Tuesday, October 11, 2005

It's not a bait and switch, it's a switch and bait!

Ever wonder why when products and services get cheaper, the price doesn’t go down? For example, 10 years ago, cell phones were expensive but now they aren’t, right? Wrong. Cell phone companies have plans that offer 500 minutes a month for 40 bucks so you’d think you could get a plan with 200 minutes for half the price, say 20 bucks. I have a land line that costs 30 dollars a month so why would I want a cell phone with hundreds of minutes I don’t need for double the cost? Because the cell phone companies want 40 dollars per customer, that’s why. The phone itself is cheaper, though, right? Wrong. They still cost a couple hundred bucks and they’re so poorly made, they break every six months. Now they have games, cameras, and MP3 players in them so stupid people will think they’re getting something for their money. Sure, cell companies will “give” you the phone free if you buy a ridiculous plan you don’t need and promise to pay for 2 years. That’s not a bargain, either but it’s all about cost per customer. Nextel’s the worst but, hey, they have to sponsor NASCAR so don’t expect any deals there. I also like the flexible minute plans that “change with your needs.” Hmmm, we’ll charge you based on the minutes you use. Bell telephone invented that idea 100 years ago and it works fine, except that the cell companies charge awful rates and still have minimum minutes required (hint: it always adds up to at least 40 dollars, dummy). Here’s another one that doesn’t make sense – buy a “value” plan and you can keep the minutes you don’t use for next month. I can’t even express in words how stupid that is. I buy 800 minutes a month, use 150, and I roll 650 minutes into the next month for a total of 1450 minutes. Next month I use 150 again and now I have 2100 minutes to use. Still, you never know when you may need to make a 35 hour phone call. Here’s a novel idea: how about selling me the 200 minutes a month I wanted in the first place?

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