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Georgina Guedes

Pick-pocketing corporations

2009-07-09 09:14

Certain radio stations have a traffic warning service in which they broadcast information provided by listeners on SMS. Every time I hear the request going out for any traffic information, I'm surprised by the fact that the station has the cheek to charge an inflated rate for the SMS to be sent to them.

The people sending the message have clearly already encountered the traffic problem, so the traffic alert is of no particular use to them. The radio station is ostensibly providing a service for its listeners, so, if anything, it should be paying the SMS senders for this useful information.

Instead, as is becoming the norm these days, the consumer is expected to fork out a small amount for the benefit of the big corporation. And because it's a small amount, no one is expected to mind - but why should the corporation be making what amounts to loads of money from everyone's SMSes?

Technology has allowed small amounts of money to vanish in interactions between companies and consumers like the change from a drinks order between friends. The way in which the money is extracted from the consumer ranges from polite to downright audacious.

I don't particularly mind, when buying movie tickets at Ster-Kinekor, being presented with the option to donate R2.50 to a charity for blind people. After all, I can refuse, I can increase or decrease the amount I'd like to donate, and in reality, it's the equivalent of the loose change that I might misplace for months in the bottom of my handbag.

In the case of the traffic report, it's not great public relations on the part of the radio station, but since I'm not forced to participate for my own benefit, I don't mind if other people want to pay to perform a public service.

Competitions are another way in which small amounts of money are pilfered from our pockets. Again, it's my choice to participate if I want to, and ten years ago, I was paying the cost of a postage stamp to Win a Holiday, New Kitchen or Spa Treatment, courtesy of my favourite magazine.

These days, I'm expected to pay three or four times the cost of a normal SMS to enter a competition. And that's on a good day. A recent competition by MTN asked subscribers to pay a ludicrous R7.50 per SMS to enter their 15th Anniversary competition.

Now, to me, this is just greedy. To win the competition, it was necessary to spend a fortune in SMSes, answering questions. MTN eventually stopped the competition in the face of various accusations of unfairness.

I feel that somewhere, companies have lost sight of the fact that competitions are supposed to be marketing activities. Sure, marketing is ultimately about growing revenue, but this is generally done through creating positive feelings about the company, rather than fleecing the public for all it's worth.

Another bugbear in my rant against the small charges that companies inflict on their customers is the email fax deal. Small companies arrange the convenience of having faxes sent to their computers without the need for an actual fax machine. This is all well and good for them, but their customers who have to send a fax through to these 086 and 087 fax numbers have to pay a fee of more than double a normal fax.

Now, usually when a fax is sent in this day and age, it's because it's necessary to extract a signature from the sender. The sender generally has no choice, and if she wants the next step in her insurance claim, electric fence installation or whatever to take place, she has to send the fax - or drop off the original documentation at some office somewhere. Having to pay more than double the cost of a normal fax for the convenience of the recipient leaves a bitter taste in her - and I do mean my - mouth.

- Georgina Guedes is a freelance journalist. She has had to do an insurance claim and get her electric fence repaired this week.

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Disclaimer: News24 encourages freedom of speech and the expression of diverse views. The views of columnists published on News24 are therefore their own and do not necessarily represent the views of News24.

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Comment on this story


Chris 7/9/2009 9:56:42 AM
I am in full agreement with you and am tired of being ripped off by companies. I pay hundreds of thousands of Rand for my car then the deal sticks an ugly sticker on my car to do their advertising!
Shops charge to wrap a gift, no problem - I am very happy to pay for this convenience, but then they go and stick an ugly marketing sticker on it! Why must I do their advertising for a service I paid for? The latest being companies that "don't have change" and then keep the 10c or in some cases R5.00! Enough, let's fight back!!

turbo_superboss 7/9/2009 10:26:47 AM
one can go one and on about this sort of bad service, and banks definitely rank right up there as well as medical aids and insurance companies. I have always wonder how a consumer "saves" money by having to give the money to "The man"

Arkyle 7/9/2009 10:29:24 AM
I don't fax anymore, scan and email is much more cost efficient, and it means that you get to keep a copy of what you sent.

Jenny 7/9/2009 10:29:31 AM
And another bonus that the radio station gets with that traffic sms system is a database of their users cell numbers freely given...

