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HD-DVR Price Gouging at Directv
Posted Mon December 11, 2006 12:00 pm, by Van R. written to DirecTV, Inc.
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About 12/1/2006, I placed an order for an HR20 HD-DVR unit. The CSR explained that there would be no discounts due to the high demand, and that my total of $313 would spread over 3 billing cycles. Today, my friend told me that he switched to DirecTV from the Dish Network, and he was offered a free HR20 DVR unit. I then read online about others receiving free units, or getting billing credits so they only have to pay $50 or $100 for the DVR unit. I called DirecTV, the nice rep told me the best he could do for me was a $150 credit. Insulted, I declined the offer.
If I'm what DirecTV calls an "A-list" and "most valued" customer, then step up and offer me the best you have! Clearly, if I'm paying $50-$300 more than other people, I'm neither "A-list" nor "most valued." Since I'm no longer under contract with you, I will be taking 6 years of on-time payments and customer loyalty elsewhere unless you're willing to make me an offer comparable to what you've given other customers.
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by Cass Posted Wed December 13, 2006 @ 10:43 AM
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When you signed up with DirecTV, you agreed to the terms that were in effect at that time. Terms change all the time, there are always special promotions for new subscribers, etc. This is true for all kinds of services. DirecTV is under no obligation whatsoever to bend the rules for you - and yet they offered you a $150 credit. You got "insulted" and turned it down. You had your chance!
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I had direct tv a few years back, It cost a small fortne to set up their free offers where far from free. When they installe dthe dish on a pole for 150 buck they did so under a tree in November. I had asked about what would happen in the spring when the tree got leaves again and was told it would be fine dont worry. Low and behold leaves came in we got no signal-zilch. They then wanted another 150 to move thje pole they should have placed elsewhere to begin with. I took my business to dish network and payed the early termination fees. I couldnt be happier, its cheaper better service. They still call and send letters trying to urge me back, ha! I have discouraged anyone who asks from DirectTv and will continue to do so. I pay a monthly charge formy dvr to dish network simply because its cheaper than buying my own, so far I'm on my third box the other two just gave out, they replaced them free of charge because I rent the equipment from them.
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by calm Posted Tue December 12, 2006 @ 9:15 AM
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I've seen a commercial recently for some company or other in which they end with "If they're so helpful when you're just looking, imagine how they'll be when you're a customer!" or something like that. It's kind of hilarious, because once you are a customer they'll count on your inertia to keep you a customer. It's just easier to stick with some service or repeatedly-sent product than to go through the hassle of switching.
Before you're a customer, though, they'll do whatever they can to attract you -- and that takes more than it does to just keep you once you are a customer, because of that same inertia. In particular, they're willing to lose money on you for the first few months as long as you sign a contract that lasts long enough for them to make money in the long term. They can afford to give those people expensive freebies because their income from those people will increase if they sign up. It has to increase. They're not bringing in any money from those people right now. Giving existing customers expensive freebies means bringing in less money on those accounts than they're getting now.
When DirecTV tells you you are a most valued A-list customer, the most important word -- at least when it comes to getting a DVR unit -- is "customer".
Now, if DirecTV got into the business of giving its current customers the same offers and deals they give potential customers, I'd start agitating for my household to switch from cable to DirecTV.
So if you mean the threat seriously, go do it: go look at other providers you might use instead and see what deals they're offering new customers. Then check the contract you have at DirecTV to see whether getting out of that contract is worth the freebies or how long you'll have to wait to be able to get out. Maybe if companies start to understand that if their customer loyalty is based on inertia and laziness eventually the customers will quit being layal they'll start wooing existing customers more aggressively. But for that to work people actually have to be willing to jump ship when they don't get treated the way they think they should be treated.
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Exactly...
by Tina N Wed December 13, 2006 @ 7:53 AM
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by Courtney C Posted Tue December 12, 2006 @ 2:57 AM
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Just like Redhead said, those are the New Customer prices. They wont make you an offer comparable to those and you're hardly the first person to whine about it. I heard it from Dish customers day in and day out when I worked there. Just switch TO Dish and pick up the new customer prices over there. Otherwise, just get over it, because just like Redhead said, the best prices are introductory in most fields. Its not just sat tv and it really won't change.
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by Tina N Posted Mon December 11, 2006 @ 11:38 PM
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It's not "gouging", they have their price. Failure to research is your fault. If you had looked around you would have found the other deals.
DirecTV counts on people who are too busy/lazy/whatever to look around.
You were offered a discount and refused, so you have no right to complain about the price now.
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Often, those special offers are meant to lure new customers, not keep current customers happy and loyal. So newbies get the best deal. It's not just with satellite tv -- cell phones, phone service, internet service -- it's a common practice.
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