Early Termination Fees (1 Viewer)

Register Today to see less ads! It's Free!
Register Today to see less ads! It's Free!

Stargazer

Supporting Founder
Supporting Founder
Sep 7, 2003
16,561
339
Western WV
When the government starts stepping in and tells companies what they can and cannot do, then this ends up not becoming a free society. What is bad for the business is bad for the consumer as well and it is like a domino effect. I can understand if they want to help consumers against a cancellation fee if the service is not performing as it should but if they are getting good service then they should have to pay a penalty if someone cancels service otherwise people will be switching in the middle of their contracts if someone else comes out with a better deal. This would be very bad for the satellite industry.
 

Tyralak

SatelliteGuys Master
Oct 21, 2003
5,702
167
Secure, Undisclosed Location
I agree. The cost of installation and aquiring news customers is just too high to have people canceling early. Did you know that it takes Dish about 2 years to make a profit on a customer? The only thing I would like to see, are an end to one sided contracts, where you still have to be responsible for your side of the bargain no matter what the company does on theirs. There should be escape clauses for certain reasons.
 

Juan

Supporting Founder
Supporting Founder
Sep 14, 2003
27,455
6,245
Moscow Russia
I agree. The cost of installation and aquiring news customers is just too high to have people canceling early. Did you know that it takes Dish about 2 years to make a profit on a customer? The only thing I would like to see, are an end to one sided contracts, where you still have to be responsible for your side of the bargain no matter what the company does on theirs. There should be escape clauses for certain reasons.
E* gets there equipment back when people cancel. So they are really out a truck roll and some wireing
 

Tyralak

SatelliteGuys Master
Oct 21, 2003
5,702
167
Secure, Undisclosed Location
I don't believe that at all. D* would have 4 year commitments if that was the case. So if I signed up for 2 years and left after 2 years, D* made no money off me? , Yea Right!:rolleyes:

I work for Dish, and unless they're outright lying to all their employees we're told frequently that it takes almost 2 years to break even on acquiring a new customer and begin making a profit. This is all combined costs, not just the truck roll, labor, supplies and equipment. It's marketing, administration costs and every other cost involved with that customer. Just like when a company hires on a new employee. It's a very expensive process. It's not just the employee's hourly wage, there's thousands of dollars behind the scenes involved.
 

Hemi 6.1

On Vacation
May 3, 2007
12,056
1
Wayne County,Pa
I work for Dish, and unless they're outright lying to all their employees we're told frequently that it takes almost 2 years to break even on acquiring a new customer and begin making a profit. This is all combined costs, not just the truck roll, labor, supplies and equipment. It's marketing, administration costs and every other cost involved with that customer. Just like when a company hires on a new employee. It's a very expensive process. It's not just the employee's hourly wage, there's thousands of dollars behind the scenes involved.
Sorry I didn't realize you Said Dishnetwork. I believe that because they charge next to nothing to sign up, sometimes nothing. Directv, now some will claim alot of free, but I've yet to see any of my freinds walk away with D* giving them free 3 room HD/DVR systems.
 

Tyralak

SatelliteGuys Master
Oct 21, 2003
5,702
167
Secure, Undisclosed Location
Sorry I didn't realize you Said Dishnetwork. I believe that because they charge next to nothing to sign up, sometimes nothing. Directv, now some will claim alot of free, but I've yet to see any of my freinds walk away with D* giving them free 3 room HD/DVR systems.

That's ok. Yeah, that's probably the reason. D* makes you pay for a lot up front. I can't speak to how their financials are, but I know E* has a smaller startup cost for the customer, and thus takes longer to break even. However, it's a calculated risk so Dish can gain more customers who would be attracted to a lower initial cost.
 

darrencp22

SatelliteGuys Pro
Aug 10, 2007
2,966
1
Lockport, NY (Buffalo Suburb)
I agree with an earlier poster. These contracts need to go both ways. So many ways to handcuff a consumer... but the QOS terms are not well defined enought to protect the consumer. Personally I think if you're married to a contract there should be service on the equipment and setup for the duration of the contract.
 

jayn_j

Press On Regardless
Supporting Founder
Sep 29, 2003
10,690
3,295
Sheboygan, WI
E* gets there equipment back when people cancel. So they are really out a truck roll and some wireing

And the amortized depreciation on receivers that are worthless to them after 2 years. Seriously, are you willing to settle for a 2 year old used receiver on your new install? What does DISH do with returned receivers that are more than 2 years old? Probably keeps a small stock for repair return and crushes the rest.

I wouldn't mind taking a look at those recycling yards along S. Santa Fe if I still lived out there.
 

Tyralak

SatelliteGuys Master
Oct 21, 2003
5,702
167
Secure, Undisclosed Location
And the amortized depreciation on receivers that are worthless to them after 2 years. Seriously, are you willing to settle for a 2 year old used receiver on your new install? What does DISH do with returned receivers that are more than 2 years old? Probably keeps a small stock for repair return and crushes the rest.

I wouldn't mind taking a look at those recycling yards along S. Santa Fe if I still lived out there.

It doesn't quite work that way. Virtually all receivers sent back to Dish are remanufactured, and placed back into circulation. In fact, I haven't put in a new 301 or 311 in almost a year an a half. We only rarely get any new 322s in. Half of the 625s we get are remans, and all the 211s and 222s we get now are remans. Really, the only new receivers I see are 722s, 612s, and some 625s.
 

damjr

SatelliteGuys Pro
Jun 11, 2004
334
0
E* gets there equipment back when people cancel. So they are really out a truck roll and some wireing


This isn't always the case. Most retailers are responsible to get the equipment back in the first 6 months. The sad part is that they only re-coup about 38% of the equipment that's out there.

You would be amazed at how many customers keep their equipment and disappear.
 
Register Today to see less ads! It's Free!

tomcrown1

SatelliteGuys Pro
Mar 20, 2008
2,321
16
San Francisco
Also to be fair to the FCC what they are looking at is 30 days. In other words if you sign up for a service and that service is not what you wanted you can get out of your contract within the first 30 days. After 30 days you pay the penalty.

This is only fair.
 

Hugo M Garcia

SatelliteGuys Pro
Dec 12, 2006
179
0
Sun Valley CA
Well let’s see

E* CHARGE you up in your first bill two months five {5} days later after you got!!! Installed $39.99 for three times in your 2 year contract!!!
1st month $39.99 10th month $39.99 20th month 39.99 total $119.97!!!
icon9.gif



D* charge you one {1} month free installation up to four {4} rooms
free DVR or HD receiver
$18.00 discount for up to one year total & $216 18 or 24 months agreement!!!
so who is charging you up front?
icon12.gif


icon14.gif
So who is who at zoo?







Sorry I didn't realize you Said Dishnetwork. I believe that because they charge next to nothing to sign up, sometimes nothing. Directv, now some will claim alot of free, but I've yet to see any of my freinds walk away with D* giving them free 3 room HD/DVR systems.
 

stevenl

SatelliteGuys Master
Jan 2, 2006
10,839
2
Disney World
before you sign a contract look at it before hand. If you fail to look at it don't complain when you get a fee for doing something in the contract.
 
Register Today to see less ads! It's Free!

Users who are viewing this thread

Users Who Are Viewing This Thread (Total: 0, Members: 0, Guests: 0)

Latest posts

Top