Tom 7/9/2009 10:55:38 AM
Georgina, All the examples you mention are freedom of choice examples. It is where the public can choose to participate by enlarge or there is a convenience factor. In my opinion airport taxes is also a good place to start. The airlines have to collect this on behalf of ACSA in most cases.

The airline gets blamed for expensive tickets not so much Acsa, as a result Acsa is very happy to hike charges as they have a gauranteed income, no marketing or anything required, the airlines have to find the passengers and make a loss or profit, all they have to do is get more money than last year.

Another good example will be crazy "debit card transaction rejection charges", the CompCom has started wrapping the banks on the knuckles about this. What has happened since?

There are many more good examples where the public is used for milking, name them and shame them. I think we need to do more of that.

There should be a weekly monthly award for companies that pull of dumb stunts. Like the darwin awards. Or the Raspberry awards.

Demanding Change 7/9/2009 10:56:06 AM
How about SMS bundles and Broadband top-ups that don't roll over to the next month. There is no reason why it should not continue into the next month, except that it is deliberately snatched out of your hand at the end of the month.

And how about the R3 charge to use a petrol card regardless of the transaction amount. On a R100 transaction that is 3%! And that is just the beginning.

Overall it is very easy to end up spending 10% of your net disposable income on banking fees and transaction charges.

On a lighter note, have you considered what percentage of your grocery bill that chocolate bar at the till is costing you?

susie 7/9/2009 11:10:14 AM
my worst thing was a credit company saying I owed R120.00. I asked for them to fax me the proof that I owed it and they said that would cost me R32.00!!!! Needless to say I did not owe the money but they got R32.00 for sending a fax. Big flipping rip off.

Nardo Bornman 7/9/2009 11:21:42 AM
Yay... What about companies that give you the option to receive statement & invoices by email instead of snail mail, but with no financial benefit to the onsumer... Surely the saving in paper, printing & postage should go to the consumer, or at the very least to the environment it is trying to save...?!

Lesedi Rudolph 7/9/2009 11:45:20 AM
I couldn't agree more.. and while I've often thought about the traffic example on 5fm.. the one that really confuses me is the sms with crime tip offs! Now I'm sure we all acknowledge that the SAPS is hugely inefficient with regards to reaction times and general investigation of crimes, so in what perfect fantasy world are we living in if we think anything will come of our sms no matter how relevant the tip is. I don't believe for one second that the SAPS will be forwarded this anonymous sms about a crime taking place and jump in their cars to go wheels spinning to the crime scene to investigate. Yet this "crime prevention service" is requesting you sms in anytime you see something suspicious that could be crime related.. which can be as simple as a dodgy looking individual walking down the street.. I'd love to know how many cases has ever been solved via tips through this service.. I doubt even 1!! Yet they still want to charge you exorbitant sms rates for your tip offs! While all i feel they're really doing is terrifying the public into believing that we're actually living in the war zone portrayed by the media and fearful sectors of the population. Nuff Sed!

Baboon 7/9/2009 11:45:37 AM
My favourite is the payment limbo scam. You pay (electronically) - company A. The money is missing from your bank account instantly. But it takes 48 hours to turn up in theirs. Now the interest earned on one small payment for 2 days is tiny. But multiply that by a million or two... every day? And then there is the 56 cents for an e-mail notification of payment Standard bank charges. 56 cents FOR AN E-MAIL? I would be amazed if the real cost in bandwidth and intial programming was 0.56 cents. It's just straight pick-pocketing. Mind you, when it comes grand larceny look no further than cost of items like alcohol swabs or sutures and the charge for the same private hospitals. 500% profit anyone?

Riaan 7/9/2009 12:02:46 PM
And that is only the tip of the iceberg. I'm planning on claiming a stake on a not-to-distant asteroid(-far from this place).

Ghost in the Machine 7/9/2009 12:06:41 PM
You make a interesting point about SMS's. The main reason I don't like SMSing is not the cost factor, but when they have your phone number they seem to think that it's OK to spam you. Which you can then "opt out" with another small charge.

The most insidious mini-scam I've come across recently is that companies seem to want you to pay for THEIR banking fees. As far as I'm concerned that is simply a cost of doing business, and actually something they should take up with their bank, and not penalize the customer.


