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Squeezing the Customer
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Jan 11, 2024 08:26:28   #
Lucian Loc: From Wales, living in Ohio
 
EdJ0307 wrote:
Just about every time I see a Tesla on the road they are always white - except I did see a red one a few months ago. I was wondering about that. This is probably the reason for that.


I suppose it shows everyone who the poor tesla owners are!! Kidding of course, however, I wonder if Tesla have given thought to that, a sort of red mark on an owner to show they did not want to pay the extra for another colour?

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Jan 11, 2024 08:28:20   #
Lucian Loc: From Wales, living in Ohio
 
jerryc41 wrote:
In case you haven’t noticed, companies are squeezing consumers to see how much money they can get out of them. A popular method is to charge a subscription for software. You pay for the software annually for the rest of your life. But, it’s getting worse.

Car makers are now using subscriptions and other techniques to get more money from buyers. Want heated seats? Fine. You can have them for a year or two, but then you must pay every month. The same thing applies to other features, although this technique has been opposed by consumers through the legal system.

Want a Jeep? Any color but white will cost you $495. This led me to imagine the following scenario.

Salesman: And you’d like the standard “Hot Pink” color?
Customer: Hot Pink? Anything but. I’d like blue.
Sales: Fine. That will be an additional $800.
Cust: What? Make it red, then.
Sales: Any color but Hot Pink will cost $800. It’s the additional setup of the paint booth and all the extra time and labor involved. You understand.
Sales: We’re just about done here. You’ll be supplying your own wheels, then?
Cust: No! The car needs wheels!
Sales: Of course, and we can supply very nice wheels. I’ll just add the $1,000 fee for them.
Sales: Oh, I see that tire vales are included free with wheels this week. You just saved yourself $400! Will you be supplying your own tires?
Cust: No, of course not.
Sales: We will add another $2,000 for tires, then. Now, about the air. The standard pressure we supply is 10 psi. If you would like the recommended pressure of 30 psi, that will cost just $50 per tire.
Cust: Fine.
Sales: I suggest you get here about two hours early to mount the tires on the wheels. That usually takes customers a couple of hours.
Cust: I have to mount them myself?
Sales: Of course not. We can do that for you - and also balance them - for a small fee of just $400 for all four tires.
Cust: You know, up till now, all cars came with wheels and tires.
Sales: Yes, I realize that, but the manufacturers were losing money on every car they sold. You see, Sleezy Motors makes cars, not wheels and tires. We have to buy them, and now we are passing the cost along to the customer. That’s why we offer customers the chance to supply their own wheels and tires.


Ridiculous? Maybe not. Jeep is getting away with charging for paint. When will other companies start doing that? Imagine telling someone in 1990 that he would have to rent all his software, or he would have to pay a monthly fee as long as he owned his car if he wanted the heated seats to keep working.
In case you haven’t noticed, companies are squeezi... (show quote)


So, what car maker is charging to keep your seats heated, after the initial free period ends? I'll be sure to never buy a product they make, and I hope others do the same.

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Jan 11, 2024 08:28:47   #
jerryc41 Loc: Catskill Mts of NY
 
Lucian wrote:
So, what car maker is charging to keep your seats heated, after the initial free period ends? I'll be sure to never buy a product they make, and I hope others do the same.


BMW

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Jan 11, 2024 08:54:09   #
Lucian Loc: From Wales, living in Ohio
 
jerryc41 wrote:
I'm looking back eight years. Maybe competition forced them to lower prices. We were also paying for a landline.


Competition forced all cell phone providers to bring down their pricing. In the UK, cell phone service was a fraction of what the providers were charging, in America, many years ago. If you all think back a number of years, you were all prepared to pay that minutes charge to use your phones, but only that, the bloody phone companies have been double charging you all for years, during those minutes' charges and possibly many of you never realized it.

In the UK and Europe, phone carriers were banned from double charging for minutes more than 30 or more years ago. Only the person making a call was allowed to be charged, all incoming calls had to be free. In America, they kept doing it. If you recall, when you received a phone call, you were being charged for the minutes you spoke. When you made a phone call, you were being charged for the minutes that you spoke. Effectively, both parties were being charged at the same time for the same minutes of phone line time being used. What a dirty thing that was, charging both parties for the same call, I can't believe people accepted that, for so long.

I can't remember now but there may have come a time when they changed that in America to only charging the person who made the call, although they may have never done that, and simply phased out the minutes system for phone calls.

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Jan 11, 2024 09:08:07   #
Lucian Loc: From Wales, living in Ohio
 
jerryc41 wrote:
BMW


Ohhh, I had to sell mine when our daughter grew too long to fit comfortably in the back seat of my 323i. Had to buy an SUV. We have been happy with our Toyota Highlander and Mitsubishi Outlander. Thanks for that info, I'm amazed they are trying that out on customers. I had thought about an X5 but now we shall stick with Toyota.

