Sunday, April 22, 2012

Business lesson: screw your customers, on purpose.

money.howstuffworks.com

We have all felt like this at some point. You are on the phone getting the run-around from some company. You know that you are getting screwed but there is probably nothing you can do about it. Early cell phone companies, cable providers and insurance companies immediately come to mind.



Notice a trend? It is not very easy to move your business to a competitor in these industries.

Usually the company has more tricks for stalling than you have time to waste on your complaint. It is in their interest to make it painful because it saves money and most people eventually quit. Companies only have to pay up the very rare time that someone is ultra persistent.

According to this Freakonomics post, when it comes to retirement plans sometimes even when you win you still lose.
it is in the corporate interest to make “mistakes.” The worst that can happen is that an ex-resistance fighter and rocket engineer turns up, and you end up paying some of your legal obligations. Mostly, however, no one notices, or they die while waiting for a speck of justice.

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