Contracts, Contracts, Everywhere

Long term contracts and petty fees are everwhere.

When we moved to Princeton last year we signed up for Poland Springs water delivery. (Poland Springs is owned by that bottled water juggernaut, Nestle Waters.) They offered an inflexible monthly service plan of 4 bottles per month for $32.96, which was the best deal in their array of undesirable options. You can skip a delivery, but not a payment.

When the first bill arrived I was surprised to find a $2.00 fee for an Oil Surcharge. What? This is nothing more than a price hike disguised as a fee, hiding behind rising fuel prices. They are in the delivery business. Fuel charges are integral to their cost of doing business and should therefore be integrated into the price.

My biggest disappointment came when I set out to cancel the service due to a pending move to North Carolina. I knew I had signed a contract for their flat rate service but I remembered it as being a one year commitment. Imagine my surprise to discover that I had, in fact, signed a two-year contract and was now facing a $50 cancellation fee. With our move date rapidly approaching, I paid the fee . . . and said goodbye to Nestle Waters.

The cell phone industry introduced us to contracts with the rationalization that they were subsidizing the price of the phone. Our “commitment” helped them ensure that they recovered the cost of the phone. Now that we let them in the door, the industry is charging contracts everywhere. AT&T requires a two year contract with the iPhone despite the fact that there is no subsidy for the hardware. T-Mobile required a one-year contract extensions just to upgrade my handset to a Blackberry. No thank you.

Contracts have a modicum of acceptability if the company incurs set-up costs, such as when the cable guy has to come out to your house to set up your cable box. But Poland Springs had no startup costs with my service plan. They delivered four bottles of water to my house once a month for a cost of $8.74 a bottle (or $1.75 / gallon). The entire delivery too mere minutes each month. It seems to me that they should be able to make a profit on each delivery, beginning with the first one.

I guess I have learned my lesson with bottled water. There has been a lot of buzz in the news lately about the potential hazards of plastic bottles leaching their chemicals into their contents. (Check out the great Smart Plastics Guide at the The Institute for Agriculture and Trade Policy). Time to get a water filter.

Similar Posts

  • Important Moments in Life

    Sooner or later we all discover that the important moments in life are not the advertised ones, not the birthdays, the graduations, the weddings, not the great goals achieved. The real milestones are less prepossessing. They come to the door of memory unannounced, stray dogs that amble in, sniff around a bit and simply never leave. Our lives are measured by these.

    — Susan B. Anthony

    I have never been very big on holidays like birthdays, anniversaries or Christmas. They seem like such artificial constructs to me. Years ago I reached a peaceful truce with my family and friends to not exchange gifts at such times. We have all been enjoying stress-free holidays ever since.

    I don’t mean to demean the important moments in life.

  • What is the purpose of an economy anyway?

    I heard a reporter on a recent Economist podcast say that, in light of the growing UK economy, creating jobs is a good thing.

    It seems to me that creating jobs is not only a good thing, creating jobs is the thing. What other purpose is there for an economy?

    Here’s what I mean. An ‘economy’ is kind of a meta-thing that emerges whenever two or more people get together and decide that working together to meet everybody’s needs is more efficient than everyone trying to each meet 100% of their own needs (like, say, some kind of off-the-grid survivalist). Economies emerge in all kinds of places: prison economies, school-yard economies, national economies, global economies.

  • You ask me why I spend my life writing

    You ask me why I spend my life writing?
    Do I find entertainment?
    Is it worthwhile?
    Above all, does it pay?
    If not, then, is there a reason? …

    I write only because there is a voice within me that will not be still.

    — Sylvia Plath

    For ten years during my late twenties and early thirties I kept a journal. I started writing modestly in college and it eventually grew into such a compulsion that I would often write for hours a day. The pen seemed to have a mind of its own. Sometimes I would start a sentence not knowing where it was going, only to be amazed at the journey that it would launch. Even as computers started to enter my life, I wrote everything longhand. There was something magic about the connection between my thoughts and the paper, linked through the pen clasped in my fingertips.

  • Contentment

    There are two ways to get enough: one is to continue to accumulate more and more. The other is to desire less.

    — G. K Chesterton

    When Linda and I returned from our stint in London, we landed in New Jersey. Within a few weeks of our US re-entry, and for reasons that still escape us, we bought a beautiful, 2,400 square foot house with a large basement on the north side of Princeton. Despite the delightful, well-groomed neighborhood, we quickly began to discover the folly of our ways. The sweeping windows that let in so much light in the spring became a greenhouse in the heat of summer. It seemed cavernous to heat and cool. Finding enough furniture to fill all the rooms took the better part of a year. …

  • Gorilla Marketing

    I am an avid fan of podcasts. I listen to many hours a week of interesting and compelling content completely on my own schedule. The TWiT Network produces some of the best, including This Week in Tech, MacBreak Weekly and Roz Rows the Pacific. Leo Laporte is a master behind the microphone.

    Leo continues to chase profitability by adding an ever-increasing array of sponsors for his “netcasting” ventures. Drobo and GoToMeeting are recent additions and he is pushing the boundaries of tolerance with the seemingly endless droning on about Visa’s security protection for online fraud. …

  • Don’t make them think

    If you make people think they’re thinking, they’ll love you; But if you really make them think, they’ll hate you.

    — Don Marquis

    I lived in Denver in the late ’80s. At one point I met an acquaintance who invited me to attend his monthly book club. I was in a heavy reading phase and was excited about the prospect of connecting with fellow book lovers. I was encouraged to bring a book and plan on sharing a favorite passage.

    The book I happened to be reading at the time was The Death of Ivan Ilyich, and the passage I picked to read turned out to be pretty heavy.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.