How can you use the word "DISCOUNT" in your new phone pricing?

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Looking at the Samsung S6 as an example. The retail price is $760 less a "Tab Discount" of $360 leaving me with $400 to pay now. Then there is a $15/month tab payment I have to pay for 24 months which works out to the "discount" of $360. In what world is this a "discount"? On our side of things and I'm sure on yours when you go shopping, discount means a reduction in the price I pay, not a deferral of payment which is what you have here.I feel like I am being taken advantage of. If you are going to use deceptive language in your marketing you are about to lose me as a customer. I have zero time for trickery and underhanded marketing.
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Eddie Marano

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Posted 3 years ago

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Jonathan I, Mobile Master

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Eehh, this is contentious for me as well. I'd change it to say Tab subsidy, Tab repayment divided by 24 months, etc.
(Edited)
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Ahmad

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It's a temporary discount...lol


But there is no deception behind it because you're supposed to realize you're paying back your subsidy. That's the point. You can take a smaller subsidy than $360. You can take a $200 one and Koodo will divide that by 24 and add the tab charge to your bill. The tab is nothing more than an interest free loan. No deception
(Edited)
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Eddie Marano

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Temporary discount-funny... I can just see the Black Friday ads: "75% off this Friday and you can take up to two years to pay that 75% back to us. Aren't we special!"
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Paul Deschamps, Mobile Master

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If you realize what it actually is then it's not really deceptive now is it.

What do you suggest they call it Eddie ?
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Eddie Marano

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Quite frankly Paul, they can call it whatever they want, but whatever that is, it should not include the word DISCOUNT. How about, TAB?. You can't tell me the word DISCOUNT isn't added to sweeten the message.

And what about the people that don't realize what it actually is? What do you suggest we do for them? Your philosophical statement aside, there are many people being taken advantage of on a daily basis by this type of selling.
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Mathieu, Mobile Master

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I think most people see "Tab Discount" and think they actually are getting a discount, because other than Koodo, I've never seen the word discount used in this case. They should consider changing it to "Tab Financing", what the tab really is now is financing. 
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5s

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I'd go one step further and call it
INTEREST FREE TAB
gets rid of the words, discount and subsidy.

I see your point Eddie. But I also see that this TYPE of advertising is wide spread.

It's used to grab your attention, which it did and you caught it, before you bought it.

But in the case of the Wall Mart "one cent sale" someone actually purchased the phone believing the phone only cost one cent, then complained about here, after the fact.
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Mayumi, Mobile Master

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I also don't like they are using the word "Discount".  If I see the word discount, I expect the price is reduced/taking off from their retail price. 
I agree they should say just "Tab" 
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Mark Kokolsky

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So youd rather go to another company that gives a "discount" but your really paying for it anyways but they just aren't telling you?
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Mitchell Palmater

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Pretty much this!
You can get your "discount" with bell or rogers.
See how that works out for you financially =P
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Eddie

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So you would rather go to a company that tells you they are giving you a discount but they aren't? Don't understand what you are trying to say Mark.
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Mitchell Palmater

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Hes saying the opposite actually.
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Mark Kokolsky

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I'm saying every carrier is charging you for your phone. You look at Koodo's competitiors and both Fido and Virgin charge the exact same price, they just hide the phone cost in a more expensive plan. Koodo has cheaper plans because you pay for the tab charge separate from the plan. So at the end of the day, you usually wind up paying the exact same thing, but with Koodo at least they tell you where your cash is going. And once your phone is paid off, the tab charge automatically stops.
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5s

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Same as Koodo Mark. Why does Koodo select Certain Customers and offer them a limited time only discount on certain phones? What do these targeted customers all have in common?
(Edited)
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Taylor Upshaw

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It is neither a discount nor a subsidy. The structure of the device pricing is quite literally a zero interest loan to be paid back over 24 months. It's hard to market this without leaving the consumer feeling like they're receiving the short end of the stick. However difficult the marketing may be, everyone is right... they should adjust their terminology 
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Mathieu, Mobile Master

