ISP Subscription Rates

  daba 00:25 07 Dec 2003

My ISP is offering a lower price for new users than I am paying currently paying.

Assuming I have passed the "minimum period", would I have a case to have my fees reduced to the currently offered rate?

  GANDALF <|:-)> 00:34 07 Dec 2003

It is an offer not a guaranteed price. It is to attract new customers not to let current customers reduce their rate. You can cancel your account and sign up for a new account but is it really worth it? If you bought a car and three weeks later the price was dropped by £3k, would you demand a refund? What do you do when Waitrose have a special offer that you bought two weeks previously for more? When you signed up with the ISP you were obviously pleased with the price and considered it to be a good deal.


  daba 01:06 07 Dec 2003

Gandalf I think you miss the point.

Provision of Internet Services, is not something you *buy*, deal done and dusted, but a commodity you "subscribe" to.

This is about subscription rates, not price. I agree that the *price* you pay to purchase an item can vary, and then it's down to luck or judgement whether you got a good deal, but ISP services is not a purchase, but a service fee.

Inagine this were a subscription to Sky TV.

You've had it for 3 or 4 years, and you are paying £30 a month for it, then your mate in the pub says "Hey I've just signed up with SKy for £10 a month, guaranteed for the next 12 months, it was a special offer to new subscribers".

Your comment - quote "It is to attract new customers not to let current customers reduce their rate" - is an example of the sad state of todays business strategy, namely to manure existing customers (revenue providers) in the hope of generating new revenue providers at the expense of losing existing revenue providers.

Lets hope that all *New* customers are existing customers disconnecting and reconnecting at the new rate, then they may see the error of their ways.

As my old boss used to say, "Existing customers are worth about 105% of new customers"

  Forum Editor 02:14 07 Dec 2003

is running a risk here, and it's exactly as you say, you - and thousands like you - might easily vote with your mice, unless they buck up their ideas. This isn't the way to conduct a business. It creates tremendous resentment, and they of all people should realise that. I'll not mention their name, as you haven't done so, but I think they'll pay a heavy price if they don't reduce your subscription rate, and if I was in your shoes I would be making a polite, but very firm point to them.

Some months ago my ISP reduced the cost of their broadband service to new subscribers. At the same time they reduced the rate to existing subscribers like me, and created an instant feeling of loyalty & goodwill. It isn't rocket science, and I'm very surprised that your company hasn't got the message that customer loyalty is the stuff of which ISP dreams are made.

  Sir Radfordin 15:53 07 Dec 2003

Take a look at the banks and you will see they have been given a fair amount of stick for doing the same thing.

There is nothing to stop you doing as you suggest, but as Mr G points out you have the hassle of changing and who knows what will happen in a months time. The price could be put up to more than you are paying now.

Swings and roundabouts in many cases.

  Stuartli 09:25 08 Dec 2003

I didn't renew my PCA Advisor subscription a couple of months ago - this morning a free copy of the latest issue arrived with the message "We've missed you" and offering special renewal terms......

  anchor 15:20 08 Dec 2003

I found a somewhat similar thing when renewing my motor insurance from a well known company. The renewal came in, and I checked the price on their web site. I found that taking a out a new policy on-line worked out about £20 to £30 less. I called the company, and was told that was the web price for new customers.

I took out the new policy, and did not renew the old. I did this in both 2002 and 2003. The odd thing was when asked on the sign up page who my present insurer was, I stated the name of the company, which was the same.

Surely, it costs more to issue a new policy, than to renew an existing one.

  Stuartli 16:26 08 Dec 2003

I had exactly the same experience a couple of years ago with Axa.

The first time I took out comprehensive insurance with the French based company it cost me £153 and I also got a £20 amazon voucher.

As usual, the following year, I checked all around and, out of curiosity, visited Axa's website again to check whether its renewal price was on the ball.

I discovered it was £12 less than the renewal figure, again with an £20 amazon voucher; I rang up and was told it applied to newcomers.

So I cancelled the original, took on the lower offer listing everyting as in the previous year, and once again had fun spending the amazon voucher.....

  dth 17:00 08 Dec 2003

The counter point that a business would offer is that offering a special discounted price for new customers - will increase the over all client bank. This in turn will allow economies of scale (and bulk purchasing power opportunties) that will benefits all customers in the future.

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