Re: [UC] AOL's little secret

[William H. Magill]

On 13 Jan, 2005, at 10:19, Dubin, Elisabeth wrote:
I think it's less of an "ignoring" of existing customers and more of a
business strategy.
"Correct-o-mundo" -- it's called "disintermediation."
This is a technical term from the financial community:
"Withdrawal of funds from intermediary financial institutions, such as 
banks and savings and loan associations, in order to invest in 
instruments yielding a higher return at the same institution."

This the reason why things like CDs or cell-phone contracts have all 
kinds of "early termination" penalties.

This same premise applies to the income stream of any business.
A new customer attracted because of a lower price is new income, but an 
existing customer who pays less represents a loss of income.

T.T.F.N.
William H. Magill
[EMAIL PROTECTED]
[EMAIL PROTECTED]
[EMAIL PROTECTED]
[EMAIL PROTECTED]

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Re: [UC] AOL's little secret

[William H. Magill]

On 13 Jan, 2005, at 09:13, Mark Krull wrote:
A friend of mine at work is on AOL. For 4 years she had been paying 
$23.95 per month for her service. She was having the $23.95 taken out 
of her credit card.
AOL never mentioned that she could have paid $17.95 per month for the 
SAME service if she committed for a year. All she did was tell them 
over the phone.  She was NEVER told of this savings option.  She LOST 
over $200 over the last 4 years. She found out from a friend.
Umm. Glad I am not with AOL
This "tactic" is not unique to AOL. Virtually any "service" will allow 
you to pay whatever you want for as long as you will put up with it. 
They rarely, if ever communicate anything to their existing customers 
which will cause them to pay less.

Banks are notorious for this.
Most all employers are the same way -- they often pay the new hire more 
than "loyal" employees, who have been there for multiple years, simply 
because that is the "current market rate."  The high-tech world was 
rampant with this through the 70s, 80s and 90s -- if you wanted a 
raise, you got a new job. This is the primary reason why employers get 
really upset when employees compare wages.

T.T.F.N.
William H. Magill
[EMAIL PROTECTED]
[EMAIL PROTECTED]
[EMAIL PROTECTED]
[EMAIL PROTECTED]

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Re: [UC] AOL's little secret

[Samuel Nicolary]

On Thu, 13 Jan 2005, Stephen Fisher wrote:

> Actually the same also goes in terms of DSL speeds.  When Verizon increased
> their DSL upload/download speeds then didn't bother to upgrade their existing
> customers to the faster speeds.  I told my uncle to call (I use cable
> internet), and sure enough they increased his DSL speed.  It's really
> unfortunate that you have to ask and that you have to waste time watching for
> these things to even know when to ask.  It seems companies are so focused on
> gaining new customers they seem to forget about their existing customers.

I agree it is nice when a company has a policy of offerring/reducing 
subscription fees when their fees change to pre-existing subscribers but 
you can't knock a company for not doing it.  As a comsumer, the onus 
should be on you to have to seek out the best rates.  It is one step above 
the indignity of having to haggle at least.

I definitely wouldn't consider this any dirty little secret.  Call up your 
cell phone carrier and tell them you are going to cancel your service - it 
is more likely than not that they will offer you a better deal than what 
you have presently.  Should they call you up and offer you a better deal 
without said scenario taking place?  That costs a lot of money for 
probably less profit - doesn't make business sense to me - maybe in a 
world where it didn't matter whether your company was profitable or not it 
would make sense.

