[comp.dcom.telecom] Customer Support on 900-numbers

lars@salt.acc.com (Lars J Poulsen) (09/14/89)

In article <telecom-v09i0370m04@vector.dallas.tx.us> canoaf@ntvax.uucp
(Augustine Cano) writes:
>In two minutes, I have the Star Micronics Tech support number.
>It is a 900 number.  Having heard about these, I ask how much this would
>set me back: 50 cents is the answer.

>In any case, in less than 4 minutes I had the answer to my question: it
>is not possible to use this printer for graphics without modifying the
>software that drives it.  This printer (a Gemini 15X) is not Epson or IBM
>compatible.

>The outrage:  When I got the phone bill, the call cost $32.00 !!!  This
>works out to $8.00 a MINUTE or $480.00 per hour.  Kind of expensive to
>tell me that there is not a dip switch I can set on a printer which I
>could probably not sell for $50.00.

I sympathize with your problem, but I do not agree with your definition
of the problem. As I see it, the problem is
(1) directory assistance gave you the wrong rate. Based on that, you
    should request a chargeback from the local exchange carrier.
(2) the serving company did not provide on-line rate information. Lines
    like this should be answered with a recording that states the rate
    and gives you 15 seconds to get off.

On the other hand, *paid* *technical* *support* is not a problem but a
solution. Technical support is expensive to provide, and vendors need to
recover this cost. This can be done in several ways:
(1) Increase the product price to cover giving support for free.
    This may increase the cost of the product by as much as 100 %, and
    may result in the product being priced out of a mass market into a
    niche market (which in itself reduces the support need, since
    product features and documentation can now be accurately targeted
    to the application and the technical level of the users).
(2) Make support available only to paying subscribers of a support
    contract. This approach is becoming fairly common. Such a support
    contract may run in the following ranges:
    - $75-$100/year for a personal computer program for checkbook
      balancing and tax preparation
    - $500/year for high-end personal computer word processing/page
      layout programs or macro-programmable spreadsheets
    - $1000/year for 8-user Unix systems
    - $5000/year for Mainframe TCP/IP packages
    - $10000/month for IBM's MVS operating system on midrange processors
(3) Bill by the hour for all support. I have had support telephone lines
    announce "please have a current Mastercard or Visa ready for the person
    answering the line".
(4) Ration support by having only one incoming line which is generally busy.
(5) Not make any support available.

Most vendors are moving from option 1 to a combination of options 2 and
4. Personally, I feel that options 2 and 3 are the most fair, with an
allowance for free support in a warranty period following product
purchase (which is a subset of option 1).

I work in the Customer Service department of a company that produces
data communications equipment for high-end systems (from VAX-class
machines and up). While some of our support needs stem from product
deficiencies uncovered in forever changing customer applications, much
of our support effort is basic education in features of the customer's
operating system or 3rd-party software that interoperate with our
equipment. It seems fair to me that those customers that spent money up
front to send their staff to appropriate training classes should not pay
to provide "free" support to those customers that did not.

We support according to option 2 with free installation support for 90
days after our product shipment. We would like to be able to bill by
the hour for out-of-warranty customers with consulting needs.  We have
looked into using 976- or 900- type billing for such consulting, and
have discovered that the California PUC will not allow this.

(1) Interactive 976-services are not allowed in California
(2) 976-services can only be located in certain premise locations leased
    by Pac Bell (in some cases to brokers that will sublease) and cannot
    be located in our GTE service area. The closest 976-access point is
    in West Los Angeles, 100 miles from here.
(3) 976-calls are limited to 3 minutes, and there is an upper limit of
    something less than $5.00 on the charge.
(4) 900-services are not yet generally available in California. Most of
    the Pac Bell has recently opened up, but again, our GTE service
    area is running behind.
(5) 900-services are subject to the same restrictions as 976-services.

In short, I think the $32.00 service charge is not unreasonable; but I
am sure you would not have spent it, if you had known the price.