do is ignore their long-time customer base.
They let the rates stand so long as the long term customers will continue to pay it even though they give newer people a cheaper rate.
I've even seen city governments pull this kind of crap. They gave newer companies all sorts of incentives but never lowered taxes on companies that have been there for years.
I once saw a major Philadelphia based transportation company respond in an interesting way. Philly offered a company reduced taxes to attract them.
The CEO of the transportation company asked why the new comer companies got tax relief yet the long time companies got none. He was told it was to attract business and they refused to give the company any relief.
So the CEO simply closed the Philly office and moved the company elsewhere. It cost the company little if anything to do this and they wound up not only with lower taxes but cheaper rents and other operating costs. It was a good deal for the company and a loss for Philly.
The same sort of thing happens to the average Joe that has been, for example a cell customer for years. They often give the newer customers a better deal but seem to forget that their long term customer base deserves a break for long term loyalty.
I know that the people that are always switching auto insurance companies save money over time because they get rates designed to get them to switch.
Right now I am going to check up on my cell service because mine had a limit on data when I first signed up. Now the same money will buy unlimited data for newer customers.
I don't use a whole lot of data on my cell so I have never runover. Still, I do pay attention to make sure I'm not running over. It would be ice not to have to bother.
I'm going to have to check and see if they altered my plan to reflect this. If they have I will be pleasantly surprised.
I do know that my car insurance has stayed the same rate for years and thatif I shop around I can do better. I think I will when I have some time in the very near future. My wife just pointed out that there are better homeowner's deals out there.
One of the reasons people are loathe to change is because it is a whole lot easier to write a check than shop. Still, I suppose if you look at shopping around as a way of getting an indirect raise it may change one's attitude. A penny saved is a penny earned.
There are numerous options out there these days. At one point there was only one show in town as far as TV suppliers go. Now there are several and that means competition.
A lot of communication companies offer package deals of TV, phone and internet.
Yet I admit I have been using the same TV supplier for years even though if I checked newer customers probably pay a cheaper rate.
My wife generally handles a lot of this and she's pointed out this and I asked her to look into this. Seems the cable company is balky. They won't give us the lower rate until some time after we cancel.
Sounds like stupidity to me. If and when I decide to cancel I will likely just go to one of the other companies offering a better deal.
Maybe something is wrong with me but it strikes me that taking care of long term customers pays off in the long run.
I have a long period of little on the schedule coming up nd I think I am going to look at my cell, TV, ISP and both homeowner's and car insurance and see what the best deals are out there.
A penny saved is a penny earned.
To find out why the blog is pink just cut and paste this:
http://piccoloshash.blogspot.com/2009/12/my-feminine-side-blog-stays-pink.html NO ANIMALS WERE HARMED IN THE WRITING OF TODAY'S ESSAY