Enough is enough. Isn’t it time that cell and cable companies stopped advertising seemingly low monthly prices for their service, while tacking on a multitude of junk fees, undisclosed charges, and taxes that significantly boost your bill?
Recently the Huffington Post did an exposé, using Verizon FiOS’ new pick your own channel bundle for $74.99 as an example. When you added all the other charges, you actually had to pay over 60% more than the advertised price.
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There were equipment/HD fees, FDV administrative fee, broadcast TV fee, regional sports fee, franchise fee, USF fee, federal/state/local taxes, etc. There could also be installation fees, activation fees, and early termination fees depending on the offer.
Verizon is certainly not alone in tacking on all these fees. Comcast and Time Warner are equal opportunity offenders, as are the wireless cell companies.
Is it any wonder that these types of companies rate low in customer satisfaction surveys and on trust indices?
Maybe there needs to be a requirement, like airfares, that a single all-inclusive price must be the amount advertised, and not these bait and switch prices.
Filed under: Retail — Edgar (aka MrConsumer) @ 5:48 am
A new unified rewards program named Plenti was recently introduced by a number of retailers. The concept is simple, and actually kind of smart on the face of it: instead of separate loyalty programs, these stores use the same card to allow shoppers to earn points that get deposited into a single account. Then, the points can be redeemed at participating members’ stores for discounts.
But wait, there was some almost illegible fine print on the screen for a mere three seconds.
“You cannot use points with all participating partners or at all locations.”
Huh? Isn’t that the point of the program to earn points at member stores and then be able to redeem there?
For example, here is AT&T’s Plenti ad.
In case you can’t read that, it says that you can’t currently use points at AT&T.
In fact, according to the Plenti site, you can only redeem Plenti points at Macy’s, Rite Aid and participating Exxon and Mobil stations.
So, if you like to collect points just for the sake of collecting them because you don’t shop at the above retailers, knock yourself out at AT&T, Nationwide Insurance, Direct Energy, Enterprise, National, Alamo, and Hulu.
And as with any discounts, there are “plenti” of other earning and redeeming exclusions.
Everybody loves a bargain, and when a company offers a second product free or at reduced price, that can be an attention-grabber.
The problem is that too often companies advertise 2-fer offers that are ambiguous at best, causing the shopper to jump to a conclusion about pricing that might be erroneous.
Okay, what are these people offering? Is it two boxes of checks for a total of $4.95 and you get a third box free? Is it merely buy one box for $4.95, get a second box free? Or is it $4.95 for each box, and if you buy two, you get the third box free?
The answer in this case: This is a straight buy one box for $4.95, get another one free. (That’s an amazingly low price until you factor in mandatory handling charges of $3.45 per box.)
Now, what’s this deal? Is each book of checks 49 cents? Is one box 49 cents when you buy two other boxes for $13.44 each? Are two boxes $13.44 period?
The answer when you clickthrough to their website is that this is a buy one for regular price offer, get the second box for 49 cents. So, apparently the first box is $12.95.
Incidentally, two many of these cheap check printers do not disclose how many checks are in a box. If memory serves correctly, it was standard practice to get eight books of checks in a box, or 200 total. Now some sellers only provide 150 checks, and others only 100.
So cases of paper are $4.99 after rebate at Staples “when you buy two.” So do you have to buy two cases at regular price and then get the third for only $4.99? Or are two cases $4.99 total? Or are cases $4.99 each, but you have to buy two of them to get that price?
In this example, unlike the check ads, the stated price is meant to apply per item. So, paper is $4.99 each case, but you must buy two to get that price each.
With these three examples, you have to wonder if sellers ever look at their offers to make sure that they are clear and unambiguous.
Last week we told you about Keurig’s new 2.0 coffeemakers that no longer work with old Keurig K-cups and will now only accept their own brand or licensed K-cups with special markings on the top.
