HD Free For Life (reg $10)

[mike123abc]

"Charge because you can fees" seems to be a popular term on here. Are you saying this is just a Dish thing or are you saying that every provider that charges for HD, extra receivers and DVR is doing the same thing?

It is not really charge what you can, but what they think they need to maximize revenue and still remain competitive. The relative cost for a receiver to Dish has come down over the years, yet the fee has gone up. Your $7/month is not really covering the cost of the receiver (you pay it even if you bought it up front), but as a fee mechanism Dish uses to bring in more money. This is not to be construed as trying to screw customers out of cash but a way to get more revenue for a logical reason that the consumer can understand.

The business model is that there is a base package fee that is advertised and then you put on a bunch of fees below the line. In the past Dish tried to resist, but now they have joined the rest of the industry.

It is like Southwest Airlines. Currently they do not have a baggage fee. Does this mean that they do not have to pay for extra jet fuel to carry bags? No, but they think it is a better way to advertise being no fees on luggage, or ticket changes. Why do other airlines charge $25 when studies have show it is really only around $2 extra cost to the airline for a checked bag? Well it is a profit center that helps the airline to break even.

Make no mistake every fee that Dish and all the other providers have are completely decided by them, they could waive any of them if they decided they would get more customers and profit without them. Why does Dish now say they have a $10 HD fee? Well perhaps they never intend on charging it, but it looks good to say you get another $10 off for 2 years when they make their ad up - and there is more! save $10/month off the price for fee HD for 2 years!

I am sure Dish (and all the others) carefully study the impact of every fee. I am sure they have focus groups to see if they can make it sound reasonable and logical (i.e. you got another box so paying $7-$17/month is reasonable). They also then are able to use that money to lower the package price, or perhaps give more incentives to new customers.

Dish's least profitable customer is probably someone with just one 211 with EHD. No extra fees, just the base package price. But, they elected to set the system up that way. I am sure they are still making money on that customer, just not as much as others.

 

[Tampa8]

You have fallen for Southwest advertising. You are assuming Southwest is less to fly. Well it is just like the DISH debate, it depends on the customer. I can often - not always - fly for less with Delta as I never check baggage. I fly a minimum of five times a year between Bradley and Tampa alone.
Most (not all) flights I take, I can get a lesser rate on Delta than Southwest IF I have no carry on baggage, and if I book in advance. So Southwest has transferred the cost to the flight itself to help make up for the fees they are not charging, and that is their business model.

This coming May when I booked the least cost on Delta was $209 round trip Bradley to Tampa, one stop each way. Southwest was $218, and it too includes one stop each way. (Direct was comparable - Southwest just a little more)
There are other differences, some that make Delta cost more than the flight cost, some that don't and favor Delta. (If you fly often, you know Delta is more able to get a plane or find seats to replace one that goes out of service, much faster than Southwest typically can as one example)

 

[Scherrman]

It is not really charge what you can, but what they think they need to maximize revenue and still remain competitive. The relative cost for a receiver to Dish has come down over the years, yet the fee has gone up. Your $7/month is not really covering the cost of the receiver (you pay it even if you bought it up front), but as a fee mechanism Dish uses to bring in more money. This is not to be construed as trying to screw customers out of cash but a way to get more revenue for a logical reason that the consumer can understand.

The business model is that there is a base package fee that is advertised and then you put on a bunch of fees below the line. In the past Dish tried to resist, but now they have joined the rest of the industry.

It is like Southwest Airlines. Currently they do not have a baggage fee. Does this mean that they do not have to pay for extra jet fuel to carry bags? No, but they think it is a better way to advertise being no fees on luggage, or ticket changes. Why do other airlines charge $25 when studies have show it is really only around $2 extra cost to the airline for a checked bag? Well it is a profit center that helps the airline to break even.

Make no mistake every fee that Dish and all the other providers have are completely decided by them, they could waive any of them if they decided they would get more customers and profit without them. Why does Dish now say they have a $10 HD fee? Well perhaps they never intend on charging it, but it looks good to say you get another $10 off for 2 years when they make their ad up - and there is more! save $10/month off the price for fee HD for 2 years!

I am sure Dish (and all the others) carefully study the impact of every fee. I am sure they have focus groups to see if they can make it sound reasonable and logical (i.e. you got another box so paying $7-$17/month is reasonable). They also then are able to use that money to lower the package price, or perhaps give more incentives to new customers.

Dish's least profitable customer is probably someone with just one 211 with EHD. No extra fees, just the base package price. But, they elected to set the system up that way. I am sure they are still making money on that customer, just not as much as others.

You hit the nail on the head with your thoughts on Dish's new HD promotion. When retailers voiced their concerns to Dish about changing the promotion Dish responded by saying the HD Free for 24 months showed more value to the customer. The Free For Life promo didnt' get recognized by customers as much.

 

[Laddyboy]

You hit the nail on the head with your thoughts on Dish's new HD promotion. When retailers voiced their concerns to Dish about changing the promotion Dish responded by saying the HD Free for 24 months showed more value to the customer. The Free For Life promo didnt' get recognized by customers as much.

WTF. For any consumer capable of rational thought, "Free HD for Life" should have greater value then "Free HD for 24 Months. I call BS on Dish's explanation.

 

[Tampa8]

At first thought I would agree, but thinking about it, do most customers feel they will stay in two years or that they will look around then?

 

[Scherrman]

WTF. For any consumer capable of rational thought, "Free HD for Life" should have greater value then "Free HD for 24 Months. I call BS on Dish's explanation.

You'd be surprised. It really doesn't bother me any more. When they first announced it I thought it was a terrible idea but the more I think about it the less it worries me. The competition is doing the same thing so there are no concerns there. Existing customers are not affected. New customers are still getting their HD for free. By the time their 2 year contract is up HD may be free for life again. Who knows, it may be that you can only get HD channels in 2 years. Lets say after the 2 years are up you have to pay for your HD, I'll bet you can just get the promo extended by calling up Dish and telling them you're going to cancel.

I think the marketing department likes to be able to tell people that they can save $240 with Dish with their Free HD promotion. With the Free HD for Life they can't place a value to it and can't advertise the savings to the customer. Trust me, the general public is not that bright when it comes to looking at marketing materials.

 

[dare2be]

WTF. For any consumer capable of rational thought, "Free HD for Life" should have greater value then "Free HD for 24 Months. I call BS on Dish's explanation.

I don't. You are making the bad assumption that the average consumer is capable of rational thought.

 

[Teehar]

The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Dish Network, but that other malfunctioning corporation called the USA. Thank you very much.

Are you related to daffy duck?

 

[Bobby]

 

[DishSubLA]

Thank you kindly for your respone. I got now.