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AllStar
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Discussion Starter · #1 ·
My brother just bought a new HD TV and was interested in switching to D*, but found out the new HR20 would cost him $300. I have an HR20 and I paid $100 and feel I overpaid for a beta product. Does anyone else find it ridiculous to charge a new customer $300 for a buggy product?

* No Microsoft jokes please!
 

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Lifetime Achiever
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Yes and No.

I understand the frustrations of the issues with the box... but nothing has been proven yet, that they are hardware releated.

The vast majority of that $300 is to cover the physicall cost of the box... the parts, the manufacturing, the packaging, ect....

Where is he getting the $299 price from? DirecTV or a Vendor.
As DirecTV, especially for new customers will offer credits and incentives that will offset that cost.

Plus... if he does activate the service... they have a 50/50 promotion right now. If you refer him... after he pays the first bill, you get $50 credit on your bill, he get's a $50 credit on his bill.
 

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Legend
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Oliwa said:
My brother just bought a new HD TV and was interested in switching to D*, but found out the new HR20 would cost him $300. I have an HR20 and I paid $100 and feel I overpaid for a beta product. Does anyone else find it ridiculous to charge a new customer $300 for a buggy product?

* No Microsoft jokes please!
My problem with the $300 price is that the box is a lease and not a purchase. If I'm paying $300 for something, that something better be mine. You don't see any cable companies asking their users to pay an upfront cost for a STB and I don't think D* should either. Either they charge a lease fee or they make me purchase a box (which I am then free to sell whenever I want) - not both.
 

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Oliwa said:
My brother just bought a new HD TV and was interested in switching to D*, but found out the new HR20 would cost him $300. I have an HR20 and I paid $100 and feel I overpaid for a beta product. Does anyone else find it ridiculous to charge a new customer $300 for a buggy product?

* No Microsoft jokes please!
Supply & demand!
There are plenty of people willing to spend $300 on 1 or even 2 HR20's!
BestBUY & Circuit City get a shipment and they're gone in a day or 2!

If there was not a shortage of units, he probably would be able to make a deal with D*! He may want to try anyways, tell them he's trying to decide between D* and cable what kind of deal can they make?
 

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pgiralt said:
My problem with the $300 price is that the box is a lease and not a purchase. If I'm paying $300 for something, that something better be mine. You don't see any cable companies asking their users to pay an upfront cost for a STB and I don't think D* should either. Either they charge a lease fee or they make me purchase a box (which I am then free to sell whenever I want) - not both.
One advantage to the leasing of the box is that if you have a problem down the road it will be replaced free-of-charge (although, D* may charge for shipping).
 

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pgiralt said:
My problem with the $300 price is that the box is a lease and not a purchase. If I'm paying $300 for something, that something better be mine. You don't see any cable companies asking their users to pay an upfront cost for a STB and I don't think D* should either. Either they charge a lease fee or they make me purchase a box (which I am then free to sell whenever I want) - not both.
You can purchase the box!

For $749, you own it!
You will not have to pay a lease fee! You will have to pay a mirroring fee if it's not your only rcvr!
Oh yes, if it ****'s the bed after the 90 day warrenty period, all you have to do is buy another one for $749 to replace it!

Or

You can pay $300 to lease it and have D* replace it if anything goes wrong!
 

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pgiralt said:
My problem with the $300 price is that the box is a lease and not a purchase. If I'm paying $300 for something, that something better be mine. You don't see any cable companies asking their users to pay an upfront cost for a STB and I don't think D* should either. Either they charge a lease fee or they make me purchase a box (which I am then free to sell whenever I want) - not both.
I used to feel this way but if you think about it, it just like leasing a car. You lease it enjoy it and when people ask about it you say its yours when you finish your lease you return the car. The same is true with the HR20, you lease it and if you decide to leave D* after your 2 year commitment, you return the box. Plus during the lease if anything happens to the HR20 they will replace it at no additional cost. Not bad for $300. I rather have lease with knowing if anything happens I can get a free replacement than pay full price and be stuck with a dead unit after a couple months.
 

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AllStar
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iceman2a said:
You can purchase the box!

For $749, you own it!
You will not have to pay a lease fee! You will have to pay a mirroring fee if it's not your only rcvr!
Oh yes, if it ****'s the bed after the 90 day warrenty period, all you have to do is buy another one for $749 to replace it!

Or

You can pay $300 to lease it and have D* replace it if anything goes wrong!
Well put! This question seems to come up regularly. If I am looking at a $30k car, I can pay $30k, or I can put down a security fee and pay monthly (leasing.) (Of course, I still have to pay maintenance with a car, so D is giving a great deal!)
 

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Godfather
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Smthkd said:
I used to feel this way but if you think about it, it just like leasing a car. You lease it enjoy it and when people ask about it you say its yours when you finish your lease you return the car. The same is true with the HR20, you lease it and if you decide to leave D* after your 2 year commitment, you return the box. Plus during the lease if anything happens to the HR20 they will replace it at no additional cost. Not bad for $300. I rather have lease with knowing if anything happens I can get a free replacement than pay full price and be stuck with a dead unit after a couple months.
But I, and many others I know would never make a down payment on a car lease. To me a lease means you pay for what you use when you use it. Think about a business that leases their computers, printers, and copiers. Do you really think they pay money down? They just pay for what they use. $750 may be the current purchase price but prior to the lease program the price to own was also 300. So really we're paying the same price to not own the product.
 

