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Godfather
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Discussion Starter · #1 ·
I had a friend who mentioned a possible business plan and thought I would bring it to light for you guys in a D* point of view.

What IF D* started new customers are regular price with a 2 year agreement, then after the first year lower the rates by some percentage that was noticeable. Then on year 3 lower it again and the same on year 4. Year 5 would go back to regular price and the process would start over.

I know it's not very viable but it makes some sense when building loyalty. It would also keep existing customers from talking so much about new customer offers. Just compared to the way I pay bills and read on this forum (obviously more than posting) I thought it would at least be worth asking what you guys thought.

I understand new customer offers but I'm among those who aren't happy when I see them, even if I feel I'm getting what I pay for. With this idea there wouldn't need to be negotiations, at least to the same extent.

Just a thought.
 

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Majority of people today want instant gratification which is why new customer deals work so well. I don't see any changes in this any time soon it obviosly works with the low churn rate and they add subs quarterly without a problem.
 

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Godfather
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Discussion Starter · #3 ·
Yeah, that's why I put "not viable" in there. The market is impulsive and, like you said, wants instant gratification, but what do you think about the plan?
 

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Super Moderator
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I would like to see DirecTV (and cell providers, and others) give you a price guarantee associated with a service commitment. Want to lock me into two years service? Fine, guarantee me the starting price for the full two year period.

I have seen some offers like this, from some providers, some times. But never ongoing.

Not sure how to address the long term "loyal" customer, but I do agree that being one does not seem to get you much in the line of discounts. Of course, from a business perspective, the long term loyal customer is not likely to leave, so why give away profit to retain someone who you will retain anyway (in most cases).
 

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Godfather
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west99999 said:
Majority of people today want instant gratification which is why new customer deals work so well. I don't see any changes in this any time soon it obviosly works with the low churn rate and they add subs quarterly without a problem.
I have to agree with you about people wanting gratification today and think about tomrrow, tomorrow.
 

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I suspect if the ideal business plan/pricing model was out there, many companies would already be using it.

There are alot of dynamics in play when it comes to these plans, and a wide range to things have been tried already.

There are 3 key dynamics that seem to be key in today's market, a couple of which that have been mentioned or vaguely discussed:

1) People want instant gratification with price...a deal is a deal is a deal mindset. It seems many people feel they are entitled to discount pricing for almost everything these days.

2) TV content delivery has virtually been commoditized. That means price and content are almost the only competitive advantages, with service playing a 3rd place.

3) The technology keeps changing in terms of services and integrated products (like Internet connectivity-based offerings), so this is a fluid market in terms of customer loyalty. I'm not even sure customer loyalty is even applicable in this industry anymore.
 

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Godfather
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Discussion Starter · #8 ·
hdtvfan0001 said:
2) TV content delivery has virtually been commoditized. That means price and content are almost the only competitive advantages, with service playing a 3rd place.

3) The technology keeps changing in terms of services and integrated products (like Internet connectivity-based offerings), so this is a fluid market in terms of customer loyalty. I'm not even sure customer loyalty is even applicable in this industry anymore.
Couldn't agree more.
 

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Legend
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hdtvfan0001 said:
1) People want instant gratification with price...a deal is a deal is a deal mindset. It seems many people feel they are entitled to discount pricing for almost everything these days.
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Entitled?

I keep reading this term over and over on this forum. Mostly from DTV brownnosers.

Why do you think DTV is ENTITLEDto taking as much of my money as possible?

I work for my money, I work to spend it as efficently as possible. Currently there are at least 4 TV providers (cable, DTV, Dish, Uverse) that serve my area. 95%+ of the most important service (TV programing) is identical.

Why should I pay more for DTV vs the others?

Futhermore, are you getting a cut of DTV profits by continuing to label people who want a lower price as 'entitled'? For every costumer you convince to pay higher rates do you get a few bucks a month?
 

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DaBears
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opfreak said:
Entitled?

I keep reading this term over and over on this forum. Mostly from DTV brownnosers.

Why do you think DTV is ENTITLEDto taking as much of my money as possible?

I work for my money, I work to spend it as efficently as possible. Currently there are at least 4 TV providers (cable, DTV, Dish, Uverse) that serve my area. 95%+ of the most important service (TV programing) is identical.

Why should I pay more for DTV vs the others?

Futhermore, are you getting a cut of DTV profits by continuing to label people who want a lower price as 'entitled'? For every costumer you convince to pay higher rates do you get a few bucks a month?
There's a difference between spending it efficiently and assuming that you are never to pay for something, always get a discount, and that it's owed to you.

If the others are cheaper then go to them. You're staying with DIRECTV for a reason. If the reason is they give you discounts and then that well runs dry then so be it but the attitude of "they have to" is what is getting old. A company does not have to do anything other than what is in the terms and conditions. Clearly DIRECTV still makes a profit by offering customers discounts but that doesn't mean that each person is eligible for the same thing and just because customer A got something that you should as well.

If you have a 401k or mutual fund you're getting paid when when people pay higher rates too.
 

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Godfather/Supporter
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There can be good reasons to pay more and stay. I don't think Direct is actually more than cable, and is more than Dish, but not in every case. But lets say they are more. You might stay with them because no one beats them for sports. You might stay with them because you never had a problem with them, or if you did, it was taken care of. Maybe you like the equipment better than Cable, or the picture. Maybe you just like the advertisements? Lol

I don't know about entitled, but if a company is giving discounts, why not ask for it? I really can't blame someone out of contract to switch if cost is a big factor, when they can be a "new" customer and save substantially the first year or two. That's the climate the companies have brought on themselves. I happen to have no interest even with a substantial price decrease to switch (from Dish in my case) but I understand those that would.
 

