Keeping existing tab until positive balance of $150

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If my maths are correct, it makes sense to keep the existing tab (small) until it reaches a positive balance of $150, THEN upgrade to new tab and plans.

Since the old tabs include a 15% contribution from koodo toward your tab balance up to $150 positive balance, and the no-tab discount of 10% were in place to account for the old plan/phone prices/markups, it makes more sense (assuming you're happy with your current device/plan) to keep your existing plan and tab. This is because you're getting 15% per month for free from koodo towards an upgrade (your existing tab). The current phone prices aren't marked up as much to account for the new plans and new tab (no more koodo contribution, no 10% plan discount), so when it comes time to upgrade, you're getting more of a discount on your phone.

When you're ready to upgrade, the new plans are still going to be cheaper than the old ones, the new phone prices will be cheaper than the old ones, and now you've been getting the same 15% contribution from koodo towards them (or 10% discount on your existing plan) until you're ready to upgrade.

I did the math on my specific plan, and it's actually going to cost me a lot more (based on my current plan, and usage) to change to a new similar plan, and tab. For me, it makes sense to wait until i have $150 towards a new phone.
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Ryan Lagace

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Posted 3 years ago

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Justin

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Yes that is right, you can let your tab build up, then upgrade to a new device on a new plan.
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Elinor

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You're right about the value of allowing tab credits to accumulate but that's only one consideration. Here are some more:

1. Will Koodo have the phone you want when you've reached +$150 on tab? I find many of the phones too expensive and I don't care for the cheap ones available. Right now, I'd rather buy an unlocked MotoG 2nd generation from Staples than any of Koodo's cheap phones when my old phone dies.

*Building up your tab by remaining on the old plan is only of value if Koodo carries a phone you want at a competitive price.*

2. The possible movement in phone prices. You believe the phone prices will be cheaper. I don't. The cost of a good phone has gone up to $600 - $700 (from around $450) and Iphone prices, already high, were recently raised because of the fall of the Canadian dollar vs the USD. While Koodo has made an effort to provide some lower end phones, I'm not seeing the price points I had to choose from 2 years ago. Prices are higher, I believe. They may get higher still. If so,

*A $150 tab will have less buying power in the future than now.*

3. There is no guarantee that plan prices will be cheaper than the old ones. Two years ago I bought an S2X putting $150 on a tab for which there was no charge beyond the monthly plan bill. At the beginning of April, I scrambled to reduce my bill by 10% since I had paid off the tab (my plan's tab contributions were only 10% so it was a wash and I chose to reduce my bill instead of build up my tab).

*Neither of these features is available today.*

Also, although plan prices have decreased a bit, my math tells me that this reduction is more than offset by the introduction of separate tab charges. I'm not criticizing Koodo for this; I'm simply pointing out that the overall cost of plans is rising so I'm not sure you can rely on your assumption of cheaper plans in the future. Perhaps the odd promo in the next few months but:

*it's risky to make a long-term prediction.*

To summarize:

If you have already picked out your next phone from Koodo's list and you have only a few months to go to reach the max +$150 tab, I think your math and reasoning is spot on.

But if you will take longer than a few months to maximize your tab, consider that the phone you want today may not be offered tomorrow (like the Moto G 1st generation) and that prices and plan fees can as easily go up as they can down. Not trying to dissuade you, just pointing out some other considerations to throw into your analysis that might be useful to you or others.
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Cameron Jones

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2 things are guaranteed in this life: death and taxes-:)
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Mark Kokolsky

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I would argue your second point. Phone prices most certainly have dropped. And you can get great devices for far less than $600-700. Examples of that are the LG G3, Samsung S4, LG Nexus 5. Those are all really good devices for a lower price point than you mentioned. $700 is starting to get into the pricing for new high end phone launches. The HTC One M9 is just a hair over $700 at $760, and the New S6 is the same price. So I would argue that you are raising the bar and wanting higher end phones, and that the prices of mid level phones are still in the $400 area.
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BobTheElectrician

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A lot of the confusion currently raining on us could have been avoided by a friendly email from Koodo to current monthly subscribers just pointing them to the new tab page

http://help.koodomobile.com/getting-s...

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