Why Consumers Turn to Concierge Services to Manage Bills
Frustrated at spending countless hours attempting to negotiate lower rates for their bills, consumers have admitted defeat and are turning toward low-cost concierge services to handle their grievances.
Instead of seeking personal assistants who charge an hourly rate and may not be successful, consumers now have a breadth of options. Companies specializing in obtaining the lowest electricity rates or relinquishing consumers from two-year bundled cable, internet and phone contracts are rising in popularity, because they have demonstrated a proven track record and often charge customers either no fees or only half of the difference in savings.
"I think concierge services have always been popular idea, but until recently it was not affordable," said Julian Kurland, who founded BillFixers, a Nashville-based company that negotiates monthly bills for consumers, with his brother, Ben Kurland.
The two brothers and their staff of 12 people persuade and negotiate with customer service representatives at cable, internet, satellite and phone companies to help customers who are exasperated and don't believe they have a recourse to reduce their bills. After the initial promotional period ends, consumers often discover the deals pledged to them, which were seemingly a bargain, have now evolved into a complicated and expensive burden. In order to lower the current bill, some companies lure consumers back in for longer contracts and potentially even larger bills down the road.
Julian Kurland started battling with various companies when he was a college student and even helped out his roommate. While others find haggling with companies a chore, Kurland said he finds the challenge "extremely satisfying."
"There is nothing worse than being on the phone indefinitely haggling over how much you should pay for your cable package," he said. "The main reason people call us is that people have already tried negotiating their bills themselves and still aren't getting a fair deal."
How Consumers Can Save Money and Time
One advantage companies like BillFixers have is the luxury of time - being put on hold while Muzak is playing in a loop or being transferred to yet another representative and listening to their spiels. Consumers have nothing to lose in this proposition because they only pay if the company can strike a better deal. Their fee is 50% of the savings they obtain, similar to competitors such as BillCutterz, a Corpus Christi, Texas company.
"Your time is valuable and every minute that you spend waiting on hold is time you don't get to spend doing what matters to you," said Kurland. "Concierge services now gives everyone access to the same luxuries that used to be reserved for the wealthy."
Consumers living in deregulated states can change electricity and natural gas providers, but many people are either unaware or loath to take the time to call or switch companies when their contracts are about to expire. When Gina Henry, a Houston-based energy consultant, first started working in this field ten years ago, she only represented one residential electricity company, but now has expanded to offering six residential companies and three commercial companies. None of Henry's customers pay her firm, Agape Enterprises, for searching for the cheapest rate per kilowatt hour. And while she is compensated by the power companies, Henry says she is willing to recommend a competitor if they are offering a better rate.
"My promise is to always advise the best option for my client," she said. "Many consumers still don't know that they have the option of choosing their electricity provider in Texas. They just stay with the company they have always been with and continue to pay the rates that that company chooses to give them."
The savings for consumers can often be relatively high and many of them can save 25% to 50% for the year just by switching providers, Henry said.
"Providers don't always fight to keep their customers' business as you would expect them to and not all companies are alike in their pricing and customer service," she said. "Consumers can find it very beneficial to reach out to someone for advice on better options."
While Henry can't sign consumers up for automatic bill pay, she will handle the details that consumers often neglect to do - cancel the services with the original provider and ensure the new electricity company starts their contract the same day.
"I know that if I am honest in my efforts, they will always trust me with their business going forward," she said. "Some chose to stay with me, even if I am not the best deal because of that trust."
Why Consumers Use Them
Consumers are drawn to these companies, because changing companies or figuring what plan is the cheapest option is a a dreaded, unpleasant task, but few people want to succumb and keep paying for contracts they didn't agree to, said Kurland whose company also negotiates rates for electricity and gas, as well as services like home security, satellite radio and OnStar (the navigation and security service offered by General Motors). While many consumers are seething quietly at home because they are being overcharged, many are reluctant to talk to a representative whose persuasiveness might convince them to sign up for a service they did not need.
"I think people are excited that there's finally a way to get out of doing the chores of daily life," he said."You can just give them to someone else now."
While some people might be whizzes at the data plan for their smartphone or know which internet speed they need to shop online or watch YouTube videos, others simply want to make sure they are getting a fair deal.
"These services exist, because nobody can be an expert at everything," Kurland said. "It took us thousands of hours to figure out the best ways to lower bills and the inefficiencies and mistakes that can come up along the way. Even if you can do it yourself, a concierge service can do it faster and better, just because they've spent years working on one problem. You don't have to reinvent the wheel."