Negotiating a Phone Contract

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  jinroh on 24/12/2011 - 17:59

  this thread might be of help to you:
  http://forums.whirlpool.net.au/archive/1782597

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    illusionarybreeze on 24/12/2011 - 18:41

    Yeah, I started reading that and saw some people are getting some pretty sweet deals for the transfer to Vodafone. They don't say much about how the conversation goes though, whether they had to persuade the person or whether they were presented the offer straight-up.

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      [Deactivated] on 31/12/2011 - 20:54

      Tried this, after being with 3 for MANY MANY years with 3 accounts - no luck! Best thing they could do is inform me of my cancellation fee's $118. So i'm looking elsewhere now.

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        illusionarybreeze on 02/01/2012 - 01:07

        That sucks! Did you call them or was this in store? How come you still have cancellation fees after many years?

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    illusionarybreeze on 25/12/2011 - 02:02

    Actually, it's quite an interesting read lol

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  gmail92 on 24/12/2011 - 18:05

  you make it sound a million times more complicated than it actually is.

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    illusionarybreeze on 24/12/2011 - 18:44

    haha I suspected as much. My parents rang up Vodafone today while I was at work to see what they could offer, and the best they would do was 1GB free data usage per month. That's why I'm curious how others maximise the possibility of getting a better deal.

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  illusionarybreeze on 24/12/2011 - 18:44

  Edit: (pressed the wrong button, replied to the wrong person)

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  llama on 24/12/2011 - 20:56

  Or does what you say not really matter at all and what they put on the table is all that is on offer?

  There isn't much to negotiate. You compare the plans and select one. The salespeople don't really have anywhere "to move on price"… it's not like buying a car, you know.

  Consider - if you get a $40/mth Boost or Amaysim deal, then you have unlimited calls so it is irrelevant what network your family is on. And a $16 Live Connected plan like I am on at the moment gives you massive amounts of calls and 2GB of data, so once again it kind of nullifies any "saving" from the Voda <-> Voda offers.

  I mean really… as you mature, do you really think that the number one usage on your phone will remain being to phone your family? You need to consider the best OVERALL deal.

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    illusionarybreeze on 25/12/2011 - 02:30

    It's less the cost of the plan that I want to reduce, but rather the cost of the phone. If I can get a reduction on the phone repayment, it would be cheaper than getting it separately.

    As for usage, I don't spend much time talking on the phone. I am considering staying with Vodafone because my bills for the past year show that a large percentage of the calls I make (apart from numbers on 3), are numbers on Vodafone. It's true that friends may change networks, but I cannot predict that. So long as nothing happens to my family, I will need to call them. I am as sure about that as I am about needing a new phone, since my current one crashes several times a day.

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      llama on 25/12/2011 - 22:58

      It's less the cost of the plan that I want to reduce, but rather the cost of the phone. If I can get a reduction on the phone repayment, it would be cheaper than getting it separately

      So sorry, I misread the OP and thought that you were trying to negotiate on the plan cost.

      Yes, there are deals to be had on phones, as this is how the Providers lure people such as your self. I'd never buy a phone on a plan, it's far too much a commitment for me.

      I reckon it's heaps better to just buy a phone outright and then literally go "month-to-month" on a BYO type plan. That way, if you aren't happy with the reception or you move or you go overseas or you find a better deal elsewhere or your usage pattern changes (eg: new job or lost job) or one of a million other things happen, you simply change Carriers.

      I wouldn't give away that flexibility for $200 saving over the normal 24 month life of a contract. Plus… consider what happens if you lose or damage your (under contract) phone - you have to buy a replacement anyway.

      If you are savvy with your searching, you can pick up a new or almost new phone off eBay for the typical cost of the (ACTUAL) phone repayments on a plan. Owning your own phone is freedom.

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  POWERevolution on 25/12/2011 - 02:33

  i just upgraded last month and got 3 months free coz i mentioned poor coverage (but now better)

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  Ms Mars on 26/12/2011 - 09:37

  I am with 3 also on an infinite plan and have been out of contract for about 4 months, my iphone is about to die and I was hoping the plans for the new iphone would go down a little (still don't know if I can justify the extra $30-$40 a month it would cost me for the iphone4S). If you have any luck negotiating let me know.

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    llama on 26/12/2011 - 12:23

    You have to pay off the phone one way or another. Let's say it's about $800 for a 4S…

    24 months at $33.33 per month, and fair phonecall and data costs

    24 months at less than $33 per month, and inflated phonecall and data costs

    The "wholesale" cost of phonecalls is under 10c per minute. On a decent plan you should pay 5c/min. When you get offered "$450 worth" of calls for $39, you are probably paying about 90c/min… even without the flagfall that's actually 500 mins for $39 which is 7.8c/min. Once you add the typical 39c flagfall, you are paying about double for your calls than what they are really worth - and that ishow you get your handset repayments subsidised.

    The TOTAL cost is what matters, not what the "value" seems to be.

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      Ms Mars on 29/12/2011 - 09:20

      Thanks llama, I understand what you are saying but when I was on a cap, it seemed that I was always spending over that amount, so on an infinite plan I don't have that problem and know what to expect each month.

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      nowlan on 29/12/2011 - 23:12

      im confused by this analysis.

      the phone cost $33 amortized over 24 months.
      39-33 = $6 a month?

      or is it 33 + 39 = 72?

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        llama on 01/01/2012 - 12:40

        There is no analysis. I am using hypothetical examples only. I made up the $33 "phone repayment amount" and I don't know if there is really a $39 plan.

        What I was pointing out is that when you take out a contract that has a "free phone", what is actually happening is that you are paying off the phone in installments over the contract term. If you read the fine print, you can find out what the actual value of that handset is, and what you will have to pay if you want to end the contract.

        The way many people find out that the phone isn't free is when they are (say) 3 months into a 24 month contract and they lose or damage the phone. When they go back to the carrier, they find that they cannot get another phone for free. Furthermore, when they try to leave the contract they are required to pay out the remaining installments on the phone, even if they no longer have it.

        So, my point was that it's often better to buy a phone outright so that you have flexibility in the future. I don't know wbout you guys, but I don't know whether I will even need a phone in 2 years time, since I might have a job where one is included. So, in this example, being locked into a contract would just be a noose around my neck, as I'd be paying for something I had absolutely no (longer have) need for.

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        illusionarybreeze on 02/01/2012 - 01:41

        @llama

        I fully understand what you mean. If, however, I am able to get the SGS2 for $0 repayment per month on a $10 plan, the minimum amount I have to pay over the course of the contract is (24 months x $10) = $240. Disregarding the cost of the service, $240 is very cheap for an SGS2. Including the cost of the service would bring the cost of the phone below $240. The phone would be unlocked as well so I can switch services any time I want. Plus I would be paying in $10 instalments as opposed to a once-off payment.

        I find it hard to believe that "people find out that the phone isn't free in the middle of a contract." If the contract is for 24 months, then it is clear from the outset that you have to at least pay the absolute minimum that is charged for the 24 months. All the brochures I have seen list a minimum total cost for the duration of the contract. Anyone expecting to leave a contract 3 months in without paying for the remaining 21 months must have glossed over the contract, or expected the contract to be non-binding. Also, the fees they pay are technically for the service, even though these charges are inflated to subsidise the phone. The service can still be used so long as they have a phone to replace the one they damaged or lost.

        The Amaysim PAYG SIM has pretty decent rates compared to the larger service providers, providing I bring a phone I already own. If I were to get an SGS2, however, this would be an initial outlay of $500 or so, compared to $240 for a phone and service with Vodafone.