Haggling for a price

  version8 15:09 26 Aug 2008
Locked

My renewal for a well known break down company was quiet high this year.
One telephone call & a bit of haggling and i got a 25% discount.

But why not offer it to me at the beginning?
All it will do is make me less impressed with the ethics of the company concerned.

  interzone55 15:38 26 Aug 2008

Why should they offer you the lower price in the first place?

Capitalism works on the premise that market prices are based on what people will pay, and most people pay the asking price.

In your case you quibbled this and were passed to the Customer Retention Department who are authorised to offer various discounts based. I did the same for my car insurance and got a £50 Tesco gift card.

If everyone did the same as you the company would either make no money, or would have to raise prices, because believe it or not, most companies are not out to ripped off their customers, the pricing structure would be cost +% margin, this margin will be calculated on the cost of selling the item, plus cost of running the company, plus a certain level of profit. In your case the profit will have been removed.

  Forum Editor 16:09 26 Aug 2008

you would understand why they didn't offer a discount in the first place. It has nothing whatever to do with ethics, and everything to do with sound business sense.

  BT 16:44 26 Aug 2008

I've just come off the phone with a very similar situation.
When my breakdown insurance was due about a month ago I was told I could include it in my motor policy, the renewal notice for which arrived today. Sure they had include it but had not given me the 15% NCD which I had on the original breakdown policy. I phoned and explained and was told that as it was now part of my motor policy it counted as a new insurance, which I ws not told originally.
The operator then offered to split the policies again and gave me my breakdown for the original price quoted. I was under the impression originally that having them combined would be cheaper but this was obviously not the case.

  version8 17:17 26 Aug 2008

I do run my own business, perhaps i should have written that the renew price should have been the same as the on-line price.

  Forum Editor 17:28 26 Aug 2008

This is something that crops up quite often - people see an attractive offer for the same service, only to find that when they renew they don't get the offer price, it's a case of 'brand-new customers only'.

There's no solution - you enrol when you enrol, and the price was acceptable then. New marketing initiatives come along, but the old faithfuls don't benefit, or at least not always.

  spuds 23:27 26 Aug 2008

After 30 plus years with the Automobile Association, I came of the opinion that loyalty meant very little at renewal time. Especially when it was clear to see, that new customers were being given various cheaper and better deals and incentives.

Tried to express my views, but the AA were having none of it, so I did a simple Google and comparison check, and found a perfect solution in motor breakdown cover click here . Been with this new company since leaving the AA,called them out once and never regretted making the swap.

  [email protected] 01:08 27 Aug 2008

First Call's prices are very good so I decided to look for some reviews and came across these click here.

Needless to say, I won't be switching over to them when my AA renewal is due in October.

  spuds 12:22 27 Aug 2008

I read the reviews before I made the changeover, and was in two minds about the switch. Taking the devil by the horns, and in part reason of only using the AA on 7 occasions in all those years of membership (3 call-outs in the same day, for the same problem!), I made the decision (be it on my head!)to change.

On the occasion that I required assistance,my vehicle electrics (battery) failed, so I called them out. The call centre person came over as a 'scripted mechanic', trying to do a telephone diagnostic check as to the reason of the failure. Realising that there was a genuine breakdown, the call centre arranged for a local respected breakdown company to attend, which they did within 20 minutes (I have waited far longer for the AA). Having got the vehicle started within a few moments on arrival, I was able to get the proved faulty battery replaced. At the same time I asked the recovery/breakdown mechanic if he had any problems dealing with the company. He was more than satisfied to offer praise to them, mainly because his company was used on many a weekly basis.

Like most things in life, I could have been a complainer, but when I needed them, they were there to provide help and assistance, and I suppose thats the main thing.

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