Loyal Customer Pricing
So I am at the end of my contract and virgin media want to increase my package price from £54.40 per month to £198. Ok I thought, I will call up and get a better deal than what they were offering which isn't hard in this case. I was initially offered a reduction to £120 per month, ok good start but still a huge increase on the £54.40. After some more discussion they offer it for £89, which is still £19 more (and an Ipad) than a new customer. In the end I have opted to go with broadband only\basic tv\basic phone at £45, so virgin media loses at the very least £25 in extra revenue.
To me this doesn't make business sense and it would seem to me that something regarding pricing has changed at Virgin Media. To be brutally honest, if there was another fibre broadband in my area, I would have simply not renewed my contract and moved provider.
Technology is getting to a stage that all providers will be offering the same services, especially in towns and cities, therefore the writing is on the wall for virgin media. It's better to have customers making a small profit than no customer and going bust.........