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Guest Message by DevFuse

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2nd half of the year promotions suck big time


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33 replies to this topic

#1 OFFLINE   jeffwtux

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Posted 28 June 2002 - 08:15 PM

I'm a dishnetwork retailer, but I'm never shy away from harshly critizing the company when I think they screwing up. Their promotions have just kept getting worse and worse since "I Like 9" expired. First of all they going back to the original Digital Home Plan where they only gave the first month free. Until they changed it to 3 months free of basic+locals, I barely made any DHP sales at all. It just wasn't a good deal. Now they're going back to it. DIsh had the edge by far with 3 and 4 receiver systems, not anym ore.
Then instead of making a better 2 receiver promtion, they eliminated it. Now if you want a 2 receiver system, you have to buy the 2nd one at full price(unless they extend CLUB Dish DHP which they didn't mention). Yeah, I do get $65 in activation and installation commissions, but that still makes it $35, if I don't take $1. DirecTV is not clearly a better deal for 1 or 2 receiver systems and not much worse for 3 or 4. I think I'm going to be looking for a job soon, or switch to DirecTV.
All you people can fall in love with the 721 all you want, the fact is price of programming and intro promotions are the only thing most of my customers base their decisions on. These promotions are pathetic.

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#2 OFFLINE   Mainstreet

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Posted 28 June 2002 - 11:07 PM

Yeah, but it is ALL subscription programming now. No more extra charge for movies if they subscribe to the Everything Pack or distant nets. I think it is a good change. The customer still gets a bill a week after it is installed (instead of 2 months later as it is now), and it is only for 1 month of service (the second month in advance). I think it should be less confusing than it is now. I believe they will come out with a new promo within the next couple of months to replace the non-cc 123 FREE promo. I don't think it will be as good as I Like 9, though. Justin

#3 OFFLINE   Jacob S

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Posted 28 June 2002 - 11:50 PM

What do you mean there is no more extra charge for movies if you sub to the everything or distant nets, u mean ppv? I think they should have a flat rate for all channels including ppv or a unlimited ppv purchace deal.

Also I dont understand what you mean by getting a bill two months later now instead of a bill a week later, because customers do currently get a bill for two months a week later now, which is for the current month and the next month, and each bill after that is for the next month, keeping the customer ahead one month.

#4 OFFLINE   Mainstreet

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Posted 29 June 2002 - 12:42 AM

It covers all subscription programming... Unfortunately, PPV is not subscription programming, so it doesn't count. But movie channels - like HBO - do.

Currently on the DHP, the customer gets three months free. So, if they only subscribe to basic (up to AT150), they don't see a bill until their free programming is up. They get a bill two months later for their fourth month of service. It is due a couple weeks after they receive it, and is for a month in advance.

Now, they will just get a bill for one month of programming for the next month.

#5 OFFLINE   jeffwtux

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Posted 29 June 2002 - 05:33 AM

People aren't stupid, they can add, multiiply and divide. The 3 months free DHP was worth a minimum of $110.97 in savings and that was for 1 receiver, AT100, and no locals. This promo is worth a maximum of $98.98. That's for 4 receivers, America's Everything, and locals. That same package would net a $200.94 savings with the 3 months free. How can you people say that the new version is better? Are you guys just paid DishNetwork company sucikups?? BTW, my company name is Grand River Networks, I'm not afraid to trash the Dish when they suck aparently, you people are. You can spin it any way you want. The fact is that my customers don't buy the spin, they buy the best deal they can get, and these deals suck. You people go ahead and convince yourself that the new version is better, just don't expect your potential customer to think the same.

#6 OFFLINE   jeffwtux

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Posted 29 June 2002 - 05:40 AM

I wonder how they are going to change their website to reflect these changes, especially with ditching 123 FREE, 123 Great TV altogether. Currently, if yu are interested in getting DishNetwork, the first thing they ask you is how many TVs do you want(funny, that's the same question I ask first). What are they going to suggest if you say 2? How about, "Get DirecTV and you'll be switched over when the merger is approved" . Clearly, they don't care about gaining customers at all right now. They'll let DirecTV acquire the customers, and when the merger ques through, they'll get them anyways.
If the merger goes throu, they file for bankruptcy, lovely strategy.

#7 OFFLINE   jeffwtux

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Posted 29 June 2002 - 06:51 AM

Reply to Mainstree:
"I believe they will come out with a new promo within the next couple of months to replace the non-cc 123 FREE promo. I don't think it will be as good as I Like 9, though."

