Change of plan fee

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Kamakiri
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Change of plan fee

Post by Kamakiri » Sat Nov 06, 2010 7:40 am

First off I would like to say your new plans are starting to look very attractive for me. I'm on a older plan (12-12 unlimited) and I don't download that much so not much use to me.

I personally feel the $20 change of plan fee is really steep. Especially since other providers charge $0 for change of plan with same speed plan.

For example one month could be a really better value plan than your current one. You pay the $20 and then the following month a better plan comes out. How annoyed would that one person be? This is why I haven't put in for a plan change yet. Every month a plan is coming out that is better value than the last.

I would like to challenge Exetel. Is $20 really justified for a plan change? Or would you guys be better off looking after loyal customers who can take the benefits of your awesome plan changes?

Just a note. Exetel has once waved the plan change for me some time ago. That was much appreciated. But it was a weird type of circumstance. I did actually make a plan change then the next month was a amazing deal. Was bad timing.

tc4101
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Re: Change of plan fee

Post by tc4101 » Sat Nov 06, 2010 11:57 am

exetel, i can understand $20 is reasonable for someone who is mid contract, fair enough. u dont want people swapping plans on a monthly basis.

but why not waive the fees for those customers out of contract and still on grandfathered plans? wouldnt u want customers to swith over onto the current plans which are more profitable for you, or at least is inline with your overal strategy.

CoreyPlover
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Re: Change of plan fee

Post by CoreyPlover » Sat Nov 06, 2010 2:03 pm

Fees can't just be waived out of customer convenience; there is likely to be a business / commercial requirement backing it. Something more reasonable might be a reduced plan change fee when out of contract, or perhaps one free plan change and $20 apiece thereafter. You might wish to lodge it as a suggestion via your Member Facilities.

However, most of the time, you can save upwards of $5 per month when switching plans, because of the decreasing cost of bandwidth and restructured plans. Therefore, the $20 fee is recouped in a short time after changing to a new plan anyway.
I am a volunteer moderator and not an Exetel staff member. As with all forum posts, mine do not constitute any "official" Exetel position. Support tickets may be logged via https://helpdesk.exetel.com.au or residentialsupport@exetel.com.au

edgos
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Re: Change of plan fee

Post by edgos » Sat Nov 06, 2010 4:57 pm

As previously stated.

First off I would like to say your new plans are starting to look very attractive for me.

I'm on a older plan .

I personally feel the $20 change of plan fee is really steep.

If exetel want to make better use of available badwidth and maximise customer happiness then they should allow existing cutomers to access the better value plans for the same churn fee as new customers (free). After all exetel has changed our plans and made them worse by charging more $3 per mth. whilst we are in mid contract so why not pass on the benefits to your loyal customers when you have the capacity to do so. Even Tel$tra pass on savings mid term sometimes and surely exetel would at least like to be as good as Tel$tra.

CoreyPlover
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Re: Change of plan fee

Post by CoreyPlover » Sat Nov 06, 2010 5:21 pm

edgos wrote:I'm on a older plan .
I personally feel the $20 change of plan fee is really steep.
How much would you save per month by switching to a new plan? Many people report saving about $5 per month, therefore you'd recoup the "steep" $20 plan change fee in 4 months and ultimately be better off for it.
edgos wrote:If exetel want to make better use of available badwidth and maximise customer happiness then they should allow existing cutomers to access the better value plans for the same churn fee as new customers (free).
A contract exists between Exetel and users that specifies a particular pricing and quota structure and insulates users from price movements both upwards *and* downwards. There is another thread on this same topic but it does not directly follow that Exetel should necessarily allow users the option to alter this contract, mid-term, at no cost. The $20 plan change fee is, in essence, a fee to allow users flexibility to change their contractual terms. An argument could conceivably be made for an "out of contract plan change waiver or reduction", and if you agree, I'd suggest you also use the suggestions facility to support such a proposal.

Ultimately however, I do not think anybody would be able to present a holistic argument to argue that Exetel is not already "at least as good as Telstra".

If you would like, PM me if you want to have further conversations and debate on Exetel's pricing, contracts and fees. I reckon (purely as a fellow Exetel user, not Exetel staff) I can easily argue that such fees are fair, equitable and justified.
I am a volunteer moderator and not an Exetel staff member. As with all forum posts, mine do not constitute any "official" Exetel position. Support tickets may be logged via https://helpdesk.exetel.com.au or residentialsupport@exetel.com.au

edgos
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Re: Change of plan fee

Post by edgos » Sat Nov 06, 2010 10:23 pm

A contract exists between Exetel and users that specifies a particular pricing and quota structure and insulates users from price movements both upwards *and* downwards.
Not true. I've already been forced by exetel to change plans because exetel changed the terms of the original contract. There was no insulation of price!! Also I am on a month by month contract. All exetel needs do is move me onto the current plan.
How much would you save per month by switching to a new plan?
Good question. More importantly I ask "how long will I be able to rely on getting this plan before exetel change the plans again and force me onto another plan"? No one could reliably budget on staying on the new plan. This already happened to me a couple of months ago where we paid money to change plans only to find exetel pull, or change that plan effectively undoing the whole thing.

