Price creep (leap!)

[#1]

I tried to contact Plusnet but it was a 30 minute wait. How can Plusnet justify a 19% price rise in one of their products with CPI inflation running at near zero. I've been with Plusnet since 2002 (and with Force 9 before that). This is the first time that I will be shopping around come renewal date.

[#2]

I wonder if anyone at PN actually reads these posts.  If so, they will understand the sense of outrage felt by customers at the recent price rises.  The cost of advance line rental has increased by 19.2% which is outrageous when their costs apparently have reduced!    PN treat their customers with utter contempt and we should respond by transferring our loyalty elsewhere - they do not deserve us.  I've been with PN for about 10 years and have threatened to leave several times, mainly due to their shocking service levels.  This latest price increase is the final straw and I will now be moving to another provider.  Not a lot of choice out there but there's a principle involved here.  PN don't understand the word "principle" as they appear to be an unprincipled, unethical organisation with a cynical disregard  for their customers.  I feel sorry for the poor people who have no choice but to work in customer "service"for them - PN must be an awful employer.

[#3]

After applying "thumbscrews" to a customer service rep I'm informed that price rise notification e-mails are being sent out in batches of 50,000 by marketing - unfortunately the CS rep couldn't tell me whether that was 50.000/day or 50,000 every other day, or in fact give me any timescale. 

[#4]

Quote from: monabri

I tried to contact Plusnet but it was a 30 minute wait. How can Plusnet justify a 19% price rise in one of their products with CPI inflation running at near zero. I've been with Plusnet since 2002 (and with Force 9 before that). This is the first time that I will be shopping around come renewal date.

The problem is that for a company having money received upfront such as LRS is much less valuable now than it was.
Previously when interest rates were at 5% a company could invest the lump sum received and get a decent rate of interest on it during the year.
So it was worth giving a half-decent discount to the customer as an incentive to get the money in at the beginning rather than in dribs and drabs each month.
They would still be ahead overall.
Now that rates are at 0.5% the value of having such a lump sum upfront is hugely reduced - so in turn the discount has to be very considerably reduced.
Welcome to the slightly bizarre world of ultra low interest rates. 
Inflation anyway is an average made up of a basket of goods.
Each persons' individual inflation rate will vary wildly from the official one depending on their spending patterns
Typically people who buy lots of 'stuff' have a lower personal inflation rates (due to ever cheaper goods from overseas) than those who buy lots of services (such as the elderly).

[#5]

Quote from: AlaricAdair

If your need is both phone and broadband, consider looking at Vonage and renting a broadband only connection from PN or similar.

...and just how do you expect the whole system to work without the phone line...?

Quote

How Vonage Works With Vonage you use the internet to bypass traditional phone networks and dramatically cut the cost of UK and International phone calls on your home phone and smartphone To use Vonage with your home phone to make unlimited¹ UK and international calls: You'll need a home broadband service

[#6]

Quote from: x47c

Each persons' individual inflation rate will vary wildly from the official one depending on their spending patterns

Indeed, some of what I buy in the supermarket these days is the cheapest it has ever been, inflation in the world of "stuff" is dead.

[#7]

Stuff like iPhone+£ and Samsung S6+£?

[#8]

Surely a mobile is an (unnecessary) luxury?

[#9]

I was just thinking the same about everything powered by electricity.

[#10]

As a new "official" pensioner, I was updating my spreadsheets yesterday. Our "inflation" rate is more like 6.5% !! mainly due to things like line rental ,council tax, dental bills etc etc

[#11]

I'm surprised about the Council tax - mine's only gone up 0.7% in 5 years.

[#12]

Because most ISP's rely on BT's copper there is no real competition to speak of. Most of the offers available from other ISP's are on cost of broadband only. Not the line rental. Line rental charges are very similar for nearly all of them. If only companies like Hyperoptic could get a bigger spread and offer up pure fiber to other ISP's instead of just trying to be an ISP alone.SSE has the cheapest line rental BTW. I am not sure what they are like but will be looking at reviews to compare.

[#13]

I am considering Origin for line rental. £110 for a year so saving £75 over plusnets new LRS. That will more than cover the loss of the £2.50 "discount".
But will I still get good offers from the COT if I'm not using PN for phone? Or will they force me to completely move over to a new provider?

[#14]

in the past some customers have had offers when the line is with BT but with Origin and given the present clamp down on silly offers I think it is unlikely

[#15]

Like Oldjim I'm on an LRS contract that doesn't expire for several months - beginning of January in my case. Also like him I'm not going to leave immediately as I'd lose the current LRS saving. However, once it's finished I won't be renewing and I will be looking around for a new provider after many years. Having been on my current BB contract for more than 18 months I can leave whenever I want to without penalty.
It really does look like Plusnet don't want loyal customers, even ones like Oldjim who regularly help other customers in these forums (I wonder what the monetary value of all that volunteer work might be?). Over the past few years Plusnet has become much more like other, generic broadband/phone providers, so it makes sense to treat it the same as the others and to play the hopping around game. Probably inconvenient at times, but at least we won't have the feeling that we're being seen as mugs.