Surcharges
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Last year when we were paying about $4.50 for a gallon of gasoline, you may
remember companies started to add a surcharge to their bills. I saw it in our
bills for garbage collection, pest control, irrigation maintenance, pool
service, delivery men, etc. They did this to say they haven't raised the price
of their service, which I can't believe anyone is stupid enough to believe, but
you never know. I even saw a taxi with lettering on their doors stating they had
the lowest fare rates in the town, but right below it they listed the surcharge
to be added to the bill.
Airlines have also gotten into the act and now have surcharges for checked
baggage to offset fuel costs. This "a la carte" mentality is becoming more
pervasive in business and instead of paying one simple fee you are now presented
with a lengthy bill representing a hefty price tag. The telephone companies are
good at this as well, as anyone who has had to read their voluminous bills can
tell you.
I really don't understand the psychology of surcharges. Proponents argue that
consumers like to believe they are paying low prices and that a surcharge is not
a permanent part of the bill, that it's only temporary and will be eliminated
sometime in the near future. Right; and pigs will fly too. Now that fuel charges
have radically declined, I don't see too many companies eliminating the
surcharges. In fact, the price of fuel has reduced so much you would think we
would be entitled to a rebate of some kind. Fat chance for that. The only time
you see a surcharge removed is when a company finally announces a price
increase.
Something I learned a long time ago was that prices only go up; and rarely,
if ever do they go down. Probably the best way to think of a surcharge is as a
price increase in sheep's clothing. But for those companies who think they are
being clever in trying to pull the wool over the eyes of the public by using
surcharges, please, don't insult our intelligence; an increase is an increase, I
don't care what you call it.
Such is my Pet Peeve of the Week.
Note: All trademarks both marked and unmarked belong to their respective
companies.
Copyright © 2009 by Tim Bryce. All rights reserved.
About the Author
Tim Bryce is the Managing Director of
M. Bryce & Associates
(MBA) of Palm Harbor, Florida and has over 30 years of experience in the
management consulting field. He can be reached at
timb001@phmainstreet.com
