Quote:
Originally Posted by BenMcr
But then Virgin make back the waiving of the install fee over the 18 month contract because that new customer has gone from paying £0 a month to (in your example)£23.40
So Virgin gain £371.25 in extra rental over the contract period by waiving the £49.95 installation fee. So part of that then covers the cost of the TiVo box
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By offering free install to existing customers you are able to lock them into a new 18 month TV deal guaranteeing a continued income from a reliable and valued customer. Waiving £49.95 to secure a new 18 month contract seems like a fair deal to both Virgin and the customer to me. Also it's fairly likely the existing customer will already have other services you provide. I'm sure either through line rental, on demand views and other charges Virgin will make more than the £49.95 back that they waived.
Just in case this is coming across the wrong way, I'm not having a go at you Ben. I appreciate that someone from within Virgin is taking the time to listen to my views. We might not agree but our exchange is valuable to me, other forum members and hopefully yourself and Virgin in someway.