Well, it seems the company has had a little change of heart. What prompted them to come to their senses? Their first quarter financial results came in last week and showed that sales of brewers and accessories dropped 23 percent compared to a year ago. During a conference call with investment people last week, their CEO said this:
“We were wrong. We missed — we didn’t — we underestimated it, it’s the easiest way to say it. We underestimated the passion the consumer had for this,” Brian Kelley said. “We heard loud and clear from consumers who really wanted the ‘My K-Cup’ back. We want consumers to be able to bring any brand and bringing the My K-cup back allows that.”
What Mr. Kelley is referring to is a refillable and washable plastic K-cup the company sold that allowed consumers to buy a pound of whatever brand of coffee they wanted, and then just scoop a spoonful into it.
Fine, but that is only one part of the types of cups the company disabled. What about all the other brands of K-cups that don’t have that magic mark on the lid, and all the old K-cups consumers may have in stock?
Their PR manager declined to address those issues when we asked last Friday:
“Plans are still in progress, so I’m not able to provide any additional details at this time.”
The maker of Keurig coffee machines, the ones that use those little (and expensive) K-Cups to brew a single cup of coffee, must have a clever bunch of engineers in their employ. They have created a new machine, the Keurig 2.0, that will only accept their own officially licensed cups that typically cost between 75 and 80 cents each (for about a dime’s worth of coffee). It is also designed to accept different size K-cups to brew either a single cup of coffee or four cups.
Hmmm. Where have we seen this before? Oh yes, inkjet printers. A few years ago, printer manufacturers who got tired of seeing consumers refill their own ink cartridges or buy cheap no-name ones, got the brilliant idea to affix a computer chip to each cartridge refill. That way, the printer could check if an official cartridge was installed or not. If not, the printer would stop working.
Similarly, Keurig presumably didn’t like all the cheaper knockoff little K-Cups on the market, or the reusable and washable cups that one can just add a scoop of grounds to whenever coffee was desired. So, they came up with a machine that would only turn on when a legitimate K-Cup was popped in.
How does Keurig disclose this limitation of their new coffeemakers?
*MOUSE PRINT*: From a footnote in the product description:
What do they mean they can’t guarantee that non-Keurig-2.0 cups will work? They deliberately designed the machine not to work with them.
*MOUSE PRINT*: From their FAQs:
The Keurig® 2.0 brewer will only function with Keurig® brand pods. That means the Keurig® 2.0 brewer will brew both K-Cup® and Vue® pods and the new K-Carafe™ pods. Keurig® brand pods have been specially designed to work with the Keurig 2.0 Brewing Technology® in the Keurig® 2.0 system, which guarantees a perfect brew every time. Look for the Keurig Brewed® seal on your favorite K-Cup® pod and K-Carafe™ pod varieties to ensure a delicious cup every time. Keurig cannot guarantee that pods without the Keurig Brewed logo will work in the Keurig 2.0 brewer.
How exactly does the Keurig 2.0 work? No, they didn’t put a computer chip in every cup. The stories vary, however, of what the actual technology is, depending on whom you ask. Customer service folks at the company say the new coffeemakers have a laser that reads a serial number on the top of the new K-Cups. A company executive says that an infrared light is shined on the foil cover of each K-Cup, and the wavelength of the reflected light is measured to see if it matches a set standard.
What happens if you try to put an unlicensed little cup of grounds in the new machines? You get an error message on a little computer screen, the machine fails to start, and the coffee cops are notified.
Not long after the new system came on the market, hackers went to work to defeat it, and came up with three primary ways to continue using whatever coffee containers you want. The first is removing one wire :
The other ways involved putting a legitimately licensed cap or portion of one over a rogue cup.
It may be obvious, but MrConsumer sees Keurig’s move as anti-competitive and anti-consumer. If the spy inside the machine is really only needed to distinguish between the old one-cup canisters and the new four-cup ones, I’ll forgo the wizardry and happily press a size button.