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

Discussion in 'DIRECTV General Discussion' started by oliversmall, Jul 13, 2013.

  1. Jul 15, 2013 #41 of 1120
    242424

    242424 AllStar

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    "At the end of the day those who do not call, because we dont feel entitled, we wind up paying for the discounts of others."

    Why would you say this then? If you don't pay there is no "we" and if it's DTV's fault why try to make people feel guilty for taking advantage of these discounts?

    I get the feeling you might be thinking of your own gain if everybody paid full pop for the service.... I'm probably off base though. lol
     
  2. Jul 16, 2013 #42 of 1120
    raott

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    Simply false. That is not how pricing works and is a myth perpetuated on here. It hits Directv's bottom line, it doesn't affect price (or if it does it is on a macro basis and is negligle).
     
  3. Jul 16, 2013 #43 of 1120
    archer75

    archer75 Godfather

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    It's not that a person can't afford it, nor is it about feeling entitled. They don't owe me a discount, nobody here is saying they do. It's about not paying more for something than you really have to. I look for discounts in all things. Paying more than you have to for anything is just stupid and I would do the same even if I won the lottery.

    When I signed up for direct tv I knew i'd never pay full price for the service because full price, I feel, is ridiculous. Yes, I can afford it. At the end of my 2 years of discounts i'll call them up and they'll either offer me the discounts I want or i'll cancel. No hard feelings. They don't owe me. But as a consumer I do have a right to make a decision about the value of goods and services and what i'm willing to pay. I'm willing to pay the lower price they offered me for 24 months but not the regular price. I accepted the price and felt it had value for that 24 month period.
     
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  4. Jul 16, 2013 #44 of 1120
    lgb0250

    lgb0250 Legend

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    As I previously posted about this months article in Consumer Reports, here are some comments from tht article:

    "Hate to haggle? 48% of shoppers tried bargaining for a better deal in the last three years compared to 61% in 2007!"

    "Clearly, people who don't haggle are leaving money on the table."

    "It's not in the sellers best interests to charge one price to all customers. You charge different prices to different people based on their willingness to pay. As long as you sell something for more than your cost, you are making a profit."

    "You can't win if you don't try."

    "give sellers a reason to negotiate. If you're a loyal customer, say so."

    Last but certainly not least in how it applies to D*:

    "When it's expensive to attract new customers, companies may work hard to retain existing ones."

    But this statement is also another one to keep in mind, especially in this forum:

    "Be discreet. Sellers may not want to make your great deal public."
     
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  5. Jul 16, 2013 #45 of 1120
    peds48

    peds48 Genius.

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    'cause I did not...!rolling
     
  6. Jul 16, 2013 #46 of 1120
    242424

    242424 AllStar

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    Really? Someone hacked your account on here? lol



     
  7. Jul 17, 2013 #47 of 1120
    inkahauts

    inkahauts Well-Known Member

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    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.
     
  8. Jul 17, 2013 #48 of 1120
    peds48

    peds48 Genius.

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    I was testing you to see if you were paying attention..... :rotfl:
     
  9. Jul 17, 2013 #49 of 1120
    peds48

    peds48 Genius.

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    Absolutely true! Some "stores" have budgeted a percentage of the products to be lost. so we this in mind they adjust the prices accordoingly
     
  10. Jul 17, 2013 #50 of 1120
    raott

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    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.
     
  11. Jul 17, 2013 #51 of 1120
    inkahauts

    inkahauts Well-Known Member

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    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.
     
  12. Jul 17, 2013 #52 of 1120
    omartinjordan

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    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.

    Sent from my SAMSUNG-SGH-I747 using DBSTalk mobile app
     
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  13. Jul 18, 2013 #53 of 1120
    inkahauts

    inkahauts Well-Known Member

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    Unfortunatly, that ship has sailed. Its nearly impossible to stop giving discounts once you have started it. Just ask j c penny.
     
  14. Jul 18, 2013 #54 of 1120
    lgb0250

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    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.
     
  15. Jul 18, 2013 #55 of 1120
    raott

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    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).
     
  16. Jul 18, 2013 #56 of 1120
    Cyber36

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    Supply & Demand? You mean like the way they price gasoline here in lovely N.Y.S.?? LOL......
     
  17. Jul 18, 2013 #57 of 1120
    raott

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    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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  18. Jul 18, 2013 #58 of 1120
    peds48

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    forgot "speculation"

    back to topic.....
     
  19. Jul 18, 2013 #59 of 1120
    grecorj

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    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.
     
  20. Jul 18, 2013 #60 of 1120
    peds48

    peds48 Genius.

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    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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