Charter Marketing

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).

Figure 1. Promotional offers for bundling Charter services received at my address.

Figure 1. Promotional offers for bundling Charter services received at my address.

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:
Internet: $50
Television: $10
Phone: $1

It seems I am not the kind of customer Charter is looking for. . .


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