Good Sam Club Open Roads Forum: why do renewing members get a raw deal?
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 > why do renewing members get a raw deal?

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deprived

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Posted: 06/28/22 09:47am Link  |  Quote  |  Print  |  Notify Moderator

valhalla360 wrote:



I'm confused what is immoral or unfair about offering new customers a discount to get them to try your business?


Since I never said it was unfair to offer something to new customers, I can't answer that.

My point, if it doesn't confuse you too much, is that loyal, repeat customers should be treated as well as new customers.

valhalla360

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Posted: 06/28/22 10:31am Link  |  Quote  |  Print  |  Notify Moderator

deprived wrote:

valhalla360 wrote:



I'm confused what is immoral or unfair about offering new customers a discount to get them to try your business?


Since I never said it was unfair to offer something to new customers, I can't answer that.

My point, if it doesn't confuse you too much, is that loyal, repeat customers should be treated as well as new customers.


You certainly implied it was immoral or unfair, sorry if explaining basic marketing comes across condescending to someone who operates multiple businesses. [emoticon]

If you want to offer a loyalty/repeat customer discount, have at it. Just a different marketing approach. Assuming you actually achieve high levels of loyalty, it quickly becomes a situation where it either becomes
- The standard price and most customers pay the discounted price killing your profits (assuming you don't create fake high prices that you never charge so you can offer a discount while still remaining profitable).
- Or you effectively charge new customers higher prices which doesn't seem to smart if you are trying to increase your customer base. Why would a customer leave a current provider to pay a jacked up price to you in the hopes that if they stick with you, you might one day lower your price?

Some companies discount everything until the base prices mean nothing.

Actual discounts should be targeted to accomplish something that in the long term results in increased profits. Discounting new customers gets them in the door and hopefully turns them into repeat customers willing to pay the regular price because you provide a good product/service. Unless existing customers are threatening to leave, there is little reason to offer discounts.

Morality & fairness have nothing to do with it.


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bukhrn

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Posted: 06/28/22 10:50am Link  |  Quote  |  Print  |  Notify Moderator

Lwiddis wrote:

Does any other forum allow you to complain about them on their forum?
Yes, but i'm probably not allowed to mention it here.


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toedtoes

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Posted: 06/28/22 11:04am Link  |  Quote  |  Print  |  Notify Moderator

deprived wrote:

valhalla360 wrote:



I'm confused what is immoral or unfair about offering new customers a discount to get them to try your business?


Since I never said it was unfair to offer something to new customers, I can't answer that.

My point, if it doesn't confuse you too much, is that loyal, repeat customers should be treated as well as new customers.



As I mentioned before, rewarding loyalty doesn't increase the bottom line. For a small business, loyalty rewards can keep them in business. For a big company with stockholders, it's not about "keeping in business", it's about always making more money.

For a company to make more money than yesterday, it has to bring in more customers. If they have 100 customers today paying $20 each, that's $2,000. If they bring in 20 more customers at $10 each, they've increased their money by $200.

However, if they give their existing customers the same discount, their base drops to $1,000. Now they have to bring in at least 100 new customers at $10 each to break even.

Which is easier? Bringing in 20 new customers or 100 new customers?

And, even if 20 of those existing customers get mad because they have to pay $20 and leave, the company only has to bring in an additional 40 customers at $10 each to compensate.

So, 100 existing customers at $20 each = $2,000

20 leave = -$400

Bring in 60 at $10 = $600

They have an increase of $200.

Vs.

100 existing customers getting a loyalty discount at $10 = $1,000

60 new customers at $10 = $600

They have a loss of $400.

Many companies, if you call and whine, will end up giving you that discount - but ONLY if you call and whine. Because:

100 at $20 = $2,000

10 leave = -$200

10 stay at a discount at $10 = -$100

60 new customers at $10 = $600

They still have an increase of $300


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Tvov

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Posted: 06/29/22 04:45am Link  |  Quote  |  Print  |  Notify Moderator

deprived wrote:

Tvov wrote:

you've never heard of giving new customers a one time price discount or other incentives?

Yes. I have heard of it. Are you serious?


Yes I am serious, by your posts you made it sound like you had never heard of new customer incentives, which especially surprised me when you said you run several small businesses.

My apologies if I offended, it just surprised me.


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FrayJo

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Posted: 07/03/22 11:18pm Link  |  Quote  |  Print  |  Notify Moderator

I do not think any other forums allow people to complain about them on their forum

Mike134

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Posted: 07/04/22 06:59am Link  |  Quote  |  Print  |  Notify Moderator

deprived wrote:

I don't get it. Why is my membership renewal more expensive than just getting a new membership? Isn't this unfair to existing, loyal customers?

Please explain.


Just let it lapse and wait for the "new member offer"

Done it with Sirius radio now for 5 years.


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PButler96

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Posted: 07/04/22 07:43am Link  |  Quote  |  Print  |  Notify Moderator

FrayJo wrote:

I do not think any other forums allow people to complain about them on their forum


They mostly do. Some, like Forest River Forums for instance, will let you post all day long about the terrible build quality they have across the board, but then the mods and fanboy members who think they're mods that practically live on the board 23 hours a day, will either shun you, chastise you to no end, or come up with 1000 ways why every quality issue is your fault and claim FR does no wrong. It is however great entertainment to pop in every so often and see who the knuckleheads over there are performing a crucifixion on.

FrayJo

Latham

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Posted: 07/06/22 11:28pm Link  |  Quote  |  Print  |  Notify Moderator

I also think it's still wrong to take advantage of loyal consumers.

toedtoes

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Posted: 07/07/22 12:07am Link  |  Quote  |  Print  |  Notify Moderator

FrayJo wrote:

I also think it's still wrong to take advantage of loyal consumers.


No one is taking advantage of anyone. They offer a special rate for new customers. Existing customers get the standard rate. No one is being cheated, lied to, etc. They aren't doing a bait and switch. They aren't hiding the renewal rate in small print.

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