What happens when a company tries to overcharge its customers

1. How to Lose Customers
colinmyles.blogspot.ie /2015/03/how-to-lose-customers.html
Recently my car insurance was coming up for
renewal. The business media was hinting that
the company I was with were heading for a big
loss.
So I was expecting a hike in the new quote. On
he day the quote dropped through my letterbox,
the CEO of said company in an interview
stated, " most people would see a modest
increase " , a couple of percentage points. I
opened the letter, lo and behold a whopping
47% increase.
Some bright spark must have thought their customers would be gullible enough to pay for their loss. No
sir not this one. Oh no I thought " here we go ringing around to get a new quote". I happened to
mention this to a friend of mine and he recommended this one brokerage.
The next day I phoned up, spoke to a very nice lady and got a new quote. Even paying less than I was
last year. Now here is the kicker. My new agency is underwritten by a company I left three years ago,
because they tried to play the same trick, due to a massive loss they suffered.
To paraphrase a Jim Rohn quote " it takes about $10.000 to gain one new customer". These two
companies are constantly advertising on TV,radio,print and the web. I wonder how many millions they
spend trying to gain new customers. Thing is I was happy with the company I was with three years
ago, I was even much happier with the one I just left and referred at least five people their way.
Another business saying " it takes six seconds to lose one customer and six months to gain a new one
".
Maybe someone out there can tell me which business school is teaching these folks to . .. . spend
millions on advertising to gain new customers. When you get them,treat them well and remember when
you suffer big losses increase your prices by 47% and all will be well and dandy.
We all make mistakes, but to expect your customers to pay for your management's error in judgement,
just doesn't cut it. Those two companies could have saved themselves a fortune if they had just treated
their customers with a little bit of respect and remembered the six second/six month rule.
If you are in business and have gone to the same school as these guys,don't expect your customers to
stay loyal while you try to get them to pay for your mistakes.
Colin Myles
Author & Listener
Author ; How to Avoid Business Failure
Author ; 67 Uplifting Quotes

2. " Honesty is the soul of business " Dutch Proverb
Author ; 5 Keys to Doing Business with The Right People