Smee 7/9/2009 12:16:38 PM
Well written.

I completely agree. After 28 years I've decided to move from Absa to FNB because of Absa's ludicrous charges for everything. Companies should wake up and realize that they're loosing clients or scaring them away to someone that offers value for money.

Benzo 7/9/2009 12:26:05 PM
"....customers who have to send a fax through to these 086 and 087 fax numbers have to pay a fee of more than double a normal fax....." I have long given up on faxes. I do use an 086 number for those who insist on sending me faxes. I do not have a fax machine any longer, email does it all for me.

"Now, usually when a fax is sent in this day and age, it's because it's necessary to extract a signature from the sender....". Again, I print the document, sign and scan followed by sending it back by email in PDF format. Works like a dream. Some companies (and government is notorious on this) have not yet seen the light. Same goes for bank transfers but that is another gripe. The facilities are available but not used. Ever tried to apply for a visa? Embassies only work with cash! wonder why?

Capital Q 7/9/2009 12:26:27 PM
I agree with the first section of your article - re SMS costs. Companies, in general, want to give away large prizes and seem as though they are being generous - yet if you look at the cost of the SMS, they are most probably profiting from the competition rather than it being a social 'service'. In the old days companies would actually give prizes out of their own pocket. They did not receive revenue for the postage stamp you used. This SMS cost is now the norm - and companies are taking us for fools. I dont support any SMS line.

dismal scientist 7/9/2009 12:27:07 PM
hi georgina, re traffic reports: yes, it's true that people get no direct benefit, but they continue to contribute since in the long run they get the benefit of others reporting anomolies. so if you sms once a month, at say R2, you get 20 (workdays) worth of reports, that's 10c per report!

Womble 7/9/2009 12:29:39 PM
Its all about choice - you make the choice what you choose to sms and the rates you accept. No one is forcing you and perhaps that 7.50 sms is well worth the prize. There are no free lunches, particularly when it comes to technology. Technology is a business enabler, how organisations and consumers choose to interact with it is based on choice.

Your comments re fax to email fall flat. Yes it costs to send but trust me you cant compare the load it takes off phone lines, printers etc and also enables better document storage and the like. Try recognising an id photo on a thermal printer that has been copied and scanned. Its not just about the signature - thats a bit short sighted. Im sure you would prefer that your insurance claim form has been stored digitially and routed to the appropriate agent rather than left churning at an old thermal fax about to run out of paper...

DPH 7/9/2009 12:30:31 PM
Great article Georgina! On the topic of the audacious, let's not get started on the outrageous service fees that banks charge for online banking.

Steve 7/9/2009 12:33:06 PM
A much better column this week, Ms Guedes. Relevant and thought-provoking, please keep it up. Everyone is milking us in a thousand ways, from bank charges to car-park "security". These days I will not let money out of my pocket for a service I did not specifically request, or for a charity which I did not personally pick.

jason 7/9/2009 12:38:40 PM
What can you do? Limited liability organizations are ONLY there to be cost "externalizing machines".
All you can do is buy shares in a company or go on hello peter and warn others of the trickery

Adrian 7/9/2009 12:54:45 PM
You are right, if you dont want to enter the competition, then dont. If you dont want to sms the radio station, then dont. If you dont want to fax, then dont. Other than that stop bitching about crap, you have a choice. Its not like these companies are forcing you to sms. Oh and by the way, that service is called faxmail, ok. Now stop bitching about sh!t!!!

d 7/9/2009 1:00:34 PM
I've actually recently started an 'SMS' company - unfortunately the network operators keep about half of that revenue, and there are lot more charges involved in actually running a service.

Essentially it's pretty much impossible to run a service at a profit under R2 - very greedy network operators :/

Henry 7/9/2009 1:01:01 PM
Agreed. You have barely touched the surface. Another to mention is companies' call centres with the 086/7 numbers (premium numbers) - when you call they first tell you for 5 minutes how valued you are, and then you need to wait another 10 minutes for a "consultant" to take your call! Where is that money going to? Hellkom?

George 7/9/2009 1:08:02 PM
I don't get it.
You don't HAVE to send the traffic information in.
You don't HAVE to enter the MTN competition.
If you don't want to pay the price, don't sms.

