We have an outside sales employee that works from his home office most of the time. We have a VOIP phone system, and as such we need a static ip address internet connection for him at home in order to maintain connectivity for the phone extension. This allows us to transfer phone calls from our office direct to his extension at his home easily and without delay. The company pays for the employee's static ip internet as it is a convenience to the company. When I set up the line in November 2011, the price was $38.49 per month on a month to month basis (actually, the price was recently increased from $34.99 per month to $38.49 per month without any prior notice). Now in June 2014, I receive a phone call from Cox Business telling me that the month to month price on our next bill will be $525.00 per month to maintain the same service. However, if we sign a one year contract, the new price would be $89.00 per month - a price increase of 131%! The increase from $38.49 to $525.00 makes no logical sense. Even increasing to $89.00 per month on a contract is insane, but it is about the same as two months without a contract for one year with a contract.
I asked how Cox could justify the price increase for a simple static ip line. The salesperson's response was "I can't justify it. But, that is the price if you want to maintain the service." We proceeded to discuss pricing and I was chastised for even questioning why there was an increase. I was a) shocked at the increase, b) floored by how rude the sales representative was and c) aghast by the fact that there was no reason for the increase. There is no change in bandwidth, no change in technology, no change to anything except the price.
To top it off, the sales representative was very rude and treated me as if I was an *** for questioning the increase. In fact, he told me that I was lucky as this price for a static ip line is really cheaper than anything else on the market, which is not the case. However, due to HOA restrictions, our employee is stuck with Cox.
Overall, the dollar figure is not a huge amount. However, with the economy in the dumps, any increase is significant. But a 131% increase is huge. Not to mention that we have two other employees that have the same type of set up all living in the same neighborhood. Therefore, we can expect an increase in all three lines once Cox gets around to finding them. That is 100% of our sales force receiving 131% increases in costs. For a small company, this is significant. This also puts a damper on our cost savings for allowing the employees to telecommute.
My biggest disappointment is not the increase (although that is unreasonable and has no justification relayed other than "too bad, that is the price"). I am more annoyed by how I was treated by the sales representative at Cox Communications. By asking for a justification for such a large price increase, I received rude treatment, condescending attitude and answers lacking any substance whatsoever. Apparently, Cox Communications knows that they are able to push people around when they have a cable monopoly in an HOA. With customer service like this, Cox Communications would not be able to pay people to take their service without a monopoly.
The loss computed is the difference between our current month to month of $38.49 ($38.49 x 12 = $461.88) vs. the new month to month price of $525.00 ($525.00 x 12 = $6,300.00). However, we will either cancel the line and force the employees to start working out of the office or we will sign the one year contract. The one year contract would bring our loss down to $606.12 annually per line.
Monetary Loss: $5838.