This past fall I wrote about being badgered by Charter phone calls. I have Charter cable internet service, but I am not a cable television or phone service subscriber. This seems to bother Charter. The campaign to get me to increase my service has been running since the day I signed up. I would hear from sales representative urging me to save money by bundling services. “You can save money” they told me. The breakdown of the savings looked like this:
My Current Service: Internet: $44.99 = Total: $44.99
The “Savings”: Internet: $29.99 + Television: $29.99 + Phone: $29.99 = Total: $89.97
I stopped the phone calls by vowing to cancel my service if I received one more phone call. To Charter’s credit since I made that ultimatum they have not called me once.
Now I get letters in the mail. I started keeping the letters to track how dedicated Charter was to the cause of saving me money. It didn’t take long for me to realize the offer vacillated from $29.99 per service to $39.99 per service frequently (Figure 1).
I’m very curious why they alternate between pricing. Is it designed to make the consumer perceive a fair value of $39.99 and a bargain of $29.99? Is it to land oblivious customers at the $39.99 price? Is there a ratio between $39.99 customers and $29.99 customers that is being maintained?
Another thought: does anyone really believe internet service, cable television, and phone service have equal value? Really?
My current valuation of these services:
It seems I am not the kind of customer Charter is looking for. . .