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Thread: Pre' Pricing and Plans?

  1. #16
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    This phone makes me contemplate changing from old Sero for new Sero plans. I sincerely doubt that they would let us keep our old plans for this. But, I sure can hope.

  2. #17
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    I was out of contract and open for an upgrade from my 755p, I picked up a TouchPro last week for $199 , Now I heard about this Pre but since its $399 I think i still got the better deal
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  3. #18
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    You know data will be required. My guess is that you will be able to keep your existing plan, but need the $30 pro pack data plan. Obviously, new customers will need to get the same kind of plans the Instinct requires (everything or family data share plan). Lets be honest, adding the $30 data pack will put most plans in line with current everything plans anyway. The only people I could see refusing to switch are people with really old plans with tons of add ons for free. No phone is forcing people onto the $99 SE plans, there are lower priced plans out there.


    As for price. This baby aint coming out for a few months. I highly doubt it will be anywhere near $399 as a sale price. The full retail price will be $400-$500 I am sure, but I highly doubt the sale price after all rebates and discounts will top $250. The Instinst had a last second price drop just before it came out, so anything is possible and its just too early to even pretend like anyone knows what the price will be.
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  4. #19
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    If I were sprint...

    Ok, palm phones traditionally go for more than $299, especially on launch. However, that age ended when the iPhone became the most sold phone in North America at $199.

    The Pre is not going to be that much more over the touch pro in specs (yes, I know, apples and oranges comparison but bare with me) from customer perspective and further the touch pro is considered a pure business device, but the pre looks more like a consumer/business device. Finally, cellphone makers charge a premium in the short term, and then lower the costs over time. If sprint were on even terms with AT&T, they could try to sell the pre at $399 and make it work. But they are not.

    So, there is the normal method - launch at $399, keep that for 2-4 weeks, cut price. Get more money from the early adopters - who mostly will be annoyed but not deterred by the price, then lower prices closer to consumer expectations. On paper you get your cake and eat it too. BUT - see, those early adopters are the promoters, reviewers, and the ones that create the buzz for other consumers to buy products. Unless you are offering the iPhone for the first time, or something on that level, early adopters will find and promote all the flaws, issues, minor details, screen sensitivity issues, etc they find - and they will find em. If those early adopters believe they flaws are acceptable for the value, they will accept them (case in point, iPhone safari crashes on 1.x firmware - early adopters generally accepted it because the iPhone had such value as the first real masterpiece of a phone with that level of power.) Give them a $399 pricepoint + any issues they find and they will say nice for the future but iPhone is better value = buzzkill.

    Early adopters views and promotion of a product drives general consumer adoption - business fact. They kill the buzz, or hamper it, the long thin branch customers are now standing on thinking about the pre vs the reputation of sprint will be snapped - they leave -, and sprint gets lower sales overall; more importantly, lower contact activations.


    So: option A - sell at $399 on launch, cut by $100 in 7 days. Gouges out the very early adopters, while still providing a lower price to many early adopters, takes away the platform for most early adopters to negatively assess overall value of Palm Pre, and the quick change in price keeps the buzz going in the news.
    There is a decent risk of negative opinion settling in during week - David Progue and others - so suggest either tipping off some reviewers about price change under NDA before they write their reviews, and/or leaving the announcement of the price change up to a team allowed to announce whenever they feel the tide of opinion starting to move against them.

    option B: Cut launch price by at least $100. Removes risk of early adopter opinion from value assessment at cost of reduced income short term. Could increase unsubsidized cost to help compensate (again, early adopters often use this, and those that do are used to very high prices).

    For both options, I'd let the sero users use a pre, because A: most are early adopters (buzzkill risk), B: many will pay unsubsidized, C: if they can't get a pre, most will get a touch pro or other data device and place the same level of strain on the network (actually not having the pre could make them use the network more - the pre can't torrent or do slingstream off the bat, other phones can).

    The idea of both options is that sprint makes money not from the cellphone sale, but from the service. Therefore, the objective is to get as many subscribers as possible. Any negative attitudes, assessments toward the Pre (which is bringing in those subscribers) due to price/value feel from reviewers will reduce total number of near-early adopter and normal subscribers (there is a marketing term for those two groups, can't recall it) and therefore cost more than either option A or B.

    I don't work in the cellphone industry. On the other hand, I have watched the cell phone industry for some time, have a undergrad in business and am going to get my MBA before 22 (in a few months). Just my opinion, but I think it's a good one.
    Looking for my next new phone...

  5. #20
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    Well I don't know if Sprint can afford to play those kind of games. It's seems pretty simple to me... iPhone 8GB, Storm, and G1 are all $199 or less. Why would Sprint price their contender a hundred or more dollars? It's gonna be hard enough to get somebody to switch to Sprint from Verizon or AT&T as it is, overpricing the device won't help.

  6. #21
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    I have a Treo 755p which is still working just fine. I was wowed by the Pre and my Treo looked somewhat outdated. However, if the price of the Pre comes in at $299.00 my Treo starts to look alot less ancient. If the Pre is priced at 399.00 (Simply Everything or not), My Treo once again looks just fine and will be good for another year or two.

