Drop Price, Drop Credibility!

We have a postage meter in our small office. We ordered it from the vendor when we were doing bulk mailings a few years ago. Since then, our snail mail usage has trickled off, so we decided to run the meter down to zero, then send it back. Why pay $20.00 a month for a small convenience that we really don't need?

Today my assistant, Jenn, contacted the company to ask how to send the meter back. She tells me that they offered to lower our monthly fee to $12.95 if we keep the meter. Hmmm...now that I want to cancel, they can drop their monthly rate by $7.00?

Basically, that translates into $7.00 a month too much that I've been paying for almost two years. Rather than jump at the reduced rate, I'm a little ticked off. Granted, $7.00 a month is nothing. It's the principle. I feel like I've been ripped off, paying $20.00 per month for a service that is only worth $12.95.

And they've lost credibility with me. If they can arbitrarily give us the service for $12.95 a month, how do I know someone else isn't getting exactly the same thing for $9.00 a month?!!!

Lesson for all businesses: Don't drop rates without justifying the price reduction. It erodes your credibility, makes you look desperate and devalues what you're selling.