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Jan 11, 2024 09:11:22   #
Lucian Loc: From Wales, living in Ohio
 
Longshadow wrote:
But you get my drift, no?


If it were the case yes, however, it is not the case, because a new car is not inexpensive.

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Jan 11, 2024 09:21:21   #
Lucian Loc: From Wales, living in Ohio
 
fantom wrote:
I am quite happy to pay Adobe ten bucks a month for life for LR/PS. I get free updates and stay current with some of the most technically advanced editing tools available---versus expensive software that requires $$$$ charges for significant updates.

Also, please be aware that I am hoping that no one bothers to tell me why I'm stupid for getting screwed by Adobe like this---I'll just bypass your close-minded silly reply. Thanks

The auto purchase example is pretty clever and accurate, however. The auto industry has been using variations of these scams since before Henry built his first assembly line.
I am quite happy to pay Adobe ten bucks a month fo... (show quote)


Just remember though, that I bought mine outright and it still does almost everything I need to do to a photo. I have not spent a penny more on it in all these years, PLUS, I can continue using mine for years to come if I keep the system the way it is right now.

You, on the other hand, will be shut down in a month or two, if you stop paying the monthly ransom. Then what will you do? That is the big difference, along with the total you've paid out, all these years. I would hazard a guess that for most of us on here, we are only using a small part of what Photoshop/LR is capable of and probably would get along fine with the old CS6 for most needs. Thereby saving a ton of money by not renting all those years.

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Jan 11, 2024 09:39:42   #
Lucian Loc: From Wales, living in Ohio
 
BebuLamar wrote:
But I am saying there are a lot more of people thinking like you than otherwise. That is why the subscription model is a success to the industry. No companies can do anything that doesn't get support from their customers.


Precisely, and if more people had decided to jump ship when Adobe went Ransom charges, they might have halted that effort. With that said, I knew some insiders at Adobe and the word was that less than 20% of their income came from 80% of their users, so people like you and I, and the rest of us here. It was the large corporate customers which was around 20% of their customer base, that earned Adobe 80% of their profit. They didn't really care about the general user; they knew those large corporate users were the ones they were going to be able to force to keep paying the ransom.

Years later they also tried to raise the monthly charge, and did some test groups in different countries to see what would happen when they began to raise their monthly ransom. They wanted to see what level of increase they could achieve, before the users started to jump ship. They soon saw that it was not going to work for them, so abandoned that idea, for the time being, at least.

For those that remember the start of it all, Adobe was wanting to charge $49.99 a month for their entire suite. However, most did not need the whole suite and were not signing up. They reduced it to $39.99 and still not to many takers, then they changed plans and offer the $10 just for Photoshop and that seemed to work. They were still selling LR outright. Then later, they included it as part of the Photography only package.

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Jan 11, 2024 09:50:48   #
Lucian Loc: From Wales, living in Ohio
 
Red6 wrote:
I have not purchased a "new" car in decades and at my age now probably never will. There are millions of good used cars out there that do not require you to lease or rent your options. In addition, you save a ton of money since someone else pays that depreciation on the initial purchase.

Also, aftermarket options may be a solution for those that just have to have heated butt warmers. I once knew a guy who added aftermarket upgrades to his diesel truck's computer. By changing out one of the chips in his computer he increased his miles per gallon AND got better acceleration over the standard design. If there is money to be made in adding these features in the aftermarket, someone will design and market it.
I have not purchased a "new" car in deca... (show quote)


Completely agree.

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Jan 11, 2024 10:16:08   #
Lucian Loc: From Wales, living in Ohio
 
SteveFranz wrote:
Not so ridiculous. I saw a window sticker on a new car where the dealer put in (I think) $100 charge for inflating the tires with nitrogen instead of "air." Or maybe it was $100 per tire. Whatever, I would have told them to suck it out & I'd bring my own pump. At least Costco uses nitrogen inflation and doesn't charge extra.


We were thinking of getting a new vehicle last year and went to a Subaru dealership. Going over the pricing I noticed a $3,500 charge on the total. This was not on the Subaru website, where you could build your own car, so to speak, and then have it delivered to your local dealer to pickup.

I asked the salesman to explain the charge and he gave some cock and bull story about what it was for. In the end I deduced that because the new Subarus were taking many months longer to get from the manufacturer and that people were putting in orders and selling new cars at a few thousand over what they paid, to those who had to have one right now, the dealers were adding a premium charge to every new car purchased, to cash in on this.

