April 21, 2004
Petty Cash
Telecom companies are famous for failing to include surcharges, taxes and fees in their advertised rates so those advertised rates can appear low. (For example, Verizon's "Freedom" Plan, advertised at $59.95 per month, actually costs $85.)
Then there are the surcharges that are truly petty cash. Take, for example, Dollar car rental's surcharge for getting frequent flier miles. They can't just give you a simple bonus as an incentive--instead, taking advantage of the incentive costs you money. If you elect to receive 50 Delta SkyMiles per day, that costs you 50 cents per day up to $2.00 per transaction.
Here's a thought: why not have less fine print and make more money? Look at how many people are requesting frequent flier bonuses, assess how much it costs, build in something slightly higher than average into your prices, and simplify life for customers instead of making them feel nickel-and-dimed.
At this rate, we'll soon be shopping in supermarkets with "free" products that are then subject to an "acquisition fee" equivalent to the original price.
