May 7
CEO Blog: Contracts and Cowards
For those of you who live in Atlanta it’s hard not to know about Clark Howard. He’s the host of a consumer-focused talk show on WSB Radio that is now nationally syndicated. He also appears on the Headline News Network. Clark is about the cheapest guy I know and proud of it. He’s an expert in how to save money and how not to get ripped off by extended warranties, poor service, bad investments and paying too much for anything in general.
Now, this is a man after my own heart. I wouldn’t describe myself as “cheap”, but I am competitive about finding the best deal out there. I’ve blogged about Ann Taylor, Kohl’s Department Store and other places where they generally pay me to take their clothes. I never sign up for extended warranties and make sure to stay away from other consumer rip-offs. The other day, I was on my way somewhere and tuned into Clark’s radio show to listen to one of his favorite targets of consumer rip-offs – the cell phone companies.
Clark’s perspective is that cell phone companies put you under a “service agreement” because they are cowards. Pretty strong words from Clark. In essence, they hook you in with a contract that has lots of penalties and horrible out clauses that keep you hooked in for the rest of your life. I feel that way about AT&T that my husband tethered me to two years ago when he bought everyone iPhones. Every time you want to change the smallest thing, they shove another 24-month extension under your nose. If you break your phone and want another – get ready for another two years.
And by the way, AT&T, your cell phone service sucks! I drop more calls, get the worst coverage, have the worst customer service experience of any other vendor I use. And that includes the cable company that I fired over a year ago. Your customer service is even worse. The only good thing you have going for you is AT&T UVerse that I am totally addicted to and love. It rarely goes out and I record everything on TV and play it back from every room in the house. That service rocks!
I started thinking about the concept of contracts and cowards and I think Clark is on to something. His basic premise is that service companies hide behind a contract when they are afraid that their service won’t stand on its on merits or there is a potential for customers to be dissatisfied with the lack of care or customer service they receive. He encourages all of us in Atlanta to ditch the cell phone contracts and sign up with a service like Metro PCS that offers a flat monthly rate for talk, text and email with no contract. I’m waiting for them to work for the iPhone and I’m definitely going to switch.
By the way, the whole contract thing really applies to the conferencing industry. Big companies like InterCall force themselves on their customers, asking for service agreements to mask the fact that they intend to add surcharges, extra fees and lock you in to a rate in return for a minimum commitment. And, if you aren’t happy with the level of service, too bad. They’ll just expect you to suffer along with them until your minimum is paid out. After all, they’re large and they’re InterCall and they think you don’t really have other alternatives. (Shades of AT&T?)
Take Clark Howard’s advice and don’t commit to that contract. I believe contracts are for cowards. At Copper Conferencing, we stand behind our service every day — no contract needed. If you aren’t happy with us or we can’t meet your needs, you should fire us and look for something better. You’ll get a good rate without having to sign your life away. Face it, InterCall just makes you a prisoner so they can behave and serve you any way they want to.
Clark, you keep all of us honest. There’s no need to pay too much, put up with customer “no-service” or give our business to cowards. I’m with you on this one!
Carolyn Bradfield is the CEO of Copper Conferencing, a provider of Earth-friendly communication tools – audio and web conferencing. Copper also provides wrap-around services including online account, invoice and recording management. You can try Copper’s great web and audio conferencing services — FREE. Just sign up now.

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