I use SF and pay at nearly the rate for your 21s Century but I live in
an area where rates are high and when ever I check other companies, they
are higher than SF.
Many years ago I attended a seminar by our company's marketing people
who told us that our best customers paid more for our products as they
thought they were better. Smart customers would use 2-3 suppliers and
play them off each other to get the product cheaper. There was
essentially no difference in our products from competitors. Smart
customers knew this and played on it to get the cheapest prices.
We had a recent incident where a trash hauler offered us about 2/3 the
rate we were paying. We were going to switch to them but called our
hauler and told him what we would have to pay to the other and he
immediately matched it.
Competition is what makes capitalism great as it benefits all that take
advantage of it.
On Sun, 6 May 2012 10:48:39 -0500, "Attila.Iskander"
Exactly. A few years ago, my insurance went up a few bucks, but I did
not complain and paid the bill. The following years, I got a huge
increase and figured I'd shop around. Meantime, my agent called and
said "don't pay that bill". She got me a new policy with another
company at a much lower rate.
Oh, the two big companies that advertise low prices heavily on TV were
higher that what I pay even with this years rate. 15 minutes was 15
What amuses me are the commercials by Company A (although others run
similar spots) which assert that "People who switched saved an average of
Mind you, Company A is not generally known for having the lowest rates.
But one must listen closely to what the man says:
"People WHO SWITCHED..." past tense. People who DID switch.
Not that most people will find them cheaper. For all we know, they might
be more expensive in the vast majority of cases. But everyone is
different and there may be a handful for whom they are cheaper. But not
just a little cheaper, but enough so to make it worth their while to
switch. Thus, filtering out all those for whom they are not cheaper or
not significantly so.
So of course people WHO SWITCHED are going to find them to be
significantly cheaper. Otherwise why would they switch? It's
practically by definition!
But that's not all. The full assertion is that "People who switched
saved an average of X dollars. Y dollars if they dumped" Company G.
Y > X
Surprising, since Company G is famous for having lower rates.
How can this be?
If X is the average savings of all the people who switched and and Y is
the savings of just those who left G for A and it's a greater amount, it
can mean only one thing.
It means that it took greater savings to lure people away from G.
So G customers must have greater loyalty to G than the overall average.
It takes more savings to pry them away!
Maybe because G has more amusing commercials?
I dunno. This commercial from A is plenty amusing if you really think
about what they are saying.
Bottom line: "People who switched" is a completely meaningless statement
because it will pretty much always be true for any company.
After working many years in responsible positions in big companies the
best plan is to simply avoid the companies that spend considerable
marketing effort to tell you how good they are because there is a 99%
chance they are exactly the opposite of how they portray themselves.
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