Is there an ethics of frugality?
Photo by Jorge-11Is there such a thing as going too far in pursuit of frugality? I have been thinking about this some ever since the Consumerist ran an entry where readers shared stories of trying to save money by threatening to cancel service.
The idea is simple — if you do not like what you are paying for something (in this case, Comcast cable service), call them up and tell them that you want to cancel your service. They’ll transfer you to a retention department that will presumably offer you some sort of promotional deal to stay with the service. The Consumerist piece provides several reader anecdotes:
JohnDeere: “i did the same with direct tv. first time a week before my contract expired, they gave me all the movie channels free for 6 months and no new contract. after that first week i called to cancel anyway they cut $20 off my bill and gave me a big credit to last till next year still with no contract. i got it all in writing.”
jojo319: “The key is to ALWAYS set the cancellation a few days out. That way if they call your bluff, you can call back and “change your mind” before they actually shut you off. Works like a charm.”
gawngi: “I called them up and told them I was being let go from my job (believable in the economy). I now pay $42 less a month for 1 year.”
In these cases, the readers were able to get their bill lowered simply by threatening to cancel. Comcast’s behavior makes sense, as in all likelihood they would rather have you at a discounted price than not have you at all.
But is misrepresenting yourself going too far?
If you really want to cancel…
To start with, I think it is pretty safe to say that if you really intend to cancel or are really unhappy, that there is absolutely nothing wrong with this tactic. When you call up your service provider, you let them know that you intend to cancel for some reason, and in return they might give you an offer to stay with them. If it is an offer that you like, then perhaps you’ll stay with them, and if it is an offer that you don’t like, you’re free to cancel and move on elsewhere.
Tip: If you really are thinking about canceling, when you call in you should provide your reason upfront. So instead of saying “I would like to cancel my service,” try saying “I just can’t justify the monthly rate to myself anymore, so I think I am going to have to cancel.” Doing this gives the service provider an easier chance of doing something to address your concern that might keep you as a customer.
But if you don’t really want to cancel…
But if you really don’t want to cancel, is it wrong to nevertheless call in and threaten to cancel?
I think many — including The Consumerist crowd — would probably say that there is absolutely nothing wrong with this tactic even though you are misrepresenting yourself. No one is forcing either party to do anything, no one is violating any agreements — you are free to threaten to cancel, and your service provider is free to offer whatever response they see fit. Are you bluffing? Are they bluffing? It is very much a game theory problem, with deception just part of the game. If you can save money on your monthly bills, why not?
Doesn’t feel “right” to me
While I appreciate the argument, it doesn’t sit well with me. I am (obviously) fully in favor or trying to save money wherever possible, but I don’t feel comfortable doing it via misrepresentation. Pursue loopholes and chase deals, in my opinion, but do it fairly within the rules. This may sound silly, but if I threatened to cancel without meaning it, I feel like I would be elevating money above some other very important human values.
It also seems somewhat disrespectful to your service provider; this is probably a bit naive, but I would like to think that I do not have an antagonistic back-and-forth relationship with all of my service providers. Having spent years with my cell phone provider, even if I am just one of their millions of customers, I would like to think that there is a certain level of respect that should go back and forth, and threatening to cancel seems to fly in the face of that.
I guess my feeling can be best illustrated by an example. To me, “My neighbor is getting so-and-so a deal from you all; is there anyway I could get a similar deal even though I am an existing customer” is a far different situation than “I am unhappy with my service right now, and I would like to cancel it.” The first one presents an honest situation, while the second is purely business.
Selfish Reasons
Setting aside the more “ethical” side to this, there are some more selfish reasons to avoid this tactic:
- “Boy Who Cried Wolf, Part 1″ - If you become a habitual user of the “cancel tactic,” don’t expect much sympathy from your service provider when you really need it. In all likelihood, the retention department is going to know how often they’ve given you a deal in the past, and that will factor in to future offers.
- “Boy Who Cried Wolf, Part 2″ - If too many people use this tactic, the tactic might just go away. That may seem unlikely, since, again, the company might be better off with you at a discount than to not have you at all, but it may not be as outlandish as it seems.
- “Boy Who Cried Wolf, Part 3″ - If you yell “fire” in a crowded field, do not be surprised if one time they actually spray you with the fire hose. The Consumerist article also has stories of people who failed with this tactic, and inadvertently canceled their service. Don’t assume that there is a retention department on the other end!
So I have stated where I stand, but what do you think? Let me know!
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