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chemaupr
join:2005-06-06
Alexandria, VA
| Re: No Understanding of Business said by pnh102  : quote:
I don't see how Comcast can justify raising rates when they are making money hand over fist.
Someone who says this clearly has no understanding of how business works. Every business will charge the highest price it can possibly charge before it starts to lose customers. Comcast can raise its rates only because it can get away with it. You do not charge the HIGHEST price you can before loosing customers. That is when you are suppose to start gaining the good faith of your customers. They are just arrogant and do not see Fios as a real threat. | |
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TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
 ·Sprint Mobile Broa..
 ·Comcast
| Re: No Understanding of Business said by chemaupr :You do not charge the HIGHEST price you can before loosing customers. That is when you are suppose to start gaining the good faith of your customers. They are just arrogant and do not see Fios as a real threat. Actually, that is exactly what you do in a capitalist system. And if enough people start moving to Verizon, then Comcast will drop their rates.
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My BLOG
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast
| Re: No Understanding of Business said by TKJunkMail :And if enough people start moving to Verizon, then Comcast will drop their rates. ... or if enough people leave Comcast without moving to Verizon (or whoever else provides TV service).
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Only SHATNER is Kirk. | |
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richardpor
Fur it up
join:2003-04-19
Portland, OR | Or I drop a tier. People seem to forget energy prices are on teh rise. This should be expected. | |
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scrummie02
Bentley
Premium
join:2004-04-16
Arlington, VA | well what did you expect....look who posted the story.... | |
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Titus Pullo
I came, I saw, I slept
join:2004-06-26
 ·Embarq
| said by TKJunkMail :said by chemaupr :You do not charge the HIGHEST price you can before loosing customers. That is when you are suppose to start gaining the good faith of your customers. They are just arrogant and do not see Fios as a real threat. Actually, that is exactly what you do in a capitalist system. And if enough people start moving to Verizon, then Comcast will drop their rates. In a pseudo competitive market, yes, you can charge what that market will tolerate, no matter how high. But in the real world it can, and usually does, work the other way. Example: Embarq DSL in my area dropped rates slightly when taking over for Sprint, but nothing exciting enough to entice cable HSI customers away from the numbness of their bundled and packaged Adelphia air supply.
Not too long ago, Adelphia experienced area-wide problems lasting a couple of weeks or so that were frustrating for both customers and technicians alike -- people were told to purchase new routers, service trucks were dispatched with new modems, etc, when the problem from day one was on the WAN side.
In any event, the problem made the papers and the local TV news. Comcast first blamed it on the transition but later admitted a 'glitch' and customers who had a choice and that were of a mind left for Embarq DSL service (I'm one).
Embarq DSL -- with nowhere near the coverage of Comcast here -- has a lightbulb moment and comes out with reduced rates for their 1500 tier ($25) for the first time EVER in this area, but waited well over a month later. The reduction was $10 (nearly 30%) from what the price was when I signed up during the Adelphia fiasco not that long before.
Meanwhile, I'd said 100 times that if any half decent HSI provider came along and undercut Adelphia they'd clean up. I think Embarq was a day late and a dollar short, but it illustrates how a truly competitive market should work.
However, life continued as usual: Comcast raised TV rates $3 on basic cable and went about their business of delivering whatever is it they deliver  at the prices they know their market will bear.
One aside to the story is that developments are springing up all over the place in and around this area. One development I drive by is close to the road so I watched it from start to finish -- I watched them bury the cable lines and so on. Well, the people have moved in and it looks like a scene from a european movie with the satellite dishes hanging off nearly every other unit. Comcast's reasons for pricing may be, as another poster pointed out, not so cut & dried in every area, and *I think* customers are starting to tire of the constant rate hikes, and increasingly spotty service, that usually come in tandem with the growth of a business through acquisition.
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"I am not young enough to know everything."
Oscar Wilde | |
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PolarBear
The bear formerly known as aaron8301
Premium
join:2005-01-03
·CableOne
| Re: No Understanding of Business said by Titus Pullo :Well, the people have moved in and it looks like a scene from a European movie with the satellite dishes hanging off nearly every other unit. Yup. You would be amazed at not only how many houses I have installed Dish/DirecTV on inside a major city with Comcast's triple play available, but also at how many apartments!
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"I invented it, Bill made it famous." --David Bradley, the inventor of Ctrl+Alt+Del. | |
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Titus Pullo
I came, I saw, I slept
join:2004-06-26
·Embarq
| Re: No Understanding of Business said by PolarBear :said by Titus Pullo :Well, the people have moved in and it looks like a scene from a European movie with the satellite dishes hanging off nearly every other unit. Yup. You would be amazed at not only how many houses I have installed Dish/DirecTV on inside a major city with Comcast's triple play available, but also at how many apartments! It's plastic, it's drastic, it's spastic, it's C O M C A S T I C !! 
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"I am not young enough to know everything."
Oscar Wilde | |
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PolarBear
The bear formerly known as aaron8301
Premium
join:2005-01-03
·CableOne
| Re: No Understanding of Business said by Titus Pullo :It's plastic, it's drastic, it's spastic, it's C * * * * * * * * !!
Don't ever use that type of language in this forum again. Ever.
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"I invented it, Bill made it famous." --David Bradley, the inventor of Ctrl+Alt+Del. | |
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thender2
Glamour Profession
Premium
join:2004-05-16
Staten Island, NY
1 edit | said by TKJunkMail :said by chemaupr :You do not charge the HIGHEST price you can before loosing customers. That is when you are suppose to start gaining the good faith of your customers. They are just arrogant and do not see Fios as a real threat. Actually, that is exactly what you do in a capitalist system. And if enough people start moving to Verizon, then Comcast will drop their rates. I agree.
People are idiots. 90% of the US can't spell fiber, much less say it out loud, and there's an even lesser chance they know offhand why they should care.
Perhaps I'm exaggerating, but that's how consumers are. No one cares about hi-fi equipment, they just want something to play music without loud pops. No one cares about HDTV, half the time they plug the composite video connector in when they're paying for HDTV, and can tell no difference.
Once there's an "in" reason for people to have a 50 mbps downstream, comcast will feel the pressure. But as long as the majority of their customers just use their service to web browse quicker and download a few files quicker, they're fine.
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The Problem With Music.
Our Rationale
Time to rewrite the DMCA. | |
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PolarBear
The bear formerly known as aaron8301
Premium
join:2005-01-03
·CableOne
| Re: No Understanding of Business said by thender2 :No one cares about HDTV, half the time they plug the composite video connector in when they're paying for HDTV, and can tell no difference. More than half the time. I have seen this so many times on installs. It disgusts me.
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"I invented it, Bill made it famous." --David Bradley, the inventor of Ctrl+Alt+Del. | |
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redlines_r_us
@comcast.net | Aside from a few token areas, the majority of the big V's deployment will be in the wealthy areas so at the end of the day, only 1 percent of Comcast customers will even have Fios available. No threat there! | |
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