I sure hope you're right about that. Frankly, it doesn't even have to be better, if you factor in the $50 price drop in 301 systems and the $50 price drop in standalones since November, 2001. I'm not sure if DishNetwork actually has lower manufacturing costs now, or if they are just lowering the price and taking a $50, or if they were pricing it at $199, and $149 to recoup design costs which are probably recouped.
Whatever it is, with 301 systems being $149, and standalones being $99, a 2 receiver system is $100 less at MSRP than it was in fall 2001. I like 9 was worth $276. All they would have to do is give a 2 receiver system installed free, and give the full reimbursements on 301s. That would be worth $248, and maybe require AT100 instead of AT50.
But I'm frankly not hopeful about this or any other good promotion. Right now, if you say you want a 2 receiver system, it should tell you to go to DirecTV.

#8 OFFLINE   Kevin

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Posted 29 June 2002 - 01:12 PM

I agree that the Dish promotions have been going downhill recently. Nothing will ever beat the promotion that they were offering when I first subscribed 2 years ago: free basic installation, free Dish 500, a free model 3900 (3800 at the time) reciever, 3 free months of all the premium movie packages if you committed to AT150 for a year, and a $50 credit on your neighbor's Dish account of they recommended you to the service. The dealer even threw in a free dish cover. That promo is what made me choose Dish Network over DirecTV at the time, since both services were pretty much equal. If Dish reinstated good promotions like that again, many alienated cable subs would come flocking to Dish!

#9 OFFLINE   Jacob S

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Posted 29 June 2002 - 01:38 PM

I believe the best deal was the I like 9 because that is when I was the busiest since I converted Primestar customers to Dish Network my first year of business. Since they did lower the system price $50 then they would not have to give such a great deal as I Like 9 because they automatically have $50 less in the system anyhow. If they would just give incremental credits each month like $10-$15 a month off or free movie package(s) or something for the first year then that would get some customers.

How about this: Commit to Top 50 for one year, get 1 free premium package, Commit to Top 100 for one year, get 2 free premium packages, Commit to Top 150 for one year, get 3 or 4 free premium packages (America's Everything Package). This would be good for the customer and good for Dish Network. They would be giving the customer an extra something and maybe more than before while generating a guaranteed increased monthly income for the more they give free to the customer.

They could even give free PPV movie coupons or free premiums for purchasing the 501 or 721.

I dont see why they dont come up with a point system with each point giving credit on your montly bill and giving so many points for a referral, for signing up, for paying on time, etc.

#10 OFFLINE   jeffwtux

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Posted 29 June 2002 - 08:47 PM

Reply to Jacob S:

I also agree that "I Like 9" was the best. It was not only the best DishNetwork promotion. It was the best deal in the history of television. However, they don't have to offer that promotion exactly. Free Dish might be enough to hold the fort for 1 receiver installs. As for 2 receiver systems, the 123 Great TV is actually a BETTER DEAL than "I Like 9" was for 2 receiver systems when you factor in the drop in price of the systems and stand alones. If they just offer 123 Great TV for $149 for 2 receiver systems(what the price was from March 15-April 30, that would be better than I Like 9 was. However, I'm doubtful that they will do this. Clearly, they have decided that the 3 months free thing, doesn't work, because they have changed DHP back to 1 month free and trashed 123 Free.
However, they better do something or they will go under. Why are they going to spend all this money developing these new receivers, as well as their new LNB technology, don't forget that people, if they aren't going to offer promotions that will entice people to get them. They have sell or lease enough systems pay off all their design costs.

#11 OFFLINE   Jacob S

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Posted 30 June 2002 - 12:39 PM

I dont think the 123 Great Tv deal was better than I like 9 even when the second receiver was free and I dont think it would be a better deal even at the current price Dish equipment is and I tell you why, the second receiver is worth $100, free programming may only be about $100 if the customer just gets top 100 some may get less some may get more, and the $50 off to $149 for a system dont add up to $276, and the customer has to have a credit card to get the 3 free months in which most of my customers dont have or dont watn to use, so when that promo came out my sales dropped big time. It probably dont make much of a difference in my sales whether that deal was out or not. The only way it would be a better deal is if someone ordered a LOT of movie channels or America's Everything pack, and then the customer would not be able to afford the bills that would start coming in and it would be more likely for chargeback.

