Point A) The number I will mention below in brackets is the average monthly revenue that you must generate, before taxes, over the past 6 months. If you have other people on the account with you it doesn't matter as it is individually calculated per-line.
Point B) "Acquisition pricing" or "promotional pricing" is what you refer to as contract pricing. It refers to getting it for the price seen on a 3 year term, as if you had no contract at all. This below information does not mention mid-contract pricing (partial discount) as you're specifically asking about the best possible price.
Point C) All of these figures only work if you're currently on a 3 year term. If its a 1yr or 2yr, the timings are VERY different.
How it works:
"platinum perks" clients ($200+) will get promo pricing 1 year into a 3 year contract [24 months left] ...they also get extra perks like regular $25 discounts loaded in to counter the $25 swap fee, and direct bill credits to counter the cost of the phone (in this case, $80). When you pay at least $2400 per year for a phone plan, they will go the extra mile.
high revenue clients ($90-$199) will get promo pricing 2 years into their 3 year contract [12 months left]
everyone else (below $90) will have to wait until there are 6 months left or less
Given that you're on the EPP $17.30 + Package 15 + SAF/911, that is $40/month, meaning you're nowhere near a high revenue generating account, and thus must wait.
Alternately... Loyalty and Retention have a new specialty option called the Early Device Upgrade Fee, as a way to allow clients to get promo pricing before being eligible. You pay a one-time fee to your bill (a cost for them to recuperate the original discount on your phone) and they immediately assign promo pricing to your account.
Cost is like so:
If you currently have a regular phone, its $5 multiplied by every month remaining in your term
If you currently have a smartphone, its $10 multiplied by every month remaining in your term
It's also rounded up. So with 9.xx months left, you pay 10 months x $5 = $50, and you've got promo pricing now. This is also at the discretion of L&R, and they are not obligated to provide this.
So if $50 + $80 works for you, and if they are willing to oblige, you get your new fancy phone and your 10 months goes back to 36 months (thus only adding 26 months to your term).
In a way its not bad, as you'll pay far more than $50 over the next 3 or 4 months until you're at the 6 month eligibility point.
Great post! I've been looking for how that segmentation was broken down forever! Thanks! Now a couple questions...
- Could you just quickly describe mid contract pricing?
- If you paid the Early Device Upgrade Fee and get acquisition pricing loaded, does that mean your contract has been bought out?
Wow Krusty, thank you so much! That was exactly what I was looking for. I've got a few things to speak with LnR about now, rather than calling them up and basically asking what they can do for me.
I really appreciate it, thanks!
I'll simplify things and make a chart. From what I "know", they have a similar chart they use internally.
I've heard they have more segments internally, for determining a more accurate amount of revenue (so someone closer to $175 may get better perks than $95, etc.) but in terms of a phone discount, its just like that.
Mid-Contract Offer works like so:
$150 off of the FULL PRICE of a regular PCS phone, or a smartphone that does not have any data plan requirement, by extending your contract from where it is back to exactly 36 months.
$200 off of the FULL PRICE of any smartphone that has a data plan requirement for the first 12 months (which you'd have to lock in with) by extending your contract from where it is back to exactly 36 months.
$300 off of the FULL PRICE of the Apple iPhone 3G or 3GS (the iPhone 4 doesn't allow mid-con yet, from what I have heard. Once stock levels improve, I hope this will also apply to the iPhone 4), again by extending your contract from where it is back to exactly 36 months.
"Buying out" your contract implies finishing with it, as far as I know. The $80 fee means they will allow your X months remaining to qualify for full pricing immediately, but you don't actually drop to 0 months and then back to 36.
If you have 14 months remaining and are charged the fee, you can go get a new phone right away for its promotional price. Your contract will still work its way down day-by-day from 14 months until you redeem it, and at that time, it will bounce back to 36 months.
To actually buy out a contract is the standard $20 per month X months remaining (minimum $100, max $400).
EDIT: An insider has informed me that they are reducing the mid-con for regular phones to $100 off (instead of $150 off) because they will soon be dropping the full price on a bunch of regular phones. The example I was given was a few $199 phones will soon be $99, meaning you'll actually SAVE money with this reduction.
@ kamp krusty that's a lot of information to process. you rock.
@ Hardkore I only see one $99 phone on TM's website, and it's been that price for a while (Samsung U430).
P.S. I feel sorry for someone who signs a 3 year term to make a $100 phone $30. That would be pathetic. That phone should be $100 full price, and around $40 on 1 year contract. That's it. It's such a cheap phone that they shouldn't even offer 2 or 3 year contracts with it.
The U430 used to be $199. It was $99 on an offer for existing clients.
The Keybo 2 and Intensity both dropped $100 from their old prices. The Advance is down to $180 from $350. The LG banter dropped $50 to $150, and finally the LG Madison (GB-255G) Dropped from $200 to $129.