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Monday, July 16, 2012

How to save on your cell phone bill (and other services)

 
Rule #4: If you never ask for something you want, you will never get it.

I've been busy reading up on a lot of books as of late, and I've been reading this interesting one in particular called Get More Money On Your Next Job...In Any Economy by Lee E. Miller. I've also been gearing up to do something that I've been wanting to do for a while now: re-negoitate my cell phone bill. That was on the top of my "to-do" list.

It seemed a bit silly how I'd spend over $100 a month, knowing that I've been a loyal T-Mobile customer for 5+ years, never missing/late on a payment, and seeing that I'm not attached to the hip of my cell phone, unlike many other people in today's world (so I don't run up their services). For me, it's like finding lunch during my break in Manhattan. I hate spending $7 on a small sandwich that doesn't fill you up or a burrito that's more than half rice when you can use that money for something better.  I'd rather get a real meal. That would just keep on making me come back for more, as long as the price is reasonable. I remember I used to go to this Halal place (can't believe that I didn't discover the awesomeness of Halal sooner!) that would even give me free soda and stuff at times because he saw I was loyal. That's how I think a patron-business relationship should go. That other place with the crummy sandwich or the burrito that's almost all rice don't seem to put too much stock on satisfying their customers. In that case, they are the weakest link! Goodbye!

However, re-negotiating your cell phone contract isn't as easy as you would think. I've been reading all over the Internet, and I've read up on complaints on how customer service was unwilling to budge. I feel that many of these "save money on your cell phone bill" readings leave quite a few things out that I went through, so now I'll show you how I saved on my cell phone bill while taking a few pages out of the handy book that is Get More Money On Your Next Job...In Any Economy. Okay, so it's not exactly a bible that will magically get you a better deal, but after I read the entire book, I saw its potential and decided to take some pages out of its playbook (Rule #3: There are no rules, especially when you figure out why they exist). I have to admit, I was nervous at first because it would be the first time I'd do something like this. I didn't want to wind up like this T-Mobile customer:



This is what happens when you don't read my blog.  He could've gotten a better deal!

It took a while, but I'm glad to say that I learned something about negotiating and I got the deal I was looking for. Some things to keep in mind is that the more years you've been with a certain company, the better deal you'll probably get. Service companies (phone, cable, Internet, credit cards) usually prefer to retain a good customer rather than find a new one. I actually know a case of a friend actually having her grandfather getting free cable for one year just because he called up customer service and complained.  You probably won't get a deal from your cell phone carrier if you're under contract, have bad standing in your account or have been with your service for less than 1 year.  Of course, the more time spent with one company, the better the deal. Another interesting thing to keep in mind is that car insurance can't normally be negotiated the same way since states have laws requiring companies to keep their rates, making them solid.

Here's some strategies to keep you on that path to that good deal:

Strategy #1: Call customer service and say you want to cancel

Interestingly enough, if you try to go to an official store (my carrier is T-Mobile), they won't really help you. It's not because they're trying to play hardball. It's because they normally don't have the power or authority to help you. The lady I got at the store just kept on reciting plans from a sheet of paper that was laid out in front of her (hint: the special "retention" plans are never documented). When I asked her what services/rates/options could be changed, she just blankly looked at me and said that's all she could do without any further information. Seeing that, I knew that she did not have the authority to modify my plan since she could not give me any reasons. So off to call T-Mobile customer service I went. After going through the voice prompt and saying "cancel," I got a representative. Don't worry about accidentally canceling since companies normally make you confirm before you cancel (of course, they don't want you to).


Strategy #2: Don't play the "Hardball" approach! Be nice!

Leave playing Hardball with Chris Matthews! In fact, playing "hardball" normally gets you nowhere during negotiations. Your objective whenever negotiating is to let the person's guard down. You do this by being nice, casual, and honest. One thing I learned in my days as a call center person (yes, I was one of those annoying cold callers that called you during dinner) is that if someone throws a fit at you because you're calling (and trust me, there was a lot of anger directed at me), just be more nice. I would go something to the effect of "Listen, I'm sorry. I know your time is important, but I'd really appreciate your help." Usually, I'd get dead silence on the other line because the person never expected it.

As for being honest and casual, you can say something like "I'm paying too much and I'm afraid I won't be able to afford it afterwards." The framing of the phrase shows that you want to stay, but you will leave nonetheless if you do not get what you seek. Notice how you can convey your casualness and honesty like that. You have to form your words so that you don't give ultimatums. Those are definite deal-squashers.

