Telco short-sightedness has me stumped

If a customer wants to give you more money, and extend their contract, would you look for ways to say no?

I’m rather confused.

My mobile/cell phone contract has just under 6 months (of 24) to go, and that includes 4 x $10 handset payments remaining.

I wanted a new iPhone4. Happy to have a new 24-month contract, and increase my monthly minimum spend by $30 per month to be on the relevant $79pm plan.

However, my provider wants me to pay out — in full — the remaining 6 months of my existing contract, even though I’m suggesting to them I increase my monthly spend by a minimum 61 per cent, and re-sign for another 24 months.

That’s rather crazy from the consumer’s point of view.

I would have expected the $40 in handset payments to go to a new plan, but not to both pay $49 per month for the next 6 months AND $79 per month on the new contract.

That’s double dipping.

And they’re potentially missing out on my business after this 6 months is up.

All for not seeing $40 in what’s fair to payout the remaining payments on my current handset cost, instead of $294 for the remainder of the monthly spend (plus the $40 anyway!).

What the????

Or … if they were really innovative and flexible, they’d say YES (now you might figure out who they are) and start my new $79 per month plan for 24 months from May 2011 (I would have agreed to that), and increased my monthly plan anyway in the meantime from $49 to $79 per month.

That’d keep my business for the next 30 months.

Here’s a customer offering to spend 61 per cent more per month and go onto a new 24 month contract.

But they’re too short-sighted to see that.

And now I’m looking for a new Telco.

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