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BlackChampagne -- no longer new; improvement also in question.: To save money on any service... quit it.



Thursday, June 18, 2009  

To save money on any service... quit it.


I mentioned this in my under-publicized Twitter account the other day, but I just got another example of it, which reminded me to blog about it.

The key to saving money on any service you use regularly is to quit using it. Or at least threaten to quit using it. I've long noticed this with magazine subscriptions; if you're paying $2 an issue, as soon as you get into the last month or two of your sub you'll start seeing mail entreaties to re-sub, almost always for a lower rate than you've been paying. The offers only increase once you quit, as you get new/re-subscriber discounts that are far cheaper than what you were paying previously. I've always felt sort of retroactively ripped off by those; where were my discount offers when I was a regular user? Why reward the quitters and people who don't even want the magazine?

More specifically, I've had DSL since I moved to this apartment, 2.5 years ago. It was much cheaper than a cable modem at the time: I paid $20/month for the DSL while a CM was $40/month, and I had to get basic cable for another $25/month, which I didn't want since I was sick of watching TV after being regularly subjected to it while living with Malaya. (And Comcast left the basic cable on for free for like 6 months anyway.) There were two drawbacks. My speed was metered to 200k/sec on downloads, and I had to get a landline along with the DSL, for another $10 a month. But still, $30 a month for fairly fast online service wasn't that bad.

Fast forward 2.5 years, and the landline had increased to $20, and the DSL was now $30, and that 200k/sec (and 30k/sec upstream) was really beginning to annoy me. I couldn't upload Diablo 3 movies to the website, and even posting a batch of 6 or 8 big screenshots took 5 minutes. And since the door-to-door Comcast peddlers had recently been by to inform me that they had a special $19/month, cable modem-only offer, I decided to switch.

I called Comcast first and got things set up, and it's so obvious that they have radically different deals. Basically, whatever you know to ask for, they give you. I called and was connected to some "street team" hotline, and the guy was semi-cagey as he asked me, "what deal did you have in mind?" after listing their basic, full price offer. I said that I'd been told of a $19/month for cable modem only, and he was like, "Oh..." After five minutes trying to sell me on bundling phone service, basic cable, non-basic cable, etc, he finally gave in and set up an installation appointment. And two days later, I had a cable modem rolling at about 5x the DSL speed, for $19/month. Of course that only runs for 6 months, and then it becomes $50 a month, or $60 if I get basic cable with it, but I'll worry about that in December. Or quite possible move by then, or perhaps even switch back to DSL.

Why DSL? Since when I called them the day after the cable modem was set up, they were horrified that I was dropping the service, and lavished all sorts of deals upon me. My previously iron clad $20/month land line could suddenly be lowered to $11/month, with limited local calling minutes (I've used about 5 local or long distance calling minutes in 2 years.) My DSL could go down to $20/month for 3 months on a special continuing subscriber reward, and the metered speed could possibly be increased, since it might be due to a hardware problem. Etc.

I had them cancel it anyway, and when I asked about a final bill the woman sort of grudgingly said that they would send me a closing bill, with my charges pro-rated for the amount of time I'd used it this month. In other words, they'd have been happy for me to pay the full bill, which ran through June 28th, but since I'd asked I'd get a bill that only ran through the 12th.


Another similar instance occurred with my credit card. I belatedly realized that I had never gotten a credit card bill this month, so I dug out an old bill and called the customer service number, and they said that yes, I should have gotten it by then, and that it was due in 2 days. It was for pre-Hawaii charges, so it was only about a hundred bucks, but of course they gouge you with penalties and usurious rates if you're even an hour late with the monthly payment. I have a Mastercard with lifetime no annual fee, but they certainly try to make up that annual fee with any little rip offs they can find.

The woman on the phone was clearly one of those "New Dehli tech support" types. Very polite and efficient, and doing all she could to try to hide her Indian accent. She had one of the ridiculously white-bread online names, "Hello this is Deborah. How can I help you today sir?" But she says it like, "De-boood-RAH." An Indian pronunciation of a name that sounds like "Deb-ruh" when a native speaker says it. I kind of laughed, having heard that game played before.

