It Pays to Bundle and Bargain!

Posted: April 19th, 2011 | Author: | Filed under: spending | Tags: , , , | 1 Comment »

According to a recent Consumer Reports reader poll, a majority of readers bundle their internet, television and phone service through a single provider, and most are happy they did so. Not only that, but many also haggled for a lower bill for their services.

Reader response.

Here’s the highlights of the poll:

  • 27% of bundle customers said they would definitely choose a bundle again.
  • 55% said they “probably” would.

That leaves only 18% who were either unsatisfied or couldn’t figure out if they had an opinion.

Among the main reasons for choosing the bundle was convenience. As someone who is constantly scheming for ways to eliminate my own monthly payments, I can appreciate the desire to consolidate those payments.

Of the readers who didn’t opt for the bundle, the main reason for skipping was a lack of real savings. As I’ve said before, it’s only savings if you’re paying less for services and products you either need or actually use. Paying anything for services you don’t use is not saving anything.

Tips.

Here are a few of the tips for determining which provider to use and whether a bundled package is right for you.

Verizon FiOS and AT&T U-verse get good marks.
More readers who bundled with these providers said they would do so again than any other respondents. Interestingly, these readers also had fewer complaints about big price hikes once the introductory offer time had expired – the opposite of cable customers.

Compare everything!
It’s important to compare cost of equipment, activation fees and servicing fees and not just the monthly bill. Not all providers are forward with their pricing and many try to hide behind various fees that only show up on the monthly bill, and not in their brochure.

Avoid contracts.
Contracts from television, internet and phone providers are nothing more than a locked in monthly charge. They limit your ability to switch providers when you want and therefore limit your haggling ability. It’s best to avoid if possible.

See the big picture.
When comparing provider costs, look beyond the introductory price. Look at how much you’ll spend for 3 years, and do this for all providers you’re considering. Often times, providers make up money they lose in the introductory 1st year through higher than average costs the 2 years after the intro offer expires.

Haggle.
Even if you’re not switching providers, it pays to haggle with your existing provider. The key to haggling successfully is to be prepared. If you’ve investigated the competition with the intent of possibly switching, but decided it’s not worth the hassle to switch, you can still use that time and effort spent researching as leverage to bargain for a lower monthly bill with your current provider. They don’t need to know you researched and decided to stay put! Call them up and point out the benefits to you if you switch providers. Tell them that you’re happy with the service, but not the cost. You’ll be surprised at what they might offer to keep you.

Remember: It may be a hassle for you to switch phone numbers and email, but it’s much more costly to gain a new customer than make an existing one happy.

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