--
Sam Nicolary

> Dubin, Elisabeth wrote:
> 
> > FYI, this is true for a lot of companies these days.  Here are two
> > examples:
> > 
> > 1) When I signed up for Verizon DSL, the rate was $34.95 per month.
> > They later lowered it to $29.95 per month, but they would have happily
> > let me go on paying the higher rate.  I called up one day and said, "can
> > I pay $29.95 instead?" and they said, "Yes, ok," and changed it.  I
> > guess you have to ask.
> > 
> > 2) I bought a ticket on Jet Blue recently and the next week the price
> > dropped on the same ticket.  I called up and said, "Oops, I bought it
> > before and it was more expensive, can I pay less?" and they say, "Yes, I
> > guess so," and gave me a credit for the difference.
> > 
> > I really don't know why it is that way these days, but I get the sense
> > that in general, people will let you pay whatever you are paying and
> > that's that.  But if you call up and ask, for some reason they respond.
> > 
> > 
> > 
> > ELISABETH DUBIN
> > Hillier ARCHITECTURE
> > One South Penn Square, Philadelphia, PA 19107-3502 | T 215 636- | F
> > 215 636-9989 | hillier.com
> > 
> > -Original Message-
> > From: [EMAIL PROTECTED]
> > [mailto:[EMAIL PROTECTED] On Behalf Of Mark Krull
> > Sent: Thursday, January 13, 2005 9:13 AM
> > To: [EMAIL PROTECTED]
> > Cc: [EMAIL PROTECTED]; UnivCity@list.purple.com
> > Subject: [UC] AOL's little secret
> > 
> > A friend of mine at work is on AOL. For 4 years she had been paying
> > $23.95 per month for her service. She was having the $23.95 taken out of
> > her credit card.
> > AOL never mentioned that she could have paid $17.95 per month for the
> > SAME service if she committed for a year. All she did was tell them over
> > the phone.  She was NEVER told of this savings option.  She LOST over
> > $200 over the last 4 years. She found out from a friend.
> > Umm. Glad I am not with AOL
> > -Mark
> > 
> > 
> > 
> > 
> > 
> > You are receiving this because you are subscribed to the list named
> > "UnivCity." To unsubscribe or for archive information, see
> > .
> > 
> > 
> > You are receiving this because you are subscribed to the
> > list named "UnivCity." To unsubscribe or for archive information, see
> > .
> >  
> 
> You are receiving this because you are subscribed to the
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> .
> 

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Re: [UC] AOL's little secret

[Stephen Fisher]

Actually the same also goes in terms of DSL speeds.  When Verizon 
increased their DSL upload/download speeds then didn't bother to upgrade 
their existing customers to the faster speeds.  I told my uncle to call 
(I use cable internet), and sure enough they increased his DSL speed.  
It's really unfortunate that you have to ask and that you have to waste 
time watching for these things to even know when to ask.  It seems 
companies are so focused on gaining new customers they seem to forget 
about their existing customers.

Happy warm Thursday,
Stephen
Dubin, Elisabeth wrote:
FYI, this is true for a lot of companies these days.  Here are two
examples:
1) When I signed up for Verizon DSL, the rate was $34.95 per month.
They later lowered it to $29.95 per month, but they would have happily
let me go on paying the higher rate.  I called up one day and said, "can
I pay $29.95 instead?" and they said, "Yes, ok," and changed it.  I
guess you have to ask.
2) I bought a ticket on Jet Blue recently and the next week the price
dropped on the same ticket.  I called up and said, "Oops, I bought it
before and it was more expensive, can I pay less?" and they say, "Yes, I
guess so," and gave me a credit for the difference.
I really don't know why it is that way these days, but I get the sense
that in general, people will let you pay whatever you are paying and
that's that.  But if you call up and ask, for some reason they respond.

ELISABETH DUBIN
Hillier ARCHITECTURE
One South Penn Square, Philadelphia, PA 19107-3502 | T 215 636- | F
215 636-9989 | hillier.com
-Original Message-
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of Mark Krull
Sent: Thursday, January 13, 2005 9:13 AM
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]; UnivCity@list.purple.com
Subject: [UC] AOL's little secret
A friend of mine at work is on AOL. For 4 years she had been paying
$23.95 per month for her service. She was having the $23.95 taken out of
her credit card.
AOL never mentioned that she could have paid $17.95 per month for the
SAME service if she committed for a year. All she did was tell them over
the phone.  She was NEVER told of this savings option.  She LOST over
$200 over the last 4 years. She found out from a friend.
Umm. Glad I am not with AOL
-Mark


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RE: [UC] AOL's little secret

[Dubin, Elisabeth]

I think it's less of an "ignoring" of existing customers and more of a
business strategy.
 


ELISABETH DUBIN
Hillier ARCHITECTURE
One South Penn Square, Philadelphia, PA 19107-3502 | T 215 636- | F
215 636-9989 | hillier.com

-Original Message-
From: Stephen Fisher [mailto:[EMAIL PROTECTED] 
Sent: Thursday, January 13, 2005 10:21 AM
To: Dubin, Elisabeth
Cc: Mark Krull; UnivCity@list.purple.com
Subject: Re: [UC] AOL's little secret

Actually the same also goes in terms of DSL speeds.  When Verizon
increased their DSL upload/download speeds then didn't bother to upgrade
their existing customers to the faster speeds.  I told my uncle to call
(I use cable internet), and sure enough they increased his DSL speed.  
It's really unfortunate that you have to ask and that you have to waste
time watching for these things to even know when to ask.  It seems
companies are so focused on gaining new customers they seem to forget
about their existing customers.