Anonymouse 7/9/2009 1:12:04 PM
bravo! i don't think many people are aware of the inflated costs of these services. The added costs are hidden in the fine print, same as all these wallpaper,games,videos, etc VAS services advertised on TV. The should be forced to disclose the total cost (once off AND subscription costs) in big letters!

Jan 7/9/2009 1:15:24 PM
Thank you Georgina. You've hit the nail on its head.

LM 7/9/2009 1:16:48 PM
I was wondering the exact same thing the other day, why anyone would bother to sms info/comments to a radio station when they have to pay for it. One answer would be that the radio station wants to minimize prank sms's. But they should also then refund or not charge for useful info/comments, and just charge the prank sms's. I definitely won't participate in these radio shows via sms, I'd rather use their web page to submit comments.

Joe Soap 7/9/2009 1:21:35 PM
Hear hear! I ignore this garbage on radio and tv that requires people to sms. There is no benefit from it

john deere 7/9/2009 1:42:37 PM
Another good example is the recent DSTV debit order debacle (which I think should form an article of its own). DSTV has stopped allowing debit orders from credit cards and have made a useless attempt to inform clients. On Sunday my DSTV was disconnected due to non-payment (of which I was unaware and to no fault of my own) When I phoned to reconnect they want to charge me R50 "reconnection fee". If you do complain about the R50 they will give it off, but I'm sure a lot of people still just pays the R50 with just a "bitter taste in their mouths". Check out Hellopeter.co.za for the massive amount of complaints from customers...

Lee 7/9/2009 1:59:21 PM
It’s like my favourite radio station. Under the guise of a ‘club’, where you pay R1,50 per SMS to send in the keyword of the hour and accumulate points (anything between 80 – 120 points). You can then ‘burn’ your points (usually 500, sometimes 1000), with another R1,50 sms in order to enter the competitions. So in effect, it costs you an average of 5 SMS’s (R7,50) to accumulate enough points, which you then ‘burn’ at another R1-50. Voila! A minimum of R9-00 an entry into a competition.
On the other hand, they can use the number of SMS’s in the hour that the keyword is valid to determine peak listening hours etc. Nice, we pay them for their market research.

big al 7/9/2009 2:00:07 PM
finaly some one who sees what i see. i refuse to send any sms's to radio stations and enter any competition that involves an sms. i agree it should be a free phone in/sms service to give traffic details to radio stations.

Izak 7/9/2009 2:02:40 PM
For the most part I've always considered the R7.50 or so that those competition SMSes cost to be the price of the entry ticket, so to speak, in other words, I see it as a lottery ticket. Since I do not gamble, I simply choose not to enter. Ever.

But here is a conundrum: There is apparently a number for anonymous crime reporting via SMS, charged at R1 per SMS. The question has been raised whether this number shouldn't be free, and the answer was that a small fee is supposed to stop people from abusing the service. This makes sense to me on some level.

craig 7/9/2009 2:03:14 PM
Hey Georgina, great article. Perhaps you could do an article about the role corporate connections keep not so simple technology away from the public in order to extract as much financial wealth as possible from old and dreary technology?

Chris 7/9/2009 2:24:28 PM
Too true. Recently HiFi Corp tried to charge me R120 to fix a software problem with my iPod which is still under guarantee. They said that unfortunately the software is not covered by the guarantee. ?!?

Gary 7/9/2009 2:24:36 PM
I've felt the same about this very topic for ages now, pay R1 to report a traffic jam or accident to a radio station and people tune into the station on their way home to hear if they're effected. Or the R2 that you have to pay to opt out of a sms service that you didn't ask for in the first place. Or even submitting a tip on the crime line.......

GT 7/9/2009 2:32:22 PM
have a look at all the little billing additions to cell accounts. R7.50 for ID, R3.50 for something else. Take a big service provider and you have a revenue stream in the HUNDREDS of millions every month.

Anon 7/9/2009 3:03:41 PM
Georgina, scan your documents with your signature on and e-mail it. This will also ensure that you have a soft copy available.

