Pay my Cancellation Fee - Incentive to switch from Bell/Rogers and/or Rogers to Koodo!

  • 7
  • Idea
  • Updated 5 years ago
  • Not Planned
Archived and Closed

This conversation is no longer open for comments or replies and is no longer visible to community members.

Instead of giving me a discount on a phone, give me an upfront bonus to help pay the penalty to get out of a contract from Rogers/Bell to Koodo.
I would love to switch but I have about a year left on my terrible contract.
Photo of Brad Veenvliet

Brad Veenvliet

  • 584 Points 500 badge 2x thumb

Posted 5 years ago

  • 7
Photo of Marcus Fenix

Marcus Fenix

  • 15,752 Points 10k badge 2x thumb
There are so many responses I could go with this, so I'll just say this.

No, it's a terrible idea. No provider should pay for another customer's contract. If you want out of your contract, you pay for it. Do you go to another car dealership and ask them to pay the rest of your current car off?

Please, take time to think about ideas. No good comes out by just spouting out random stuff.
Photo of Jorden

Jorden, Mobile Master

  • 33,404 Points 20k badge 2x thumb
I agree with Marcus on this one. What incentive is there for a Carrier to do this, when they have no reason to believe you'll be with them long term. If another carrier were to offer to pay off your contract would you leave Koodo for them? Seems like a really poor business decision to me.
Photo of Brad Veenvliet

Brad Veenvliet

  • 584 Points 500 badge 2x thumb
Sorry guys but I disagree. Koodo could forward you $150 towards the cost of your cancellation and then put it on your tab. Over time it could be worked down to $0. If you decide to leave Koodo, just pay the remaining balance.
Not much different than getting a new phone with Koodo.
Photo of John Lee

John Lee

  • 36,724 Points 20k badge 2x thumb
F a c e P a l m
Photo of Myke

Myke

  • 45,090 Points 20k badge 2x thumb
Agreeing with Jorden & Marcus. The tab has no money value and is only used to reduce the price of the phone.
Photo of Brad Veenvliet

Brad Veenvliet

  • 584 Points 500 badge 2x thumb
Perhaps that is what the tab is being used for now but it is basically a debt you owe to the company. Transferring a debt/balance is something the credit card companies actively try to do to make more money in the long term.
Photo of Marcus Fenix

Marcus Fenix

  • 15,752 Points 10k badge 2x thumb
You seem confused about the Tab. Outside of using the tab towards the retail price of the phone, the Tab has no monetary value, rendering your idea null & void.
Photo of Brad Veenvliet

Brad Veenvliet

  • 584 Points 500 badge 2x thumb
A scenario to consider:
- Customer has 6 months left in a Bell contract where they owe $20/month to break the contract.
- Customer goes to Koodo booth and ports phone number over to Koodo.
- Customer gets termination fee bill from Bell and pays it
- Customer sends a copy of the bill (fax/scan) to Koodo showing they paid the termination fee and are now a Koodo customer
- Koodo gives the customer a $120 credit to their account and adds $120 to the tab

Koodo gains a customer for the 6 months (at a fee of $40/month or whatever they happen to sign up for). $240 in additional income (6 * 40) they wouldn't have had otherwise. If customer leaves Koodo they still owe the $120 to clear off the tab.

At the end of the day you have only transferred your debt from one company to another. Something that many credit businesses love to do to gain market share and what is probably going to be a long-term customer if they are unhappy with their current provider.
Photo of mattjs

mattjs

  • 15,658 Points 10k badge 2x thumb
Wind will give you a $300 credit if you have your own phone and switch to them. Not Koodo, but maybe something to consider.
Photo of Sophia

Sophia, Mobile Master

  • 141,558 Points 100k badge 2x thumb
Unfortunately many people are unhappy no matter what... just look at review sites such as cellphones.ca. There is absolutely no guarantee that the person who was "bought" from another company will stay happy and content, what will prevent them from doing the same with their new provider?