I dont think Dish has to come up with a good deal THAT good to bring in a LOT of customers, and when that deal came out I was thinking 'are they crazy?' that they did not have to have such deep discounts as that to get a customer but they could have been just a little less like maybe $15 a month for that package or maybe charge $9 for the top 50 to get more cashflow so that people would ugrade to top 100.

#12 OFFLINE   DRJDAN

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Posted 30 June 2002 - 08:43 PM

I was looking at a brochure at Costco today and they show the current 3 month free programing as expiring on 7/31/02. Why are you referencing it running out 6/30/02.

#13 OFFLINE   Mainstreet

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Posted 01 July 2002 - 09:39 AM

Originally posted by DRJDAN
I was looking at a brochure at Costco today and they show the current 3 month free programing as expiring on 7/31/02. Why are you referencing it running out 6/30/02.


You are correct. The changes don't take affect until 8/1/02:

• DIGITAL HOME PLAN: effective August 1, 2002, DHP will be extended through January 12, 2003 with 1 month FREE of subscription-based programming instead of 3 months free.
• $49.99 Activation Fee for up to 4 Receivers!
• The first month of the following are Free!
• The first month of all subscription. Please note: Free Programming does NOT include Pay-Per-View.
• Local DMA channels (where available).
• Equipment Fees of $5 for each receiver (including the primary receiver) is also FREE for the first month!
• DISH Entertainment Magazine!
• Valid major credit card, an annual commitment and Social Security Number are required. All Digital Home Plan activations are credit card qualified and must meet a minimum credit score.

#14 OFFLINE   cnsf

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Posted 01 July 2002 - 11:06 AM

Keep in mind that once the merger details are hashed out, you should see new promotions coming online again. They're probably taking a "wait and see" attitude.

They are not pursuing the market as aggressively right now (e.g. the NY area YES network issue) because of the pending merger.
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#15 OFFLINE   Kevin

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Posted 01 July 2002 - 02:24 PM

Originally posted by cnsf
Keep in mind that once the merger details are hashed out, you should see new promotions coming online again. They're probably taking a "wait and see" attitude.

They are not pursuing the market as aggressively right now (e.g. the NY area YES network issue) because of the pending merger.

They should operate as "business as usual" until the merger is official. What they're doing right now is ridiculous and unethical. They shouldn't be neglecting their customers because if the merger doesn't go through for some reason, then they're pretty much screwed.

#16 OFFLINE   psecic

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Posted 01 July 2002 - 03:37 PM

They're waiting for the merger.

#17 OFFLINE   HTguy

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Posted 01 July 2002 - 05:46 PM

Originally posted by Kevin
They should operate as "business as usual" until the merger is official. What they're doing right now is ridiculous and unethical. They shouldn't be neglecting their customers because if the merger doesn't go through for some reason, then they're pretty much screwed.


What's ridiculous or unethical about changing promotions?:confused:

They've done this since day one, quarter by quarter. Sometimes the promotions are "better" for some customers, sometimes not as good for others.

Sometimes the customer aquisition costs are to high for the number of new customers that are added vs. the number that churn, etc.

This is just business as usual.

And the customers that deal with independent local professional retailers are not neglected.
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#18 OFFLINE   jeffwtux

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Posted 01 July 2002 - 08:45 PM

HTGuy:
I'm an independent retailer, and I give on average about 35% of my commission away back to my customers, which I might add is against the rules. Dish could if they wanted to revoke my license for doing so. However, I can only go so far. I won't make a sale unless I can provide a 2 receiver system with the 1 year average monthly payments for AT100+locals, with any install fees averaged in to the first year, for less than analog cable on 1 TV. I did that from March 25-May 1. Then 123 Great TV was just $149 for a 2 receiver system. I did it for just $50. With 123 Free, I have to charge $100, which would make the first year average month be about $41. I can't make a sale at that price. I wouldn't buy it at that price.

#19 OFFLINE   Richard King

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Posted 01 July 2002 - 09:16 PM

They should operate as "business as usual" until the merger is official. What they're doing right now is ridiculous and unethical.

It is not rediculous, nor is it unethical. They are operating the business as usual. As was pointed out, changes happen in promotions on a regular basis and this is simply another cycle in the process. The management at Dish is smarter than to count chickens, especially under current market and regulatory considerations. To get worked up over this is just plain silly.
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#20 OFFLINE   Nick

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Posted 02 July 2002 - 10:00 AM

Richard, that is one weird uuugly avatar you have there. Please revert back to the "Coming Soon..." default avatar until you can come up with something that resembles Catherine Bell on the cover of FMH mag. :lol:


Nickster :cool:

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