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Thread: $25 Hardware Upgrade Fee to begin Dec 1

  1. #1
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    $25 Hardware Upgrade Fee to begin Dec 1

    $25 Hardware Upgrade Administrative Fee Policy

    Description

    * In order to provide a fair balance between hardware costs and customers' advantages, Fido introduced a $25 Hardware Upgrade Administrative Fee for all upgrades.

    Policy Details

    $25 HUP Fee :

    * This administrative fee is to help cover:

    * Processing the order
    * Administration of the program
    * Managing On hand inventory (warehouse)
    * Restocking and tracking inventory fulfillment
    * Shipping and handling

    Rules & Exceptions :

    * Applicable to all hardware upgrades for postpaid customers, across all channels (Call Centre, in store, etc.).
    * Customers will be exempt in the following circumstances:

    * Migration to Basic plan with HUP.
    * Prepaid customer migrating to postpaid with HUP.

    Objection Handling


    Customer's Concern Response
    Why do you charge a $25 Administrative fee?
    * When offering a phone with an agreement discount, we reduce the price of the device versus from the manufacturer's cost through the agreement discount. Fido costs and value of the device are represented by price of phones without agreement (up to $ 600 for iPhones).
    * There are also significant costs in terms of processing, administration, inventory management fulfillment, stocking, shipping and handling every time a phone is ordered.

    Is this the return of hidden fees? * No, this is a one time charge per order that will not impact your subsequent invoices. This fee is also communicated on Fido.ca and in our advertisement.

    Aren't you the company that cares? * Yes, we care about our customers. However we must be able to cover the costs related to ordering equipment.
    * Fido introduced this to help fulfil customers' needs be able to keep offering a wide range of hardware.

    Other providers don't charge administrative fees for upgrade. * We can't comment on other companies' business policies, as these change often and we don't want to give you wrong or outdated information.

    Bill 60 is supposed to protect me as customer. Is this compliant with Bill 60? * Bill 60 is a regulation towards penalty fees. This is an administrative fee.

    Why do I have to pay that fee since Fido will be able to repay the phone in a very short time with the MSFs you charge me? * Don't forget that monthly service fees are not only covering the agreement discount, but also all services offered to you (Monthly plan, per second billing, more FidoDollars every month, reception on the expanded network, etc.).

    I am buying my phone full price; why is there an admin fee applicable? * The hardware upgrade fee is to help cover the costs of processing the order, managing inventory and shipping and handling.

    * These costs occur whether you are ordering a device with or without renewal & agreement discount.

    I don't want a Smartphone: Why should I pay more because a lot of people want the latest and most expensive devices? * I understand these new devices do not meet your current needs, however a growing number of our customers are asking for Smartphones and we wish to remain true to our customer's feedback.

  2. #2
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    My question:
    Will this fee apply for Fido Dollar upgrades as well? Many customers just walk in, buy a $100 phone with their $40 Fido Dollars, and pay the difference on their bill. Will the fee apply here?

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    Quote Originally Posted by WorldIRC View Post
    My question:
    Will this fee apply for Fido Dollar upgrades as well? Many customers just walk in, buy a $100 phone with their $40 Fido Dollars, and pay the difference on their bill. Will the fee apply here?
    Yes.

    You can buy a phone at full price, without using any F$, and you'd be charged the $25 fee.

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    So the only workaround is essentially convince the store to sell you the phone, AT THE TILL. But then, the store doesn't receive compensation. This is essentially like Bell's $20 - 30 day upgrade fee, where the customer pays retail, but by putting it on the account, a $20 fee is charged to compensate the store / Bell...and with Bell, selling at the till, without putting on an account, is not an option, unlike Fido.

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    Just confirmed from 2 retail managers. Fido Dollar upgrades towards full purchase price will have the $25 fee charged. Even if Fido Dollars aren't used, having the phone billed to your account will have this fee.

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    The only remnant of good news that could possibly come from this is that they aren't dishing out new hardware until this fee is in place. Once it's in (tomorrow), there may be some new hardware. I am sympathetic to those who don't want to pay more but I'm willing to fork over an additional $25 bucks to get a phone I actually want. My plan is still heads and shoulders above anything I can get at Bellus or their stepchildren. A equivalent plan for both my and my wife's phones would run between 80-100 per person - even with a Bellus type retention contract, which I wouldn't get as a new customer, I would still be paying AT LEAST $10 a month more for 2 phones...That's $240 dollars a year minimum. I can buy a lot with $240.00....