I say again, if exetel want to give their customers the best deal they should allow us to move to the better deals without cost. This would make all exetel customers happy and ensure that exetel keeps as many long term customers as possible.

CoreyPlover
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Re: Change of plan fee

Post by CoreyPlover » Sun Nov 07, 2010 12:01 am

edgos wrote:Not true. I've already been forced by exetel to change plans because exetel changed the terms of the original contract
I have doubts about this statement of yours. Though I will accept it if you say so there are two things: 1. you state later that you are, in fact, out of contract. 2. Users often say they are "forced" off a contract, but that isn't true. Their old contract continues but gets modified after the initial contract term has expired and this gives an incentive to switch to new plans (or more accurately, a disincentive to continue on the old plan). This is different to being "forced" and no contract is broken.

With the exception of special "admin levies" introduced universally to plans, even those in mid-contract, Exetel has honoured its contracts until they expire. For example, when the $5 per month increase in monthly costs of the NF (or thereabouts) plans occurred, it was explicitly mentioned that people still in contract were not affected. A same story applied for the "unlimited" ADSL2+ plans that persisted for only one month; they were all honoured and continue to this day (except that individuals in breach of the AUP were subsequently disconnected). Another example was the change in off-peak times; again people in contract were not affected: viewtopic.php?p=275211#p275211
edgos wrote:Also I am on a month by month contract.
If you are "month to month" then you have no "contract".
edgos wrote:More importantly I ask "how long will I be able to rely on getting this plan before exetel change the plans again and force me onto another plan"? No one could reliably budget on staying on the new plan. This already happened to me a couple of months ago where we paid money to change plans only to find exetel pull, or change that plan effectively undoing the whole thing.
Again, in the interests of ensuring the correct circumstances are portrayed: What was the mechanism that "forced" you onto another plan previously? What plan was it that you changed to that Exetel subsequently pulled or changed?
edgos wrote:I say again, if exetel want to give their customers the best deal they should allow us to move to the better deals without cost. This would make all exetel customers happy and ensure that exetel keeps as many long term customers as possible.
And I say again that I am adamant about one thing: Exetel already give their customers the best deal possible and they retain a LOT of long term customers because of it.

See http://whirlpool.net.au/survey/2009/. Although it does say that 33% and 22% of people respectively dislike that Exetel can, and does, change conditions frequently, I would contend that this is not in the "breaking" contracts, but continually modifying *new* plans, therefore increasing the number of grandfathered plans and ultimately discontinuing these grandfathered plans shortly after their contract ends. The survey also says that a phenomenal 93% of people liked Exetel's pricing and 86% said the price was about right or great value. Both of these were the highest of all ISPs giving very high support to the statement that Exetel is already one of the best valued ISPs in Australia.
I am a volunteer moderator and not an Exetel staff member. As with all forum posts, mine do not constitute any "official" Exetel position. Support tickets may be logged via https://helpdesk.exetel.com.au or residentialsupport@exetel.com.au

thomashouseman
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Re: Change of plan fee

Post by thomashouseman » Sun Nov 07, 2010 8:18 am

Exetel, can I suggest you implement two free plan changes a year? Subsequent plan changes maybe $25 each?

edgos
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Re: Change of plan fee

Post by edgos » Sun Nov 07, 2010 1:25 pm

Dear CoreyPlover,

You seem to believe it is your job to bag everything everybody says bad about exetel. I don't post my opinions on how to improve exetel so that you can belittle me. I post my opinions on this forum so exetel can read them and understand what one of their customers considers important. I ask other people to also post their opinions so that exetel will get a broad spectrum of their customers opinions which will only help their business. If you "CoreyPlover" continue to put your two-bobs-worth to everything everyone says then you can only undermine the effectiveness of these forums and therefor exetel. Please accept that people have different opinions because we have different needs, and just because its different to your opinion doesn't mean it's wrong and you have to correct them.

The suggestion about a couple of free changes per year is a good option for me!!!!

I am on a contract. It is a month by month contract. So I am not asking to change the terms of my contract but be able to change onto a new contract with the same cost as any other new contract to exetel (free).

tc4101
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Re: Change of plan fee

Post by tc4101 » Sun Nov 07, 2010 1:37 pm

CoreyPlover wrote:How much would you save per month by switching to a new plan? Many people report saving about $5 per month, therefore you'd recoup the "steep" $20 plan change fee in 4 months and ultimately be better off for it.
problem is there is a new plan every few months, so if i was to change every few months to save $5 a month, which cost me $20 a pop, it would of probably cost me $100 alone in plan changes alone last year, so pointless changing for $20....

there is admin cost for changin who are still in contract thats fair enough, and a $20 cost is quite cheap compared to what others charge.

but once a customer is off contract and the customer wants to go to a new contract exetel is charging for that?

any other company would be rapt for a customer to resing onto a new plan for xx months. hell even telstra and vodafone call me up begging me to resign and i get all specials.

i really dont get exetel's shortsightedness sometimes....

