Why does VM overcharge existing customers?

[RustyBristol]

I have spoken to a number of people recently that are paying less for their VM broadband than I am and i've been with them for over 12 years. Obviously this is deeply insulting for someone that has always paid their bill on time for so many years. The current price for M350 is actually £9 less that I am paying and they won't let me move on to this cheaper tariff as I am an existing customer.

Unfortunately, I have tried to speak to them about this but after being constantly sent text messages asking me to deal with my inquiry by downloading and installing their app (there is no information on data collection and spying on their part or whether I can discuss this issue with them by using the app) whilst I am in the queue for their Indian or Philippines based customer services. These services are awful as everyone probably already knows and it disturbs me that a British service is farming Uk jobs out to cheap labour countries. Especially during the time when people are desperate for jobs.

I was wondering how many other people are just cheesed off with being treated like a second class citizen just because they already shop with this company?

[nodrogd]

I see threads like this a lot of the time questioning VMs (& their parent companies) business model.

A lot seem to think that by changing it they would get the existing new customer pricing.

They won't.

VMs new customer prices are substantial loss leaders, which if they were offered to new customers would result in VM going bust like a lot of its cable predecessors..

Change the model & new customer prices will just rise to the levels existing customers pay now.

[goslow]

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@RustyBristol wrote:

I have spoken to a number of people recently that are paying less for their VM broadband than I am and i've been with them for over 12 years. <snip>

I was wondering how many other people are just cheesed off with being treated like a second class citizen just because they already shop with this company?

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Asked, and answered, many times over on here. For every person who thinks it is terrible idea that new customers get different/better pricing than existing customers, there will be another person who thinks it is a fantastic system as they can move around suppliers regularly and get the lowest prices for their services.

Aside from the issue of your own renewal price, you sound generally unhappy with the VM service such as the overseas call centres and VM's new customer pricing model. Other suppliers may offer the things you want. I haven't checked recently but I think I recall that BT has moved to a UK-only call centre arrangement and I think Sky has stated in the past that it would offer new and existing customers the same pricing, for example. You could research what other suppliers are currently offering to fit your requirements.

In the topics on here, the best (or at least improved) pricing from VM frequently comes in once you have actually given notice to leave as per this recent topic

https://community.virginmedia.com/t5/Managing-Your-Account-Cable/Pointless-Renewals-Team/td-p/521390...

Unfortunately there is no guarantee that you will actually get such a call if you do decide to leave (and it has been suggested on here you need your VM marketing contact options turned on with VM to allow VM to contact you).

[japitts]

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@goslow wrote:

You could research what other suppliers are currently offering to fit your requirements.

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And by doing exactly this, you're in an excellent position to then negotiate with retentions. The retentions agent you speak to answers calls from customers wanting discounts all day every day. It's the customers who seem to be serious about disconnecting but who bring in greater revenue to the business, where their efforts are likely to be targeted.

Better informed is better prepared.

[Roger_Gooner]

How can you find it "deeply insulting" to be in a contract which you voluntarily agreed? If you wish to get a better deal then call Retentions shortly before your contract is due to expire (I do this and always get something I'm happy with). And if you have Virgin Mobile go for the Volt upgrade.

[RustyBristol]

I was with Virgin for as long as they have provided their internet service. I left last month and went with Zen. Reason? I've had enough of their shoddy customer services and unreasonable price hikes. I was paying £36.50 a month for 350mbps broadband only and they wrote to me to say it's going up to £48.25. I spoke to a chap on the phone and he said there was nothing he could do about it. A new customer would pay £21 a month rising to £30 a month compared to overcharging this loyal customer. I decided that i'd had enough of them after all these years and left.

I then got an email saying that my bill was going from £37.40 (i've never paid £37.40) to £57.40 a month. Huh? I had already though handed in my notice so to speak and had even booked Zen to come over and fit my fibre. This is the interesting bit. 

I got a call from someone with a very strong Indian accent saying he was from Virgin's customer Loyalty Team (er.. okay. Customer loyalty is NOT a thing at Virgin) offering me 500mbps for £29 a month. I refused and then got two more calls from this department over the next 24hrs offering me the same.

So there you go. They claim that there is nothing they can do to drop the price to how much a new customer would pay but when you ACTUALLY LEAVE they suddenly can. Lesson learnt.

[RustyBristol]

I was with them for around 20 years now or since they took over Blueyonder. I too left last month. I paid £36.50 a month for 350mbps Broadband. They said the price was going up to just over £48 a month though they proudly pointed out that I was still receiving a discount otherwise it would be £63 a month (£36.50 to £63 is simply corporate greedflation in action). I then received another email saying that it was going up from £37.40 to £57.40 (i've never paid £37.40). wth. I told them i'm cancelling which prompted a stream of about three phone calls (firstly and comically from man with a very strong indian accent claiming to be from their Customer Loyalty Team. HAHA!) offering me 500mbps for £29. Gosh.

New customer? £21 a month for 350mbps rising to £30 a month. I've just had enough of being ripped off and having to put up with the worst customer service in the industry and customer service in the Uk is appalling enough as it is. Zen is my new supplier and when you phone them up, you speak to someone in the UK which makes the world of difference to me. No more farming off British jobs abroad for increased shareholder satisfaction. British jobs for British people.

[RustyBristol]

Come around to my Tyre shop, i'll sell you four new tyres. Next time come back and i'll charge you double but please don't feel insulted will you.

[RustyBristol]

I finally left. I've had enough of this loyalty nonsense and overcharging. I don't believe that increasing the cost of a service to existing customers is a fair and decent way to operate and I also don't believe that charging people £30 a month for 350mbps internet would make any ISP go bankrupt.

It's only recently that vehicle insurance companies using this same business model have had this process made illegal. I'm tired of having to jump from one insurance company to another every year just to get a fair deal.

[nodrogd]

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@RustyBristol wrote:

Come around to my Tyre shop, i'll sell you four new tyres. Next time come back and i'll charge you double but please don't feel insulted will you.

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No, it's more like. "Come to my shop as a new customer & I'll sell you your first four tyres for less than they cost me to buy them, as long as you then pay the going rate for any more you buy in future."

Also the "index linking" of yearly rises is becoming the norm across the industry (usually RPI +3.9%). In part this is likely the result of the new customer deals being offered across the board.