Connection fees

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  • Updated 3 weeks ago
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Clearly you guys are losing customers because of the connections fees. It doesn't make any sense even if you are already a koodo client you still need to pay connection fees for renewals. That's crazy! Will you guys do something about it ? We still waiting ..
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Kalvin Johnson

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Posted 3 weeks ago

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Paul Deschamps, Mobile Master

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Still waiting it just went into effect like 2 weeks ago, so don't expect any changes any time soon.
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David, Mobile Master

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For those who can independently set up their new phone, maybe. Lots of folks avail of the additional hand-holding offered by the face-to-face process, such as transfer of content, confirmation of working phone, etc.

Koodo is encouraging users towards their online experience, and the fees for direct service is one step to encourage a change in behaviour.

My phones have come in the mail for more than a decade now.
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Dennis, Mobile Master

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This is the stupidest fee ever. It's a fee to be a customer.
(Edited)
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srlawren

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Agreed 100%.  Need to charge a nominal fee to cover the cost of the SIM card?--sure, that's reasonable.  But having staff to help people on-board is a cost of doing business and should not be passed on to that customer to punish them for not doing it online.  

If they really want to push people to use online, how about doing it the other way around?  -- activate in store and it costs you $10 for the SIM card and no connection fee; activate online, the SIM is free and we give you a $20 bill credit on your second month's service.  You're still incenting folks to use online if they can, while not punishing those that cannot or are not comforable with it.  Win-Win.
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Timo Tuokkola, Mobile Master

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Activations in store mean koodo has to pay commission on the sale. Activations online mean they don't.
(Edited)
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srlawren

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@Timo sure, I get that; but why should the customer have to directly pay the commission on the sale?  When was the last time you bought something or subscribed to something and the invoice included a line item for the commission, over and above the cost of the item/service?

I guess you could argue things like home cable service or DSL, sometimes the company will charge an installation fee to come wire your home.  I guess that's similar, except that it's less tangible to the subscriber than someone spending 10 mins typing stuff into a computer--you've got someone driving a vehicle [which has costs] to your home, using tools and materials [with a cost] to physically perform the task, etc.  

To the average consumer, this "connection fee" feels like a load of hooey [self-sensored!], like when a car deal tries to charge you a made up documentation fee and so on.  
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Timo Tuokkola, Mobile Master

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A line item? No. But you're delusional if you believe it's not built into the price of every product you've ever bought at a brick and mortar store. It's part of the reason everything is cheaper on Amazon. The difference is that instead of trying to fight the bogeyman of online retail Koodo is actively trying to push customers toward it.
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srlawren

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I may well be delusional!  :)  But no--I get that it's built in to the cost.  Companies price this in to their good and services.  I think that's why this "connection fee" is so grating is that it's not built in.  With the exception of some decent promos from time to time, the carriers are already charging a pretty penny every month for the service.  My expectation would be that those margins would cover things like acquisition cost, regardless of the channel. 

I remember years ago, carriers used to charge an activation fee when you signed up and eventually did away with those. I guess they've decided that they now can't charge you for leaving (other than your outstanding tab balance and any usage charges owed) or for unlocking the phone you paid for (granted, usually at an overall discount vs buying outright direct form the manufacturer--but also purchased in bulk as discount from those manufacturers), that they need to charge you for wanting to be their paying customer.

Note, I'm not actually trying to be argumentative or stage a protest or anything.  I just find moves like this to be off-putting and I don't really think it should be allowed. But I get that there are shareholders and a need to report every-rising ARPUs every quarter, with year-over-year growth and so on.  I don't have to like it though!  But I do get it.  At the end of the day they're not running a charity.  
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canucks4life

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Interesting how quickly all the "competition" bumped their activation fees up to $30...wireless in Canada such a joke. $30 for 500MB as well *slow clap* CRTC.
(Edited)
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Dennis, Mobile Master

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Should have signed up for the 10gb deal.

I'm just happy all phones come unlocked

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