Does Martin Lewis know ...?

davidgmmafan

"What are those extra overheads that I am missing? Don't say meter readers because I still have readings taken on online products."

I too am not involved in the pricing but I believe the thinking goes that people who are on online products usually contact thier supplier less. Whether this adds up to the differential given I'm not sure, although I'm not sure why else it would exist?

backfoot

davidgmmafan wrote: »

"What are those extra overheads that I am missing? Don't say meter readers because I still have readings taken on online products."

I too am not involved in the pricing but I believe the thinking goes that people who are on online products usually contact thier supplier less. Whether this adds up to the differential given I'm not sure, although I'm not sure why else it would exist?

If only that was true David.

Prior to competition I don't think I ever contacted the gas or electricity company.

Now with each and every Supplier even the most basic administration of my account seems fraught with problems. I must have written to EDF more times than my own family over the last 6 months....:eek:.

Neither option should be different in principle.The pricing differential is there because they are allowed to get away with it and even customers aren't challenging it never mind the Regulator.

davidgmmafan

Fair enough on the admin side that needs to improve A LOT. It is quite staggering when you think all they really have to do is bill be correctly and they can't manage it.

I do think there is more than meets the eye with regards to online tariffs. We both seem to agree the price differential is significant, but you say this is unjustified. I believe most people are not on an online tariff, so it follows logically that big six should be making much greater profits than they actually do?

On the original topic I doubt Martin knows about it, its far from the biggest whopper told by door to door persons. I reckon he'll be used to people trying to jump on his coat tails.

Plushchris

broxis11 wrote: »

Online deals are cheaper as the overheads are lower and that saving is passed onto the customer.

If that indeed is true then the opposite must also be true yes?

Standard tariffs are higher because the overheads are higher and in turn that cost is passed onto the customer?

Plushchris

broxis11 wrote: »

I also don`t have a `script`.

Thats the whole problem with door knockers. They can (and do) say what they like knowing full well there is little or no comeback whereas at least those in call centres have calls recorded..

backfoot

:think:

davidgmmafan wrote: »

I do think there is more than meets the eye with regards to online tariffs. We both seem to agree the price differential is significant, but you say this is unjustified. I believe most people are not on an online tariff, so it follows logically that big six should be making much greater profits than they actually do?

You've lost with me that logic.

Their profits now are as reported,given the mix of their customer base. How can they logically be any higher?

backfoot

broxis11 wrote: »

Backfoot, I am not involved in the pricing of energy products.

So why say it is not possible to offer equivalent prices because of additional overheads when you don't know what they are?

The truth is that the Suppliers choose not to do so because they would rather fleece customers by charging them extra supported by stuff and nonsense on the doorstep.

Earlier in the thread, you were claiming good knowledge and professional advice. I missed it then and I am afraid it's diminishing even more. :rotfl:

davidgmmafan

People here and the companies themselves say people can save £2-£300 per year by being on DD and having an online tariff. Most people are not on such a tariff, so what you are saying is they are overcharging most customers by this amounts. Therefore the profits should be billions more.

There ARE different costs for servicing different customers I'm sure of that, but clearly we won't know unless that was our job...

Take prepayment for example the prices had to be lowered even though I can easily understand how they would be more expensive to service.

BTW IMO the biggest waste of resources (whcih affects other customers) is debt. If that was reduced then there'd be less people subsidising the sums written off.

backfoot

davidgmmafan wrote: »

People here and the companies themselves say people can save £2-£300 per year by being on DD and having an online tariff. Most people are not on such a tariff, so what you are saying is they are overcharging most customers by this amounts. Therefore the profits should be billions more.

David,

You,ve just repeated the same strange statement. I think what you are trying to say is if more customer's from this point forward obtained internet type rates then profits would fall. Of course the Suppliers would then rebalance it back to the required returns by raising the prices.In which segment would they do so?

This illustrates the nonsense of the doorstep sellers. In theory,they could be trying to open the market up to greater competiton. However, it's a failure because the offerring is limited to tariffs which are still well above the internet equivalents. It is a discriminatory policy.

Furthermore,it is executed in a clumsy manner by people trying to make a living selling an inferior product. In order to gain market share and commission they are forced to sell essential energy at sub optimum prices to the customer.Nearly all then fall into the trap and bend the story like the OP's tale.

I don't mean to be hard on our poster broxis because he is obviously conscientious. What I can't stand is the process being made to sound like a good and useful service when it isn't.

broxis11

backfoot wrote: »

So why say it is not possible to offer equivalent prices because of additional overheads when you don't know what they are?

The truth is that the Suppliers choose not to do so because they would rather fleece customers by charging them extra supported by stuff and nonsense on the doorstep.

Earlier in the thread, you were claiming good knowledge and professional advice. I missed it then and I am afraid it's diminishing even more. :rotfl:

I don`t need to know what the overheads are to understand the fact that this is the reason that online deals are cheaper.


Your insults are meaningless as it doesn`t bother me in the slightest what you think.