A 13% Increase Is “Special Savings” If Time Warner Cable Says So

Russ’s promotional rate for Time Warner cable ends today. His rate goes up by almost $50, which is sad news for him. Except Time Warner saved the day with some “special savings.” Are the savings really all that special? Russ sees it differently. He sees “special savings” wrapped up in a rate increase.  The end result was that Russ opened this letter that told him he was getting “another special offer.”

promo_rate

Of course, any retailer (and especially erstwhile JCPenney CEO Ron Johnson) could tell you that consumers prefer to feel like we’re getting a deal. Time Warner could have set his new regular rate at $101.99 and called it a day. Most people will have warmer feelings toward Time Warner when they read that their rate could have been $138.98, but they’re getting a special discount.

Also, this leaves the door open for them to end the special discount at the end of 2013.

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  1. maximusmmivx says:

    This is classic Time Warner Cable “boil the lobster” tactics. Every time a promotion on your bill expires (and there are many of them on there even if you don’t know it!) they offer you the same or slightly less service for slightly more money. You never, ever jump straight to the standard rate. You’d cancel if they did that. They will make up promotions on the fly to gradually increase your bill until you finally reach standard rate.

    I just got one of these letters last month because my movie package ($30/mo. for HBO+SHO+MAX+Starz+TMC for 12 months) was expiring. Oh, but since I’m just such a fantastic customer, they’ll give me that same package again–this time for $40, and this time only for 3 months.