I think the answer lies within the customer themselves: sign up with a month-to-month service and you know you are free to leave at any moment.
Just my $0.02 :)
Photo of mattjs

mattjs

  • 15,658 Points 10k badge 2x thumb
Nobody really has the traditional contracts anymore. Rogers early contract termination fee is $12.50, so as long as you're not getting a subsidized phone, you can pretty much leave anytime you want.
Photo of Jonathan I

Jonathan I, Mobile Master

  • 114,344 Points 100k badge 2x thumb
You can still leave any time you want... you just pay back what's owing on the phone + $12.50. That extra fee is $50 on Telus so that's something I don't like but Telus has some better offers right now.

It's basically a 3-year tab but there's some great 2 year offers now as well. Koodo still has better rate plans so its a toss-up... think about this scenario:

I walked into a dealership and paid no money down for a 2013 Dodge Dart. I didn't have $22,000 sitting around nor did I have any money saved up for a down payment for the car but I could afford the financing - a similar idea applies to cellular devices these days for some consumers.
Photo of mattjs

mattjs

  • 15,658 Points 10k badge 2x thumb
I agree, it's a toss up, everyone essentially operates the same way now. If you don't take a phone on subsidy, you're pretty much in the clear to move around as you desire, regardless of which provider you're with, even if your 'term' isn't up. Once you get a phone on subsidy though, whether it's with Koodo or someone else, you're responsible to honour that commitment, as you should be.
Photo of Brian Norton

Brian Norton

  • 1,146 Points 1k badge 2x thumb
You signed the CONTRACT. You pay if you want out. You should be the one to incur monetary damages for breaking your contract
Photo of Erwin

Erwin

  • 23,546 Points 20k badge 2x thumb
This is just not fair in general. I know previous Bell customers who bought out 2 lines of their contract ($800) to join Koodo with their family. What makes you special that Koodo would give you money to put towards your contract?

There are many alternatives, you could get people from kijiji to shoulder your remaining term by giving them your Bell phone for free and they'll pay for the remaining term of your contract.

Like Brian said above, you signed a Contract with them. Plus, I dont know any cell market in the world that steals customers this way. It is unprofessional and unethical.
Photo of rikkster

rikkster, Mobile Master

  • 67,084 Points 50k badge 2x thumb
Stealing customers? Hardly.

The customer in the OP's example wanted out of a contract. How is that stealing customers?
Photo of Erwin

Erwin

  • 23,546 Points 20k badge 2x thumb
Still considered steeling because they have a contract and they have to be in their network for a specific period of time, otherwise they get a penalty. We think differently rikkster, I hope you have a great day and thank you for choosing my opinion to argue with.
Photo of rikkster

rikkster, Mobile Master

  • 67,084 Points 50k badge 2x thumb
Precisely. They paid the penalty as was stated in the example. There's no free ride.
Photo of mattjs

mattjs

  • 15,658 Points 10k badge 2x thumb
Agreed. Breaking a contract is not a criminal offence. Stealing is. Their is a very discernible difference.
Photo of Brad Veenvliet

Brad Veenvliet

  • 584 Points 500 badge 2x thumb
Is it unfair to change lenders on your mortgage? What if the bank you are moving to even pays the early termination fee? What about using credit card cheques to pay off a balance from another higher interest account?
Wind is offering up to 300 in credits if you switch to them. To call this practice unethical is a bit of a stretch in my opinion. If a customer feels trapped and another company can help the customer with superior service then why not. Choice is good.
Photo of Erwin

Erwin

  • 23,546 Points 20k badge 2x thumb
Koodo is not a financial institution, it is not their business to transfer debt from one company to another.
Photo of Sophia

Sophia, Mobile Master

  • 141,558 Points 100k badge 2x thumb
But that's not what you are asking for, is it Brad, or did I read your OP wrong? You want Koodo to pay your entire cancellation fee of your current contract... at least that is how I read your initial post.