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opfreak said:
Entitled?

I keep reading this term over and over on this forum. Mostly from DTV brownnosers.

Why do you think DTV is ENTITLEDto taking as much of my money as possible?

I work for my money, I work to spend it as efficently as possible. Currently there are at least 4 TV providers (cable, DTV, Dish, Uverse) that serve my area. 95%+ of the most important service (TV programing) is identical.
Everyone has the choice to use any provider they want...and most consumers work "hard for their money".

If price is your only criteria, you always are entitled to choose the low cost provider.

If content or services are your criteria, you also are entitled to choose whichever provider gets you the services you prefer.

Customers are not entitled to get both....competition and the free market determine that.
 

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Pricing of this sort of service (like cellphone service) is strongly biased towards getting new customers not keeping the existing ones. It may be rough on existing customers, but all the marketing research shows that it is much more difficult to get a new customer than to keep one. New customers need an incentive, most existing customers find it difficult to change suppliers and will keep on subscribing even if they are not getting special deals. To be blunt, why reduce someone's price to $80 if you can get away with continuing to charge them $100? Yes, there's a threshold at which subscribers will start to leave in droves, but if your ongoing price is in the same ballpark as everyone elses, why change? As a new customer, I could get a better deal by changing my cell provider, these days I could even keep the same number, but like most people, I don't bother. As a DirecTV customer, I could get a great new customer deal from Dish, or from uverse, but I don't. And all the satellite and cable providers rely on that behavior pattern.
 

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Premium Member
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Shades228 said:
There's a difference between spending it efficiently and assuming that you are never to pay for something, always get a discount, and that it's owed to you.

If the others are cheaper then go to them. You're staying with DIRECTV for a reason. If the reason is they give you discounts and then that well runs dry then so be it but the attitude of "they have to" is what is getting old. A company does not have to do anything other than what is in the terms and conditions. Clearly DIRECTV still makes a profit by offering customers discounts but that doesn't mean that each person is eligible for the same thing and just because customer A got something that you should as well.

If you have a 401k or mutual fund you're getting paid when when people pay higher rates too.
+1
 

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hdtvfan0001 said:
Everyone has the choice to use any provider they want...and most consumers work "hard for their money".

If price is your only criteria, you always are entitled to choose the low cost provider.

If content or services are your criteria, you also are entitled to choose whichever provider gets you the services you prefer.

Customers are not entitled to get both....competition and the free market determine that.
Nicely said.
 

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Godfather
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Discussion Starter · #16 ·
opfreak said:
Entitled?

Why do you think DTV is ENTITLEDto taking as much of my money as possible?
Because you asked them to install THEIR equipment to give you THEIR programming. And so they get to set THEIR prices. D* doesn't randomly go into people's bank accounts and take money. You ask for their services and you get met with their prices all on YOUR decision. :)

opfreak said:
Why should I pay more for DTV vs the others?
Why would someone pay more for an Acura than a Honda? It's all in what you want and what you are willing to pay for.
 

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Legend
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goinsleeper said:
Because you asked them to install THEIR equipment to give you THEIR programming. And so they get to set THEIR prices. D* doesn't randomly go into people's bank accounts and take money. You ask for their services and you get met with their prices all on YOUR decision. :)

Why would someone pay more for an Acura than a Honda? It's all in what you want and what you are willing to pay for.
Really? Thats all you have.

DTV has you people lined up like sheep.

Just because DTV says price is XYZ doesn't mean thats the actual price. If I call in and they gave me a discount, then its obivous they could be charging me less. But there buisness plan to to live of the ignorant fools that would pay whatever they charge.

So when DTV negoiates with networks when a contract is up, do you call them 'entitled' to 'discount'?
 

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Legend
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hdtvfan0001 said:
Everyone has the choice to use any provider they want...and most consumers work "hard for their money".

If price is your only criteria, you always are entitled to choose the low cost provider.

If content or services are your criteria, you also are entitled to choose whichever provider gets you the services you prefer.

Customers are not entitled to get both....competition and the free market determine that.
So when DTV contracts exprie with network XYZ.
Does DTV do

1) Pay whatever network XYZ asks?
or
2) Ask for some sort of 'discount'?

Using your logic DTV should do 1, pay whatever the network asks.
 

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Hall Of Fame
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hdtvfan0001 said:
Everyone has the choice to use any provider they want...and most consumers work "hard for their money".

If price is your only criteria, you always are entitled to choose the low cost provider.

If content or services are your criteria, you also are entitled to choose whichever provider gets you the services you prefer.

Customers are not entitled to get both....competition and the free market determine that.
+1 you put it a lot more friendly then I would have - guess we have been in the dole life style for to long
 

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Cool Member
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I had a friend who mentioned a possible business plan and thought I would bring it to light for you guys in a D* point of view.

What IF D* started new customers are regular price with a 2 year agreement, then after the first year lower the rates by some percentage that was noticeable. Then on year 3 lower it again and the same on year 4. Year 5 would go back to regular price and the process would start over.

I know it's not very viable but it makes some sense when building loyalty. It would also keep existing customers from talking so much about new customer offers. Just compared to the way I pay bills and read on this forum (obviously more than posting) I thought it would at least be worth asking what you guys thought.

I understand new customer offers but I'm among those who aren't happy when I see them, even if I feel I'm getting what I pay for. With this idea there wouldn't need to be negotiations, at least to the same extent.

Just a thought.

I would not want to be a directv Call Rep when Customers hit year 5. I work with customers every day In my job and if prices change just a little bit some customers hit the fan. I'm no expert but a 5 year customer who has seen his bill drop every year and then right at 5 years goes back to full price just to start the process all over.
 
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