  7. #22
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    I seriously cannot imagine this phone being $400. Not even the Touch Pro is that high.

  8. #23
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    Quote Originally Posted by Darkshadow46236
    . . . I don't work in the cellphone industry. On the other hand, I have watched the cell phone industry for some time, have a undergrad in business and am going to get my MBA before 22 (in a few months). Just my opinion, but I think it's a good one.
    Yes, those are exactly the kinds of scenarios we considered when I worked in marketing in the communications industry in Silicon Valley. And those were the kinds of scenarios my classmates and I from Silicon Valley generated by the hundreds while I was working on my MBA (my undergrad is in Electrical Engineering/Communications).

    The multitude of possible scenarios could overwhelm your mind, but the Director of Marketing at my company in San Jose was a *Wizard* at identifying the most workable possibilities.

  9. #24
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    My Money says its gonna be $249.99 after $50 rebate.


    Quote Originally Posted by Next Steps
    I seriously cannot imagine this phone being $400. Not even the Touch Pro is that high.

  10. #25
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    Quote Originally Posted by WillM
    Well I don't know if Sprint can afford to play those kind of games. It's seems pretty simple to me... iPhone 8GB, Storm, and G1 are all $199 or less. Why would Sprint price their contender a hundred or more dollars? It's gonna be hard enough to get somebody to switch to Sprint from Verizon or AT&T as it is, overpricing the device won't help.
    My thoughts exactly. With sprint losing a million customers every quarter, they can't afford to take a chance by over pricing this thing at launch especially when the competition's exclusives are all at less than $200 on contract.
    With the economy the way it is, money is tight and most people aren't willing to pay $300 (let alone $400) for a phone (especially on contract!) $199 is the make it or lose it point, IMO.
    Sure there will be early adopters, but this is the phone that needs to turn heads where people might actually consider leaving their carrier for Sprint just to get it. A good price point in line with the competition is important.

    I've got a feeling Sprint is also going to pull an Instinct and require Everything plans. If they do that, they can afford to bring the cost even lower because they'll be getting more money from you every month for the next two years.

  11. #26
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    "Poor Palm; Pre pricing possibly published prior to public proclamation . . .

    . . . According to Murtazin’s sources, the Pre will launch with a steep price tag of $399. Wow. . . "

    http://www.boygeniusreport.com/2009/...-proclamation/

  12. #27
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    I'm certain it won't be 399. More like 250 after rebates as others have said.

    But then again, this thing has a LOT more going for it than any other device out there... The OMAP chip in that thing absolutely SPANKS the Qualcomm chip in the TP/Diamond and did you see how fast that WebKit-based browser is?! I'm going out on a limb to say that thing has at least 700MHz behind it...
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  13. #28
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    Sprint has to push it at $199. Anything above that would be silly.

    AT&T and Verizon are both selling their iPhone and Storm at $199. If Sprint offers this phone at $299 or $399, it will sell to people with SERO plans who won't switch away from Sprint, but it won't attract a single new customer. Sprint needs to price it to be equal or less than the iPhone and Storm. If they price it above, Sprint is the company with the higher priced phone and the network that is the least compelling of the three and therefore not going to sell to non-Sprint customers.

    Sprint needs a win - big. The multi-touch and real keyboard of this phone could do that for them. If they start thinking they can charge a premium, they're crazy and will continue to bleed customers to AT&T and Verizon until T-Mobile passes them. Sprint needs a win. They need to show consumers that they aren't a has-been. They need to show customers that they can compete with Verizon and AT&T. They can't have people say, "well I'd totally get a Palm Pre except that it costs more than the iPhone and Storm and they're both as good with better networks." That's the disaster Sprint faces if they make the wrong decision - and it will be in every single review of the device with the Wall St Journal questioning whether Sprint has its head on straight and the NYTimes speculating that Sprint should be bought lest its losses lead them to bankruptcy.

    Sorry to be so doom and gloom, but Sprint can't screw this up. It's the best press they've gotten since the Nextel merger. Price it too high and it just says that you can't cut it against the other carriers and that you have no business sense. And if the press lambastes Sprint over what needs to be a win, Sprint will bleed customers like never before. Sprint needs to compete.

  14. #29
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    I'm wondering if the 399 price is going to be the retail price... That was the full retail of the Centro... And TI doesn't charge a lot for their OMAP chips - at least not compared to the Qualcomm chips in the HTC phones...

  15. #30
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    Quote Originally Posted by EtherealRemnant
    I'm wondering if the 399 price is going to be the retail price... That was the full retail of the Centro... And TI doesn't charge a lot for their OMAP chips - at least not compared to the Qualcomm chips in the HTC phones...
    Totally possible, because after the $150 instant, that makes it $249.99 and they will almost certainly throw in a $50-100 mail in rebate with it. But honestly, nothing is even close to being finalized here. The phone is months away from being released. A lot can change between now and then.

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