BOGO for new customers only, why do you limit 55+ account to two lines?

shotnoise

    My wife and I have been T-Mobile customers for 6 years now and decided that it was time to upgrade our old Galaxy S5's.  We saw the Black Friday add for T-Mobile's BOGO offer on the high end devices, including the new Samsung, and decided that this was a good time.  We went in and discussed this at one of your stores and found that there was no way around the "add a line" requirement for existing long-term customers and that we HAD to add an unnecessary third line to our account to qualify and that it HAD to be a voice line so we could not simply add a data line for one of our tablets.  Now I'm slightly irritated.  Then I find that the T-Mobile One 55+ deal is only for two lines so that adding the requisite third line will add not $20 but $80 to our bill.

     

    Why do you have to add another line if you are an existing customer?  As an existing customer everyone would probably already HAVE a line so getting the offer involves either adding enough to your bill that you are effectively paying for the "free" phone anyway or some for of subterfuge.  If you are being above-board and playing by the rules you are effectively locked out of the BOGO offer.

     

    Why is the T-Mobile One 55+ offer limited to two lines?  I had recommended that a co-worker that is also 60+ switch to T-Mobile largely on the basis of the 55+ program but, since he is paying for cell service for his mother as well as himself and his wife, he does not qualify!

      All replies

      • stevetjr

        The 55+ plan was really designed for empty nesters couples over 55.  For the same reason the NetFlix doesn't apply to that plan (or the 2x$100 SC plan that has been grandfathered) the CEO mentioned those two plans specifically during the announcement call (of Netflix) because he knew he would be asked and his answer was those plans are so discounted and the margin so slim there was no way to include them in the NetFlix promotion because it would result in a loss which they can't do nor would they subsidize those plans with the standard plans.

         

        As for the bogo, yes for the most part it is for new customers but they at least made it available to existing if they add a line rather than just adding it for new only.  For most that's not an option of course but others like a friend of mine decided that it was time to add his father onto his plan so now his wife can get the new iPhone, his son will get a new Samsung (the bogo) and "dad" will get a cheaper pre-paid phone which works for what he needs.  Unfortunately the carriers don't make any money on devices, the profit/margin all goes to Apple, Samsung and etc so when they run a promo like this there has to be a way to recoup just giving a $1000 phone away and that is to have a new line of service that will add revenue.  The "old" model where you could upgrade for signing a 2 year contract in this way had a benefit but there were far more negatives with that model, especially plan price since the price of the phone was baked into the plan and how Verizon was getting away with 55% profit margins because you didn't really get how much you were over paying for the phone versus the "service" aspect not to mention if you didn't upgrade at 2 years your payment didn't go down so essentially you started paying for the phone a second time after 2 years.

         

        So then the question is why even offer the 55+ plan?  Because it will benefit a lot of the 55+ crowd but just like anything there will be those for whom that plan doesn't work and they will have to use the standard T-MobileOne plan which compared to other carriers is still a heck of a deal.

          • shotnoise

            Thank you for your answer, though it is of little help.  What you are saying, in effect, is that though you will offer crumbs to existing customers and the "silver set", they don't really matter because we have them locked in and you expect that they will probably not go anywhere else.

             

            One of the issues I have with your response (there are a few) is that T-Mobile is making a huge deal in on-line and broadcast advertising about the BOGO offer while barely mentioning that only a small subset of your customer base (T-Mobile has more than 70 million subscribers and adds a gross of about 2 million per quarter, meaning that you expect only a 3% take rate based on your income base) are actually eligible. I fully realize that T-Mobile is in business to make a profit, but the ads touting the BOGO offer as this "great Black Friday deal for your customers" is, in fact, largely a lie.