Why $25 Hardware Upgrade Fee?

Why $25 Hardware Upgrade Fee?

Why $25 Hardware Upgrade Fee?

SOLVED
nick67
I'm Qualified Level 3

Why $25 Hardware Upgrade Fee?

Simply put, why if I buy a phone from Fido at full retail cost do I pay a $25 hardware upgrade administration fee? What is the fee for? If it can't waived I will just buy the iPhone outright from the Apple store. Also, I have FidoDollars accumulated where the real value is really ## accumulated FidoDollars less the $25 fee. I would like an explanation to why this fee is being charged when upgrading a phone and how is my experience any different if I go to the Apple store where there is no fee and Apple personel told me they would even setup the phone for me??

 

 

 

Accepted Solution

Re: Why $25 Hardware Upgrade Fee?

Solved by Senior MVP Senior MVP

@Proac wrote:

...It's always irked me that Joe Blow off the street doesn't incur this fee but someone...  with Fido gets... <upgrade> $25 fee. ...


Hello Proac,

 

  As noted above, the fee has been reduced to $15. However, your statement is not quite accurate. While it's true Joe Blow does not incur an upgrade fee when they sign up, they do incur an activation fee (see here). Both the activation and upgrade administration fees cost the same so current customers are not paying more than new customers.

 

**edit** Just came across this thread here. It looks like the upgrade fee might be waived if the upgrade is done online at Fido.ca**

 

  Hope this helps Smiley

 

Cheers

View solution in context
23 REPLIES 23
FidoStephane
Moderator

For your information, here are a few details regarding the $25 hardware upgrade 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 the price of phones without agreement (up to $ 600 for iPhones).

- There are also significant costs in terms of processing, administration, inventory management fulfillment and stocking, every time a phone is ordered.

- This is a onetime charge per order that will not impact your subsequent invoices. This fee is also communicated on Fido.ca and in our advertisement, therefore is not considered a mistakenly charged amount.

Rest assured that we care about our customers. At the same time, we introduced this in order to continue to be able to cover the costs related to ordering equipment. Therefore, in order to provide a fair balance between hardware costs and customers' advantages, Fido introduced the $25 hardware upgrade administrative fee for all upgrades (in store, fido.ca, Call Centre).

 

I truly hope this answer better explains the reasons behind the $25 hardware upgrade administrative fee.



ShawnK
I'm a Contributor Level 1

Although I do agree there are costs associated with upgrading a phone, to even try and imply those costs are greater than a brand new account activation is just absurd.

 

Most industries give products to long term clients at better rates than someone who walks in off the street. It is odd cellco seem to think opposite, and seemingly want to spend big $$$ to convince a client to join them than trying to retain an existing one.

kenshin33
I'm Experienced Level 1


@FidoStephan wrote:

For your information, here are a few details regarding the $25 hardware upgrade 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 the price of phones without agreement (up to $ 600 for iPhones).

- There are also significant costs in terms of processing, administration, inventory management fulfillment and stocking, every time a phone is ordered.

- This is a onetime charge per order that will not impact your subsequent invoices. This fee is also communicated on Fido.ca and in our advertisement, therefore is not considered a mistakenly charged amount.

Rest assured that we care about our customers. At the same time, we introduced this in order to continue to be able to cover the costs related to ordering equipment. Therefore, in order to provide a fair balance between hardware costs and customers' advantages, Fido introduced the $25 hardware upgrade administrative fee for all upgrades (in store, fido.ca, Call Centre).

 

I truly hope this answer better explains the reasons behind the $25 hardware upgrade administrative fee.


1- may be, in that case. but still the customer has legal binding contract and again the retail price of the good/service should reflect that.

2- that's called the cost of doing business every retail has that exact same problem, the price of the good should already reflect that. paying upfront (no mater woth what, cash or store credit -Fido$-) the full price of the device should not in any way be subject to that 

VincentP
I'm a Participant Level 2

I wasn't even aware this fee existed. Fido gets worst with the years; hidden fees here and there with ridiculous excuses.

 

Do you think a shoe store will charge you secret fees on your second trip there because it has to order inventory? That's retail business 101. Even more ridiculous is the fact fido makes money from the plans much more then from the phone, whatever it costs them to ship phones or hold inventory is part of their business expenses.

 

Next we're going to have 10$ / month secret fees added to our contract because fido has to pay it's employes. Oh lord.

 

Also, it's pretty obvious such fees are added to counter the fido dollars. They give fido dollars towards the purchase of your new cellphone, but inflate the prices and add fees with ludicrous excuses.

 

Anyone that has ever worked in retail / owned any kind of company / studies in administration or business can see this fee makes absolutely no sense.

 

Very sad days we're living in when fido gets as dark as the big brands.


@VincentP wrote:

I wasn't even aware this fee existed. Fido gets worst with the years; hidden fees here and there with ridiculous excuses.

 

Do you think a shoe store will charge you secret fees on your second trip there because it has to order inventory? That's retail business 101. Even more ridiculous is the fact fido makes money from the plans much more then from the phone, whatever it costs them to ship phones or hold inventory is part of their business expenses.

