Loyalty comes at a price?

[cpl]

I have been looking into upgrading my iPhone 4 handset for an iPhone 5s handset. I run 4 devices on my account and have been a long term customer of Vodafone.

After researching into the various options which included speaking to the Upgrade Team via 191, going into Vodofone stores and checking out prices via Carphonewarehouse, I discovered that it will cost me more to get an iPhone 5s by upgrading as an existing customer than getting one as a new customer with a new number!

Does loyalty come as a price these days?

Keen to hear if anyone has managed to upgrade for less before I change network...

[jeffkinn]

Are you able to get a better price as a new customer from the network directly or via Carphone Warehouse?

The network doesn't give better prices to new customers but third party dealers do because they earn more commission  from the networks for new connections. The reason why dealers are able to charge differently to networks has been discussed on this forum many times.

[cpl]

Hi,
I only discussed upgrades with Vodafone as you would given I am an existing customer, but CFW quoted me a better deal staying with Vodafone as a new customer, but when we went through the transaction, the price changed as I was identified as an existing customer!
I read about third parties being able to offer better deals, but Vodafone overriding the process because I happen to be 'upgrading' is disappointing...

[jeffkinn]

Vodafone didn't override anything. They have a business arrangement with Carphone warehouse and other dealers based on a commission scheme. There is one level of commission for a brand new connection and a second lower level of commission for upgrading an existing customer.

What CPW try and do is trick people into acting as a new customer so THEY can earn more commission, some of which is used to subsidise the price. Sometimes it doesn't work, as in this case.