40-50% increases in new contracts ?? ( lots leaving)

[Westcountryguy]

We have been with VM since it began . This week we rang up to renegotiate a new contract.  We were given a new price which is 40% more than our current package but without TNT sport. 

Unlike previous years the new reps are more aggressive and non negotiable.  Therefore we are almost certainly leaving like so many others.  My son is ringing around and have found lots of packages slightly more than our previous contract with VM.

I will be fair . I expected to pay 10%-20% more in this new contract.  However 40% more with a reduction in services TNT is explotive. 

A warning should be given to management.  If you are insisting to reps to stick to 40% with reduced services. What happens if there is a mass exodus?  What happens if people gain confidence in leaving ?.  Isn't the government or monitoring organisation meant to review price increases ?. 

Sadly this is just human greed !.

[Westcountryguy]

In fact I have a  screenshot of a offer by a rep .  If I keep TNT a new contract would be 62% more than my last 18 month contract . 

[goslow]

If your negotiations with VM are on the basis that "we are almost certainly leaving" then you are unlikely to get very far. Sales agents are experienced in detecting any uncertainty in your decision making and will respond accordingly with their pricing.

Recent topics on here back up your suggestion that renewal negotiations with VM are much tougher at the moment. Many have reported that a decent offer from VM only came through after cancelling (although no guarantee VM will make such an offer to all customers).

Once you have collected prices for your alternative suppliers, that is the time to negotiate with VM. If VM does not come up with a price/package that is competitive then put in your cancellation. The business of renegotiating only works if you are prepared to use your final option of leaving VM.

[Westcountryguy]

Thank you for your informative answer which is both helpful and insightful . However do longstanding customers really want to go through with this emotional stress every time a contract is up ?  Is it right or good practice for reps to pluck out figures which are so wide-ranging?  .  Surely it would be better to set a rigid increase say 10-20% and make it equal able.  Every rep you speak too always comes up with different pricing .  It's a bit concerning prices vary from one day to the next and one rep to the next !.

[goslow]

Most customers would prefer a simple and transparent renewal process that is easy and straightforward to achieve and be left with the sense that they have been (at least) fairly treated.

But VM's model of renewal is always to try and get customers to interact with a sales agent each and every time who will try to upsell you a bunch of other stuff for a higher monthly subscription. As a result, each customer ends up negotiating their own individual price for a particular package of services.

We see regular topics on here where one family member gets a particular package for a particular price and another family member just down the road ends up paying significantly more/less for exactly the same services.

Those people who are good at haggling would argue they can benefit by negotiating a good price. Those who are not good at haggling can end up feeling they have not got a good deal.

As a result of all of the above, VM maximises its opportunities for profit and creates significant confusion about what the 'going rate' is for a particular bundle of services so the customer does not really know if they have got a good deal or not.

For those who are not that confident in haggling (which is probably most people) the best they can do is to go into the negotiation armed with all the facts and figures from competitors to judge if any VM offering is a good one or not and be prepared to cancel and switch if VM does not come up with a competitive offer.

[Cardiffman282]

Goslow is bang on with their advice as always. Some of the highly rated smaller ISPs don't play the haggle hassle game. 

[newapollo]

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@Westcountryguy wrote:

Every rep you speak too always comes up with different pricing .  It's a bit concerning prices vary from one day to the next and one rep to the next !.

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VM's actual prices can vary on a day to day basis, and agent to agent basis. 

I don't, and haven't worked for VM, but have worked within other call centres as a retentions agent, and would suggest that most companies follow a similar format in that individual agents are given "save targets" and can offer different deals than those offered by other agents on the same day.

I know it sounds odd, but agents are given a set amount of allowances to offer at varying price points.

If they have used up their quota of lowest prices for the day or week, then they couldn't offer say the Mega Volt bundle for £100, but if the next agent hadn't reached their quota then they would be able to offer that price point.  It's also possible that one of the retention teams may be "trialling" a price point not available to other teams.

As already indicated in your thread, price out what competitors are offering, also set your own target of how much you are willing to pay when you negotiate. 

It's possible that the offers you have been quoted are from front line agents, you need to give in your notice (say you are cancelling)  and you should then be passed through to retentions (thinking of leaving us) They are generally based in the UK, and have a greater degree of knowledge and flexibility, along with a larger range of discounts than the front line agents.

Hopefully you can negotiate a deal with them that's suitable to your pocket and needs in exchange for a new contract.

[peterke]

I'm a long standing customer too (from the Yorkshire Cable days), but the haggling process seems to get more difficult every time.  So I've made the decision to cancel, even though it means dealing with Open Reach.  At least this way,  at the end of the contract  I will be able to shop around for the best deal.  If the majority of people took this approach, something might just change for the better!

Cancellation was a long process, and I've had no confirmation beyond what happened in the 'chat' - and I don't seem to be able to find a record of that! (Ive started a separate topic about that!)