Rates Of Cell Phones Is Costliest In Canada!

[shack]

The time is acoming though. As soon as the US providers get up here Robbers oops I mean Rogers, Bell and the others are going to lose so many customers I bet you'll see some going belly up. I mean, there are people paying $50.00 a month for plans that will end up costing $20.00 once the competition gets here.....

Not necessarily. If the phone companies know that Canadians are used to paying through the nose, they could be saying let's take advantage and grab bigger profits.

I don't see the gas companies like Shell or Esso (Exxon) trying to undercut Petro Canada by charging even 1/10th of a cent less. They take as much profit as they can get and I wouldn't be surprised if the phone companies do the same thing. I hope I'm wrong but I doubt it (and I'm cynical).

 

[tboy]

The thing is shack that the US companies have saturated their market and need to expand into Canada.

The difference with oil companies is that there are collusions going on behind the scenes and all oil companies work together. With cellular service providers they are competitive and compared to Canadian companies, they are 1,000 times larger.

Our market is pretty much saturated as well and the only way for the US companies to garner any market share is to maintain their price point and take customers from existing providers.

Take Koodo for instance. They are growing by leaps and bounds over robbers and bell. How? Cheaper rates and people are fed up with paying through the nose. When there is a cheaper alternative, they'll jump at the chance.....

 

[shack]

The thing is shack that the US companies have saturated their market and need to expand into Canada.

As I said, you may be right, but as you've alluded to, this is a different market. All businesses will try for maximum profit and if they know they can get away with more in our market than their market, I'm pretty sure they will try.

Time will tell because as of right now it's all just speculation.

 

[tboy]

As I said, you may be right, but as you've alluded to, this is a different market. All businesses will try for maximum profit and if they know they can get away with more in our market than their market, I'm pretty sure they will try.

Time will tell because as of right now it's all just speculation.

Well, it is actually more than speculation, there's been news stories about how Robbers and Bell are pushing to sign long term contracts because they know they will get hammered when the US companies come up here.

The thing is, coming from a mass merchandising background, some companies try to get as much out of each customer as they possbly can, and others garner their profits by gettings as many customers as they can with a low margin for each. It works out to be about the same in dollars at the end of the day but to have a larger customer base is more stable than a small one.

It is a widely known fact that it costs about 1000x more to get a customer than to keep one. Therefore by offerring low rates and offering good customer service, a company can maintain its profitability cheaply. This is how many (if not most) US companies operate and I can't see them changing their marketing strategies up here. I mean seriously, if you can get 4 phones FREE and a very VERY cheap plan, and take over 20% marketshare up here, and maintain your profit margins, why change?

 

[canada-man]

why don't you all switch to a pay and talk plan?

 

[tboy]

why don't you all switch to a pay and talk plan?

been there done that until I see what the new rates/plans/phones are like.....

 

[canada-man]

it is cheaper than paying a monthly fee and signing contracts