Thursday, September 3, 2009

The New Customer Gets the Best Deal

Switching to a new phone company, tv provider, or being a brand new customer just about anywhere is the way to get the best deal. Most really good offers are tagged as "not available to existing customers." There are a few companies that will give existing customers the "new customer deal" if asked but most will only match the offer if the service or products provided are cancelled.

I recently cancelled Optimum On-line TV, Internet and Phone service after two years. Before cancelling I phone up their customer service people and asked for the new customer pricing or some better pricing. The phone agent said essentially what I had is what I get and there were no better deals for customers. So I cancelled and got Direct TV and Verizon phone & internet.

I have received several phone calls from Optimum now offering me a "cheaper price" and also saying they will cover any cancellation costs. I told them I was no longer interested and suggested they change their customer policies and better train their customer service people.

When I wrote my book, Purchasing Negotiations, in 1980 I suggested that loyalty to people you were buying from was usually rewarded. I was wrong. All loyalty gets in today's market, even with the terrible economy and companies losing customers, is somewhat poorer service than new customers can get and generally higher prices.

There are a few exceptions. Marriott is one prime example. I used to travel extensively on business and stayed in these hotels as often as possible. Today after many years they still honor me as a long time customer, give me preferences in pricing and reservations and treat me like a long time friend. Mr. Marriott Senior started a philosiphy to honor customers, share holders and employees as both friends and family. His son carries on the tradition and as far as I can tell every employee of the company, from a Hotel in St. Petersburg Russia to the Americas to Asia all communicate the same message and feelings.

On the other hand United Airlines, who I had many hundreds of thousands of miles of frequent flyer point in years past, erased my unused points because I did not fly them for whatever their extended period was. They no longer need me and I in turn no longer select them as my airpline of choice on the few flights I take today.

Ask for loyalty from people you are doing business with today. If they give it stay with them and let them know you are staying. For those who are unwilling to reward your loyalty walk away, with no regrets as soon as possible. You have nothing to lose and everything to gain.

Glenn

Monday, August 17, 2009

Introduction

What to negotiate is more important than how to negotiate. In today's world most buyers and sellers are willing to negotiate when asked. Some recent examples people might consider:

  • Cablevision tell people they are getting the best price until service cancellation starts, then a better deal is offerred.
  • Landlords are known for reduce rents when asked or extended lease terms are offerred by renters.
  • Car dealers always find ways to give a little more - such as floor mats and trunk liners.
  • Retailers will pass on sale prices, after the sale, if the manager is asked.
  • Hotels may have a better deal, when you tell them you're trying to decide whether to commit now or call back after "checking other options."
  • Service providers, plumbers, carpenters, electricians, usually have some price flexibility, particularly if people are willing to pay cash.
  • Service providers will usually allow the buyer to provide the materials needed for the work as long as the materials meet the quality specifications of the provider.
  • Travel agencies and major tour companies frequently have deals that they may only offer if asked.
  • Seniors almost always can get a discount, but only if they ask.
Several years ago my book, "Purchasing Negotiations" (CBI 1982), was published. It is now out of print but people still call me about the chapter on determining what to negotiate. That remains the topic of most interest.

Over the years I have consulted on procurement issues for major corporations worldwide. Now that I'm retired I think it is time to also help retail consumers.

I am building my new book, What's Negotiable for Consumers. As I hear of new items from people I will post them on this blog and hope that others will also share their experiences. I promise to give everyone credit, who wants it, in the book and on the blog. To me the most important is to share ideas for everyone's benefit

What deals have you gotten. Please share them on this blog the deals you've gotten. As they come in I will collect them and sort them by subject and idea.

Thanks for your help.

Glenn

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