 

Next we're going to have 10$ / month secret fees added to our contract because fido has to pay it's employes. Oh lord.

 

Also, it's pretty obvious such fees are added to counter the fido dollars. They give fido dollars towards the purchase of your new cellphone, but inflate the prices and add fees with ludicrous excuses.

 

Anyone that has ever worked in retail / owned any kind of company / studies in administration or business can see this fee makes absolutely no sense.

 

Very sad days we're living in when fido gets as dark as the big brands.


I can understand the confusion with the 25$ ADMINISTRATION FEE, however, to state that it is a hidden fee would be false.  At the time of your upgrade you are asked to sign a lengthy document which is your 24 month term agreement; within this agreement it states that there is a 25$ fee and one actually has to sign ones initials next to it.  If you are ordering your new phone from customer service it is up to the representative to disclosed this information, however, the information pertaining to your new agreement is on your next invoice. 

 

Furthermore, to answer the question of "Why an Administration Fee" for returning customers it is related to help cover the costs of processing the order, managing inventory, as well as shipping and handling.  It is true that new customers are not subject to this fee while still subject to incuring such fees, however, new customers do not have the benefit of "FIDODOLLARS" either when purchasing a new device.  If one would like to avoid such a fee then as a consumer you may purchase a device outside of Fido chanels although this route would not allow you to use your accumulated Fidodollars.  In conclusion the choice is yours:

1. Use FidoDollars to recieve extra rebate on cost of handset and pay the 25$ admin fee

or

2.Purchase handset outside of fido channels and forfeit the use of the FidoDollars but no admin fee

 

hope this clarifies the issue



senmo
I'm a Participant Level 2

just like the deductible on your fido reward dollars. it pretty much renders a year's saving of fido dollars useless. Such frictional costs are designed to reduce the carrier's cost of honoring the reward programs and ultimately lower your tendancy to use fido rewards dollars.

Proac
I'm Qualified Level 1

This fee is only more ridiculous now that most customers plans don't even include Fido Dollars any longer. It's always irked me that Joe Blow off the street doesn't incur this fee but someone who already spends their hard earned money with Fido gets bent over for a senseless $25 fee. This nickel and diming is exactly why carriers like Wind or Public Mobility can attract customers. 


@Proac wrote:

...It's always irked me that Joe Blow off the street doesn't incur this fee but someone...  with Fido gets... <upgrade> $25 fee. ...


Hello Proac,

 

  As noted above, the fee has been reduced to $15. However, your statement is not quite accurate. While it's true Joe Blow does not incur an upgrade fee when they sign up, they do incur an activation fee (see here). Both the activation and upgrade administration fees cost the same so current customers are not paying more than new customers.

 

**edit** Just came across this thread here. It looks like the upgrade fee might be waived if the upgrade is done online at Fido.ca**

 

  Hope this helps Smiley

 

Cheers


Hi @Proac,

 

I will be sure to pass your feedback along. To clarify, the fee is now $15 instead of $25. The one-time $15 transaction fee applies for the processing of your request and it has replaced the current administrative fee for hardware upgrades.

 

Thanks. 



choy
I'm a Contributor Level 1

No offense, but your listed price for phones are above the market price for the phones. For example, your Nexus 4 is still priced way higher than the last price Google gave for it.

Also, why penalize your loyal customers? I didn't pay a penny to get a "free" phone when signing up the first time. Now instead of paying $25 to get another "free" or discounted phone, I might as well just go to another company and get their offer sans the $25 fee. Maybe in 2-3 years I'll be back with Fido, maybe not.

I attended business school, I know that the cost to retain a current customer is way lower than attracting a new one. But apparently this is not the case here because a current customer is asked to pay more.
credmau5
I'm Experienced Level 3

The last regular price from Google was about $360 + tax + shipping for a Nexus 4. That's very close to the $425 that Fido charged. You cannot compare a one-day Google fire sale of $200 they happened to put on and sold out immediately. Fido already paid for the phones, what Google decides to do to get rid of inventory is not Fido's concern. Not that it is even relevant since you cannot get a Nexus 4 from Google for $200 or any price anyways.

SpiltBwater
I'm Helpful Level 2

You can buy a Nexus 5 16gb from Google for $349, or buy it from Fido for $500 + $25 HUF.  Anyone buying a phone through Fido is lighting their money on fire.

credmau5
I'm Experienced Level 3

Not really, it's $407 for the 16GB and $467 for the 32GB from Google. Besides, it could be a thousand dollars and still a better deal for customers who take one on the Tab (as the vast majority do) because you still pay your monthly bill and if you aren't planning on leaving in 24 months you only pay $100 (if that's the contract price). Even if you buy it from Google and you're on a new plan with 10% BYOP...it will still cost more than through Fido.

 

Now, that said, anyone who walks into a Fido store to buy the device outright would be lighting their money on fire...however why would one do that in the first place? Always best to go through the manufacturer or a phone retailer, not a service provider.

