I’ve had internet and cable for the past 10 years and every 2 years when my contact expires, they raise my rates 20-30%. I promptly make a quick call and try to get them reduced. Over the past 10 years, I’ve made about 5 of these calls and my rates have barely budged.
I’m not entirely sure why cable is becoming more expensive but I suspect a big part is the number of people cutting the cord to go to streaming services. While this may be true, you shouldn’t have to pay more because they are losing customers. If you get a notice of your rates increasing, here are a few steps you can take to get a reduction.
- Find out what their services would cost a new customer – While most companies will acknowledge that new customers get better deals and they cannot give you one, you at least know the low end of what they are willing to accept for the same service.
- Get a quote from a competitor – Don’t just go online, actually call them and get a quote for the same cable package and same internet speed. As a new customer, you are likely to get a much better deal than your existing contract.
- Call and get transferred to customer retention – They don’t tell you this is the department but it really is. If you say you want to cancel your service, they transfer you to the department that actually has the authorization to give you a new and better deal. The customer service representative that picked up your call originally usually cannot get you much of a deal.
- Be polite but firm – If you seem calm and reasonable but provide the facts of the better deals and seem to be serious that you will go elsewhere, you are likely to get a reduction. Be ready to negotiate for the price you want because the first time they make an offer, it won’t be for much.
I know it’s a bit of work but you can usually get a quote online and make the call in 30 minutes. If you save $50/month on your bill for 2 years, you’ll spend 30 minutes to save $1,200!
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified investment, tax or legal advisor. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or strategies may be appropriate for you, consult your financial advisor prior to investing. No strategy assures success or protects against loss. You should consider the investment objectives, risks, charges and expenses of any investment carefully before investing.