Great service doesn’t justify over inflated fees

Ary Rosenbaum - The Rosenbaum Law Firm P.C.
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Ary Rosenbaum - The Rosenbaum Law Firm P.C.I’m a loyal customer and always have been. I’ve always been reluctant to change especially when I’m satisfied with a service. I’m too loyal and sometimes, it costs me money like 401(k) plan sponsors who have misplaced loyalty in their plan providers.

Ever since I got my first cell phone in 1998, I always used Verizon Wireless. The services was far superior in terms of coverage and I was always willing to pay more. I even waited the longest time when Verizon didn’t originally carry the IPhone when AT&T had the exclusivity of it. I even was loyal when Verizon phased me out of unlimited data in exchange for the subsidy of my first IPhone, the 4S.

When my kids needed cell phone, I actually signed them up with T-Mobile because they were less expensive and it was a trial to see if I should make the switch. I dawdled for over a year without making the switch. My wife and I made the switch to T-Mobile because of a promotion regarding new phones. We made the switch and ended up saving $125 a month. In addition, through their T-Mobile Tuesdays, I got a free year of MLB.TV, free Netflix, and a whole host of other goodies.

Verizon still has a better service, but not enough to justify the $125 extra a month. The point here is that while better service should fetch a premium, too much of a premium is going to scare your plan sponsors to seek a less quality with a steeper discount. Everything about fees is reasonableness and if you charge too much of a premium for your higher quality service, you may end up not being reasonable in fees for the services you provide.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ary Rosenbaum - The Rosenbaum Law Firm P.C. | Attorney Advertising

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