(December 31, 2011 at 12:30 pm)reverendjeremiah Wrote: ..and yet one of many proofs that capitalism doesnt work. there was absolutely no reason other than greeed to try and add that charge.
All that talk that capitalists make about values working themselves out, and "invisible hands" is all bullshit and they kow it.
You want to know how they set prices? Not by market forces...they set prices according to what they think they can get away with and this is a prime example.
Erm...I don't think you quite understood what happened here.
The company tried to add an additional charge to a service. Their customers didn't like the charge and complained. The company reversed the charge.
That is market forces. That is values "working themselves out". This is a perfect example of the free market working exactly how it is supposed to.
Oh, and not that I'm trying to defend the company here, but your assertion that there was "no reason other than greed" to add the additional charge was actually refuted by the article itself:
Quote:Verizon wanted to steer people to electronic check payments, which are cheaper, and automatic credit card payments, which are more reliable.
...
Payment processors for power companies usually charge "convenience fees" of up to $5 for every payment made by phone or online, but cellphone companies haven't taken the step yet.
So apparently the reason for adding the charge was to try and get more people to use electronic payment methods, which benefit both the company (cheap to do) and the customer (more reliable). As the article also said, most companies already do this.