She informed me that my bill was due in 2 days and that there were fees, etc, if I was late. I said I'd never gotten my bill this month and that I'd like a new one sent out. She instantly mentioned the late fee deadline, then instantly segued into my option of paying by check over the phone, which had a one time $15 charge. I countered with "How about just sending me a new bill and waiving the late fee this month?" And she immediately came back with, "I can let you pay over the phone with a check and as a courtesy we will waive the fee."

So that's what I did. The bill had increased to $500 since a bunch of crap I bought in Hawaii (mostly treating the parents to dinners and some presents and such) was going to be on next month's bill, but that was fine. And the net result was me saving $60 or $80 just by calling and insisting on not paying fees. Not that I drove some rock hard bargaining on them, or pulled in special privileges. I just asked a few times and discounts materialized almost effortlessly.

Most people, (me definitely included) hate to call and talk to customer support, and will just swallow overcharges and extra fees rather than spending the time calling and fighting through labyrinthine computerized tech support services. But as my recent experiences have shown, you can save considerable money by doing so. And gain some personal satisfaction at a revenge, no matter how petty or minor, against some of the globonational companies whose wheels of profit are greased by the secretions they regularly wring from us, their hapless customers.

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Comments:

How about getting out of paying the new "fuck you loyal customer" fees for checking your first bag for a flight.

I guess anyone fed up with it will switch to the way-too-big carry-on roller bag and a backpack "personal item" with all of their clothes. I'm curious to see if they try to charge customers when they confiscate the oversize roller bag at the gate.


 

Working in Customer Service myself (AT&T Wireless Currently, DirecTV for 4 years before that), I have to say a lot of companies have radically different approaches to discounts.

DirecTV went through cycles where I could either credit the moon if it would make the customer happy, to being forced to withhold even the tiniest amounts of credit from the customer, even if it resulted in them escalating to a Supervisor or requesting to cancel.

AT&T, on the other hand, is a bit more generous with their credits. I'm allowed up to $250 per account, and I feel and can justify a $250 credit to make the customer happy, then I can do it.

The hard part has been transitioning for the tight-fisted mindset of DirecTV to the relatively free policy with AT&T. I have a deeply ingrained response to fight a credit every step of the way, much to my supervisors chagrin.

Asking if fees can be waived or if anything can be done to reduce the bill is good and all, as long as you don't take it to the point of being overly pushy and/or threatening cancellation or legal action over minor and mundane fees. All that does is make Customer service reps angry and more resistant. I speak from experience on both sides of the fence on that one.


 

The credit card bill not arriving in time is not accidental (as I'm sure you surmised), and seems to be part of the strategy of the banks to force members who pay their bills on time into the higher interest rate brackets that come with late/missed payments. I have personally canceled several credit cards over the years who were either not sending bills at all, sending the bills late, changing my payment due date, etc. I received checks from a couple of the class action lawsuits that were filed against some of the larger banks, and as a result I monitor my accounts closely even though I don't carry a balance on any of the cards.

Unfortunately it seems that the credit card companies lost so much with their pre-approved-if-you-can-breathe approach over the last few years that they need those of us who haven't defaulted and filed for bankruptcy to pay the way of those who did. But as we all know Visa puts too much money into pockets in Washington for us to hope for any actual legislation to stop these practices. And since you really can't survive without a credit card these days (did you know you can't rent a car or book a hotel room with a debit card? Unless they process it as credit, of course)all you can do is keep a close eye on your accounts and call them on the bullshit. They will always waive the fees, probably because they know that what they are doing is, at best, questionable from a legal standpoint.

As for DSL, every time I call Qwest to ask them if I could be saving any money they always manage to find me something a little bit better than what I am paying now. Maybe the base rate for the basic phone line went down, or the price for the bandwidth I have has gotten a little cheaper, always something. They gladly sign me up for the lower price. I imagine that a lot of people just never bother to ask, but it seems it is always worth the time to do so. I can't think of any time that I have called a service provider and not gotten some sort of a discount out of it. Come to think of it, maybe I should just call them every day and then maybe after a couple weeks they would owe me money?


 

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