Monday, November 7, 2011

Bad choice affecting business

This article speaks about Netflix and it's decision to raise prices. This has affected it's customers and ultimately the business' bottom line. Netflix decided to raise the cost of mail order movies from $10 to $16. So, it seems a lot of people dropped Netflix out of protest.Should they have?

Originally Netflix had an idea to separate their online business from the streaming business so they can keep these business as 2 different entities. This was reversed when customers complained about the separation. Along with this separation came price increases, another factor that made customers unhappy. Eventually Netflix decided to keep the two sides of their business as one and not separate the two. They did however maintain the price increase. In October Netflix stated that they lost 800,000 subscribers in 3 months. (NY Times Oct. 2011)

More and more companies are increasing prices on all kinds of different products. Anywhere from candy up to cars. People are growing tired of this trend. They are beginning to stand up for what they feel is just another hand in the bank account. By leaving Netflix, customers are sending them a message that they are fed up with these bad business decisions. While prices do need to increase on occasion, a 60% increase is uncalled for.

People are fed up. Its time for change. Companies must realize what this does to their customers and ultimately their bottom line. By customers standing up, we are sending them that message.

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