chemaupr
join:2005-06-06
Alexandria, VA | feeling the pressure?
For me, this is a big change in their business practices. I guess they are finally "admitting" the FIOS threat. |
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Karl Bode
News Guy
join:2000-03-02 | I think the scramble for the low hanging fruit has ended and they're just now interested in retaining the customers they already have.... |
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djrobx
join:2000-05-31
Valencia, CA
 ·PHONE POWER
 ·AT&T U-Verse
·AT&T CallVantage
·Time Warner VOIP
 ·RoadRunner Cable
| reply to chemaupr
quote:
For me, this is a big change in their business practices.
I saw a Time Warner commercial on TV just thismorning, touting "NO long term contracts!" with a nice graphic of a contract going through a shredder.
Right now businesses seem to have the mentality that new customers are worth more than the loyal ones who are sticking with them. I don't think this is right. Rather than try and lock customers into contracts, how about rewarding existing customers for their loyalty?
As it stands customers who really want to keep their bills low have to do a "new customer promo" bunny hop from provider to provider. Providers then have to look to contracts to slow this sort of churn down. I don't find it too surprising that cable is looking into this because they're about the only ones NOT doing this.
All that said, I definitely like the option of committing to a contract in exchange for lower bills. Particularly if the contract gives a truly good value (as opposed to extortionate non-contract prices), and the ETF isn't too horrific.
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Laser eye surgery rocks! I love frickin' laser beams. |
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djrobx
join:2000-05-31
Valencia, CA
·PHONE POWER
·AT&T U-Verse
·AT&T CallVantage
·Time Warner VOIP
·RoadRunner Cable
| reply to Karl Bode
quote:
I think the scramble for the low hanging fruit has ended
Don't know about that. I see contracts as a way for them to continue scrambling for that low hanging fruit without bleeding too badly when that fruit turns out to be rotten (unloyal, costly).
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Laser eye surgery rocks! I love frickin' laser beams. |
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA
·RoadRunner Cable
 ·DSL EXTREME
| reply to djrobx
Yup... funny thing is that at&t supposedly doesn't have any required contracts with Uverse either.
The way I see it...
Contacts:
Free (or cheap) installation, and low(er) prices. ETF fees if you cancel. Sometimes this can result in lower quality service, as you're 'stuck' for a term of eat the ETF
No-Contracts:
Installation fees (typically), low service to start up, prices will typically increase after a couple of months (3-6 months).
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Canada = Hollywood North |
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raptor1418
Premium
join:2002-12-03
Denver, CO
·magicjack.com
 ·Mesa Networks
| reply to djrobx
Why would they do anything for us loyal customers. They already have us and don't worry about us until we want to cancel service.
I have experienced this personally with both my ISP and Sat provider. Both times (have done this twice with ISP and twice with Sat provider) I called and wanted to cancel and they dropped my rate or gave me a few months free to stay on.
So in the end I actually got what a new customer got and the best part of it all is I told my sat provider up front that I wanted to pay the ETF over the phone right than and there to cancel my service. That got the ball rolling with out me even having to say I would stay if they gave me a better deal. Too bad I am still going to probably cancel in a few months anyway. |
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
| Right... you typically have to either threaten to leave, or have competition come by (Uverse?) before they'll react.
DirecTv offered my $10/month disount for 6 months if I kept a 1 year contract (no rate increases). Works for me...
I already have the service, and this brings the cost of my 3 sets on DTV to $50/month.
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Canada = Hollywood North |
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RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11 | reply to Karl Bode
Funny thing that. AT&T (for example) no longer requires contracts to get the best pricing, while cable seems to be starting to require term agreements. Curiouser and curiouser. |
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Karl Bode
News Guy
join:2000-03-02 | Yeah I found that interesting too recently. Verizon, Qwest, & Earthlink all require contracts for DSL discounts though, so it looks like it's industry wide as they focus more on retaining instead of nabbing grandmas... |
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