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JoeSchmoe007
Premium
join:2003-01-19
Brooklyn, NY
Reviews:
·Optimum Online
·Callcentric
·Verizon FiOS

1 edit

It just doesn't make sense.

Why does Verizon think their 15/5 is worth $70 when Cablevision provides 20/2 for $30 (or 50/8 for $45)? I switched from FIOS to OOL 20/2 when my promo expired. I know $30 is OOL promo rate but even their regular rate is much cheaper (I think it is $45 or $50). Plus people report that often OOL gives discounts after promo is over. When I called Verizon FIOS the attitude was "don't let the door hit you on your way out".



danclan

join:2005-11-01
Midlothian, VA

I think someone at FiOS just failed business 101....


openbox9
Premium
join:2004-01-26
Germany
kudos:2

1 edit
reply to JoeSchmoe007

Because it's all about the fiber VZ will continue to ride the FiOS brand until it doesn't work. VZ is simply continuing its premier branding, just as it does with its wireless division. For most consumers, the means of transmission is irrelevant. Important are things like "speed" and cost, as you allude to, but VZ has done a great job of branding FiOS as superior.


elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
reply to JoeSchmoe007

said by JoeSchmoe007:

Why does Verizon think their 15/5 is worth $70 when Cablevision provides 20/2 for $30 (or 50/5 for $45)?

Why? Because 30% of the population (and likely 90% of this forum) is willing to pay $70/month for they perceive to be a superior product.

Skippy25

join:2000-09-13
Hazelwood, MO

1 recommendation

reply to openbox9

Just like people will pay more for Monster Cable, though their quality is no better than any other typical cable and pay for Bose speakers when any audiophile will tell you they are no better than any other speaker.

It is marketing. Once they have established themselves as being superior quality through marketing the price becomes less relevant to the consumer and they will "hear and see" better quality because they want to. Not because it is really there.


tanzam75

join:2012-07-19
reply to danclan

said by danclan:

I think someone at FiOS just failed business 101....

Hardly.

Verizon simply does not want unbundled customers, and they've set their pricing to make sure of that. They charge $70 for 15/5, but just $80 for 15/5 plus TV, and $85 for triple-play. (Note: prices are pre-tax.)

The Cablevision equivalent would be $50 for 20/2, plus another $60 for Optimum Value TV ($65 - $5 bundle discount), plus another $35 for Optimum Voice. New customers can get a triple-play bundle for $90 for a year, but the normal price is $145.

Cablevision is cheaper for: (1) People who want broadband without the bundle (2) People who move frequently and can keep getting new customer discounts (3) People who like to haggle over the phone to get better deals.

But FiOS is cheaper for everyone else. If you buy a bundle, if you've bought a house and will be staying put for 10 years, if you dislike haggling over the phone with Cablevision's sales reps.

Never underestimate how different the average American is from the average DSLReports reader.

Kalphiter

join:2012-06-28
Metuchen, NJ
reply to JoeSchmoe007

Just a clarification, it's 50/8 and usually I see 59/8.1



danclan

join:2005-11-01
Midlothian, VA
reply to tanzam75

I'm not but in the current case of decreasing or no disposable income, Verzion is driving customers away with constant noise of price increases regardless of perceived or real savings.

Every one wants bundled contracted customers, for the simple reason is that they can book that cash flow.


JoeSchmoe007
Premium
join:2003-01-19
Brooklyn, NY
Reviews:
·Optimum Online
·Callcentric
·Verizon FiOS
reply to tanzam75

said by tanzam75:

said by danclan:

I think someone at FiOS just failed business 101....

Hardly.

Verizon simply does not want unbundled customers, and they've set their pricing to make sure of that. They charge $70 for 15/5, but just $80 for 15/5 plus TV, and $85 for triple-play. (Note: prices are pre-tax.)

The Cablevision equivalent would be $50 for 20/2, plus another $60 for Optimum Value TV ($65 - $5 bundle discount), plus another $35 for Optimum Voice. New customers can get a triple-play bundle for $90 for a year, but the normal price is $145.

Cablevision is cheaper for: (1) People who want broadband without the bundle (2) People who move frequently and can keep getting new customer discounts (3) People who like to haggle over the phone to get better deals.

But FiOS is cheaper for everyone else. If you buy a bundle, if you've bought a house and will be staying put for 10 years, if you dislike haggling over the phone with Cablevision's sales reps.

