Tired Of The “Hidden Fees” Shell Game? New “Tactics” Isn’t The Answer For Anyone In The Long Run

In the July, 2019 issue of its magazine, Consumer Reports writes in the teaser copy for its article on this subject:

“From cable TV to cell-phone providers, from utilities to airlines, companies are piling on more and more sneaky fees that result in higher bills for consumers. We give you tactics to spot and avoid them.”

So, fees are bad and avoiding them will be a good thing for consumers? Tactics? Seriously?

Suppose instead of painting a one-sided picture with the provider as the “bad guy” and themselves as the protector of the “good guy” customer, they tried to describe today’s price/value story from both sides of the transaction.

The copy might look more like this:

“The consumer movement’s fixation on one number as “transparency in pricing” has driven prices below the levels sufficient to cover costs and provide a reasonable profit. To stay in business, companies like cable TV and cell-phone providers, utilities and airlines, have had to add charges and fees you won’t know about unless you read the fine print or until you get the bill. If enough people read and apply the tactics we give you to spot and avoid them, these companies will either find new ways to raise effective pricing, reduce the goods and services they are providing or go out of business entirely.”

New tactics still sound like a good move for consumers in the long run? Doesn’t feel right, does it?

Learning how to be a better player to outsmart the other party won’t reform what’s supposed to be a business transaction between grown-ups that has mutated into a kids’ game of cat-and-mouse.

A closer look reveals that some of the examples aren’t really in the category of hidden fees. Take CR’s example of baggage charges on airlines. Charging someone who checks a bag a little more than someone who doesn’t check one doesn’t seem like a hidden fee, but rather a separate charge for a separate service. If you’re not checking a bag, why should you pay for the baggage handlers?

Some fees and charges for subscription services are infuriating primarily because you usually find out about them after you’ve said ‘yes’ to the transaction and signed on the dotted line. You feel like you’ve been the victim of a “bait-and-switch.” 

The situation is made even worse in cell phone and cable services because the companies often give a break to new subscribers for an introductory period, tacking on the charges after you’ve been with them for a year or more. (One time when I called to explain that it was unfair that they were treating new customers better than me, after I’d been with them for years, the rep suggested quitting their service and signing up for a competitor’s service for a couple of years to get their good deal and then quitting them and coming back as a new customer. She added “That’s what I’d do.”)

What’s the alternative? 

Businesses: Think about it: Nobody complains about the whopping $125 extra charge for a month of temporary international service on their cell plan. Why? Because everyone knows going-in that the charge is for an extra service the customer requests and pays for right then and there. There are no surprises. No ambushes. No disappointed customers.

Put it right out there, up front. Don’t wait for customers to ask. Think: What would you want to know if you were the customer? Everyone knows the provider has to make money. Customers just don’t like being ambushed with new charges after they “shake hands” on the deal. It’s pretty basic. If you have an additional service for which an additional charge is appropriate — like a DVR rental on a cable subscription — make it clear up front. 

Customers: Ask “Are there any other charges I ought to know about?” Don’t wait for the provider to tell you. No need for any “tactics” to “uncover” anything or outsmart a company you’re trying to buy something from.

It’s a business transaction — for grown-ups, right?