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|reply to moldypickle |
Re: New reason to raise cable bills
said by moldypickle:Actually, you'd be surprised at how many companies try to absorb the costs. The food industry has been very public about this recently. Fast food companies (McDs, BK, Wendy's) have absorbed fairly large percentage increases. Canned food companies (Conagra and more) also has come out publicly recently.
I find it absolutely HILARIOUS that SL would absorb some of the 8.5% increase each year on just tv. I've never heard of a business making a move that would cost them profit...
Ultimately, business will past the cost on to consumers when it becomes unprofitable.
Raising prices/rates is a risky proposition, there is only so much profit to be made before people bail for greener pastures. If you raise them and start losing customers, your revenue goes down, then you must lower them EVEN more to gain the customers back.
Ultimately, SL has to compete with Dish Network and DirecTV, and for the most part do compete price wise. Dish just promised to raise their rates, and DirecTV is always a little more expensive, so what does SL have to lose?
Every time I've called, both satellites have been EXTREMELY higher to get the shows I wanted, but only after the first 12 months. There was also them wanting money upfront for the equipment. And the 2 year contract. But even if they are absorbing the cost increase, it's clearly made back up in the year end price increase. If you want me to believe that SL isn't making money hand over foot and trying to make it look like they are being hurt here, then they need to start posting the facts.
But even going to greener pastures is only a mild worry at best. From where I sit and available tv options, my money won't be going to a competitor, it'll be buying an antenna. Besides, haven't you seen all the articles about how cable cutting isn't actually happening? LOL
And I sure that some companies are absorbing the instant increase, but watching the prices go up over time, it looks like they are covering the increase withing a year or two with far more gradual price increases. I mean just in my life time i can remember going to mcdonalds for half the total price, lol
30/2 Suddenlink : Current
5/1 CMA : Old
15/2 TWC : Old
After you factor out the "new customer" subsidy, Suddenlink is very competitive with Dish. I would consider switching after my contract. Oh, and I don't like contracts.