Maybe its just us March 7th, 2008
IÂ was thinking about Pat Phelan’s Paddy Tax press release today and the general unofficial cartel situation that infects Banking, Telcos, Network operators and Supermarkets in Ireland.
None of these guys really compete and maybe its us, not them. Not that we don’t want them to compete, but there just isn’t enough of us to make it worthwhile. Nature teaches us that in situations where many competitors strive after scare resources the result is that they typically partition the resources so that direct competition is eliminated.
So what we get in Ireland is the appearance of competition with no real attempt at radical differentiation or elimination of the competitors. Our own inability to complain directly combined with our gift for complaining publically then creates the illusion of a disgruntled population when in fact it would take dynamite for most o2 users to move to vodafone and vice-versa.
So here is what I suggest. If you are really (and I mean really, as opposed to something to pass the time over a cup of coffee)Â disillusioned with your network operator service contract, your bank or your supermarket, then switch. Then switch back. Then switch back again. For banks and network operators the cost of churn is enormous, for supermarkets the fluctuations in cashflow can cause chaos.
Somebody in Digital once said to me, to create the conditions for organisational change you have to inflict pain. Well creating churn is a great way to inflict a little organisational pain on our buddies in Irelands Cartel Economy.
11 Responses
gearoidc Says:
eh Joe,check out getsatisfaction.com it allows one to start a complaint thread about any product / company / service etc. they even have a RESTful API in closed beta testing i believe
in their own words…
“Get Satisfaction is a place where people can get the most from the products they use, and where companies are encouraged to get real with their customers.”
go on start a thread 
Darren Says:
“So what we get in Ireland is the appearance of competition with no real attempt at radical differentiation or elimination of the competitors.”
In my limited view of them, this rules also seems to apply to Ireland’s two major political parties.
Damien Mulley » Blog Archive » Fluffy Links - Friday March 7th 2008 Says:
[...] guide on how to screw with banks and telcos and the rest. [...]
Justin Says:
‘Nature teaches us that in situations where many competitors strive after scare resources the result is that they typically partition the resources so that direct competition is eliminated.’
hmm, interesting! Must look into that.
I wonder how much of it really is unique conditions over here. remember when Eircom were claiming 10 years ago that DSL couldn’t be rolled out in Ireland because we had a uniquely low-density population? This was of course bullshit — the nordic countries, even Northern Ireland, have similar situations and no problems — but the press and radio pundits swallowed it for several years until IrelandOffline finally debunked it, and Eircom had to give it up.
I wonder how much of our “unique conditions” are similar excuses that have become received wisdom.
Also: how do you churn broadband? the shitty, Comreg-approved terms of service are such that you’re going to get your DSL disconnected, and be offline for a month, while the switchover between operators takes place. nice work Comreg.
Darren Barefoot Says:
“So what we get in Ireland is the appearance of competition with no real attempt at radical differentiation or elimination of the competitors.”
I’ve always felt that this idea also applied to Irelands two main political parties.
conor Says:
Well, Sean Quinn is a testamant to one business’s ability to break any given Cartel — Insurance, health, Cement etc etc
Maybe someone should ask him kindly to move into telecommunications ( or maybe someone should follow his ways)
Justin Says:
‘Well, Sean Quinn is a testamant to one business’s ability to break any given Cartel — Insurance, health, Cement etc etc’
how so? Last time I checked, their healthcare and insurance offerings were indistinguishable from the others. That sounds like just putting up the *appearance* of competition, once again.
Joe Says:
Justin regarding churn its not something you can do once a week, but if enough people said, “at the end of this contract I’m changing” and did it two times in a row, the operators would take notice.
Michele Says:
If you think Irish banks are bad you should try Italian ones!
Bernie Goldbach Says:
With resigned amusement, my local shop sometimes lets me pay fifty cents for a single section of an Irish newspaper. So fifty cents gets me the business section of the Irish Times on Friday afternoons. The customer service theory is that if I was charged the whole amount, I wouldn’t purchase the other items worth a fiver in my hands. Moreover, I would probably go to another shop a few hundred metres away for the rest of my business for the rest of the year.
When buying technology components from independent retailers and from Maplins, I always ask at the counter, “Is that your best rate?” And at reception desks, I ask hoteliers, “Am I on the corporate rate?” Most clerks just tick a box on the reservation card and I get the price of a meal taken off just for asking.
In my experience, cheeky as it seems, there’s always something available for the taking. Just ask.
Aidan Says:
Bernie, what is your local shop, I’d be glad to buy the rest of “your” paper for 50c.
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