Equal Discounts For All

[bicker]

Last year, Disney introduced is Best Rate Program, whereby you'd make a commitment to visit WDW, and in return WDW would guarantee you the lowest public rate.

Would your prefer if not only Disney, but everyone everywhere, adopted the logical extension of that: Everyone always gets the same price for everything. No hidden or secret discounts. No special pricing based on being part of a market segment. No coupon codes, discount codes, etc. No search for bargains. No remorse when you find out that you paid more than you had to. In some cases, you'd benefit, of course, and in some cases you'd not, as the total amount of money companies would make shouldn't change -- they'll just get the same amount from each customer for the same thing.

Would you prefer such a system? If so, why? If not, why not?

 

[mickman1962]

I don't think I'd like it, some of the fun is the planning/searching. What I do wish we could get rid of are grocery stores that charge different prices because you spent 5 minutes filling out a form. My DW must 15 of those things on her keychain.

 

[bicker]

So you're saying you wish everyone paid the same price at the grocery store, a price in-between the discounted price the members get and the full price that the non-members get?

 

[Charade]

I don't see anything wrong with loyal customers being rewarded with discounts. That's (at least it used to be) what companies wanted. Loyal and repeat customers. Having said that, there are some companies that treat new customers with better discounts than existing customers. Dishnetwork is known for that.

I think if everyone paid the same price for an item anywhere they could buy it everywhere, any competition would be killed. But think of the advertising money that would be saved!

 

[mickman1962]

No, what I'm saying is everyone should get the discounted price. Why should someone pay less for years just because they spent 5 minutes one time putting their name on a piece of paper? For the record, because my wife signed up I actually have all the cards, I just can't stand to have a lot of stuff on my key chain as I keep it in my pocket. I also do not carry a wallet. When I think of the terms members/non-members I think of Costco/Sams, not Shop-Rite. It's not a membership per se as there is no cost involved.

 

[rayelias]

Last year, Disney introduced is Best Rate Program, whereby you'd make a commitment to visit WDW, and in return WDW would guarantee you the lowest public rate.

Would your prefer if not only Disney, but everyone everywhere, adopted the logical extension of that: Everyone always gets the same price for everything. No hidden or secret discounts. No special pricing based on being part of a market segment. No coupon codes, discount codes, etc. No search for bargains. No remorse when you find out that you paid more than you had to. In some cases, you'd benefit, of course, and in some cases you'd not, as the total amount of money companies would make shouldn't change -- they'll just get the same amount from each customer for the same thing.

Would you prefer such a system? If so, why? If not, why not?

Although we may all be CREATED equal, we don't always end up that way.

I expect preferential treatment at a business where I am one of their best customers. I also understand that someone may get better treatment at another business because they are a better customer than I am.

For example, if you spend $15,000 a year at your local grocery store, and I only shop there occasionally, of course you should get better deals.

 

[bicker]

Loyalty isn't what it used to be. Loyal customers are, by definition, those that are willing to pay extra for what you offer, most of the time. Now, customers consider themselves loyal if they're willing to buy what you offer only at a discount.

 

[Charade]

Loyalty isn't what it used to be. Loyal customers are, by definition, those that are willing to pay extra for what you offer, most of the time. Now, customers consider themselves loyal if they're willing to buy what you offer only at a discount.

I've been in customer service for 25 years and it wasn't a given that loyal customers were willing to pay extra just to be your customer. I do see that the times have changed and customer loyalty is easily lost if a business isn't willing to bow to their customers every demand and expectations. Competition is the reason for that. In most cases, customers are loyal to the store that has the lowest price. However, if a business has the lowest price and treat their customers like dirt, they will quickly go under at worst or at best be stagnant in growth.

I consider a clean store, fair prices and decently stocked worked by friendly (and fairly knowledgeable) people my baseline for a business that will get me to be a repeat customer.

 

[bicker]

it wasn't a given that loyal customers were willing to pay extra just to be your customer

I probably didn't word that clearly enough. What I meant was that, in business, loyalty is defined as the willingness of a customer to pay a premium. I didn't mean that frequent, repeat customers would necessarily be willing to pay a premium. Sorry for that confusion.

You're correct that many repeat customers aren't, and therefore those customers aren't going to be contributing to the objectives of the business as significantly as if they were willing to pay a premium. I think you hit the nail on the head when you alluded to the fact that so many customers have no real loyalty, and instead select their suppliers based solely on the lowest price. Indeed, that's the very reason why service is so poor, in general.

Furthermore, I agree that a certain minimum level of service is necessary, or otherwise even low prices won't prevail. However, that minimum level descends lower and lower every year, as customers are selecting the low-cost supplier more and more, even when there are clear and compelling service distinctions.

 

[Nancy]

I don't think I'd like it, some of the fun is the planning/searching. What I do wish we could get rid of are grocery stores that charge different prices because you spent 5 minutes filling out a form. My DW must 15 of those things on her keychain.

You know my store did just that. We still have some sales with the card, but not any where near what we used to. We just lowered prices on thousands and thousands of items. Customers complained about having to have the card, now they complain that they don't save as much with the card as they used to.