 

kenshin33
I'm Experienced Level 1


@credmau5 wrote:

Not really, it's $407 for the 16GB and $467 for the 32GB from Google. Besides, it could be a thousand dollars and still a better deal for customers who take one on the Tab (as the vast majority do) because you still pay your monthly bill and if you aren't planning on leaving in 24 months you only pay $100 (if that's the contract price). Even if you buy it from Google and you're on a new plan with 10% BYOP...it will still cost more than through Fido.

 

Now, that said, anyone who walks into a Fido store to buy the device outright would be lighting their money on fire...however why would one do that in the first place? Always best to go through the manufacturer or a phone retailer, not a service provider.

 


in a perfect world may be. 

factor in a broken/dead device. dead within the warrenty periode (< 1 year) no problem. Broken/lost or dead after warrenty expired and you're in an untenable situation, you either shell out $$$ for a new device or cancel your contract (again out of a hefty sum).

It is a lottery. 

nick67
I'm Qualified Level 3

Thanks everyone for your valuable input. One final question, if I go to the Fido store, buy an iPhone 5S outright, would Fido throw in a Nano SIM card at no charge or is Fido expecting me to purchase one for $10?

Dear nick67,

 

if you current phone does not use a nano SIM card, a new one will be provided for you free of charge with a new purchase of the iPhone5s.

 

 

 

Hope this helps!

 

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SpiltBwater
I'm Helpful Level 2

A $25 admin fee on a $800 iphone is not that bad.  Try buying a locked phone for $150 and paying a $25 admin fee.  Sounds fair doesn't it?  17.5% fee plus tax for a locked phone?  iphone only has a 3% fee plus tax on a locked phone.  Why anyone would buy a phone through Fido is a mystery.  They must all be rich and like paying fees for sticking with a brand.  I bought unlocked Samsung Gio and like it.  Will buy another phone eventually from anyone but Fido.

nick67
I'm Qualified Level 3

What is the fee for? What service am I receiving by paying $25?

 

I don't get it...when the Apple store charges no additonal fees and is willing to setup the phone for me? There is NO advantage buying the phone outright from Fido, except the ability to use FidoDollars towards the purchase. Where your Dollars are immediately reduced by the $25 fee.

 

Is the admin fee some sort of eco-related fee to compensate the cost of electronics in the landfill similar to the fees charged on HD TV sets? I just want to know what the fee is being collected for?

SpiltBwater
I'm Helpful Level 2

When I bought a phone in 2010 I asked the Fido rep what the fee was about and was told to the effect of " it is for shipping and handling to pay for the cost of getting the phone to the Fido store".  I lold at that answer and still bought my last phone from them cause I needed a phone as I had lost mine. 

 

Wufai
I'm Qualified Level 3

Repost my opinion of the subject matter from another forum:

 

I have always been dumbfounded by the telecom's decision to introduce a 'hardware upgrade fee'. espeically with Fido (reasons I will provide later). This thread also broading my scope of the subject matter from member of both sides to justify why or why not the HUF is valid. I will now try to inject my opinion as to why the HUF is bad and should be banned.

The current HUF is not a fair fee - It does not target every Fido users, only those loyal customers who have at least 1 contract with Fido. New customer do not pay this fee. Fido supporters cannot claim this is 'fair' because Fido incurred the same shipping/handing/subsidize charges for new customer as well. Yet the $25 Hardware upgrade fee does not apply. Fido supporters try to relate 'Destination fees' 'Enviromental fee' to be the same as 'HUP' are wrong as well. 'Destination fees' applies to everyone who purchases a car, not selective between new/existing customers. 'Enviromental fee' is a tax set the government, also no exceptions and applies to all.

The HUF is a misleading fee - the reason for HUF was never clear. Fido does not explain clearly WHY the fee is in place, I can understanding destination fee and enviromental fee. What about the HUF? Is it for shipping/storing the new phone? Is it to recover the high subsidy Fido discounts on the phone? Fido needs to explain why a HUF is needed, and the reason should be clear enough for us not to be confused with why new users are not charged. A secound reason the HUF is misleading especially for Fido is their introduction to Fidodollars. I know in the past, Fidodollars can be used for a variety of things. But today's Fidodollar reference is that it is used mainly as a rewards program towards a new phone.  A new customer when comparing wireless carriers will take into account of Fido's Fidodollar program becuase it is unique with 4% of cellphone cost converted into Fidodollars to be used for buying new phones in the future. Imagine that customer's surprise after 2 years saved $25 Fidodollars, out of contract, wants a new phone only to find out there is a $25 fee for upgrading their phone. What's the point of Fidodollars then? Customer will definetly felt ripped off.

The HUP aims to drive customer out of Fido - People upgrade phone for variety of reasons, those upgrading due to lost/broken phones will find it disadvantages to stay with Fido if they need to pay additional $25 to keep using Fido while they can port to another carrier and will not be subject to HUF.

In Summary, I understand that Fido is a business to make money and can charge whatever they want against us. What I want Fido however is that they are fair and not misleading when doing so.  I can live with Fido charging unlock fees or even activication fee, or even system access fees becuase they explain clearly what the fees are for and I can decide to either use the service or move to a competitors.  What I hate about the HUF is a new customer does not know about it, they are told the benefits of Fidodollars but comes time to upgrade phone they found out a good portion of Fidodollars are cancelled out by the HUF.