Tip of the Month - August 1999

Each month we will present information for your education and enjoyment. Please check back regularly for the latest Tip of the Month.

Keeping with our theme of Paying Today’s Prices for Today’s Technology, this months "Tip of the Month" is about the Long Distance Telephone Industry.

A business associate of mine had been pursuing me with a Multi Level long distance service that could save me money over my current phone rates. I resisted his calls initially. After all, how could these savings be real? Isn’t my "big" phone company taking good care of me? I had seen the ads on TV and Print and even heard them on the radio. It seemed that everyone was offering "Lower rates than ever!" The industry buzz was lower phone rates.

His company was offering Long Distance rates of only 7 cents per minute, which at the time was lower than any I had seen advertised. I assumed that my phone company must be charging me at least that rate or close. After all, they’re bigger and have been around forever. And surely they would want to keep my business. I told my friend that I would check my current phone rates. Upon reviewing my phone bill with my wife, I was embarrassed to find were being charged 23 cents per minute!

What went wrong? Why didn’t my phone company automatically provide me the savings that they were so actively offering in their advertisements? Why were we left out of what every phone company seemed to be offering? Did they assume that we would leave the rates unchecked forever? Maybe so.

I immediately contacted my friend and had him change my phone company services.

Now each and every month when the phone bill comes, my wife opens the bill and thanks me for saving us so much money.

My question is why didn’t a large reputable company offer us these lower rates? We’re using the same lines. We were a long time customer. After some investigation, I found that they do offer a rate of 10 cents per minute, but do not overtly offer it to current customers... you know, the ones paying 23 cents per minute.

Maybe the answer is that the same old companies and suppliers are not always your best value and that a longtime trusting customer does not always get the best price.

Update: Current rates are now 5 cents per minute, and that is what we are paying - without having to ask.

Thank you, Howard!

By Jeff Herman
President Multi-Media Publishing & Packaging, Inc.