Lessons Learned:
1. Don’t hesitate to ask for a better deal.
2. Have a competitor’s offer ready.
3. Be prepared to call their bluff.
Here’s a recap of my experience when I tried to lower my bills and get a new phone for my daughter.
Initially, my wife and I thought about buying her an older, used phone from eBay. But after reading several horror stories online about bad iPhones, I decided it might be safer to deal directly with a cell phone service representative to get a legitimate phone.
What happened next was a pleasant surprise. We ended up getting an extra line, a new iPhone 6, and our monthly bill stayed the same. On top of that, we received a new Samsung tablet as part of the package, all without spending a dime out of pocket!
How did this happen? I believe it’s all about customer retention. Companies are doing everything they can to keep customers, even offering fantastic deals.
Why? Well, the math is simple. A company that brings in 20% more new customers but retains only 85% of its existing ones will only grow by 5%. But if they retain 95% of their clients, their growth rate triples. Plus, it’s cheaper to keep existing customers than to acquire new ones.
In today’s internet-driven world, it’s easy for customers to find better deals and switch providers. For example, when my Comcast bill reset to standard pricing, I found a competitor offering a much better rate in less than 10 minutes. A quick call to Comcast mentioning I might switch was all it took for them to give me a better deal, reducing my bill by $60 per month and saving me $720 a year.
Remember, you, as the consumer, have power because you control where you spend your money. If a business wants to keep you, they need to offer competitive deals.
Wondering how to make this work for you?
Many people assume negotiating better deals is difficult, but it’s often just a matter of asking. The worst that can happen is they say no. When negotiating, it helps to have a specific competitor’s deal ready. For instance, when I dealt with Comcast, I didn’t just ask for a price cut; I showed them a better deal from a competitor. This made them more willing to offer me a competitive rate.
Some companies might be stubborn. When my auto insurance became too expensive, I presented my agent with three better quotes I found online. She refused to budge, so I switched providers and saved over $600.
Always be prepared to follow through with your claims. If you threaten to switch providers, be ready to do so. In the end, it’s about getting the best service and price for your money.
Remember, you hold the power of customer retention. Use it to get the best deals and lower your bills. There’s always someone out there who values your business more. Make the most of your negotiating power!