CoreyPlover
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Re: Change of plan fee

Post by CoreyPlover » Sun Nov 07, 2010 1:43 pm

edgos wrote:You seem to believe it is your job to bag everything everybody says bad about exetel. I don't post my opinions on how to improve exetel so that you can belittle me. I post my opinions on this forum so exetel can read them and understand what one of their customers considers important.
I post my opinions too, just like you, so readers can compare and contrast. I'm not deleting your posts, or belittling them; simply commenting as devil's advocate and trying to be as reasonable and realistic as possible.
edgos wrote:I am on a contract. It is a month by month contract.
And I repeat, by definition, "month by month" = "no contract". Being month-to-month, it can be removed, changed, altered by Exetel, or broken by yourself allowing you to exit, at the end of any month and without penalty. Therefore, for all intents and purposes, there is no contract.
edgos wrote:So I am not asking to change the terms of my contract but be able to change onto a new contract with the same cost as any other new contract to exetel (free).
And my *opinion* is that by asking to receive this for free, you might be asking too much. As you have stated, this is purely an *opinion* and my *advice* is to lodge a suggestion and see what Exetel have to say. I reiterate that there is merit is proposing reasonable suggestions like one free plan change, or a reduced plan change fee when out of contract.

Take my posts however you like, but understand that I do not "bag" people simply because they say bad things about Exetel; I simply attempt to offer counter arguments for further thought and discussion.
I am a volunteer moderator and not an Exetel staff member. As with all forum posts, mine do not constitute any "official" Exetel position. Support tickets may be logged via https://helpdesk.exetel.com.au or residentialsupport@exetel.com.au

CoreyPlover
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Re: Change of plan fee

Post by CoreyPlover » Sun Nov 07, 2010 1:53 pm

tc4101 wrote:problem is there is a new plan every few months, so if i was to change every few months to save $5 a month, which cost me $20 a pop, it would of probably cost me $100 alone in plan changes alone last year, so pointless changing for $20....
I don't think the intention is to try to change plans to always keep up with new plans.

12 month contracts are provided at a fixed rate; one that often attempts to pre-empt future movements in costs. Take fixed vs variable home loans for instance. If there is an expectation of a rate decrease, a 12 month fixed rate will be lower than the current variable. But the choice is then fixed for 12 months, or variable every month; you can't simply roll over the fixed rate to a new one every month.

I don't think that Exetel is generally any worse than other service providers. a nominal plan change fee is very common, and where it is waived, you can be sure that the "cost" is recouped via some other mechanism, such as a few dollars premium charged via the monthly service fee.
tc4101 wrote:there is admin cost for changin who are still in contract thats fair enough, and a $20 cost is quite cheap compared to what others charge.
The marginal admin cost would be incredibly low. Most of Exetel systems are automated and so the "cost" is likely the total development cost amortised over many people. I strongly suspect the $20 is more a disincentive to continuously changing plans and one that instead allows Exetel to concentrate on reducing monthly charges without having to worry about arbitrage by existing customers
tc4101 wrote:but once a customer is off contract and the customer wants to go to a new contract exetel is charging for that?
I have always agreed on this point. But only Exetel can comment on how feasible it is from a financial and marketing perspective.
tc4101 wrote:any other company would be rapt for a customer to resing onto a new plan for xx months.
But existing customers can usually move to a new plan and not incur a new contract unless the underlying infrastructure changes. This is the "benefit" that is provided to existing customers in exchange for their $20 and a benefit that new users do not receive.
I am a volunteer moderator and not an Exetel staff member. As with all forum posts, mine do not constitute any "official" Exetel position. Support tickets may be logged via https://helpdesk.exetel.com.au or residentialsupport@exetel.com.au

tc4101
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Re: Change of plan fee

Post by tc4101 » Sun Nov 07, 2010 10:38 pm

But existing customers can usually move to a new plan and not incur a new contract unless the underlying infrastructure changes.
i am on Plan Type: NF/21INCTEL been "off contract" for many months now, and in my facilities page all the change of plan options attract a $20 fee. having said that, i'm not too fussed with needing to change as the plans on offer atm is neither here nor there for me.

Kamakiri
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Re: Change of plan fee

Post by Kamakiri » Sun Nov 07, 2010 10:55 pm

CoreyPlover it's just a suggestion. Can you put it to Mr Linton and see what he thinks?

Not to long ago the charge was only $10. Double the amount now.

I'm no expert in business matters. And yes Exetel do offer great deals and broadband quality. (been with you guys for many years now). But is this fee for 'change of plan' a must and would see certain doom for the Exetel business if removed?

Because if it was my business and I allowed customers to take advantage of new plans with out a charge that would make very happy customers instead of 'pfffft $20 for a press of a button and I'm even asking for non unlimited now'. I'm sure Corey you can appreciate the 'wtf' moments in Exetel customers sometimes.

edgos
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Re: Change of plan fee

Post by edgos » Mon Nov 08, 2010 8:58 am

The exetel user facility now allows different options for a change of plans. Option 1 - No new contract = $20 Option 2 - New six month contract =$0.00 Option 3 - New 12 month contract = $0.00 (not sure, can't remember)

So we will change plans at the end of the month for $0.00 but had to enter a new 6 month contract (reasonably happy with that).

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