National Sales Center

Our Opinion About Netflix’s Price Increase
By National Sales Center

Netflix Price Increase Lacked Salesmanship

Netflix was like a friend. Netflix was a new friend introduced to me by a close old friend. Unfortunately, I felt like my new “friend” turned on me with their, I’m sure to be unpopular, price increase.

The moment Netflix announced their price increase, the Internet and Social Media was buzzing! As you would expect, I didn’t read any happy comments about Netflix’s price increase and I think I understand how Netflix went wrong. The Netflix price increase lacked salesmanship. In our opinion, they appeared arrogant and far from “friendly”.

First Point About The Netflix Price Increase

Netflix had a very loyal following. Word of mouth convinced me to try Netflix. My close friend recommended them. Netflix started as a friend’s friend and became my friend. Netflix has a good service at a good price. So many times I heard, “I LOVE NETFLIX”. I’m sure other Netflix customers must have felt the same way and now they must feel betrayed thanks to Netflix’s price increase.

Apple also has a loyal following but Apple computers always cost a little more. You expect it and I felt Apple made it up in “added value” and so Apple also was able to brand itself as my “friend”. However, people get upset when a loyal friend changes and that’s what happened with the Netflix price increase. It would be like seeing a low cost Royal Royce or high end Wal-Mart. Brand loyalty is about consistency. Also, if Netflix wants to charge more, how about giving more? It’s called salesmanship!

Second Opinion About Netflix Price Increase

Netlfix sent me an Email on 7/12/11 titled “Price Change and New Plans”. I felt like they shoved the Email in my face and not once did they mention “Price Increase”. Instead they talked about different plans and pricing. I felt my former close friend, Netflix, was pulling the wool over my eyes. Professional Salesmanship is not about picking the right words. Call a price increase what it is and don’t color it as a “price change” or some bologna about “choice”. I would rather read – “WE ARE CHARGING MORE”!!! I feel that with their limited streaming content, they don’t have the pricing power to pull off this crazy price increase.

Third Opinion About Netflix Price Plan

I’m not happy about Netflix’s price increase so I looked at my options to change plans. I read the following… “If you select a new plan in the meantime, you will only be able to return to your current plan at the new price, regardless of when you make the change.” I’m not sure what that means but it sounds arrogant to me. Arrogant is not salesmanship.

If you are going to charge more… give more.

How about charging less for those that only order two DVDs a month and charging those that order five or more DVDs a month a little more? Customers will accept and understand a change like that but that’s not what Netflix did… Did they? That would be a better way to “reflect the costs” as they put it. I give them a failing grade at explaining,,, excuse me… “SELLING”… the Netflix price increase to me.

I this economy… be a friend to your clients and if you must increase rates… don’t appear greedy. Explain your position and be prepared to offer more.

Netflix, I think you need some sales training and I know where you can some!

Just Our Opinion
National Sales Center

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Tags: Sales Training