Archive for the 'Technology' Category

ETF’s… and I don’t mean Exchange Traded Funds

Early Termination Fees – Why do company’s use them?

With few company exceptions, what ever happened to the days when companies believed in “have a good product, provide good service” and customers will keep coming back. With all the hoopla about early termination fees (ETF’s) surrounding the cable/telecom industry, it’s starting to make consumers really think before they “commit” to purchase.

Much like dating, people need to test the waters to find their right mate. Both parties know going in, that in order to make it work, both sides need to put forth effort. But in the end if it doesn’t work out, each partner takes whatever experience they learned into the next relationship. No penalties, no hard feelings and all is good.

Don’t get me wrong, I understand there are hard costs that companies incur with each “sign on”, but lets be serious, they pale in comparison to the penalties/fees associated with breaking a contract early.

This begs the question – If consumers are more hesitant to jump into a relationship with a company, does this create a potential missed opportunity? If so, I hope the penalties/fees companies receive are worth it, because in my opinion, the long-term satisfaction of one happy customer is worth its weight in gold.

Look forward to hearing your thoughts.