There is a very old saying that “familiarity breeds contempt”. Whilst its origin is disputed, its original meaning is believed to relate to friendship; the more you know someone, the more likely you are to lose respect for them.
In the modern world though, it can equally be used to describe the attitude some businesses have towards customers who stay loyal to them.
Take satellite TV providers, for instance. As sure as day follows night, when you are in a TV contract you will see offers, discounts and better packages being offered to new customers than you have yourself. It seems incredibly unfair that you, a loyal customer, have to pay more, or get less, than a new customer. However, the fact is that many businesses only make their best deal available to new customers by providing offers and discounts to tempt them in. Meanwhile, those customers that stay loyal miss out.
And it's not just satellite TV providers. Banks often provide incentives for people to switch bank accounts, credit card companies offer zero percent interest periods on balance transfers to new customers, mobile phone companies offer better packages or new handsets, insurance companies provide cheaper prices, better cover or additional benefits to new customers, energy companies provide new tariffs, and broadband providers faster speeds at lower prices.
The reality is that being a loyal customer often means spending more and missing out, with many people putting up with it because they are either unaware of the savings they could make by switching, or simply feel it as a hassle they can live without.
However, you should look at switching providers of goods and services whenever a contract or agreement is due for renewal, as the money you can save by shopping around can far outweigh the time and hassle of doing so. In fact, when you realize how much you could save, it can be a fantastically profitable way to spend a couple of hours a few times a year!
Here are a few tips to help you get better deals and save money by switching services, rather than being a victim of the contempt some businesses seem to hold loyal customers in:
1. Know when your contracts end
If you don’t know when your various contracts and agreements end, find out and list them down. Put a reminder in your diary and, as the date nears, start looking around for new deals.
2. Know what you are paying!
It may seem a little odd, but many people don’t actually know what they pay for various things! Take a moment now to think about what you pay each month for your internet, your mobile phone, your car insurance, or your TV services. You may be able to guess approximately, but few of us are so across our monthly bills that we will know exactly. “About €20” when something is €29 is a big difference, so look at everything you currently pay, and list them down. You’ll need to know this if you are planning to save money when renewing them comes around!
3. Look at what new customers can get
You won’t know if you are getting a good deal on your products and services unless you spend some time researching what is available with your current provider and elsewhere. There are lots of websites that can provide “price comparisons”, so make a list against what you are currently paying and see where savings can be made.
4. Review what you get, versus what you use
Perhaps you added on lots of extras to your TV package during lockdowns that you no longer watch, or get far more mobile phone data than you will ever use. Take some time to review what you are paying for in your various contracts and decide if you still need it. If you don’t, look to cancel them, or remove them when it comes to renewing your various agreements and contracts. €5 a month for a kid’s TV add-on may not seem much, but if it’s no longer needed, you are wasting €60 a year. 100Gb of data a month might seem great, but if you only ever use 10Gb, then you are undoubtedly paying for something you do not need. Businesses seldom provide something for nothing, so work out what you get, versus what you need, and resolve to only pay for the latter!
5. Be prepared to haggle
Haggling with a large corporation may seem an odd concept, but you should try! If you are nearing the end of your contract, or your contract has expired, TV, mobile phone, broadband and even insurance companies will often want to keep you as a customer and do whatever they can to do so!
Contact them, tell them you are considering leaving and ask them what they are willing to offer you to stay. Do your homework so that you know what is available from them as a new customer, and elsewhere, and ask for the same deal, or better. Whilst many businesses seem happy to let existing customers pay more for their service, they also prefer to keep them as customers, rather than lose them to competitors. This means they may be willing to give you a great new deal!
6. Only pay for what you need!
Companies may try to tempt you to stay on the same deal you are already on by offering “free” extras – such as additional data, a new Wi-Fi router, extra TV channels, car breakdown cover, and a whole host of other things. Whilst this might seem a good deal, if what they are offering are things you don’t need, won’t use, or already have, then avoid being drawn in.
You’ll already have looked at what you currently use and what new customers can get, so use these as a benchmark in what you are willing to accept and pay.
7. Be prepared to walk away
If your current provider can’t, or won’t, match what you can get elsewhere, always be prepared to leave them. For some businesses, it is only when you get to this stage that they will really take you seriously and offer their best deals, which can sometimes be better than you thought. However, if they don’t then at least you know you have tried, and that you can save money by switching to another service provider.
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