DISH NETWORK TERMINATES RETAILERS
- Thread starter Scott Greczkowski
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If the revenues of a few terminated installers/retailers equals Dish's profit, then they're having a really good year or Dish is having a really bad one.
Since this is just the latest round of retailer terminations, is there anywhere where one can get a complete list of all of the retailers terminated since this latest termination drive started?
Just how may retailers are there? Is Dish just dumping 1% of the bad apples, or are they making a serious dent in their retailer force?
Let's just say that it's definitely higher than 1%. Are they making a serious dent?
They are, but not only from the audit terminations.
There are many other factors that are causing dealers to close their doors voluntarily.
Examples;
1- not enough new customers that can qualify.
2- cost of advertising to acquire new customers
3- Customer who disconnect. This is one of the biggest issues. Lately most of the disconnects are for non-pays (customers who don't pay their bill), poor customer service from Dish, and last but not least.................... those who switch providers because they want everything free again.
The last example is probably the biggest reason for retailers to have to close their doors. Retailers get a "color" rating from Dish based on their new connect to disconnect ratio. When their disconnect % goes up they can and will be terminated even it has nothing to do with their service to the customer. On top of running the risk of getting a bad color rating, the monies that Dish charges back the retailers is crippling. Most just can't afford to keep their doors open from these charge backs.
So, are there as many retailers as there were lets say 2-3 years ago. Most likely not.
Yea, the chargebacks can get to alot of these retailers. When you see people getting 722's and 211's on their account, there is about $1300 in equipment and commission payments associated with that paticular sale.
Customer sees FREE FREE FREE, but the retailer is the one financing the system at in some cases $400 per receiver.
Customer disconnects service, and thats over a $1000 chargeback to the retailer.
If your just a little retailer doing a few jobs per week, one chargeback like this will seriously set you behind for a few weeks, especially when you where counting on that money to pay bills and put food on the table
Believe me, I have had a few of these $1000 doozies myself and on several occasions I have immediatly drove to the customers house and gotten my equipment and ripped out every fricken wire that I installed.
And the customers wonder why I had a bad attitude with them when I got to their home to take back my equipment
Customer sees FREE FREE FREE, but the retailer is the one financing the system at in some cases $400 per receiver.
Customer disconnects service, and thats over a $1000 chargeback to the retailer.
If your just a little retailer doing a few jobs per week, one chargeback like this will seriously set you behind for a few weeks, especially when you where counting on that money to pay bills and put food on the table
Believe me, I have had a few of these $1000 doozies myself and on several occasions I have immediatly drove to the customers house and gotten my equipment and ripped out every fricken wire that I installed.
And the customers wonder why I had a bad attitude with them when I got to their home to take back my equipment
Maybe you ought to explain upfront when you first install , that you will be removing their receivers and ripping out the wiring if they cancel their DISH contract early. IF subs knew up front that you would be the one to be hurt by them canceling early , maybe they would think twice before doing it. You know add a disclaimer to your install contract. Then you wouldn't get so many dirty looks when it happens. You could be the one to give the dirty looks instead.
I don't think this will prevent most people from cancelling service as its the retailer's money, not the customer's money on the line. This could cause some of the customers to hide their equipment or try to prepare for resistance when you come to pick it up. I'm sure his contract already states something about having to return equipment if the customer has to cancel early.
3rd party agreements... you cancel and you owe the money the retailer is getting charged back to the from Dish, on top of what you owe Dish for breaking your contract.
These seem to become a lot more common nowadays with retailers and frankly I don't blame them. If Dish is going to charge them back for a customer that disconnects early, especially if it is something outside of their control, then they typically have a good reason to hit the customer with the amount that Dish charged them back. I would guess that a fair number of the retailers that are still in business doing Dish installations also have the third party agreements with the customers and keep the customer's credit card information on file.
That being said perhaps some of the retailers with a good reputation that service the areas that the terminated retailers are in can pick up some business as a result.
Maybe then Claude could add a separate contract that says in case of early cancellation , that he would bill their credit card for a certain amount of money as a fee. That way it might keep some from cancelling if they thought that they would have to pay twice to cancel.