Or do you want Koodo to take over your contract breaking penalty so you can pay them back gradually? Even then you'd be in a murdering contract with Koodo for the longest time, and what if you end up not liking them either? Have a third company pay off the amount of what you owe Koodo to pay off what you owed your previous carrier?

It just doesn't make sense either way... I'm afraid you have no choice but to either sit out your current year, or cough up the fee for getting out of your contract...

One consolation for you is that once you sign up with Koodo, all you ever have to worry about is your current month and remaining Tab - provided you don't take the 3-year iPhone contract :D
Photo of Erwin

Erwin

  • 23,546 Points 20k badge 2x thumb
I agree with Sophia. I paid $400 to cancel my remaining 1 year contract with Rogers. Thats fair and simple. Why make it complex, this is a terrible idea. To be honest that phone I was using was 2 year old and needing an upgrade the tab just works wonders for it.
Photo of Brad Veenvliet

Brad Veenvliet

  • 584 Points 500 badge 2x thumb
Sophia, I agree my OP needed refinement. To pay off the entire cancellation fee with no limits or conditions would not make a lot of sense for Koodo.

However, I do feel the concept has some merit and I would gladly put $150 a Koodo tab to basically subsidize my existing phone.

Think of it as 'purchasing my existing used phone from Bell' rather than getting a new $150 BB Curve phone for 0$ with a $150 tab).
Photo of Sophia

Sophia, Mobile Master

  • 141,558 Points 100k badge 2x thumb
I sincerely hope you get your wish, Brad :) It never hurts to ask :)
Photo of Jorden

Jorden, Mobile Master

  • 33,404 Points 20k badge 2x thumb
Now we're saying paying off a term and a credit to the account are the same thing? Please keep in mind Wind is a much smaller company with a fraction of a network, that (from what I've read) is inferior anyway. Offering credits like that is simply a tool trying to grow their tiny client base.
Photo of Jorden

Jorden, Mobile Master

  • 33,404 Points 20k badge 2x thumb
Don't get me wrong their rates are appealing if you never leave their zone. My nearest zone is almost 2 hours away.
Photo of mattjs

mattjs

  • 15,658 Points 10k badge 2x thumb
It's just a BYOD credit. New customers can bring their own phone and get $15 off their bill, up to a max of $300. This is assuming they go on the $40 unlimited plan, which I'm sure most would as it's by far the best value, especially if you're getting it for $25 with this discount. Koodo also offers a very similar BYOD discount.
Photo of Marcus Fenix

Marcus Fenix

  • 15,752 Points 10k badge 2x thumb
And there's no limit. You stay with Koodo for 5 years with your own device, you still keep getting that discount.
Photo of mattjs

mattjs

  • 15,658 Points 10k badge 2x thumb
This is true. The $15 off per month with Wind represents a significantly larger monthly discount in comparison though, you would need a base plan of $150/month with koodo to achieve the same savings over a given month on the same promotion.
Photo of Daniel S

Daniel S

  • 1,058 Points 1k badge 2x thumb
That's not good business for Koodo for many reasons .First because if you are getting another Company (Koodo) to pay off your contract off what makes Koodo think you will stay with them for a long time. Second if Koodo pays your contract your going to have to buy a really expensive plan which isn't good for you as the customer. Thrid if Koodo pays your contract off Koodo/Telus loses alot money goes bankrupt then we all have to find a new phone company
Photo of Ivan

Ivan, Mobile Master

  • 96,382 Points 50k badge 2x thumb
Koodo wouldn't be paying off your fee, they'd take it over. If you were to leave them early, you'd be responsible for paying back the remaining balance.

This would obviously only work if you're not getting a new phone on a tab from Koodo.

Basically, this would give you a tab of up to 150 to pay off without getting a device in return. Sounds reasonable enough to me.
Photo of Marcus Fenix

Marcus Fenix

  • 15,752 Points 10k badge 2x thumb
I still don't agree with another company paying off a contract. It doesn't matter how it's spun, that's basically what it is.

This conversation is no longer open for comments or replies.