Bundling Doesn't Always Save You Money

During my recent series of conversations with Comcast, they brought up the subject that I didn't have my internet or phone with them (I suppressed a laugh thinking about how they could screw up those services too!) They suggested I could save a ton of money if I moved everything to them. I told the sales person that I wanted a good price that would not change -- so I didn't have a "great price" for six months or a year and then would have to switch my TV, web, and/or phone to someone else just to get that level of pricing again. I wanted something that was good but that was not a price ticking time bomb.

She suggested I try their "every day low price" (or whatever they called it) option. It was not a promotional rate and it wouldn't be bumping up significantly after a set period of time. The cost: $146.

I pay AT&T $80 per month for my phone (unlimited long-distance) and DSL (I believe it's the highest speed they offer.) I pay Comcast $35 for cable TV. This is a promotional rate, so let's say I had to pay them $50 as the "standard" rate. Even then, I'm looking at $130 per month versus Comcast's "every day low price" of $146. Tell me again how I'm saving money by bundling?

We've all seen posts touting how bundling your services can save you money. It probably can in some cases. But often those are promotional rates designed to get you hooked. Then once you are, the rates go up to "normal" which are often very high. Consider this a reminder to always do the math and not assume something is cheaper simply because it's bundled.

By the way (a bit off topic), there are some cool things Comcast is adding if you do have all the services with them. Two ones I found interesting:

• While you're watching TV, if your phone rings and you have caller ID, the name of the caller pops up on your TV (at the bottom.) Then you can decide whether or not to pause the TV and answer the phone.

• You can set your DVR via the web. Instead of setting programs to record only when you're home in front of the TV, you can do it over the web while traveling, on your lunch break, etc.

Kinda cool -- in a geek sort of way. ;-)

Comments

[Jason @ Redeeming Riches]

I so badly want to believe that bundling will save you money, but you're right - once you start doing the math and especially after the promotional rates end, you really don't save much.

Btw - DirectTV already has been doing those cool, "geeky" things. Comcast is just finally catching up!

[Will]

The main thing with bundles is to get ones without any long-term contract. If you can find some such as some of the UVerse bundles that have a very good price and you can exit at any time, then you can certainly save money because you remain in the drivers seat. You also have to make sure you are willing to move to a different company so the threat of canceling has some teeth to it, but if you are then every six months or whenever the promotion runs out, you just comparison shop and renegotiate.

[Old Limey]

Here's an instance of "Bundling" where it saves money as well a being very enjoyable, particularly in cold climates such as England and New England. I can vouch for it still being practiced in 1950.

Bundling is probably the best known courtship practice of colonial America, even though very little research on the topic has ever been published. It appears to contradict the otherwise sexually strict mores of the Puritans. It meant that a courting couple would be in bed together, but with their clothes on. With fuel at a premium, it was often difficult to keep a house warm in the evenings. Since this is when a man would be visiting his betrothed in her home, they would bundle in her bed together in order to keep warm. A board might be placed in the middle to keep them separate, or the young lady could be put in a bundling bag or duffel-like chastity bag. The best protection against sin were the parents, who were usually in the same room with them. It may not have been good enough, however, as records indicate that up to one-third of couples engaged in premarital relations in spite of the public penalties, such as being fined and whipped, that often resulted (Ingoldsby 1995).

There was no dating per se in colonial times. A man would ask the parents for a young woman's hand in marriage and once they agreed courting could begin. The young couple had already determined that they were in love, of course. Parents would approve of bundling for their daughter with the man she intended to marry. Although it was not always this strictly controlled, it is clear that the women determined when and with whom bundling occurred. It provided the opportunity for some physical closeness in an otherwise strict society.

[Mark]

@Old Limey: So are you saying bundling saves money (heating), or costs money (having children) :)

[Matt]

We were paying $65 a month phone and $55 a month cable with WOW so $120 with all taxes and fees included. We have had WOW cable for 10 years and NEVER had an issue with them. They have been great. CONcast gave me the song and dance and promised the moon.They were not saving us any money but were giving us twice as much stuff than what we had.My opinion is 160 channels of nothing is about the same as 80 channels of nothing. When I could not verify that the company was under contract with comcast no deal. I am not giving my Social Security number out to a door to door salesman who I can not verify works or is under contract with CONcast. They needed it for a credit check.

I called WOW and spoke to a very nice person who offered to bundle Phone, internet and cable for $79.00. Of course there is fees and taxes that will be added on to all that but lets say $100 out the door.( We have not gotten our first bill yet) So far the cable internet is WAY faster than ATT DSL,( I can watch a youtube video without it buffering) Phone is same quality and Cable is what I am use to. I have also noticed that ATT has started to raise things like the DSL and is slower. Remember ATT is starting to chew up band width with UVERSE.

I figure I am saving $20 a month and price is good until 2012. Worth the change for me for 16 months and after all that if I complain they will probabl want to retain me and keep it at the same price.

[jim]

Cable modems are often much faster than DSL. The fastest DSL can be 1/4 to 1/2 as fast as a medium priced cable internet option. That kind of speed difference is enough to account for a $20 price difference easily. So the bundle in question may not be an apples-to-apples comparison.

Of course if slower DSL is good enough for you then its a fine way to save money. Most of us certainly do not NEED super fast internet.

[Matt]

Did I miss something Jim?

My Cable modem/phone is $20 cheaper than the DSL/phone and is the slowest they offer and is about twices as fast as DSL.

[KH]

Bundling wouldn't be offered if it didn't make money for the *companies*.

It isn't intended to save the consumer any money.

Buy a "bundle" if you want, but beware.

[MBTN]

We have a Verizon bundle with phone, DSL, and DirecTV which is pretty decent. The low price resets after a year but Verizon is pretty good to negotiate with so hopefully they will be willing to extend it. The only problem was that when I first ordered it online they totally screwed up the order. However, to their credit, they fixed it once I called their customer service and talked to an actual person.

At least in my area (NYC metro) there is a lot more competition then there was in years past. Previously, cable had a TV monopoly, Verizon a local phone service monopoly, and DSL was the only game in town. However, with cable companies offering phone service and phone companies offering TV service, it has made them a lot more willing to wheel and deal.

[jim]

Matt, $20 is very cheap. What system are you using and is that a promotional rate?

FMF is getting cheaper phone/internet using DSL and he was comparing it to cable which was more expensive but might be much faster internet. So my point was that he probably wasn't comparing apples to apples.

[Uverse]

I love the ability to bundle simply for it's convenience. Honestly, all companies offer the same bundles and it is really just a matter of who has more of what I want. I chose AT&T for TV because of their DVR service and the layout of the program guide. The internet, in my opinion, isn't any faster or slower than what I had with my cable nor is it any cheaper or more expensive. So, it is convenient for me to bundle. When I was in college though, I use to switch internet providers every three or six months because for a single service, the longest promotion I would get is 6 months. Other than the hassle of having to call the competing provider every six months, I was able to get the "new" provider re-installed with little upfront cost.