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    Ugh, this is just another BS fee to throw at customers to pay for the business operations.

    I don't pay any other retail store a fee for helping me find the right size shirt, or a fee to carry the TV out from the back to me. Why should cell phones be any different.

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    ^You do pay a fee for having a rep find the right size shirt for you. It is integrated into the cost of your shirt.

    Fido instead charges the fee separately.

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    Quote Originally Posted by ToastyinCAD View Post
    The only remnant of good news that could possibly come from this is that they aren't dishing out new hardware until this fee is in place. Once it's in (tomorrow), there may be some new hardware. I am sympathetic to those who don't want to pay more but I'm willing to fork over an additional $25 bucks to get a phone I actually want. My plan is still heads and shoulders above anything I can get at Bellus or their stepchildren. A equivalent plan for both my and my wife's phones would run between 80-100 per person - even with a Bellus type retention contract, which I wouldn't get as a new customer, I would still be paying AT LEAST $10 a month more for 2 phones...That's $240 dollars a year minimum. I can buy a lot with $240.00....
    We were told the fee would go towards getting fido new handsets eventually. I have no idea when, though.

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    Quote Originally Posted by Bad Liar View Post
    We were told the fee would go towards getting fido new handsets eventually. I have no idea when, though.
    Maybe Fido will get the handset replacement program too.
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    @WorldIRC: The cost of paying a rep to bring me a shirt would come from the profit the store makes from selling said shirt.

    Fido still makes profit from our monthly fees, along with other services. The "administrative costs" are should come out of the existing profit that Fido makes.

    A warehouse personnel makes X amount of dollars an hour, and he helps the movement of phones from the warehouse, to me. I doubt Fido pays him according to the number of phones he moves in a day. He's being paid the same amount no matter what. Why should Fido collect more money if they manage to move more phones off their shelves. They're already more often than not, locking customers with contracts during a HUP.

    Edit: Totally agree with ceredon regarding the decrease in monthly fees if the HUP fee is now separated. Of course, no matter how much sense we make nothing will happen, and Fido will move along passing the charges to the customers.

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    Quote Originally Posted by WorldIRC View Post
    ^You do pay a fee for having a rep find the right size shirt for you. It is integrated into the cost of your shirt.

    Fido instead charges the fee separately.
    You use that to justify any new or additional fee. In fact, that same argument would mean that Fido was previously integrating the cost into the price of the plans. Now that they charging it separately, would that mean a decrease in plan prices? Maybe it should. When Rogers dropped the SAF by $5 and turned it into the GRRF, didn't they increase the cost of their plans by $5?

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    It's not enough that I'm not upgrade eligible for another 3 years (at which time i will have another stacked contract), but now when I do get to upgrade I've got to pay $25 for something that is an operation that should be covered under their existing business plan. On top of it all, I've never had a retentions plan, pay $115 a month and never complain about the service.

    After a decade with Fido, I'm seriously starting to regret signing this last contract.
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    Quote Originally Posted by darkside flow View Post
    It's not enough that I'm not upgrade eligible for another 3 years (at which time i will have another stacked contract), but now when I do get to upgrade I've got to pay $25 for something that is an operation that should be covered under their existing business plan. On top of it all, I've never had a retentions plan, pay $115 a month and never complain about the service.

    After a decade with Fido, I'm seriously starting to regret signing this last contract.
    Then call in, complain and get a retention plan. Over the next three years of your contract you'll save well over $25, I am sure.

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    Quote Originally Posted by WorldIRC View Post
    ^You do pay a fee for having a rep find the right size shirt for you. It is integrated into the cost of your shirt.

    Fido instead charges the fee separately.
    Fido's cost of operations should be accounted for in their billings. There's no justification for the separate fee, except for that they have to recoup lost revenue from retentions plan abuse. The rest of us who don't beg for handouts, we now have to pay extra to subsidize the cheap skates.

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