsaeire

Loyalty means nothing nowadays and that's a crying shame. Why should any consumer stick with a company if that company treats them with such disdain? All we can do is move network and be the person that we're complaining about, i.e. a new customer.