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Anyone call DirecTV and reduce their bill? Share stats here!

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#51 OFFLINE   inkahauts

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Posted 17 July 2013 - 06:01 PM

Your post shows a complete lack of understanding of pricing and the basic tenants of supply and demand. Heck, why don't they just charge $500 a customer because in your economic world, prices don't affect demand.

 

 

Pricing?  Actually, your disbelief to the idea that companies add in and account for expected monies lost or not gained due to discounts and theft when creating a budget shows you have never played with a P&L in a major retail company.  I have.  I understand how it all works.  I did not in any way say that price doesn't affect demand.  I am saying that part of the reason they budget for discounts is because of economics. Heck, manufacturers build into their price the costs of defective units that will come back to them, and products that will get broke and not even make it out of the factory.

 

Its not a lot, but its enough to make a difference.  A while back DIrectv had pulled back on discounts a lot, as a result of them giving out to many to to many people and seeing their profits erode faster than expected.  Fast forward and you notice that they have increased their static non programming based fees quite a bit over the last four years or so and it seems discounts are back to the levels they used to be. (I still have a feeling the MRV fee is a DIRECT result of people asking for discounts and decreasing profits from programming specific fees due to higher contract fees with channels) Gee, wonder if that may be a correlation.  Had they not had such large increases in programming fees, they may have been able to avoid that because they would have eaten into the programming profits, but since they where be eroded there too, they had to make additional price increases to offset other things.  They all work like a giant clock with 50 gears.  It all affects the others, in a balanced way, and there is no doubt from anyone who understands a p&L that some of the price increases over he last few years are to allow them to continue to give some people discounts to keep them happy and to keep them as customers, in addition to new customer spending.

 

Your assertions that they'd just charge anything is absurd.  In fact, supply and demand is exactly why they have to budget for discounts, because many people will be fine paying a higher price and not calling in often, where as some people will demand lower pricing, and they have therefore budgeted in some money to spend on those discounts to keep those customers.  Get rid of all discounts, assume no one asks for them anymore, and they won't have to budget any of that money towards spending on discounts, so they could look at the P&L and simply reduce the costs of services by the total amount they had originally budgeted for discounts.  Of course, you will never see anyone go backward, but you can say they might now increase fees less if they stopped all discounts cold.  Of course we all know as well that this will NEVER happen, but it is how a P&L and budgeting works.  

 

Kinda like Coupons and marketing dollars.  You pay for it somewhere, whether you want to believe it or not.



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#52 OFFLINE   omartinjordan

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Posted 17 July 2013 - 07:08 PM

Maybe they should just set the price at a reasonable amount and quit the discounts. If fairly priced people would have nothing to switch to that is cheaper. May not be the best economic approach but makes the most sense. Seems to me it's over priced if they can give that many discounts.

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#53 OFFLINE   inkahauts

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Posted 18 July 2013 - 02:51 AM

Unfortunatly, that ship has sailed. Its nearly impossible to stop giving discounts once you have started it. Just ask j c penny.

#54 OFFLINE   lgb0250

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Posted 18 July 2013 - 05:26 AM

Did you read what you just wrote?  If it affects their bottom line, they will adjust pricing to compensate for it because they have certain profit margins they expect to hit for wall street, both  in $ and %.  To think that things like discounts given out don't affect price is like saying theft in stores doesn't affect pricing in retail stores.  It ABSOLUTELY does, that's not a debate at all.


While this is a true statement, for people to think that our price would go down if they didn't use incentives to retain customers, is also a myth! The money they retained from not paying incentives would more than likely go straight to the bottom line benefiting shareholders but not putting a penny back into the subscribers pockets! If I know that others are receiving a discount and I stand the high ground and don't request the same, that would make me an idiot and a spendthrift, neither which I consider myself. The only way these types of threads won't continue to pop up on this site is if the moderators ban them and I don't see that happening.

#55 OFFLINE   raott

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Posted 18 July 2013 - 05:52 AM

Pricing?  Actually, your disbelief to the idea that companies...

 

I'm not about to read your thesis, but if you are implying that the cost is calculated and then a profit percentage adder is put on top of that to get a final price, you have it completely and utterly wrong. 

 

As I stated in my original post, discounts only affect price on a macro level (ie the industry) which shifts the entire price curve but the effect is negligible.  Directv prices at a spot that maximizes revenue given their competitive advantages (ie. great hardware, sports) and disadvantages (ie. PITA factor of a sat dish).  They do not figure out their cost, then figure out what profit wall street wants and then calculate a price, which is what you have implied.  Raising a price to make up for a loss bucket can and will drive down overall revenue, given the elasticity of demand with amount of competition (Dish, cable, fios, ATT etc).


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#56 OFFLINE   Cyber36

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Posted 18 July 2013 - 07:11 AM

Your post shows a complete lack of understanding of pricing and the basic tenants of supply and demand. Heck, why don't they just charge $500 a customer because in your economic world, prices don't affect demand.

Supply & Demand? You mean like the way they price gasoline here in lovely N.Y.S.?? LOL......