Chris 7/9/2009 3:24:49 PM
Nice article once again Georgina. I have been folowing your articles since your travelling days and have always enjoyed them. As for the SMS's, i would love someone that have some spare time to do a investigations as to how much money is spend on sending SMS's to companies and radio stations - as you quite rightly point out, R2.50 does not seem a lot but a couple of thousand SMS's per day all ads up. They are milking the consumers again!!!

Demanding Change 7/9/2009 3:26:16 PM
I got a value added number and gave it to every company I deal with. Every time their telemarketers phone me I get R5.75.

I retired at age 35.

mike 7/9/2009 3:53:59 PM
Georgina thanks for raising this issue, it has always made me wonder if the radio stations feel any shame or disgusted with themselves for ripping their listeners off. One station also charges you for your news sms's. They should be paying you for acting as a independent journalist. Ok all said and done now what? Are you going to raise the issue with them? start a campaign? or is this a way for us to air our views and let out our frustrations and they continue reaping the benefits. Come on Georgina, take them on for the man in the street.

Kevin Blogger 7/9/2009 4:28:22 PM
And the R5 for a parking bay availability sms update from Airports company. And they still charge R10 for the first hour.

VAD 7/9/2009 5:18:01 PM
I too have pondered these very same issues and contemplated the cheek of the "offenders". What is the rational behind people partaking??

G.Annandale 7/9/2009 7:07:04 PM
I never send the thieves any SMS's

DaveMc 7/9/2009 7:38:16 PM
Hear Hear Gorgina! I remember when companies used to spend money by markeying their product at, say, sports bars. Hiring people to entertain and raise awareness of the product. e.g. The (Insert product name) girls! Nowadays ... it's just another boring send an SMS message. I miss the girls! I miss the visible effort marketers used to put in.

OuJan 7/9/2009 9:03:49 PM
The most stupefying thing I ever encountered is to be charged by the bank, the one you've been banking with since crimplene was fashionable, for counting money you'd like to deposit. All the teller did was to put the notes into a machine and the latter did the rest. I had to accept that the machine was correct and I was charged a fee for "money handling". It is a bank, for crying out loud! It is their business to handle money!

It would be like eating out and then getting charged afterward to have the dirty plates removed. Oops! I've just given the restaurant industry an idea...

Tiaan 7/9/2009 9:25:39 PM
Great article Georgina. The worst of these charges comes from the cell service providers: They actually charge you monthly for an itemized bill! This is ridiculous - they are essentially charging you money to pay for an invoice they are suppose to provide to you by law!

Josh 7/9/2009 11:09:45 PM
Its been mentioned in other comments, but I think the worst example of this is the 'Crime Line' SMS service, sponsored by a few big corporations. If its sponsored, why does it cost R1 to send a tip-off? Who is making the money on the extra charge? If anything, it should be a cheaper-than-normal SMS, with the sponsors subsidising the difference.

Jim 7/9/2009 11:22:22 PM
HOORAY! someone who sees the rip-of for what it is. Well done Georgina, more power to your elbow. (20 cents (za) for an sms is already profiteering...)

Marc 7/10/2009 5:46:51 AM
Relevant article for a change. Keep it up, use your power to bring about positive change and not bore us to tears.

Sir Garfield Sobers 7/10/2009 7:36:59 AM
Women! always complaining. Instead of complaining, dont take part in any of it? and just STFU

Mike Prior 7/10/2009 8:51:03 AM
I don't mind paying a little extra for faxes. If I want to save money, I could easily send it via Email anyway - for free. You can still append your signature to the document, and most PC printers these days are multifunction units where you can scan it in as another option. But I do object to having to pay fees to join so-called "loyalty programs". After all, it's the credit card companies and banks who want your custom to increase their turnover. Why should the consumer pay for that privalege.

Corner cafe 7/10/2009 10:44:54 AM
no change, take chappies!

@OuJan 7/10/2009 11:11:55 AM
Took the words right out of my mouth

wayne 7/10/2009 1:34:03 PM
I'm in full agreement, Georgina, and have felt the same way for years. I enter many competitions, but draw the line at R2 and sms (which doesn't leave many options these days). Sure, it's a choice to enter these competitions or send traffic reports, etc., but I still think the companies have a cheek to charge as much as they do. From cell companies to banks to supermarkets, every greedy SOB is ripping everybody else off these days. The problem is there will always be idiots who contribute to these things, so the problems persist.
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