Never underestimate how different the average American is from the average DSLReports reader.

It needs to be pointed out that Verizon $85 for 3-play is also a promotional price.

jjeffeory

join:2002-12-04
USA
reply to JoeSchmoe007

You're correct. The pricing at that level isn't worth it. It's all about the upsell and branding....


15444104
Premium
join:2012-06-11
reply to danclan

That is the issue, these brASS tacks that occupy executive offices at these big companies have COMPLETELY lost touch with the market they are serving. Sure there are a few percent of the population whose incomes are rising and those households can spend endlessly on luxuries like high speed internet, while the VAST MAJORITY increasingly cannot.

These CEOs need to get their heads out of the Wall Street Grand Ass and come back to reality.



willie wonk

@173.245.64.x
reply to openbox9

verizon owns very little of verizon wireless it is owned mostly by GTE



williewonk

@173.245.64.x
reply to JoeSchmoe007

you have to understand on tv weather fios or cable or dish they all pay for the channels per subscriber so they dont make any money on tv they make it on internet and telephone. Thats it.



aaronwt
Premium
join:2004-11-07
Woodbridge, VA
reply to willie wonk

said by willie wonk :

verizon owns very little of verizon wireless it is owned mostly by GTE

?????
Verizon Wireless is 55% owned by Verizon and 45% owned by Vodafone(A British telcom company).

Bottom line though is that Verizon Wireless is a separate company from Verizon Communications.

tanzam75

join:2012-07-19

1 edit
reply to JoeSchmoe007

said by JoeSchmoe007:

It needs to be pointed out that Verizon $85 for 3-play is also a promotional price.

What's the real price? I can't find it on Verizon's website. (Cablevision, to their credit, is more up-front about it -- they have a link right under the promo offers.)

If you select "2-Year Contract," they offer you $85 Triple Play for two years. If you select "No Contract," they offer you the same $85 Triple Play, but with a one-year guarantee.

The main difference vs. Cablevision is: you don't have to call up and haggle after one year. Many people hate haggling, hate switching back and forth, and hate having to keep an eye on prices and offers. To do it half as often is quite worthwhile for them.

JoeSchmoe007
Premium
join:2003-01-19
Brooklyn, NY
Reviews:
·Optimum Online
·Callcentric
·Verizon FiOS

$85 3-play probably includes at least $25-30 in discounts valid for duration of contract (before taxes).

As far as not having to call up and haggle - not sure what you mean. My price for FIOS internet +Phone went from $50 to $75 (before taxes/fees which is about 10%). I wouldn't call it "slightly more". As a result of my switch to CV my price will now be about $35 total (phone+internet).


tanzam75

join:2012-07-19

said by JoeSchmoe007:

$85 3-play probably includes at least $25-30 in discounts valid for duration of contract (before taxes).

As far as not having to call up and haggle - not sure what you mean. My price for FIOS internet +Phone went from $50 to $75 (before taxes/fees which is about 10%). I wouldn't call it "slightly more". As a result of my switch to CV my price will now be about $35 total (phone+internet).

But $75 is the current price for FiOS Internet + Phone. They may have had a $50 price when you signed up, but they do not at present. They just offer $75 -- to you as well as to a new customer. How much more "no-haggling" can you get?

As I stated, Cablevision's non-promotional price is $50 for 20/2 Optimum Online, plus $35 for Optimum Voice. That's $85.

At $75 + 10% tax = $82.50, Verizon is not even "slightly more" -- it is "slightly less."

Now, if there were some other FiOS price that's higher than $75 + tax, then that would change the equation. But if this is the actual price, then you're basically comparing FiOS's actual price to Cablevision's promo price.

I happen to pay the same $35 that you pay -- but I also realize that I'm unusual. 85% of Americans subscribe to pay TV. For them, double-play is Internet + TV, not Internet + phone.

JoeSchmoe007
Premium
join:2003-01-19
Brooklyn, NY
Reviews:
·Optimum Online
·Callcentric
·Verizon FiOS

Of course I didn't intend to compare OOL promo rate directly with FIOS regular rate. My original post deals with my specific situation. As a result FIOS lost a customer altogether.

That being said, regular OOL rate is $50 for 20/2 and FIOS is $70 for 15/5 which is still quite a difference ($240/year).