Here in Canada we are ruled by only a few wireless service carriers. Namely these fall into the “big three” otherwise known as: Rogers (also bought out Fido Mobile), Bell (also in May 2009 bought out Virgin Mobile), and Telus (also carrier of Koodo Mobile)… UH… can you say MONOPOLY?? These guys have been fighting head to head with each other, to keep prices of contracts up. I was paying $40-50 a month for my measly serviced cell phone bill back in 2004 (I was constantly over in talk time, thus getting dinged a 25 cents per minute) until I one day I called in to complain. I think I fluked it by calling when my contract was up (unbeknowst to me at the time, it was when I was un-edumacated in personal finance still).
I called back then and said I didn’t like how much I was paying. The CSR (customer service rep) then told me that they can reduce my bill and increase what I was getting (e.g. minutes, texts, free long distance). I was like “what??” why had I NOT done this earlier?? I could have saved so much cashola! I had reduced my monthly bill (and was getting more bang for my buck) to $28 a month- never over.
Ever since then, I’ve been getting good deals on contracts for mr. youngandthrifty, my mom, my sisters, my friends…you could say that I’m addicted to the art of negotiation (on the phone– not so much in person cus I’m kinda shy).
First of all, you need to decide whether you want to be on a contract. Currently WIND Mobile has come into play and they are straight up no contracts, so you’re not tied down. They have very competitive rates (much to the Big Three’s dismay) without having to negotiate to get something you’re happy with.
If you’re down with signing up for a 1, 2, or 3 year contract then please continue reading.
Just recently I renegotiated with Rogers for my sisters. Read this: If they tell you it’s not possible. It isn’t. It can be done- somehow. They’re playing hard to get mind games with you.
Here’s what you do:
- Make sure you know where you are “in your contract”. If you have 6 months left in your contract or even better, if you are contract FREE or approaching your contract-free date (you can usually find this information online in your account details or you can call in and ask). Also, if you have many years of loyalty with that provider, then they will be able to offer you more stuff
- Make sure you have a pen and paper handy
- Dial 611 on your cell phone and say you want to cancel to that automated lady who asked “what can I do for you?”
- If they give you to a regular useless Customer Service Rep, hint that you want to speak to the Retention Dept (they’re the ones who have pull to give you the goods) by saying that you’re dissatisfied with your plan and want to cancel
- Alternatively, you can dial the retention/ customer relations numbers directly
- Telus (1-877-279-3100 open M-Sat I believe)
- Bell (1-866-313-1086 M-F 8-7:30pm EST)
- Fido (1-888-259-3436 open M-Sat)
- Rogers (1-888-936-7283 8-9pm EST M-Sat)
- Be very polite/ friendly to the person you’re speaking with, and note their name down.
- Tell them that you’ve been a bit dissatisfied with the service and the price that you’re paying. Say that you have been considering switching to another provider (e.g. if you’re with Rogers, mention Telus)
- Tell them that you really want _____ (fill in with want you want: text messages that you’re currently paying an arm and a leg for, more day time minutes, voice mail)
- They will likely say that if you add on $10 then you can get a “package” that includes something like that, or they may give you another promotion (e.g. $20 for 200 day time minutes, evening and weekends starting at 6pm) and hint that you should add on the other stuff by paying… don’t give in- say that you don’t want to be paying any extra than you are now.
- If it’s not what you want, then bring out the big guns, and mention the other company’s plan and what they are offering you or mention that your sister is with the other wireless provider and she is getting a better plan for only X amount of dollars (these have to be real plans- not made up, okay!?)
- Then the rep will offer you something better, if you like it but it’s still not the ideal plan you want, then ask them nicely to please note it down on your account, and that you will think about it. Remember to ask them to repeat exactly what they are offering you, so you can write it down.
- Call back a few days to weeks later (but not incessantly or else they will flag your account)
- Repeat steps 1-11 until you find something you are happy with (note, you will have to commit for 2-3 years… it’s up to you whether you are a “contract person” or not).
Hope that helps, folks. My next post will be an example of how I negotiated a better cell phone contract for my sister with Rogers Wireless.
Have you tried calling to negotiate in the past too? Do you find yourself drawn to contracts or do you prefer to be a “free agent” like how Wind Mobile allows you to be?
These are some great tips and definitely applicable to American phone companies as well. I’m going to try to see what my parents can do for their phone contract!
.-= Investing Newbie´s last blog ..Small Refund Leads to 401K =-.
This is a great resource you have.I can’t wait until you have your example with Rogers. I have to negotiate for my wife and mother-in-law.
A huge point to mention is to record whom you spoke to. These companies can always deny this unless you keep a record. I use a Google Spreadsheet to record this.
@Steve Zussino: Yes, you’re right! I meant to put that in- it is indeed very important. I’d be interested to know how your negotiating goes =)! Good luck and you’ll get addicted to it, I’m sure.
