Security Software Costs More to Renew Than Buy New 164
Matt Whipp writes "In a story I wrote for PCPro, I explore a tip submitted by one of our readers. They pointed out how much more it costs to renew security software, rather than buying it new. In fact it cost less than half the price to buy it new than it does to renew the license because of heavy discounting. He feels a bit cross that, as a loyal customer, he is the one penalized. From the article: 'ZoneAlarm may have tripped up on this discount issue, but it's not alone. It highlights just how cynical companies can be in relying on customers' assumptions that a renewal should be cheaper than buying new. McAfee's Internet Security Suite costs just £24.99 with the current 50 per cent discount. However, should you be fool enough to already be a customer of McAfee, you'll have to pay £39.99 to renew your licence.'"
once they got you.... (Score:5, Interesting)
CABLE, PHONE, & INTERNET ONLY $29.99 A MONTH!!!!!!!!*
*first 3 months regular rate of $150 a month applies 4th month and on.
Is it really screwing you over? (Score:3, Interesting)
I'm not so certain this a 'screwing over' loyal customers as much as it is an incentive to give new customers a cheaper opportunity to try service. This trend doesn't apply to software alone but exists in many services (phone, cable TV, etc.)
As companies compete and offer new services, you want them to offer you deals in order to entice you to try their products.
Sounds like nobody knows how to negotiate... (Score:3, Interesting)
He starts giving me the run around and I say, "Thanks, but no thanks. I am going to seek alternatives to your product, have a nice day."
That usually drops the price right then and there.
what if they don't sell renewals? (Score:4, Interesting)
Oddly enough, if you install Norton 2001 on a fresh system, it works perfectly, and you get to download updates for a full year from the date of installation (which is the default).
So the updates exist, but Symantec won't sell them.
Bastards.
All of us are not Mullah Nassirudin (Score:5, Interesting)
If all of us were wise as the Mullah, teaser rates from credit card/mortgage companies, cell phones companies, ISPs etc wont work. But in most parts of the world, inertia rules. Once you accept a monthly bill, then they got you.
Moo (Score:4, Interesting)
I wanted to by soup from a deli. I asked them why a quart cost more than two pints.
I wanted to buy pizza (that is cut into eight slices). I asked for eight slices. They asked "you mean a full pie?" I said "no, eight slices is cheaper." The idiot told me that he'll give me the eight smallest slices. At which point i threated to publicize his scam. Needless to say, i got it for the cheaper price.
In the supermarket i many times look to see the difference in prices when buying bulk. Many times the smaller amount is cheaper. Not usually, but many times.
The cable Internet company offers connections for very cheap for six months, but then charges astromically after that. When i challenged i would cancel and re-sign up, they told me that there had to be a five-month break in between the two to get the discount. So, i threatened to go DSL, and got a nice discount.
While in some cases the discrepency is by malicious intent, in most cases its because the price of software is what people are willing to pay, not what it is worth. (No, they are not the same. The latter can be calculated based on what it does and how cost incurred by not having it. The former is just perception.) Being it is harder to get a new customer than to retain a customer, breaks are given.
Had the business gone in to help the customer, and the customer in full-faith accepts this, he would accept the discount and then pay the "normal" amount during the retention period. However, in todays cut-throat society, where short-term financial goals are everything, there really is no such thing as a long-term relationship. There is no retention period. The person is in the system, unless they try to leave, it which case that triggers offers of cheaper prices.
I see no fault in all of this. It may be an example of a sad state of affairs, but its just business as usual.
Hardware is following the same trend (Score:3, Interesting)
i don't know if its changed, but ink refill kits in the mid 90s sucked and has ruined any positive perception I may have for them now.
Why pay for updates? (Score:3, Interesting)
And if you look around online, there's actually a Windows batch file that will do it for you automatically. You can even schedule it with Windows Task Scheduler.