Linkhansen,

It's all a game, don't kid you self. There is the cut and dried pay the asking price route, and then there is the more adventurous pick/negotiate your own price route. Sirius gets to make more money by setting a reasonable/high asking price, which many take, and work with those who find the price to be too high. I don't agree with that model, but many service based companies seem to follow it these days....

So even if you call to get a lower price, they have you on the phone. If you agree to take a subscription, even at a lower price, it is still a sale. A discounted sale is more $$ than a no sale.

Not everyone likes to negotiate/haggle, but some very much do.

T. J.

 

T.J.

I understand and everything is negotiable. No doubt the published prices afford them a healthy profit. What i am sayin is the no one can sustain a profit at $5 a month......you dont agree with that? I have received a discount and appreciate it. In fact the way my relationship started with them is they called me one day out of the blue and offered me a free radio if i would pay for a sale priced subscription. So i get it, everyone likes a deal. What i am saying is if you value something you want to make sure it is around later for you to continue to enjoy. They almost put themselves out of business and still dont think they are making a profit.....that is everyones concern.

Totally disagree with your last sentence. Have you heard the saying, "All money is not good money"? They have had to go back several times and ask for more money frmoteir stock holders and investors.

My point is if they dont make money and go out of business then all of us that enjoy the service are diminished.

Thanks

 

Very good points, and yes, a business must be profitable. They should not offer excessive discounts to the customer if it impedes that. It is up to Sirius set when that discount becomes too large & becomes bad business. As everyone in this thread seams to agree, they are very inconsistent in pricing and costumer service. Improving the consistency of those two things would probably improve their profits.

If they truly need to make the advertised price (or a reasonable % of it) on each subscription to stay solvent, I'm afraid we will be with out satellite radio sooner rather than later.

 

Yes indeed. LOVE my sirius service, but as you said, they have a LONG way to go in customer service and consistency. At least the technology is reliable! Have a great day.

 

There's also economies of scale in play. I really doubt it costs them $5/month for that 1,000,001 customer. As a customer I would assume sirius is smart enough to know their costs and not sell their service at a loss. They're the only game in town now so it's past the undercutting the competition to drive them out stage.

 

Since there are no consumables involved with adding another customer to their service, any sale they make is money they didn't have before. After all, the radio signals are being broadcast everywhere all the time. I agree that they need to have a more consistent policy and improved customer service.