#57 OFFLINE   raott

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Posted 18 July 2013 - 07:46 AM

Supply & Demand? You mean like the way they price gasoline here in lovely N.Y.S.?? LOL......

 

I don't know about NYS, but in my area there is one distributor for fuel.  Every gas station (in a pretty good sized metro area of well over 1 million people) is supplied by that one distributor.  Combine a monopoly with inelastic demand for gas and your prices become artificially high.


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#58 OFFLINE   peds48

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Posted 18 July 2013 - 11:36 AM

I don't know about NYS, but in my area there is one distributor for fuel.  Every gas station (in a pretty good sized metro area of well over 1 million people) is supplied by that one distributor.  Combine a monopoly with inelastic demand for gas and your prices become artificially high.

forgot "speculation"

 

back to topic.....


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#59 OFFLINE   grecorj

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Posted 18 July 2013 - 12:54 PM

I "earned" my "discount" by working for/with the company.  No difference then working at Best Buy and getting their employee discount and yet, they don't play these games with customers

 

1. I was referring to what inkahauts said -- everyone's price is determined by the amount of discounts they give out.  If that's true, then DTV expects people to ask; therefore, I'm implicitly entitled to ask for a discount.

2. You've never asked for a discount at Best Buy?  Most everything in this world is negotiable -- you just have to ask.


Edited by grecorj, 18 July 2013 - 12:55 PM.

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#60 OFFLINE   peds48

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Posted 18 July 2013 - 01:09 PM

1. I was referring to what inkahauts said -- everyone's price is determined by the amount of discounts they give out.  If that's true, then DTV expects people to ask; therefore, I'm implicitly entitled to ask for a discount.

2. You've never asked for a discount at Best Buy?  Most everything in this world is negotiable -- you just have to ask.

1. while you are welcome to ask, note that you are not entitled to any, which seems to be where this thread is/was going

 

2. Never.  I used to work there a while ago and the only customers who got "discounts" where the ones spending thousands on a single purchase.  If you considered the reward zone program as a discount, then I would say yes.


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They’re not fond of rules, and they have no respect for the status quo.


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#61 OFFLINE   raott

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Posted 18 July 2013 - 01:26 PM

1. while you are welcome to ask, note that you are not entitled to any, which seems to be where this thread is/was going

 

2. Never.  I used to work there a while ago and the only customers who got "discounts" where the ones spending thousands on a single purchase.  If you considered the reward zone program as a discount, then I would say yes.

 

Nobody has used the word "entitled" other than those who seem to imply this affects everyone else, the thread was not going in that direction.

 

Is Directv pulling acting "entitled" when they negotiate with suppliers and programmers and don't pay the initial asking price?  Are they making all other companies suffer when they do that?  Those are some of the claims I've seen in this thread.


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#62 OFFLINE   joshjr

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Posted 18 July 2013 - 01:31 PM

What do you think my chances are of getting them to drop my free NFLST, which I could care less about, in exchange for like a month of MLB Extra Innings? I once got them to replace my free 3 months of HBO/Showtime with a month of YES Network.

Isnt there a free preview on this right now?


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#63 OFFLINE   joshjr

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Posted 18 July 2013 - 01:35 PM

I "earned" my "discount" by working for/with the company.  No difference then working at Best Buy and getting their employee discount and yet, they don't play these games with customers

 

So let me get this right, its okay that DirecTV gives you a discount because you work for them but if they chose to give me one you have a problem with it.  Is the door on your house big enough to get that head through?


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#64 OFFLINE   peds48

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Posted 18 July 2013 - 02:22 PM

So let me get this right, its okay that DirecTV gives you a discount because you work for them but if they chose to give me one you have a problem with it.  Is the door on your house big enough to get that head through?

is called a "benefit" same as I get medical, dental and so on.  so is NOT a discount.


Here’s to the crazy ones.
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#65 OFFLINE   inkahauts

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Posted 18 July 2013 - 03:27 PM

While this is a true statement, for people to think that our price would go down if they didn't use incentives to retain customers, is also a myth! The money they retained from not paying incentives would more than likely go straight to the bottom line benefiting shareholders but not putting a penny back into the subscribers pockets! If I know that others are receiving a discount and I stand the high ground and don't request the same, that would make me an idiot and a spendthrift, neither which I consider myself. The only way these types of threads won't continue to pop up on this site is if the moderators ban them and I don't see that happening.


Never said it would lower costs. It could/would keep them from going up as much possibly.

#66 OFFLINE   joshjr

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Posted 18 July 2013 - 03:32 PM

is called a "benefit" same as I get medical, dental and so on.  so is NOT a discount.

 

I don't see a problem with someone trying to pay a lower price.  I understand that there are other companies out there that really do not offer lower prices for their services but DirecTV does.  The way you look at things, I should be mad that you don't offer to pay DirecTV full price for everything you have.  To each their own.


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#67 OFFLINE   inkahauts

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Posted 18 July 2013 - 03:38 PM

I'm not about to read your thesis, but if you are implying that the cost is calculated and then a profit percentage adder is put on top of that to get a final price, you have it completely and utterly wrong. 
 