Strategy #3: Ask leading questions

Yup, you get to channel your inner Phoenix Wright/Jack McCoy for this one. It's time to "lead the witness." Why? Because it can give you more information about the options available. Of course, agents never tell you right off the bat what's available. You have to get it out of them. Once you start the initial dialogue and get the "best" plan, then you can seek more detail. Some questions I used were:
  • What else can you do in order to lower my bill?
  • Can customers normally get x fee waived?
  • What other plans do you have that include (Internet, x minutes, etc.)?
Another cool strategy to use to is to stay silent after a person answers your question. Many times, a person will keep talking just to keep a conversation going, which can lead to more answers. Interesting tactic I learned from Miller's book.

Strategy #4: Talk to a supervisor

As said before, if you can't get details out of a person by using leading questions, it's because they don't know better. If that's the case, ask to speak to a supervisor. If asked for what reason (and they usually do), say it's because you want more information in order to make an informed decision. Sometimes, the supervisors will "coach" them, in which case stay with that person until talks break down. At times, even the supervisor will not be willing to work with you (which is weird because they get incentives for each customer they keep) or stop short of calling you a liar when you have a certain deal in place. In that case, just say you have a call coming in/company coming over and will have to continue this later (of course, you won't get the same person).

Strategy #5: Write everything down and ask them to customize parts you like

Get the names of everyone you talk to, and write down all the details you're given of plans/options (never take the first option, by the way). That way, you can easily go back to it. Also, some people will try and change details, but if you write them down, you can call them on it (and I've had to quite a few times). When you see something you like, you can give them a hint like "I like the $10 credit/month, but I was looking to get more of a discount as I'm afraid it'll be too much." If they don't budge at first, go off on another tangent like minutes or texting, and then come back to it afterwards. Eventually, the person will see that it's important to you and will work to accommodate you. At the same time, "give in" to things you don't really care about but at the same time, show you're "giving up" to the representative to show you're fair. I "gave up" minutes since I don't really make calls and said I'd be willing to get the least amount of minutes just so I could get something else.

Strategy #6: Repeat, recite, recall because time is your friend

The goal of the representative is to get you off the phone ASAP. If you show you're willing to wait them out, they'll take you more seriously. I mean, who wants to prolong negotiations longer than they have to? Repeat facts and figures to make sure you wrote them down correctly. Recite certain issues that you think are important. Recall the offers you were given previously and ask how that can be done and if rates are permanent. Also, re-call if you get a "hard" representative. In my experience, it usually takes about an hour and a half to get into "uncharted" territory.  That is, the realm of unadvertised deals, which is what you want. You know you've hit pay dirt when the person says "let me put you on hold to review your account" or "this is an offer I can only give you today." Usually when this happens, they can do some minor tweaks and then, it'll be the best offer he/she will offer. You'll know because if you say you'll have to think about it, they'll say that it's only good for now and cannot be redone if you call back (which is true because it won't be on record). You may want to try Strategy #6 for longer, but you'll feel when you reach the end or somewhere near it. In that case:

Strategy #7: Don't be afraid to walk away

Leave an offer that doesn't provide very much benefit from comparable/your current plan. Don't go too far because at the same time, companies have been known to terminate services of high-maintenance customers, although I can't imagine this happening unless you demand free everything forever. One thing I realized was that every time I called (even when I was still under contract), I'd get a slightly better deal with few exceptions.

Finally, I accepted a two-line plan that has 1000 minutes monthly, unlimited texting for two lines, and unlimited hi-speed Internet for one line for $60/month for the duration of my new contract. On top of that, my down payment on a phone was waived (around $260) and I received a $200 credit. Took me quite a few hours on the phone to accomplish this, but hey, I'm saving about $2000 in the term of my contract from a comparable plan of T-Mobile. Also, keep in mind that when you renew one line and your plan changes, all line contracts under that plan are automatically renewed. Hold off that upgrade if they don't have that phone you want in stock! (which is what happened when I called for the Samsung Galaxy S3 :P).  After all that hard work and time put in, I'm glad to say that I'm paying less than before and currently have a Samsung Galaxy S3 in my possession (BEST...PHONE...EVER!). In fact, I think Lee E. Miller's book can be applied to many things in life, but more on that later as soon as this new phone stops being so awesome! (nope, still awesome!)

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