SAN DIEGO (KGTV) - Feeling overwhelmed by bills? 10News is exploring solutions for making it in San Diego and found there may be a way around the mountain of debt.
A recent study by Lendedu suggests companies are open to allowing consumers to negotiate their bills. Using data provided by the company Truebill, Lendedu analyzed which companies tend to be more generous in negotiating with customers.
Satellite service providers were analyzed in the report. Customers of SiriusXM had the highest success rate in negotiations, according to Lendedu. Consumers had negotiation success rates in the 80s with three other companies, Suddenlink, Centurylink, and Dish Network, the report showed.
The study went on to note, “When it came to how much companies actually knocked off the average customer’s bill, SiriusXM once again led the way; the average SiriusXM customer was able to decrease that monthly charge by 40 percent or more. Immediately behind SiriusXM was CenturyLink, ADT Security, and DirectTV, who all fell into the 25 to 29 percent range in terms of the percentage the bill was decreased by post-negotiations.”
"They're looking at who you are as a consumer," said Steven Osinski, a sales and direct marketing professor at San Diego State University.
Osinski says the way businesses make their money, especially when it comes to services, is through recurring revenue. Once you're signed up, many will cut deals to keep you.
"There’s an industry term that we call churn, and basically what happens is it costs about five to ten times on average more money to obtain a new customer then it does to keep one," said Osinski.
If you're thinking about trying to negotiate, Osinksi says companies are looking at certain factors before they agree to different terms.
"They’re looking at who you are as a consumer,” he said. “Are you paying your bills on time, are you prompt, do you have extended coverage, have you been with them for a long time."
Osinski says don't be afraid to ask companies for a lower price. You never know what they might say.