Recently, we learned that the Rogers HUP was going to extend to all devices, and not just smartphones. Our friend RogersDude69 has broken down a brief history of how the Rogers HUP has become increasingly stringent and is making it really difficult to get a new device.
When will the madness end? Rogers needs to realize that having customers upgrade their devices will mean bigger bills and more money for them in the end. Also, as a general note for doing business, you should never tell your customer that they can’t buy the product. Make concessions and get the product in the customer’s hand. Here is a little history of how the HUP is quickly becoming obsolete:
- You had to wait 2 years to upgrade.
- You could ‘upgrade early’ and pay 10 dollars per month until you reached 24 months.
- Prices for phones for existing customers were slightly similar to old customers.
Situation: A customer wanting to upgrade to a BlackBerry Bold 9000 from an old BlackBerry 8310 that he has had for 14 months.
Result: The customer would pay $299.99 (new customer rate, 3 year renewal cost) plus $100 early upgrade fee.
- You had to wait at least 1 year, and the price of the phone was on a tiered system. The tiered system works in that if you pay Rogers more money, you get a better discount.
- Customers who were paying Rogers $1201 before tax on the their wireless bill only, would get the best discounts. This figure was an internal-only dollar amount that reps would check to see if they could give the customer a deal on their upgrade.
Situation: A customer wanting to upgrade to a BlackBerry Bold 9000 from his old BlackBerry 8310 that he has had for 14 months.
Result: He would pay $299.99 (new customer rate, 3 year renewal cost). He would have to pay more if his bills were less than $100 a month, and therefore not making the $1201 benchmark figure. I think we can all agree that this is unlikely for a BlackBerry user, as we spend the most on our bills.
Feb 2009 – August 21 2009 (smartphone customer change)
Situation: A customer wanting to get a BlackBerry Bold 9000 from his old BlackBerry 8310 he had 14 months ago.
Result: He wouldn’t be able to, and would have to purchase the phone outright for $649.99
August 21 2009
- All customers now must wait 2 years before getting a new handset.
- No Early Upgrade fees can be applied.
What does this mean?
Customers won’t be able to get new phones for 24 months. In this industry, customers generally replace their devices every 18 months, so Rogers is going to have an incredibly difficult time with customers until the rules are changed.
Most likely, Rogers will implement a new Early Upgrade fee, to be applied in the coming weeks. Rogers doesn’t have any commitments with their upgrade program, because it’s not on their contract that you sign. On the other hand, customer sales reps have been promising their new subscribers a new phone ever year, which is simply a lie.