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NYHeel said:
But I, and many others I know would never make a down payment on a car lease. To me a lease means you pay for what you use when you use it. Think about a business that leases their computers, printers, and copiers. Do you really think they pay money down? They just pay for what they use. $750 may be the current purchase price but prior to the lease program the price to own was also 300. So really we're paying the same price to not own the product.
The HR20 was not available "before the lease program", which started in March. It has never been available to purchase at that price.
 

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AllStar
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Smthkd said:
I used to feel this way but if you think about it, it just like leasing a car. You lease it enjoy it and when people ask about it you say its yours when you finish your lease you return the car. The same is true with the HR20, you lease it and if you decide to leave D* after your 2 year commitment, you return the box. Plus during the lease if anything happens to the HR20 they will replace it at no additional cost. Not bad for $300. I rather have lease with knowing if anything happens I can get a free replacement than pay full price and be stuck with a dead unit after a couple months.
Not so. The warranty on the hr10-20 is for 90 days. One needs to purchase the warranty protection plan to cover replacement after that.

Mike:)
 

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Godfather
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iceman2a said:
You can purchase the box!

For $749, you own it!
You will not have to pay a lease fee! You will have to pay a mirroring fee if it's not your only rcvr!
Oh yes, if it ****'s the bed after the 90 day warrenty period, all you have to do is buy another one for $749 to replace it!

Or

You can pay $300 to lease it and have D* replace it if anything goes wrong!
The whole lease versus ownership thing did bug me initially... But now that I know more, I feel very comfortable with the lease model... Just some random thoughts (both positive and negative mixed in):

* Monthly Fee is the same - Whether you call it a mirroring fee, or a lease fee, it's the same thing, right? The monthly cashflow impact is equal...

* Why Own It? - It only works on the DirecTV service...and if I leave the service I have to give it back... What the heck would I do with it if I cancelled the service and still owned a box that does not work anyway? (I guess I could do some cost recovery by selling it on eBay).

* Repair/Service - If it breaks, it ain't mine...and they will cover it... I don't need to buy the protection plan on a leased box, right?

* Upgrade - Unfortunately, if there is ever the opportunity to hack the box like we were able to do in the TiVo world, this would not be possible given the fact that I don't own it :(

If any of my assumptions are wrong, please let me know... The above is only my current understanding...
 

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djstough said:
Well put! This question seems to come up regularly. If I am looking at a $30k car, I can pay $30k, or I can put down a security fee and pay monthly (leasing.) (Of course, I still have to pay maintenance with a car, so D is giving a great deal!)
Except that $30k car will go in drive, reverse and neutral without locking up and needing a red button reset...

Sorry I couldnt resist. ... if car manufatures were to make a product that was this "buggy" they would be out of buisness in short time
 

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New Member
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iceman2a said:
You can purchase the box!

For $749, you own it!
You will not have to pay a lease fee! You will have to pay a mirroring fee if it's not your only rcvr!
Oh yes, if it ****'s the bed after the 90 day warrenty period, all you have to do is buy another one for $749 to replace it!

Or

You can pay $300 to lease it and have D* replace it if anything goes wrong!
Where did you get $725 from? I bought mine at Best Buy for $299!
 

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timvan said:
Except that $30k car will go in drive, reverse and neutral without locking up and needing a red button reset...

Sorry I couldnt resist. ... if car manufatures were to make a product that was this "buggy" they would be out of buisness in short time
Hmm..

Ford Pinto
Plymonth Volare
Ford Maverick..
Olds Toranado when it had the touch screen dash

And those are just the ones I owned over the years that where buggy..
 

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heaphus said:
Because you didn't actually buy it. You paid $299 for the right to lease it, and if/when you leave DTV, you have to give it back.
Nor unlike any other lease, car, boat, plane, apartment, etc cash down in front as a deposit monthly reoccurring costs for the life span of the lease.
 

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pgiralt said:
My problem with the $300 price is that the box is a lease and not a purchase. If I'm paying $300 for something, that something better be mine. You don't see any cable companies asking their users to pay an upfront cost for a STB and I don't think D* should either. Either they charge a lease fee or they make me purchase a box (which I am then free to sell whenever I want) - not both.
I own my HR20.

I bought mine on ebay for three reasons:

1) I own the box, it is not a lease. (Mine arrived brand new in the factory sealed box with a factory sealed access card).

2) I do not have a 2 year obligation with Direct TV.

3) I just installed a new home theatre system with a 50" plasma and a HR 20 could not be found anywhere locally in any stores.

When I tried to buy the HR20 on the internet, I was informed that after I paid $300 for the receiver, I would not own it. I called DTV and they confirmed that was correct and that if I ever terminated service they would be taking back the receiver that I just paid $300 for. I told them that no way I would ever agree to such an arrangement and that I would get cable instead. It was then that I was informed that a "buy" instead of a "lease" would resolve the issues of commitment and ownership.

I paid about $30 more to go this route, but I feel it was the best option for me. My last year with DTV was a very rocky relationship. Service was a problem and I did not want to commit to 2 years of service for a subsidized box that I did not own nor I could sell.

An additional cost to me was the dish. I had to buy the new compatible dish and install it myself. That was about another $90.

After the dish was installed and signal was confirmed on the receiver, I called DTV to activate the receiver. I told the agent to refer to my file and note the discussion about buy vs. lease that I had about two weeks prior. I asked her to confirm that this unit was considered a "buy" and not a "lease" and she confirmed that. In addition, it was also confirmed that I incurred no service obligation as a result of activating my receiver.

All in all, I am happy with my purchase and would recommend to anyone this avenue if they too have a problem with paying for something that they will not own.
 
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