Penny-wise, pound-foolish actions by businesses?
March 15, 2016 4:29 PM Subscribe
What are some examples of things that businesses do that make you say "Really? REALLY?" More details inside.
I'm trying to build a list of things that businesses do that generate profit in the short-term, but are extremely short-sighted. Some examples:
* The $300 a night hotel that wants to charge its guests $6 for the bottle of water or $5 for a few ounces of cashews
* The casino that charges for its valet service (even though they know they're going to get most of the money you have anyway)
* A bank that charges overdraft fees to a lifetime customer who has never had a bounced check in decades
... and I'm not just looking for financial things, but for anything that makes you shake your head. The insurance company that sends you a half a pound of paperwork for a simple claim. The electronics retailer that rents out floor space in its stores to extremely pushy salespeople from other companies.
What other examples can you think of?
I'm trying to build a list of things that businesses do that generate profit in the short-term, but are extremely short-sighted. Some examples:
* The $300 a night hotel that wants to charge its guests $6 for the bottle of water or $5 for a few ounces of cashews
* The casino that charges for its valet service (even though they know they're going to get most of the money you have anyway)
* A bank that charges overdraft fees to a lifetime customer who has never had a bounced check in decades
... and I'm not just looking for financial things, but for anything that makes you shake your head. The insurance company that sends you a half a pound of paperwork for a simple claim. The electronics retailer that rents out floor space in its stores to extremely pushy salespeople from other companies.
What other examples can you think of?
This post was deleted for the following reason: Without a reason or context for it, this is chatfilter, sorry. -- restless_nomad
The pharmacy I went to buy band aids from whose sales assistant then refused to hand them over to me (after she had my money) unless I gave them my personal details for their database, stating it was company policy. When I told them it was MY policy to not give out my information, she still wouldn't back down. I asked for a refund and told her I would buy them elsewhere and the assistant then sighed, threw the bandaids at me, and said, here, have them then.
posted by Jubey at 4:35 PM on March 15, 2016
posted by Jubey at 4:35 PM on March 15, 2016
Well, one issue that comes to mind is the recent hotel industry Wi-Fi blocking inanity.
posted by WinstonJulia at 4:44 PM on March 15, 2016
posted by WinstonJulia at 4:44 PM on March 15, 2016
I think health insurance companies are the worst offenders. They generally won't pay for things like intense nutritional counseling to help people avoid diabetes and heart attacks, but they'll pay for a lifetime of diabetes medications and bypass surgeries. (The sort of moderate nutritional help that is sometimes provided does not provide sufficient support for people with major problems.) My doctor wanted me to monitor my blood pressure at home to help me get my mild hypertension under control. He thought my insurance would cover a home blood pressure monitor (which is about $60). They said they'd only cover it if I already had end-stage renal disease.
I'm not sure the examples you give are penny wise and pound foolish. Probably most people will just suck up an overdraft fee instead of going through the hassle of changing banks. People want to go to the casino, so they'll pay valet parking. Someone who pays $300 for a hotel room isn't going to balk at $6 for a bottle of water. I'd call that more nickel and diming people to death. And, as showbiz_liz says, they do these things because they work. They improve the bottom line - short-term and long-term.
posted by FencingGal at 4:45 PM on March 15, 2016 [2 favorites]
I'm not sure the examples you give are penny wise and pound foolish. Probably most people will just suck up an overdraft fee instead of going through the hassle of changing banks. People want to go to the casino, so they'll pay valet parking. Someone who pays $300 for a hotel room isn't going to balk at $6 for a bottle of water. I'd call that more nickel and diming people to death. And, as showbiz_liz says, they do these things because they work. They improve the bottom line - short-term and long-term.
posted by FencingGal at 4:45 PM on March 15, 2016 [2 favorites]
The $6 water and the $300 room isn't a bill most of the people choosing the product pay for so they aren't price conscious. Their company account picks up the tab, so it's just water. The lone self-paying traveller who pays the bill is not the hotel's target market.
posted by dorothyisunderwood at 4:46 PM on March 15, 2016 [1 favorite]
posted by dorothyisunderwood at 4:46 PM on March 15, 2016 [1 favorite]
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posted by showbiz_liz at 4:33 PM on March 15, 2016 [9 favorites]