I think most people have a real problem with that.... Dish is the one advertising "free" everything, (in the past) no contract, etc, etc, etc. If that's what I sign up for, that's what I'm getting. A 3rd party will NOT impose add'l conditions on me. I've said it before, these are issues between Dish and their retailers or installers. Let them sort it out and do NOT put the customer in the middle.
I'd love to sign up with the "deal" that Dish advertises, have a 3rd party retailer or installer do the work, and then at the end, tell me about add'l clauses or terms. They'd be removing everything they just spent hours putting in... possibly doubling the amount of time they spent and all for NOTHING.
You think so? How many people have switched service over one channel not added? Bottom line most people want it now, want it free and don't give a rats rump about what their decisions cost the retailer/installer. If Dish does eventually tank and there is only one sat provider the landscape might change considering there will be no alternate provider to switch to on a whim.
Okay, I give up then. I guess that is the cost of doing business when you are a satellite retailer.
I wonder if these "illeagal activities" are truly illeagal.. Remember their war against FTA?
Most retailers do this all ready.
If I understand your comment correctly, you are saying tuff S!#@ to the retailers.
Correct?
If so what you are saying, as most customers who disconnect say, "I don't want to live up to my end of the CONTRACT and I don't care if it takes food off of your table mister retailer.
I see hundreds of these examples weekly. Customers are explained the terms of the contracts before, during, and after the installation. Then when they don't hold up their end of the deal and the retailer hits their cards for the early termination penalty, they call up screaming bloody murder to the retailer and their credit card.
My retailers then pull out their SIGNED agreements, and some ask the customer if they would like to hear the recording of the conversation they had during the sale,
explain to the customer that they are responsible for early termination fees to which most customers reply................... TUFF S!#@ !!!!!!!
It is these customers that are driving most retailers out of business today.
You only read what you wanted to read.... Let me ask, if Dish advertises "Free equipment, free installation, no contract...", why can a retailer override that ? Why can't the retailer honor the exact same agreement that Dish advertises or offers to customers ? It makes Dish look bad, is what it does. There was a time frame of maybe 1-2 years ago where Dish's main promotion was "no contract" but retailers imposed their own "terms and conditions". Why someone went to a retailer after getting info from Dish, I don't know...
As for customers being "explained the terms of the contracts before, during, and after the installation", ummm, the book may say that's how it's done, but I don't believe for a second that's happening in the real world. Customers get the paperwork after all the work is done.
To anyone: How many of you were explained your contract terms before, during, after, or any combination of those when you got service installed ?
My experience may be different. I've had Dish installed twice and both times I went "direct" with Dish and the work was done by "DNS" (??) installers.
As for customers being "explained the terms of the contracts before, during, and after the installation", ummm, the book may say that's how it's done, but I don't believe for a second that's happening in the real world. Customers get the paperwork after all the work is done.
To anyone: How many of you were explained your contract terms before, during, after, or any combination of those when you got service installed ?
My experience may be different. I've had Dish installed twice and both times I went "direct" with Dish and the work was done by "DNS" (??) installers.
Dish encourages retailers to have 3rd party contracts to protect themselves from deadbeats. It also helps ease the pain of the charge backs the retailer gets from Dish. If a customer does not want a contract most retailers will send them to Dish directly because history shows that these are the customers that will most likely disconnect within the first year. THIS IS FACT.
As for given the terms of conditions, they may not do that out there in Ohio but out here in CA all our retailers disclose the terms of the agreement. I'm sure Claude's company does as well because he is required to in order to be in the national program he's in for Dish.
I can't tell you how many times I have heard customers cry " I was never told about your one year agreement". Then I see the contract they signed (where it is spelled out in bold) and I have heard the recordings of the sale where it was explained and the customer agrees. The sad truth of the matter is that most customers only hear what they want to hear and also never read what they are signing.
You and many people on this site may be the exception, but the real truth on the matter is that the majority of customers out there are big risks and liabilities to both retailers and the providers themselves.
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