Thursday, February 19, 2015

Tech subscription pricing

I had already experienced the volatility of electronic subscription pricing 18 month ago with my satellite radio subscription and just had the same surprise when I recently renegotiated my internet broadband service and when, two days ago, I canceled my satellite TV service.

These suppliers are fully prepared when you ask them to renegotiate the cost of a subscription and will do anything to keep you onboard. First, they'll try to throw extra free services and if it fails, lower their price significantly.

My internet broadband subscription was simply cut in half after I haggled with the sales rep and as I was canceling my satellite TV plan, the rep who couldn't not take no as an answer offered to halve my monthly payment for a year. A day later, after I had scream a loud “NO”, another rep was offering me a one-year subscription at 40% of its original cost!

What does this mean? It probably that folks have had it with expensive e-services, many are choosing TV streaming instead of cable or satellite service; it also means that a client acquisition cost is enormous and that once in a program, it takes an awful lot for a subscriber to leave.

Finally, it clearly demonstrates that the actual usage cost per client is nil. Try it if you have the time and inclination. It works!

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