This was, in reality, an extra charge to the customer for nothing more than the luxury of being able to get a new vehicle from Subaru. What a con. I told him that the website of Subaru's build your car section, had no such charge showing. He told us that this charge would show up on your final delivery invoice, when you came to pick it up at the dealership, when it arrived.

He reluctantly agreed that this is what the charge really was. I told him we were also looking at Honda and they had no such charge. He said that customers were happy to pay it because there was such a long wait to get certain new Subaru models. I think most customers really did not look at all the added charges, just assuming they were mandatory dealer costs added to all new car purchases.

We told him he could stuff it and please let his supervisor know that and get that back to Subaru corporate office as well. And also to tell them that the $3,500 charge made us decide never to buy a Subaru product and that we were happy to give our money to any other car maker, except Subaru. What a terrible thing to do to customers, gauging them because they were accepting it, knowingly or unknowingly.

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Jan 11, 2024 10:19:43   #
Lucian Loc: From Wales, living in Ohio
 
TriX wrote:
You’ve been able to order a Porsche, paint to sample (that you supply) for an extra charge since at least the 70s.


Same with Rolls Royce.

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Jan 11, 2024 10:27:57   #
Lucian Loc: From Wales, living in Ohio
 
BebuLamar wrote:
Scam perhaps. I don't like it. But... the majority of the consumers want it. So that is the way it will be.


Accepting of and wanting are two different meanings. I would suspect that the majority do NOT want it, but they are accepting of it. Not the same thing. Many probably feel they have no option, because they have not bothered to look around and see what has developed, in the last few years.

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Jan 11, 2024 10:30:54   #
Lucian Loc: From Wales, living in Ohio
 
DebAnn wrote:
When they say white is free, that implies that they didn't have to paint it white in the first place!


Not really, it means that white is included in the price. Other colours are not. So, free as in, no additional cost. That would be the better way of stating it.

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Jan 11, 2024 10:32:02   #
jerryc41 Loc: Catskill Mts of NY
 
Lucian wrote:
We were thinking of getting a new vehicle last year and went to a Subaru dealership. Going over the pricing I noticed a $3,500 charge on the total. This was not on the Subaru website, where you could build your own car, so to speak, and then have it delivered to your local dealer to pickup.

I asked the salesman to explain the charge and he gave some cock and bull story about what it was for. In the end I deduced that because the new Subarus were taking many months longer to get from the manufacturer and that people were putting in orders and selling new cars at a few thousand over what they paid, to those who had to have one right now, the dealers were adding a premium charge to every new car purchased, to cash in on this.

This was, in reality, an extra charge to the customer for nothing more than the luxury of being able to get a new vehicle from Subaru. What a con. I told him that the website of Subaru's build your car section, had no such charge showing. He told us that this charge would show up on your final delivery invoice, when you came to pick it up at the dealership, when it arrived.

He reluctantly agreed that this is what the charge really was. I told him we were also looking at Honda and they had no such charge. He said that customers were happy to pay it because there was such a long wait to get certain new Subaru models. I think most customers really did not look at all the added charges, just assuming they were mandatory dealer costs added to all new car purchases.

We told him he could stuff it and please let his supervisor know that and get that back to Subaru corporate office as well. And also to tell them that the $3,500 charge made us decide never to buy a Subaru product and that we were happy to give our money to any other car maker, except Subaru. What a terrible thing to do to customers, gauging them because they were accepting it, knowingly or unknowingly.
We were thinking of getting a new vehicle last yea... (show quote)


Dealers like to add made-up charges. Buying a Fit, there was a $100 charge for wheel locks. I had them removed. If I had wanted locks, I could have bought them for $10.00.

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Jan 11, 2024 10:35:01   #
Lucian Loc: From Wales, living in Ohio
 
btbg wrote:
I absolutely want the subscription, you would be crazy not to. It costs less over time and is always up to date. The last time I purchased photoshop rather than pay for a subscription it was just over $700. It went up after that, I don't remember how much, but I couldn't afford to update it. By the time my copy was four years old it was totally obsolete. Prior to that copy I was updating once every three years. Three years of a subscription is $360 dollars. That's less than the purchase of a single copy of photoshop. So, not only does the subscription always keep my software up to date, it costs less than half what it would cost if I were to pay for the software the way people used to. On top of that, if you look at the fine print, you never did own the software. You owned a license for the software.
I absolutely want the subscription, you would be c... (show quote)


For your needs maybe that is true, but many if not most users did not have to have the latest update and many were happy using their version for many years before feeling a need to upgrade. Therin lies the difference between what your needs are and what it seemed the majority were needing. The majority were not commercial user and an older copy would suffice for their needs for a number of years.

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