Happy warm Thursday,
Stephen


Dubin, Elisabeth wrote:

>FYI, this is true for a lot of companies these days.  Here are two
>examples:
>
>1) When I signed up for Verizon DSL, the rate was $34.95 per month.
>They later lowered it to $29.95 per month, but they would have happily 
>let me go on paying the higher rate.  I called up one day and said, 
>"can I pay $29.95 instead?" and they said, "Yes, ok," and changed it.  
>I guess you have to ask.
>
>2) I bought a ticket on Jet Blue recently and the next week the price 
>dropped on the same ticket.  I called up and said, "Oops, I bought it 
>before and it was more expensive, can I pay less?" and they say, "Yes, 
>I guess so," and gave me a credit for the difference.
>
>I really don't know why it is that way these days, but I get the sense 
>that in general, people will let you pay whatever you are paying and 
>that's that.  But if you call up and ask, for some reason they respond.
>
>
>
>ELISABETH DUBIN
>Hillier ARCHITECTURE
>One South Penn Square, Philadelphia, PA 19107-3502 | T 215 636- | F
>215 636-9989 | hillier.com
>
>-Original Message-
>From: [EMAIL PROTECTED]
>[mailto:[EMAIL PROTECTED] On Behalf Of Mark Krull
>Sent: Thursday, January 13, 2005 9:13 AM
>To: [EMAIL PROTECTED]
>Cc: [EMAIL PROTECTED]; UnivCity@list.purple.com
>Subject: [UC] AOL's little secret
>
>A friend of mine at work is on AOL. For 4 years she had been paying
>$23.95 per month for her service. She was having the $23.95 taken out 
>of her credit card.
>AOL never mentioned that she could have paid $17.95 per month for the 
>SAME service if she committed for a year. All she did was tell them 
>over the phone.  She was NEVER told of this savings option.  She LOST 
>over $200 over the last 4 years. She found out from a friend.
>Umm. Glad I am not with AOL
>-Mark
>
> 
>
>
>
>You are receiving this because you are subscribed to the list named 
>"UnivCity." To unsubscribe or for archive information, see 
><http://www.purple.com/list.html>.
>
>
>You are receiving this because you are subscribed to the list named 
>"UnivCity." To unsubscribe or for archive information, see 
><http://www.purple.com/list.html>.
>  
>


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RE: [UC] AOL's little secret

[Dubin, Elisabeth]

FYI, this is true for a lot of companies these days.  Here are two
examples:

1) When I signed up for Verizon DSL, the rate was $34.95 per month.
They later lowered it to $29.95 per month, but they would have happily
let me go on paying the higher rate.  I called up one day and said, "can
I pay $29.95 instead?" and they said, "Yes, ok," and changed it.  I
guess you have to ask.

2) I bought a ticket on Jet Blue recently and the next week the price
dropped on the same ticket.  I called up and said, "Oops, I bought it
before and it was more expensive, can I pay less?" and they say, "Yes, I
guess so," and gave me a credit for the difference.

I really don't know why it is that way these days, but I get the sense
that in general, people will let you pay whatever you are paying and
that's that.  But if you call up and ask, for some reason they respond.



ELISABETH DUBIN
Hillier ARCHITECTURE
One South Penn Square, Philadelphia, PA 19107-3502 | T 215 636- | F
215 636-9989 | hillier.com

-Original Message-
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of Mark Krull
Sent: Thursday, January 13, 2005 9:13 AM
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]; UnivCity@list.purple.com
Subject: [UC] AOL's little secret

A friend of mine at work is on AOL. For 4 years she had been paying
$23.95 per month for her service. She was having the $23.95 taken out of
her credit card.
AOL never mentioned that she could have paid $17.95 per month for the
SAME service if she committed for a year. All she did was tell them over
the phone.  She was NEVER told of this savings option.  She LOST over
$200 over the last 4 years. She found out from a friend.
Umm. Glad I am not with AOL
-Mark

 



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"UnivCity." To unsubscribe or for archive information, see
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