Hi Scott,
SH>This has always been a paradox in economics. What they teach you in an
SH>economics textbook doesnt always jive with real life. If demand increases,
SH>the resultant is that the price can either increase or decrease eiether
SH>way.
I'm always very wary of economists. They seem to be the reason why most
developed countries can be so affluent and be so highly in debt at the
same time. I wouldn't give most economists a job selling hot-dogs on a
sidewalk pushcart. Most of them seem to work for the government because
nobody in private enterprise would be mad enough to employ them.
:-)
SH>The only determining factor, is how sleazy and greedy the company is. Most
SH>will raise the prices up upon demand, not decrease them.. simply because..
SH>THEY CAN.. and because they make more money, and especially when your
SH>talking about utility companies who are the greediest of all, their sure
s
SH>heck not going to lose customers, because people just sit right back and
SH>take the price increases. Of course, small business on the other hand
SH>usually tend to lower prices upon demand. As more people buy a product or
SH>service, the small business can do things like buy in volume or may be
ble
SH>to do things cheaper overall, so they pass the savings on to customers.
There it is! Greed, the most highly motivating factor of them all, and
probably the one emotion which has spurred the world into so much progress.
:-)
I've always believed in voting with my feet and my wallet. If I find a
company's prices or policies are lousy, I let the people at the top know
why they will no longer get my business and that there is always an
alternative solution available.
I did this with my (previous) bank last year. After decades of being
their loyal customer, I found myself being treated like shit. They were
penalising me for having a debit balance on my check account, even
though it was their negligence for not crediting deposits in time. So
after much fruitless argument with that bank, I declared war on it.
I closed every account and credit card with that bank, rang up and faxed
the Managing Director telling him why his bank sucked, told him that I
would actively work at trying to strip clients from them, then opened up
a new and far more attractive (fee-free) credit card elsewhere.
Now I have dispensed with having a check account because there is
literally not one place that does not accept my credit card for every
payment or purchase, I get all sorts of rewards merely for using the
card, I pay the account in time so there is no interest accrued and best
of all, every month I get a free itemised bill as a record.
I can claim to have converted at least 20 people I know to my system
which is literally cost-free, and I take great delight every once in a
while in shooting off a fax to that previous bank, telling them that I
have been responsible for the loss of yet another few of their customers.
I figure it's good to let them know that I have cost them far more than
they cost me, both in money and aggravation, and that I'm going to keep
costing them money all the way and there's nothing they can do about it.
If everybody declared war on unscrupulous organisations, they would not
last long. The phone companies are the same. I have managed to convert
quite a few friends and acquaintances to my cell provider because of the
far better conditions available, such as a flat call rate all over
Australia and free added services such as voicemail, SMS etc. I don't
know if these people told their previous providers why they switched to
my provider, but I believe it is mandatory to let the lousy service know
exactly why you have given them the flick.
Cheers - Ziggy
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