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Peloton is both a product manufacturer and a service provider; setup fees are common with many service providers. For example, if you bring a phone you bought e
by bdcravens 2y ago
Peloton is both a product manufacturer and a service provider; setup fees are common with many service providers. For example, if you bring a phone you bought elsewhere to your carrier, they'll charge a fee to activate it for their network.
- daemonologist 2y agoI've never been charged a fee to activate a device on a new carrier, probably because they'd much rather have the money from my monthly subscription - in fact I've seen offers from carriers to buy out your current contract if you switch to them.
- Almondsetat 2y agoIf you want to reply to this comment you are going to have to pay me a fee.
- jlund-molfese 2y agoI don't think it's that common with companies that are both manufacturers and service providers. That'd be like Apple charging you $75 if you wanted to use iCloud+. It makes used products less valuable, which ultimately hurts your brand image in the long-term, even if you might be able to boost services revenue for the next quarter or two.
- drdaeman 2y agoNot sure it’s a good comparison. Apple has hefty margins on their hardware, and it’s practically required to use their services. In other words, iCloud activation fees practically exist and are included in device pricing. They simply have decency to not charge it multiple times if device changes hands.
- Sanzig 2y agoI have literally never had this experience with a mobile carrier (Canada). There is an account activation fee (usually waived if you sign up online), but once the account is activated you can freely swap the SIM between as many phones as you like.
- bdcravens 2y agoIf you setup a new line, it sounds like you'd be charged that fee. Perhaps I was unclear, but that was my point, similar to Peloton.
- manuelmoreale 2y agoAnd if I sell my phone to someone else do they have to pay the fee again even if they stay with the same provider? This peloton fee has no good reason to exist. None.
- bdcravens 2y agoIf it's a new account or line, I believe so.
- kstrauser 2y agoEven if that were the common process, which I dispute, it's still short-sighted greed. If it costs Peloton more than a homeopathic amount of money to update a database with the new owner's info, then they're doing it wrong. That's an extra $95 of pure did-nothing-to-earn-it cash extraction.