Early Dirt on Palm Pre Pricing Shows Sprint Still Clueless

Posted by | 05/04/2009 | 18 Comments

palmprewebos.jpgAlthough Sprint seems to be correcting a number of faults and is perhaps poised for a big boost from the release of the Palm Pre, early reports on its pricing, if true, show that Sprint (and other carriers as well) still don’t place much value on building customer loyalty.   Word is filtering out that new customers can pick up a subsidized Palm Pre for $199. But if you’re an existing customer still on a contract you’ll have to pay $299 to get the latest and greatest.

This kind of marketing has been going on for so long that most just shrug and deal with it and of course that’s what Sprint and others count on.   To my way of thinking this approach only leads to customer discontent in the long run. It is no wonder that companies who follow these practices have to have Customer Retention Specialists.

There’s also word that the Pre will have some sort of limited roll out on June 7 and while I can understand that on some levels there is a hint of bizarreness there.

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Category: Mobile

About the Author (Author Profile)

Warner Crocker is a professional theatre director, producer and playwright and also a Tablet PC enthusiast. He is also a Microsoft MVP for Tablet PCs. Send email to Warner.
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  • Shawn

    Not sure what people are griping about… Sprint sells you a phone for about half the price the actual cost of the phone, they pick up the tab on the other half. Every 2 years they let you buy another phone at the new customer price ($150 off). After 12 months they will let you buy a new phone with a $75 dollar discount, for those who want to upgrade every year.

    While I think it would be great if they would let me buy a new phone every month and I could get it at half price, reality is that they would go out of business in a heartbeat. No other (american) company does this.

    I think it’s awesome they are letting people who are still in a contract upgrade for $299. Go check and see what AT&T would charge you to upgrade to the new iphone if you’re only a year into your contract…

  • John

    And what does the iPhone go for without a contract?

    BB Storm?

    G1?

    They’re all more than $300.

  • Robert

    I am an existing sprint customer who went out of contract in February. Since I’m now a free-agent as it were, I’m shopping for something to replace the Moto Razr v3m that’s been amazingly reliable up until last month when both batteries I have die after about 12 hours. It’s just old and I want something fresh.
    I’d be willing to extend my contract and get a new phone, but come on! I got the Razr when it just came out and it was free w/ 2yr contract….I cannot justify paying more than $99 for a new phone, it’s just not worth it.
    I want a Pre, I like it’s features, but if I (as a existing customer for nearly 6yrs now) can’t get a loyalty break on it, say down into the $99 range, I will switch. If they won’t subsidize loyalty, I won’t bestow it.

    I can get an iPhone 3g 8gb through work with new 2/yr At&t contract for $99….and my monthly service bill would be about $15 less than i pay for voice only with sprint.
    It’s turning into a no-brainer. I like sprint’s service, it’s a very good network, but I, as in business, watch the bottom line.

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