Ask HN: Service that negotiates and switches between companies on your behalf.
3 comments
It seems like a valuable service and has a built in revenue model in that users could pay a fee based on the actual savings that they realize. There are two questions/issues that come to mind:
1) How wold the negotiations be facilitated? My guess is that this would have to be actual human-to-human contact, which seems expensive. One way to keep the costs down may be to develop a filtering system that only accepts users with bills that have a high likelihood of being eligible for some discount. That way your resources would only be spent on the users most likely to generate revenue for you.
2) Do service providers like cell phone companies discuss account details with a third party who is not the account holder? It seems like the type of thing that a big company wouldn't want to allow for any number of reasons (i.e. privacy concerns, preventing an "agent" from negotiating on behalf of the user).
Some aspects of your idea are topically similar to BillShrink.com although they aren't doing any negotiating on behalf of individual users. They are doing quite well.
1) How wold the negotiations be facilitated? My guess is that this would have to be actual human-to-human contact, which seems expensive. One way to keep the costs down may be to develop a filtering system that only accepts users with bills that have a high likelihood of being eligible for some discount. That way your resources would only be spent on the users most likely to generate revenue for you.
2) Do service providers like cell phone companies discuss account details with a third party who is not the account holder? It seems like the type of thing that a big company wouldn't want to allow for any number of reasons (i.e. privacy concerns, preventing an "agent" from negotiating on behalf of the user).
Some aspects of your idea are topically similar to BillShrink.com although they aren't doing any negotiating on behalf of individual users. They are doing quite well.
Users would have to share their authentication details with the negotiator, which would be a security risk but would mean the negotiator would be indistinguishable from the user.
The service providers certainly wouldn't like it but I'm not sure there's much they can do.
The service providers certainly wouldn't like it but I'm not sure there's much they can do.
Totally - and not just little details like passwords but big details like multiple security question answers and social security numbers (when negotiating bigger ticket items).
How much of a security risk would it be really, given that call centre staff at your phone provider will have access to the same details?
I like the idea. It's a non-stop negotiating service. It could be outsourced. And, unlike some outsourced personal assistants, it could be done passively by monitoring your credit card statements.
I think the basic economics for a specialized negotiating call center work out easily with people making $10/hour. One of the big costs of negotiating with providers is waiting on hold. But your call center software can recognize when an operator comes on the line and automatically route the call to a currently available negotiating specialist.
I think the basic economics for a specialized negotiating call center work out easily with people making $10/hour. One of the big costs of negotiating with providers is waiting on hold. But your call center software can recognize when an operator comes on the line and automatically route the call to a currently available negotiating specialist.
I like the idea as well but I can imagine that $10/hr employees are not trained/educated/{whatever adjective you pick} enough to do the negotiations. The proof is there: they are working for $10/hr. If they had quality skills like that, they wouldn't be making $10/hr in a call center. This means they would require extensive training (which would up the overall cost, particularly the upfront cost to get started).
Now as to the idea, I think it falls into the, "I'd use that" category from a user perspective and would have a B2C model; in my view of it, you would sell directly to consumers or partner with companies to sell at a discount to their members/userbase.
* How do you bill? Do you bill differently for monthly bills (i.e. utilities, car loans) vs. one-time expenses (i.e. jewelry purchase)?
* Is this an unbiased service or will your company step in at "just the right time" and say, "You can save $100 on car insurance right now with our preferred provider!"
* What is the average amount to be negotiated? If it is $100/month bill, then you should be able to negotiate down to $85-$89.99/month. That means you save the customer, on average, $12/month in that scenario. How do you convince me, the customer, that your price is worth my saving $12 a month?
* How much did it cost you, the entrepreneur, to save your customer that money? I'd assume it cost a minimum of $7 in raw time on the phone/logging the call and then another $10-$100 in training/software/"misc" costs depending on what they were negotiating.
Anyway, just random thoughts. This is one of those, "Cool idea but I can't figure out how to actually make money with it" ideas to me.
Now as to the idea, I think it falls into the, "I'd use that" category from a user perspective and would have a B2C model; in my view of it, you would sell directly to consumers or partner with companies to sell at a discount to their members/userbase.
* How do you bill? Do you bill differently for monthly bills (i.e. utilities, car loans) vs. one-time expenses (i.e. jewelry purchase)?
* Is this an unbiased service or will your company step in at "just the right time" and say, "You can save $100 on car insurance right now with our preferred provider!"
* What is the average amount to be negotiated? If it is $100/month bill, then you should be able to negotiate down to $85-$89.99/month. That means you save the customer, on average, $12/month in that scenario. How do you convince me, the customer, that your price is worth my saving $12 a month?
* How much did it cost you, the entrepreneur, to save your customer that money? I'd assume it cost a minimum of $7 in raw time on the phone/logging the call and then another $10-$100 in training/software/"misc" costs depending on what they were negotiating.
Anyway, just random thoughts. This is one of those, "Cool idea but I can't figure out how to actually make money with it" ideas to me.
"I like the idea as well but I can imagine that $10/hr employees are not trained/educated/{whatever adjective you pick} enough to do the negotiations. The proof is there: they are working for $10/hr. If they had quality skills like that, they wouldn't be making $10/hr in a call center."
Some truth here, but there are other reasons to work in a call center besides low skill set. Working part time while in college at a schedule that is good for the employee would be one.
Some truth here, but there are other reasons to work in a call center besides low skill set. Working part time while in college at a schedule that is good for the employee would be one.
My experience negotiating repeating bills is that it's not rocket science. I renegotiated with Server Beach by sending a single email ("Hey, can you lower my server prices to match what you're advertising on your website?"). I renegotiated with my credit card by calling and saying ("Hey, can you lower my interest rate?"). The advanced credit card negotiation skill is to say "That's it? I need you to do more."
These are all things that can be done for $10/hour. The trickier negotiations are things like what you would do with Comcast, where there are deals to be had, but they often involve slight changes to your service. That either requires some judgment or someone who can take notes and get confirmation from you.
These are all things that can be done for $10/hour. The trickier negotiations are things like what you would do with Comcast, where there are deals to be had, but they often involve slight changes to your service. That either requires some judgment or someone who can take notes and get confirmation from you.
I think most people would be amazed at what you can get by paying the slightest attention to what a company offers, and asking nicely.
It shouldn't take that much time... every few months just make a list of what you pay per month to each service, and go and check their websites for any cheaper prices or deals. If there are any, call up and ask NICELY to have them lower your rate. I'd bet most are going to be willing to do that.
It shouldn't take that much time... every few months just make a list of what you pay per month to each service, and go and check their websites for any cheaper prices or deals. If there are any, call up and ask NICELY to have them lower your rate. I'd bet most are going to be willing to do that.
I think you've hit the nail on the head there: a good negotiator is going to be expensive. I have a suspicion that it won't be worth the savings.
It may be possible to script the negotiations. "Hi my name is X. My friend pointer out that <provider with a good deal> offers <good deal on a detail of the contract>, can you offer anything to reward my loyalty to your brand?"
The phone operators at the other end would most likely be equally unskilled, with set concessions they can make to customers.
The phone operators at the other end would most likely be equally unskilled, with set concessions they can make to customers.
The phone operators at the other end aren't interested in giving concessions unless they believe that they're going to lose the customer if they don't.
If your negotiator is just a script, then that isn't negotiating. The phone company won't be worried about losing the contract.
Think about it this way: if it's just a script, then why do you need a negotiator at all?
If your negotiator is just a script, then that isn't negotiating. The phone company won't be worried about losing the contract.
Think about it this way: if it's just a script, then why do you need a negotiator at all?
Critique the viability of this idea.