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I feel as tho their entire "It's the best money you've never spent" slogan to be the worst part of all of this choose happy labeling. 
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Amanda Elizabeth

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I like that the worst thing Koodo is doing is using the wrong words in their advertisement, pretty minuscule issue in my opinion.  
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5s

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No it was not Koodo Elizabeth, it was a Koodo Partner. According to the complaint.
(Edited)
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Mitchell Palmater

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Her name is Amanda.
Also I agree that this walmart experience is an isolated incident.
not one that occurs often.
The customer is never lied to in store and is always explained the long term costs.
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Mitchell Palmater

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This is no different than companies who say that are having a blowout sale but the prices are literally the exact same as they were the week before.
Or pricing it 30 dollar more expensive only to have a 30 dollars off sale.

This is the world of marketing.
And no amount of complaining is going to change it because it works.
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5s

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That's why I only deal with Koodo Kiosk OR Matthew @ the Mobile Shop Essa Street Barrie ON Location.
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5s

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OMG I'm so sorry Amanda. Please forgive me for referring to you as Elizabeth.
Thank for pointing that out to me Mitchell.
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Jason L

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Nowhere in store, nor through the Koodo website, does it specifically say "With Tab Discount" (at least not that I can find). Everything is marketed as "With the Tab", meaning a portion is removed from the outright cost of the device to be paid back over a 24 month period (think of it like a bar tab that you have to pay at the end of the night, are you going to get free drinks because you aren't paying right away? No). Any store that is Koodo corporate is not going to mislead people into believing that they are getting a ''free'' or "discounted" phone, and they are not responsible for the training or practices of 3rd party retailers (ie Best Buy, Walmart, WOW Mobile, etc.) Here is a link to a video that better explains how the tab works, (note: "there's no such thing as a free phone'' right at the beginning of the video). http://help.koodomobile.com/getting-started-with-koodo/the-tab-what-it-is-and-how-it-works
If you have the source of where you saw "With Tab Discount'' could you reply with a picture/screenshot/link?
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Eddie

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Are you kidding? Which website were you looking at? I see Mayumi provided a screenshot for you. Hope that helps you even though you did such a thorough search to make such a comment. And to your bar metaphor, my bartender doesn't call it a tab DISCOUNT: she calls it a tab, which reminds me....
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Mayumi, Mobile Master

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All I want to say is that they shouldn't use the word "Discount" here. It should say just "Tab"




Because if I see the word "Discount", I expect the price is reduced from their retail price.

Add: I submitted this 4hours ago... But I guess I lost connection and now it appears.
(Edited)
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5s

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I agree Mayumi, but now kicks in the argument of some others, "no cell phone is free".
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Mathieu, Mobile Master

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That's beyond the scope of what Mayumi is saying. Yes, no cell phone is free. But a discount is money taken off that is not to be paid back. In this case, it is money to be paid back over time
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Amanda Elizabeth

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my argument for this, though, is you have now gone through all the explanations of how the tab works and how the phone is being paid back over the 24 months...so why would you assume, at the final check out, that everything you just read is invalid and you aren't actually paying that price out over the 2 years....they are just saying at the point of checkout that this is the discount you are getting upfront, I feel that Koodo believes that at that point people understand the process and they are not trying to trick you into something you don't understand 
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Amanda Elizabeth

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than maybe the complaints should be on THEIR forums
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Mayumi, Mobile Master

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I know how the tab works. I'm talking about in general.
The word "Discount" is making a lot of people confused. 
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5s

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Yes it does, as noted by complaints/request for more Tab info/clarification
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5s

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The fact that someone wrote in to complain about the wording, without even purchasing the phone, should be a red flag, to look at the wording.

And again you can argue that it's not Koodo, but rather a Koodo partner, is that where you want to go, lay all blame on the Koodo Partner?

Go back to the WallMart complaint, tell her it's not Koodo's problem that she didn't do transaction at Koodo Kiosk.
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Eddie

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One final thing on this: Is anyone from Koodo paying attention?

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