As I stated in my original post, discounts only affect price on a macro level (ie the industry) which shifts the entire price curve but the effect is negligible.  Directv prices at a spot that maximizes revenue given their competitive advantages (ie. great hardware, sports) and disadvantages (ie. PITA factor of a sat dish).  They do not figure out their cost, then figure out what profit wall street wants and then calculate a price, which is what you have implied.  Raising a price to make up for a loss bucket can and will drive down overall revenue, given the elasticity of demand with amount of competition (Dish, cable, fios, ATT etc).


No, thats not what I am saying at all. I saying they budget for everything in the first place, and cost of discounts is part of that budget, just as acquisition costs for new subscribers is. If you think differnt you are very mistaken.

And if they didn't have that cost to add in in the first place, it'd slow down rate increases.

Companies very much set general profit goals as we all know, and how they budget their money and what goals they set are influenced by costs. And how they budget for things liek acquisitions is also influenced by what profits they set as goals. They can tweak both sides of the balance sheet to make it land where they want. to think they. Set ne side and then figure out the other without ever considering impact of the converse too is false.To then say that competitors prices are the only thing that affects what they set prices at and is the determining factor alone in how much profit they can make and has nothing to do with discount budgeting and ne customer aquisiont costs is very short sighted.

Why do you think they focused on higher end customers and lower growth over the last few years. Escalating costs of discounts and new custimers aqustion spending and other things of that nature. Not because the competitors where lowering their prices and they needed to cut costs to stay competitive.nthey. Needed to cut costs to keep profit levels. They also needed to offset some discounting by increase fees. Hence, Whole Home Service fee, and advanced receiver fees that are much higher than just five years ago.

#68 OFFLINE   inkahauts

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Posted 18 July 2013 - 03:41 PM

I don't see a problem with someone trying to pay a lower price.  I understand that there are other companies out there that really do not offer lower prices for their services but DirecTV does.  The way you look at things, I should be mad that you don't offer to pay DirecTV full price for everything you have.  To each their own.


Personally, I have no issue with people asking for discounts, its to late to go another route for DIRECTV, so everyone should. But some people get far to mad when they don't get massive discounts constantly every year. Those people annoy me and many others I think.

I wish DIRECTV would replace random discounts with a proper loyalty system that earned people set discounts over set periods of time and money spent. Would make life so much better for everyone.
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#69 OFFLINE   peds48

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Posted 18 July 2013 - 03:49 PM

I don't see a problem with someone trying to pay a lower price.  I understand that there are other companies out there that really do not offer lower prices for their services but DirecTV does.  The way you look at things, I should be mad that you don't offer to pay DirecTV full price for everything you have.  To each their own.

But even if I wanted to, I can't.


Here’s to the crazy ones.
The misfits. The rebels.
The the troublemakers.
The round pegs in the square holes.

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They’re not fond of rules, and they have no respect for the status quo.


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#70 OFFLINE   peds48

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Posted 18 July 2013 - 03:51 PM

Personally, I have no issue with people asking for discounts, its to late to go another route for DIRECTV, so everyone should. But some people get far to mad when they don't get massive discounts constantly every year. Those people annoy me and many others I think.

I wish DIRECTV would replace random discounts with a proper loyalty system that earned people set discounts over set periods of time and money spent. Would make life so much better for everyone.

Right on. Like a loyal DirecTV "card" like the reward zone program from best buy.  you earn points based on how much you pay.  seem fair to me


Here’s to the crazy ones.
The misfits. The rebels.
The the troublemakers.
The round pegs in the square holes.

The ones who see things different.
They’re not fond of rules, and they have no respect for the status quo.


Think Differently 

#71 OFFLINE   inkahauts

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Posted 18 July 2013 - 04:13 PM

Then everyone would get discounts at the same rates, and let them choose if its for programming costs, extra premium channels, new equipment, etc.



#72 OFFLINE   omartinjordan

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Posted 18 July 2013 - 05:25 PM

Good lord, how about setting a reasonable price and none of this is an issue. I think it's clear to say that they over charge a bit. If directv is dumb enough to keep offering discounts then you can't blame people for taking them. Sent from my SAMSUNG-SGH-I747 using DBSTalk mobile app

Edited by omartinjordan, 18 July 2013 - 05:26 PM.


#73 OFFLINE   inkahauts

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Posted 18 July 2013 - 05:29 PM

And as I have said before, there are some people who will demand them no matter what from now on even if they say no more discounts but we aren't going to raise prices either.  There is no going back.



#74 OFFLINE   omartinjordan

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Posted 18 July 2013 - 06:42 PM

Not if there isn't a cheaper alternative!

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#75 OFFLINE   peds48

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Posted 18 July 2013 - 07:13 PM

And as I have said before, there are some people who will demand them no matter what from now on even if they say no more discounts but we aren't going to raise prices either.  There is no going back.

Right on!  even if DirecTV charges $20.00 a month, the same folks will be calling for 50 cents discounts 


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Here’s to the crazy ones.
The misfits. The rebels.
The the troublemakers.
The round pegs in the square holes.

The ones who see things different.
They’re not fond of rules, and they have no respect for the status quo.


Think Differently 




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