Live data from Hacker News

Companies use drip pricing to overcharge consumers

passingtime.substack.com

91–100 of 425 posts

Re: Companies use drip pricing to overcharge consumers

#91

Earlier quoted context omitted.

If an establishment adds a 20% surcharge to a dining check, that's a tip, and generally considered to be on the higher end in the US. I would simply consider them to have chosen my tip amount for me and leave it at that.

> and generally considered to be on the higher end in the US. Maybe in 1998 but it's pretty much standard now.

[deleted]

Re: Companies use drip pricing to overcharge consumers

#92

Earlier quoted context omitted.

The same happens with my ISP. I just call customer service and tell them I want to cancel. They offer me a significantly better price for a year, I take the new price and after the year it goes up again and I call to cancel again.

Yup, once a year like clockwork. Call the ISP, play a game of brinksmanship to avoid being taken to the cleaners. Meanwhile my conflict-averse friend is paying $94/mo for less bandwidth than I get for $25. It's psychological discrimination, is what it is.

Your conflict-averse friend might want to check out Trim. They negotiate lower bills and split the savings with you (can't say I've used it myself).

https://www.asktrim.com/

Re: Companies use drip pricing to overcharge consumers

#93

Note that drip pricing for restaurants (e.g. 10-20% non-tip surcharge) is illegal in many jurisdictions (if not "conspicuously advertised" before eating), but some restaurants try to do it anyways (claiming the policy is "conspicuously advertised" on the last page of the menu, or a tiny sign behind the bar). Sometimes you can just refuse to pay it and they'll back down because they want a repeat customer more. Someti…

> Sometimes they'll insist, but you can still just... not pay it, if you don't plan on going back. It's not like they're going to call the police, and you're paying the main bill. This only works if you have enough cash on hand to cover the main bill or you're able to be really pushy and get them to run only the main bill on the card.

Yup, you definitely have to be willing to waste 10+ minutes of polite arguing and be willing to insist they run only the main bill or you'll walk out without paying anything at all. Which in many (most?) social situations, it's not worth doing. But if you're willing to take a moral stand against sneaky surcharges, maybe you care enough.

Again, literally everything about it sucks.

Re: Companies use drip pricing to overcharge consumers

#94

Boost Mobile did this recently when my wife and I switched cell carriers. They advertised a $30/month/line plan (after a 3-month introductory period at an even lower price), but we are now paying closer to $45. This has pissed me off enough that I want to look for another carrier, but this seems to be SOP for this industry. Telcos behave like nothing less than a criminal cartel, so I was hardly surprised by this play…

T-Mobile plan prices are inclusive of all fees and taxes.

Re: Companies use drip pricing to overcharge consumers

#95
post #23

It would be nice to have bundle reform that requires all prices to be listed as taxes-and-fees-inclusive here in the US. Ok, it’s not going to happen federally, but I’d at least like it where I live. Changing prices is already regular maintenance, so the idea that this would place a burden on businesses is BS. If they have metadata at the cash register to know how to tax different items, they can have it at the label…

>>It would be nice to have bundle reform that requires all prices to be listed as taxes-and-fees-inclusive here in the US No no no no Taxes should be listed for atleast 3 reasons 1. The company is not paying the tax, you are. You owe the tax not the company, the company is merely collecting the tax for the government. In many states the company is paid to collect this tax on the governments behalf. If the tax was not…

I like how the UK does it. Total final price is the one on the sticker but tax is listed on the receipt. Something like

Sticker : $100

Receipt

Price: $92 Tax: $8 Total: $100

Re: Companies use drip pricing to overcharge consumers

#96

Earlier quoted context omitted.

The same happens with my ISP. I just call customer service and tell them I want to cancel. They offer me a significantly better price for a year, I take the new price and after the year it goes up again and I call to cancel again.

Yup, once a year like clockwork. Call the ISP, play a game of brinksmanship to avoid being taken to the cleaners. Meanwhile my conflict-averse friend is paying $94/mo for less bandwidth than I get for $25. It's psychological discrimination, is what it is.

There is no right for the timid to receive as much as the bold. Your friend also does equally poorly in salary negotiation. $25 doesn't keep the lights on and there are far more of your friend than there are of you ergo you ought to be careful for what you wish for because fair pricing looks a lot more like you and your friend both paying $94.

Re: Companies use drip pricing to overcharge consumers

#97

This is far worse than Airbnb. As annoying as the cleaning fees are, they are disclosed before you obligate yourself. A 20% fee only disclosed after you’ve already ordered and eaten is just fraud.

The problem with AirBnb cleaning fees is that they don't disclose what's included in them. If you're going to charge me $500, fine, but it's not great when I show up and find out that you expect me to wash and remake the beds, power wash the deck, get rid of that wasp nest that's been there for a month and also assemble some Ikea furniture.

These days I ask for a list of cleaning requirements before I book.

Re: Companies use drip pricing to overcharge consumers

#98
post #57

Earlier quoted context omitted.

Unfortunately for everyone involved, the waiter is complicit in the fraud and no longer deserves a tip.

Yes, because as we all know, service staff have enormous power and dictate restaurant policy. This is why they're so highly paid and aren't abused at all by customers, for example. /s

Their only power is to leave. I don't like sticking them either, but it's true that they are complicit.

Re: Companies use drip pricing to overcharge consumers

#99
post #23

It would be nice to have bundle reform that requires all prices to be listed as taxes-and-fees-inclusive here in the US. Ok, it’s not going to happen federally, but I’d at least like it where I live. Changing prices is already regular maintenance, so the idea that this would place a burden on businesses is BS. If they have metadata at the cash register to know how to tax different items, they can have it at the label…

>>It would be nice to have bundle reform that requires all prices to be listed as taxes-and-fees-inclusive here in the US No no no no Taxes should be listed for atleast 3 reasons 1. The company is not paying the tax, you are. You owe the tax not the company, the company is merely collecting the tax for the government. In many states the company is paid to collect this tax on the governments behalf. If the tax was not…

Here in Belgium (and most of Europe), we basically do both. Each line on a bill has 3 numbers: the untaxed price, the tax or tax rate, the taxed price. There are also 3 totals.

Re: Companies use drip pricing to overcharge consumers

#100
post #53

This is far worse than Airbnb. As annoying as the cleaning fees are, they are disclosed before you obligate yourself. A 20% fee only disclosed after you’ve already ordered and eaten is just fraud.

Just don't pay the fee. Or call the manager over and ask why they arent paying their staff properly. Companies only pull this stuff because they get away with it. Don't make it worth their while.

Unfortunately, for many people that ruins their night out. It is often more practical to pay it and never return.
Post reply on HN