Cogeco: Smart Shoppers are 'Undesirable' Damn You Customers and Your Smart Shopping Ways! Tipped by dillyhammer 
Canadian cable operator Cogeco has been on quite the anti-competitive tear the last few years, foisting metered billing on the back of their customers, and applying caps as low as 10GB per month and overages as high as $2.50 a gigabyte on top of existing tiers. When customers complained, Cogeco insulted customer intelligence by insisting the move wasn't about making money. Cogeco then decided to raise monthly rates as well, just for good measure. For added enjoyment, they've never really been able to get their meters working properly, resulting in huge overcharging issues for subscribers. As such, it's not too surprising to see Cogeco report this week that they lost around 9,000 Canadian customers while also taking a bath on their Portuguese cable expansion plans. What was surprising was the way Cogeco CEO Louis Audet responded to those losses; bizarrely blaming smart customers who left the company looking for a better value: "Theres too many promotion hoppers out there who are jumping from one supplier to the other, Audet said, after Cogecos quarterly profit nearly quadrupled to $81.5 million largely due to accounting provisions for its discontinued Portuguese cable operations. "So the decision was made to tighten our credit conditions. So of course, when you introduce that measure, you do take a hit, he told analysts on a conference call. "If somebody else wants these undesirable customers, theyre theirs for the taking," he said. In other words, Cogeco decided to overbill users and offer sub-par service, then blame the customers who wisely started to look elsewhere for better and more affordable services. Audet should probably be happy, since the sorry state of Canadian broadband competition is what allows Cogeco to overbill users for broadband services in the first place. If customers had more choices, Audet would suddenly find himself awash in "undesirables" and apologizing profusely in the hopes of getting those users back.
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 | | What a crock! So this guy is upset that people are jumping ship because of better deals, even if they're only promotional offers? Well, excuse me! Perhaps he has enough money to pay full retail all the time, but the rest of us have to look for the best deal we can find, and, if another company is willing to offer that, so be it. I'm sorry if that hurts his company's profitability--oh wait, no I'm not. Maybe if these companies would lower their rates a bit, they'd find their customers were a little less likely to leave at the first opportunity. | |
|  |  KrKHeavy Artillery For The Little GuyPremium join:2000-01-17 Tulsa, OK | Re: What a crock! Having to compete is such a hassle. Way better just to monopolize and then you won't have this silly customer revolt stuff. | |
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 | | If they were my only option, then I'd go without. (Nothing is worth so much as to have to pay for the opportunity to get fleeced in order to have it.) | |
|  |  |  |  |  3 edits | Re: If they were my only option, said by dillyhammer:said by iamwhatiam :then I'd go without. (Nothing is worth so much as to have to pay for the opportunity to get fleeced in order to have it.) Well... 9000 people, and counting, agree. At first I thought, hell, this is just a bad company that gouges their customers with little or no shame. Now I understand why. Their leader is an idiot. Mike IMO Audet is a grade A jerk (I'm being polite here). I worked for COGECO back in 2000 - 2005 ish in the store front sales. It was awesome, and the pay/commissions were great. From 2000-2004 I loved the company.
I ended up leaving because that guy was in the process of completely destroying the COGECO experience for customers and employees. If you check the COGECO forums these days, you'll also see that a lot of the amazing NOC/Techs that used to help out there are gone. I have a feeling they left too.
I think Audet once said that employees were the greatest cost to the company.... lol So basically this guy has been waging a war on his employees and customers since early-middle 2000's+.
So his it doesn't surprise me this guy just expects people to empty their pockets to his shitty monopolizing company.
IMO he's a bad business man, and if it wasn't for his government sanctioned monopoly -- this company would have gone under or had to change their business model long ago. I hope some new start ups crack open
-- "You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it."-Malcolm X
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 | | Insulting Your Customers What a way to earn their undying loyalty! | |
|  BenPremium join:2007-06-17 Glen Carbon, IL | This is News? Of course companies prefer customers who will just pay and pay, without caring as much about what they get and whether they believe it's a good value for their dollar.
Perhaps I'm an "undesirable" customer since I'm not willing to toss money at something without regard to what value that product or service will give me. | |
|  |  | | Re: This is News? said by Ben: Perhaps I'm an "undesirable" customer since I'm not willing to toss money at something without regard to what value that product or service will give me. I'm assuming he's referring to customers with bad credit, and I'd have to agree with his statement on that, although it's a bad PR move. When I used to work for Rogers, I never understood why we ran credit checks because we didn't deny anyone unless you have a history of running up bad debt with Rogers itself and then moving to another address and signing up again. The only restrictions we ever placed on customers with bad credit is to deny them home phone and the ability to rent HD equipment. This restrictions were useless anyways, as customers would run up huge bills and abandon them and wait for the statute of limitations to expire. | |
|  |  |  dillyhammerA. Good. Start.Premium,MVM join:2010-01-09 Hamilton, ON kudos:9 Reviews:
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| Re: This is News? said by yyzlhr :I'm assuming he's referring to customers with bad credit, and I'd have to agree with his statement on that, although it's a bad PR move. What Audet has done here is blame the loss of 9000 customers in one quarter on the customers - during a quarterly report conference call with financial analysts no less.
Tightening credit consitions has nothing to do with losing 9000 customers in 1 quarter, and nothing to do with preventing promo-hopping or otherwise competing for customers.
There are 4 possibilities.
1) He is incredibly dim-witted and should NOT be the CEO of Cogeco.
2) He is horribly dishonest and should NOT be the CEO of Cogeco.
3) He is old, tired, bitter, and should NOT be the CEO of Cogeco.
4) He is incredibly dim-witted, horribly dishonest, old, tired, bitter, and should NOT be the CEO of Cogeco.
I know how I'm voting.
Mike -- Cogeco - The New UBB Devil -»[Burloak] Usage Based Billing Nightmare Make The Switch - »openmedia.ca/switch | |
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| Friday the 13th - bad luck, Cogeco! When you operate a company that focuses primarily on servicing sheep, it's only common for the wolves to look elsewhere. I've been having problems with my Cogeco internet connection over the past day, with my 'high-speed' internet slowing down to an incredibly slow speed, if Cogeco doesn't change the way they operate, or get their services functional to their advertised value, I may end up cancelling them altogether.
Once I can get a sturdy phone connection, I'll phone their support asap. I'll insist on getting some kind of credit applied to my account.
This has been an extremely unlucky Friday the 13th.  | |
|  |  kimPremium,Mod join:2001-03-25 ON kudos:6 Reviews:
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| Re: Friday the 13th - bad luck, Cogeco! Head over to the Cogeco Forum we have here. There are some very helpful and knowledgeable people that may be able to help you out.
»Cogeco
Their leader, who has a Master's in Economics seems to lack in other areas. This one may bit him later on. -- I speak 3 languages, english, sarcasm and sexual innuendo.
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 |  |  brad join:2007-09-06 Etobicoke, ON | Re: This story should make its way to more Cogeco customers It won't be for much longer with the way things are going for them. Another Circuit City over again. | |
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 | | Audet the idiot Audet doesn't get it. Everybody is a savvy customer these days but many don't know about all the choice we have.
Digital free TV from the airwaves, Shaw Direct, Free Phone Line, Dell Voice, Teksavvy phone, Teksavvy DSL, Wind Mobile data plans, Start Communications.
If we have a problem with the ramblings of Audet it's incumbent on us to switch to the alternatives ourselves and let anyone else who would be interested about the alternatives. | |
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