The $4,752/Hour Financial Strategy You May Be Ignoring
A few years ago, I upgraded our internet speed because I started a business and didn’t want a frozen Zoom screen to become my brand identity.
I upgraded to a mid-tier plan for a fairly reasonable price at the time.
But then, as happens with regular bills, the price kept creeping up. A little bit at first but then it started jumping to higher and higher prices.
Eventually, I became so annoyed that I looked up the providers website. And what did I find?
The exact same plan—now the lowest speed offered—was being advertised to new customers for less than half of what I was paying. On top of that, they are offering a gift card for switching, and a free subscription to another service for a year!
Same service. Same wires. Same everything.
Massively different price.
Consider my blood boiled at that point.
The Squeaky Wheel Method
As the old saying goes, the squeaky wheel gets the grease.
So I made the call, I wasn’t all that excited about going through the hoops so I took a very direct, pragmatic approach.
Here is what I did:
Take Control of the Conversation from the Get Go
The first person you speak to is not the person who is going to be able to help you. They will follow a script that will include trying to sell you a different service. The goal is to get past this person as fast as possible.
The second person you talk to may or may not be the person who can help you.
Lay Out the Facts
From the start of the conversation, explain very clearly the circumstances: You’ve been a customer for X years, you have not changed your services, you are not happy with the current price, etc.
Be polite and courteous. No one likes to be yelled at and the people you are talking to were not the cause of your price being increased.
Explain What You Intend To Do If You Don’t Receive a Satisfactory Outcome
Next, explain that if you don’t receive a satisfactory outcome, you plan to cancel their service. In my case, I explained that their competitor was offering a comparable service for a better price – including incentives to switch. I told them I would prefer not to switch but I would. In which case,
1) they would lose my revenue for 3 to 5 years
2) when I returned, they would have to reinstall wires that were cut
3) they would also likley be giving me incentives to swith back.
All of this costs money and annoyance.
The Result?
After 30 minutes of being on the phone, they reduced my plan cost from $90 per month to $26 per month!
That’s $66 saved per month which they guaranteed for 3 years resulting in $2,376 in total savings.
For a 30 minute phone call, that’s an effective hourly rate of $4,752! Not bad.
Why You Have to Review Your Bills Periodically
Companies operate on two basic assumptions:
- Most customers won’t notice.
- Most customers won’t call.
Promotional pricing is built into their model. It’s not personal. It’s just inertia.
They count on you being busy.
They count on you forgetting.
They count on the fact that $10–$20 increases feel annoying—but not annoying enough to act.
You might now always have as successful of an experience with the Squeaky Wheel method as above. Some companies negotiate more than others, but it doesn’t hurt to try.
What Bills are Most Likely to be Negotiable
The following is a list of bills that are most likely to be negotiable:
- Satellite or Subscription Radio Services
- Internet & Cable Services
- Streaming Bundles
- Auto Insurance
- Home Insurance
- Cell Phone Plans
So get out there and squeak a little bit. You might find that you can save some money with just a few minutes of your time.