The term
”
nickel-and-dime to death
”
has been in the American lexicon for a long time. The saying
refers to a process that drains of your money bit by bit.
The term “nickel-and-dime to death” has been in the American lexicon for a long time. The saying refers to a process that drains of your money bit by bit. However, a failing economy, greed, reckless spending and a passive public have allowed the nickels and dimes to grow into tens and twenties. We don’t have a good phrase for what’s going on now – some words come to mind, but they are not fit for print in a family-rated newspaper.
Including one piece of checked luggage in the cost of an airplane ticket used to be the norm for a nation on the move, but many airlines like Continental and Delta have discovered that you’ll pay a $23 to take your bag along for the ride. To add insult to injury you have to pay an extra two bucks for them to take your money unless you pay online. United Airlines stands that situation on its head, the first bag is $25, but you get a $2 “discount” if you pay online. Pure genius, they make a charge look like a benefit, the person who dreamt that up deserves a promotion. American and Southwest, just to name two, fly one bag free within the continental U.S. and their fares aren’t any higher if you shop.
There is no way your satellite TV service is going to miss out on these opportunities. Among the terms in the actual 5,722-word customer agreement – I assume you and your lawyer have read it all – you may find the following “up to” fees. There is $100 for Account Activation, $300 Access Card Replacement, $6 Additional TV Authorization, $10 Change of Service, $10 Phone Payment, $5 Order Assistance, $1.50 for Automated Phone System orders, $15 Deactivation, $1.75 each per Duplicate Statement, and $2.75 each for itemizing past payments. “The list,” says the company “is not exclusive.” Yes, you have to pay for the service, too.
Government knows a good thing when they see it and although every police officer and politician will swear that parking tickets and other minor violations that come with major fines have nothing to do with revenue, don’t you believe it. They are moneygrubbers like everyone else, the only difference is that government claims to be doing it for noble causes – not to mention their own salaries and benefit plans.
Banks are expert at this, my bank recently notified me that if I were ever late on a credit card payment they get a $25 fee and reserve the right to increase the interest on future charges up to a penalty rate of 29.99 percent, almost triple the norm, based on their evaluation of my “creditworthiness.” Luckily, I’ve been a “valued customer since 1982,” so I’m probably getting a break. The prime rate is 3.25 percent and the banks have been getting the money for essentially nothing from the Federal Reserve discount window – nice mark up.Â
Obviously, customer loyalty is a one-way street these days. To get the ultimate prize, a new customer they can lock up for years, companies offer great deals that loyal longtime customers can’t get. If you’re not loyal, you get a really bad deal. If you’re loyal, you only get a bad deal.
Then there are those promoting financial and investment advice for huge, sometimes hidden, commissions. Buy yourself a good book on investing; you’ll save a bundle. If you need tax or investment advice, go to a CPA or a certified financial advisor and pay them by the hour for professional services, but never give them control or buy investments through them. I’m sure all your advisors are trustworthy, but you’ll be doing them a great favor by not putting temptation in their way.
Have a good swim in the waters of the new economy and watch out for the sharks.
Marty Richman is a Hollister resident.
