Just like hotels and airlines, most of your monthly bills are subject to discriminatory pricing. This is when a service provider charges its customers different prices for the same service.
Discriminatory pricing allows companies to make higher profits without incurring additional expenses. Although this is good for the big companies, it is not good for you and me.
You'll want to know these 5 important facts about discriminatory pricing and how it affects your monthly bills:
1. 93% of Americans are Overpaying on Their Monthly Bills... Yikes!
Most customers do not get best the rates on their bills. You may not be overpaying on every bill, but the odds are that you are overpaying on most bills.
2. Bills are Typically 14% - 42% Inflated!
Service providers that participate in discriminatory pricing will charge up to 42% more money for the same exact service. The range depends on service provider and industry.
Getting the best price is dependent on many different factors, but most Americans can reduce their bills by about 15- 20%.
3. Combined TV, Internet, and Cell Phone Alone Comprise 11% of an Average Household’s Take Home Pay!
Virtually everyone in America has a cell phone, home Wi-Fi and cable/ satellite TV. It is important to pay attention to the price you pay for these three services since they account for a large portion of your income. These also happen to be 3 bills highly subject to discriminatory pricing.
Other major offenders include home security/ automation, satellite radio, and propane companies.
4. The Average American is Overpaying by About $400- $1,200!
It goes without saying that this is a lot of money to throw out the window. Imagine applying the money overspent on these bills to a car or mortgage payment.
5. Negotiate: DIY Negotiators Yield About $214 Savings Per bill!
Savings will vary per bill and bill type, but you can outperform other DIY Negotiators with persistence and planning.
When negotiating, keep in mind that discriminatory pricing is embedded in the negotiation process. As such, it is often advantageous to call in multiple times. You should plan for each call to last about an hour.
You Can Do Better...
These statistics are scary, but fortunately, you can negotiate your bills to fair prices.
Before negotiating, we recommend researching bill negotiation tactics and entering the negotiation with a plan. Although the average DIY negotiation is $214 per bill, each bill can on average be reduced by $303.
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