I personally like the extra discount stuff, I feel like I accomplished something if I get a really good deal on something. It becomes a challenge to try and find the lowest price possible. Sometimes it backfires, sometimes it doesn't.

 

[Charade]

You know my store did just that. We still have some sales with the card, but not any where near what we used to. We just lowered prices on thousands and thousands of items. Customers complained about having to have the card, now they complain that they don't save as much with the card as they used to.

I personally like the extra discount stuff, I feel like I accomplished something if I get a really good deal on something. It becomes a challenge to try and find the lowest price possible. Sometimes it backfires, sometimes it doesn't.

People like to see stuff on sale or get it at discount via a "rewards" program. It's all about perception. If your store's items were always priced 10-20 percent lower than another store regular prices that had frequent sales or discounts via the little cards, most customers wouldn't realize they were paying the same thing at each store and they would most likely frequent the store with "sales" and discount cards.

I remember the first time I took my ex-MIL to a Sam's club. She walked around commenting that she could get this or that for the same price at her regular grocery store. Of course that's only when they had coupons or other discounts/sales. I said, but this is their (Sam's) price all the time.

 

[Chuck S]

Personally, I hate the grocery discount cards, and prefer "coupons" instead. Fortunately none of our local stores use the cards. Though I see nothing wrong with offering discounts for long established customers for most businesses. If I purchased several cars from the same dealership I'd like a better deal then a first time buyer. Also I see nothing wrong with volume discounts, at our stores if you buy larger packages of meats you can save 20¢ per pound...but we are just two people and don't eat a lot of meat so we purchase the smaller packages. I also don't see any wrong with business negotiating a contract price for rental cars, etc.

 

[Galahad]

I wonder what it would do to actual sales if they got rid of all of their marketing gimicks. There has to be a return on most marketing campaigns, which is what the discount programs are, or they wouldn't do them. So in the end, the "same price for all" might actually be harmful to the economy.

 

[cardaway]

I wouldn't mind it as a new base line but I sure would be looking for something that rewarded the best customers. The businesses that found a way to do so, while giving better or equal service, would get my repeat business.

I don't think something like Disney is a good example. Maybe some people make the decision to go or not go based on some deal they get, but we have always gone because we want to. Beyond the rack/discount rate thing there a very few things I have seen that separate the visitors. And very few pay rack with no discounts what so ever.

Plane tickets are a different story and probably a different thread.

 

[bicker]

I don't think something like Disney is a good example. Maybe some people make the decision to go or not go based on some deal they get, but we have always gone because we want to.

That's an interesting observation, and might have bearing on another thread I'm participating in, where some folks are objecting to the travel industry practice of quoting vacation packages with trip insurance, making it the customer's responsibility to specifically ask if insurance is included and asking for it to be excluded, if they don't want the insurance. Maybe the reason why people are objecting to Disney doing it is because, unlike with other travel expenses, they don't see the choice being "buy or not buy" based on whether they feel the price is worth it, but rather that they feel they have no choice: they're going to buy, so they expect that the price they're offered is the lowest possible price. (Though I cannot imagine why they'd think that, especially if they're already considering themselves captive.)

 

[marymrg]

I would like to see this with new car prices. The price is the price. You don't like it, you don't buy it. There's nothing I hate more than car sales people doing the "let me run the numbers by my manager" farce.

 

[cardaway]

That's an interesting observation, and might have bearing on another thread I'm participating in, where some folks are objecting to the travel industry practice of quoting vacation packages with trip insurance, making it the customer's responsibility to specifically ask if insurance is included and asking for it to be excluded, if they don't want the insurance. Maybe the reason why people are objecting to Disney doing it is because, unlike with other travel expenses, they don't see the choice being "buy or not buy" based on whether they feel the price is worth it, but rather that they feel they have no choice: they're going to buy, so they expect that the price they're offered is the lowest possible price. (Though I cannot imagine why they'd think that, especially if they're already considering themselves captive.)

I guess I'm at an advantage then in arranging things online and seeing the itemization which includes a trip insurance line item. As far as the practice goes, I'm not sure what the percentages are concerning people who want the insurance or not, so it's hard to say why Disney is doing this.

I will say one thing that I hate about Disney (and maybe other places like them in the travel industry). They all but refuse to itemize things for you if you are booking over the phone. We have been giving tips to a friend that is booking a trip and she is experiencing the same thing. They will not tell you how the package breaks down into the indiviual prices. Only way around it is to ask for quotes with or without different pieces and calculate the differences on your own. Very frustrating and I'm not sure what they are trying to hide.

 

[bicker]

It is well-established in industry-in-general that providing itemization of line-items in a package never benefits the supplier. Even the dissatisfaction from giving the customer a hard time about jumping through hoops to get enough data to figure out that information themselves doesn't overcome the negative impact of making that information easier for more customers to gain access to. I've seen it in travel and hospitality. I've seen it in retail. I've seen it in telecommunications. I've seen it in software. Also, I've seen it in the smallest companies, and I've seen it in the very largest companies. It's practically universal.

 

[cardaway]

I'm bought pretty much everything at one time or another and the only time I've ever encountered a issue with lack of itemization was the travel/hospitality industry. They like to give deals, but not explain them.