How I saved money on our cable bill

Periodically, I go over the fixed expenses in our budget to see where we are and where we can cut some pennies (which usually translate into hundreds of dollars over the long haul).  We get our phone service, internet connection and tv cable service from our local Denver cable company, Comcast.  When I signed us up for Comcast two years ago, we got a great deal:  $100 for all three services, including unlimited long distance and high speed internet.  We're not big tv watchers, and we find that basic cable more than meets our needs, so we don't have HBO or any other premium channels, though I wouldn't mind having them if they didn't cost more.

Our two-year introductory contract on Comcast just expired, and whoa!  Our cable bill increased to $157 plus $7 for a modem rental plus inexplicable charges and taxes.  I went into consumer shock when I saw our last bill.

This inspired a call to Comcast.  "I"m thinking about switching to Dish Network because our cable bill is way too high," I said.  "Please hold while I switch you to our retention department," was the response.

Ah.  They actually have a "retention department." A whole department devoted to keeping customers.  This alone tells me that 1) there is something very wrong with Comcast's business model and 2)  I was about to play Let's Make a Deal.

I spoke to a "retention specialist" and was able to immediately reduce our bill to $108/per month for the first year and $123/month for the second year if we agreed to another two year contract and went on autopay.  The autopay part didn't bother me at all, since that is actually our standard billing preference.  The two year contract would come with a $150 withdrawal penalty that would be reduced by $15 every three months.  Interesting. I didn't have a good feeling about the deal; I thought we could do better.    I told them I'd think about it and call them back.

I did. I called them back and after speaking briefly to the retention specialist who answered the phone, he informed me that he would be switching me back to the retention specialist I spoke to originally.

"Why?" I asked.  "Because we're paid on commission and you already started with someone else."

They pay retention specialists on commission?  Wow.  This told me that 1) there was something really, really, really wrong with Comcast's business model and 2) I could argue harder for the deal I wanted.

Truth is, I wasn't having a good rapport with the retention specialist I had spoken too, so I asked if I could call back later.  I did, and spoke to a completely different r.s., who was much more willing to play ball.  I got down to a $99/month contract, which would go up to $114 in year 2.  I got 6 months of free HBO and Starz.   Our $7/month modem rental would be reduced to $2/month for six months.  In return, we would go on autopay and sign the two year contract that the first r.s. mentioned.  I agreed.

So, instead of paying $157/month plus $7 for the modem, we were now paying (averaged over two years) $106.50/month plus $2 for the modem (for 6 months, and then it goes back to $7) and getting HBO and Starz for 6 months for free.  All for the price of 3 phone calls.  Over two years, our out-of-pocket savings will be $1,242 plus the corresponding taxes. To be perfectly honest, while I agreed to the deal, I still suspect that we could have done better.

I've found that it pays to call your cable provider and cell phone provider every year or two, just to check in and see if they can help reduce your costs.  When I was living in New York, my cable provider, Verizon, sent me a free 20" flat-screen tv in order to retain my business, and we were always getting bonuses like free cable boxes, movie tickets, Target gift cards, movie channels, etc.

Have you reduced your cable or cell phone bill recently?  What was your experience like?

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