 RARPSL
join:1999-12-08
Suffern, NY | reply to openbox9
Re: In one sentence. said by openbox9:Your bill will never be $0 as long as you have a connection. There's an inherent cost of providing service to you whether you use it or not. And if you look at the discounts that you get for having more than one service in Double/Triple Play deals, that cost is in the $5-10 range. I get this figure since having more than one of these services (TV, VIOP, Internet) is that much less than the sum of the individual services. When you add the second or third service, the connection has already been paid for with the first so they give you a discount of the cost of the Accounting and the "dry" connection (ie: The ability to have services). These are thus based on the Cable Company's own pricing rates so the Metered Rate should be $5-10 plus usage. |
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openbox9
join:2004-01-26
Alexandria, VA
kudos:2 | We've had this discussion before. I don't believe you can assume that just because you receive a discount for purchasing multiple services, that the discount is the base cost of extending a cable to your house. |
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RARPSL
join:1999-12-08
Suffern, NY | said by openbox9:We've had this discussion before. I don't believe you can assume that just because you receive a discount for purchasing multiple services, that the discount is the base cost of extending a cable to your house. If it is not then the cable company is cheating the customer by not giving the full discount. I am using the accounting method of computing the cost. IOW: The Fixed Cost of the connection and the Variable cost of each service.
How do you explain what the true cost of the connection is other than the above method? |
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openbox9
join:2004-01-26
Alexandria, VA
kudos:2 | I wouldn't call it "cheating the customer". Companies (not limited to just cable companies BTW) use discounts to upsell their products and sell additional products/services that consumers might not ordinarily purchase. The concept is similar to "buy one, get one half price" deals to entice consumers to purchase more than they need/want....and those deals don't mean that the retailers' base costs are 50%.
Only the providers can identify their true costs of their services. You and I can guess all day long, but we can't definitely answer the question. |
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