OPINION: Pricing in America

That’s all well and good and the Bahamians like doing business that way, but it’s not the American way. We like to go into a store or look at a catalog and have the price for each item clearly displayed. We make our decision and either purchase the item or not.

But some American companies still prefer the island method. Our car came with a three-month trial subscription to a “premium” radio service. I won’t give the company’s name but it is the same as the brightest star in the sky. Toward the end of the trial period we began getting phone calls asking us to renew our subscription and the offered price steadily dropped. It began at close to $200 for the year and finally ended up at $93, which I accepted. The deal was that I had to agree to automatically renew the service at the then-current price at the next anniversary.

Our anniversary date was last month and I received a letter from the Star-name company announcing that the renewal price would be $175. About two weeks before the deadline I called to tell them that I wouldn’t be renewing. My call was answered by an automated attendant; I stated my intention of canceling and finally got a live person.

I told her I didn’t want to renew and she tsk-tsked with feeling. Then she asked my reason. “The cost,” I said. “I see,” she answered. We verified my name and address again and finally she said, “Would you consider renewing for $86 plus tax and fees?” “What is the total amount,” I countered. More figuring: “Ninety-three dollars, but since you have two weeks to go on your current contract, you get a credit of just under two dollars and your annual fee will be ninety-one dollars and sixty-three cents.” I accepted.

In November 2013 we will play this little game again. Obviously, the company is satisfied with $93 for the year. No doubt I am not one of their very favorite customers, but they are not taking a loss on me. They’re evidently making a profit at $93, so why try to stick me with $175? Well, I’ve answered my question, haven’t I? If possible, they are going to gouge me, just like the lady in the Nassau street market. I don’t mean to stab the company in the back, but if you get this service, be advised: $93 will close the deal.

Willis Cook is a retired electrical engineer who was born in New Orleans and grew up in the Mississippi Delta. He lives in Franklin County.