@Investing Newbie: Yes, I’m sure they’ll be applicable to American cell phone companies too! I wasn’t 100% familiar with your carriers and wasn’t sure if there were other options out there (e.g. non-contract phone companies). If you feel like you have better negotiating skills than your ‘rents, you can have them sit beside you while they give consent for you to speak to them. Good luck!
Nice tips. I just finished up working with my employer this past January and was fortunate to be able to keep the iPhone.
Because the phone plan was just so ridiculously priced, coupled with the fact that I don’t necessary ‘need’ to be connected with a cell phone for the time being, I’m using my iPhone as a ‘souped up’ iPod Touch. Basically, I connect and communicate with others when I’m out of town in wi-fi spots and use programs like Ping!
You can basically eliminate a lot of the monthly bill this way. My brother in law has an iPhone and his wife has an iPod touch and we had no trouble communicating without the actual phone plan.
Nice thread!!
.-= The Rat´s last blog ..alexaVerifyID =-.
@The Rat Yeah, data can really add up!! Did you hear about the guy from Calgary about a year ago who tethered his phone to his laptop? He didn’t know it would cost an arm and a leg until the bill came from Bell, totally $11,500 or something ridiculous like that. I think Bell gave pity on him and reduced his bill to half, but he still had to pay it. I don’t have an iPhone (yet) but plan to get one… AM planning on paying a little extra for data. I have an iTouch right now and would love for internet to work everywhere I go (yes, you could say one of those “hyperconnected” types!).
I hear you. When I was out of town, the hotel I stayed at had free wireless, and so does a host of restaurants and coffee shops. For example, Second Cup offers free wireless for customers, so I went there often.
Believe it or not, even when my iPhone was fully connected with the phone system, the phone didn’t always work for browser purposes; don’t get me wrong, it was good for most of the time but it wasn’t flawless.
What did you mean by ‘teethered’? From what I can gather I can still use my iPhone the way I do as long as I can get access to a free wi-fi connection. I wouldn’t think that would be an issue..would it?
.-= The Rat´s last blog ..alexaVerifyID =-.
@The Rat Yeah, I find that on my boyfriend’s iPhone (he’s with Fido) the browsing is a bit slow for my liking- but I believe the 3GS will be mucho faster. “Tethering” is when you share your internet connection with lets say, your laptop. So instead of having a router or any internet connection, you can connect your phone to your laptop and surf the web with the internet connection you have on your phone. Crazy huh!?
Thanks!
.-= The Rat´s last blog ..alexaVerifyID =-.
Good advice. It works for other services too. The same thing happened to me a few years back when I complained and threatened to cash out with my discount brokerage.
Also, I believe the correct economic term is oligopoly. But you’re right, monopoly has a much nicer “ring” to it.
.-= Paul´s last blog ..Is a $5000 Questrade TFSA trading account cost effective? – Part 2 =-.
@Paul thanks giving me the correct term! It was on the tip of my tongue but I couldn’t place it… I knew monopoly wasn’t the right word. =P
Discount brokerage? You mean like Questrade or iTrade? I didn’t know that! So what perks did you end up negotiating?
Oh man I HATED the prices of mobile phones when i lived in canada…. In the end I gave mine up and went without for 2 years.
Great tutorial here
@Forest- Hey cool- didn’t know you lived up here! Where? I know, mobile phone contracts are super overpriced here- unless you have loyalty and can negotiate your way down. Did you at least do the “pay as you go”? (even then it’s not worth it because the minutes expire after each month I think!)
I was living in Montreal, I love that city!!!
I had a pay as you go for a short while but it was like owning a portable slot machine…. it just ate my money.
I was usually online for the majority of the day so just told people to email me if they needed me in the end.
Funny thing happened to me a week ago. I called FIDO with the intention of renegotiating, but started with the “I want to quit fido” ruse. Well, they didn’t seem to mind, and offered me nothing…. needless to say, I cancelled the service. While it was nice to be able to cancel so easily, it was strange that they didn’t fight to keep me at all.
In any case, I’m now switching to WInd or Mobilicity, haven’t decided which. Anyone else have this experience lately?
-JP
@Jp-how many months remaining did you have on your contract? I have helped some friends negotiate and found that the customer service reps a hit and miss. You often need to call back until you speak to someone willing to help you. I know a lot of people are jumping ship from the big three and going for the new guys in town
These are some great tips and definitely applicable to American phone companies as well.
@angelle- Thanks- good to know!
I could say monopoly, but I would be incorrect. The correct word is oligopoly.
Great cell phone bill hack. Big three definitely have a monopoly and it’s a bit of a joke how they operate.
thanks this was useful
some comments:
telus doesnt care if you’ve been with them for a long time. they will offer a few bucks more rate then competetors and leave you choosing to leave straight out.
try and seekout corporate plans or search for taking over someone elses hot contract. once it expires you can typically stay with it month to month till you wish to renew.
I am so glad that I found this page. I recently paid $187 for a one month cell phone contract and I am currently trying to lower my bill. I will use all your tips that you gave.
Thanks,
Pam
@Pam- Good luck!