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Your Opinion? Company starts billing 13 months a year. Is it okay?

by Wendy Maki
23 replies
For many years I have been paying monthly for an internet service. Recently I began to notice that the renewal date was getting earlier and earlier. :confused: Finally, I began a dialogue with this established company about this date shifting.

Here is what the company has said so far.

Back in May 2011, the company "reset" its monthly billing cycle to 4 weeks. They did this instead of increasing the monthly fee for the service. They did not notify clients. (Apparently now they are adding notices online to state that their monthly service is actually 4 weeks.) Of course, during the past 6 months since the change, an extra 1/2 month has been billed to clients already.

A 4 week billing cycle means 13 "monthly" bills to pay in a year, with the monthly billing dates shifting constantly earlier and earlier.

What do you think about this?
#billing #company #months #opinion #year
  • Profile picture of the author Rob Whisonant
    I am actually surprised more companies are not moving to a 4 week billing cycle.

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    • Profile picture of the author Wendy Maki
      Originally Posted by Rob Whisonant View Post

      I am actually surprised more companies are not moving to a 4 week billing cycle.

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      Rob Whisonant

      And why is that?
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      • Profile picture of the author Kay King
        A company that added an 8% increase would have kickback from customers. They do it this way and hope customers don't realize how big the increase is.

        As a customer I'd be looking for another provider but in some areas there aren't a lot of options.

        kay
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        • Profile picture of the author Wendy Maki
          Originally Posted by Kay King View Post

          A company that added an 8% increase would have kickback from customers. They do it this way and hope customers don't realize how big the increase is.

          As a customer I'd be looking for another provider but in some areas there aren't a lot of options.

          kay

          You're right. I wasn't sure at first that something was going on. It took a full 6 months to be sure because the company does not include the new months new "expiry" date on their receipt for payment emails, so there was no ongoing record of the new dates. I had to go through all my receipts to guess what the dates were. At that point, I thought it was only 1 month over 2 years. It wasn't until the company actually said in their "support" communications to me that they had changed to a 4 week cycle that I knew exactly what the change was. I just knew that my service months were getting shorter and shorter.
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          • Profile picture of the author Ralph Moore
            Ahh... the old lunar month cycle.

            Now, there's a marketing idea. You could offer your customers a discount if they move to a four week cycle.

            It provides a perceived way to improve their cash flow and decreases the company's cash infusion cycle.
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            • Profile picture of the author Wendy Maki
              Originally Posted by eagle View Post

              Ahh... the old lunar month cycle.

              Now, there's a marketing idea. You could offer your customers a discount if they move to a four week cycle.

              It provides a perceived way to improve their cash flow and decreases the company's cash infusion cycle.

              Well, in this case, there is no discount involved. In fact, they admitted they did it as a way to increase the fees without "increasing" the "monthly" fee. Just sneak in an extra month's worth of billing every year, so it doesn't look like a cost increase.

              Certainly from the correspondence, the company seems to think this 4 week cycle is very convenient for them. (Not so great for cash out-flow cycle from my end with the more frequent billing )

              Hmmm. Doesn't the lunar cycle have something to do with lunacy?
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      • Profile picture of the author Rob Whisonant
        Originally Posted by Wendy Maki View Post

        And why is that?
        Because all months are not the same length to start.

        Look at cellphone prepaid programs. They are usually based on a 30 day cycle. That way each cycle is equivalent.

        Billing by the 28 day (4 week) cycle makes all billing cycles even.

        Even billing cycles make more sense than un-even billing cycles. The old monthly billing cycle is just outdated. At least in my opinion.

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        • Profile picture of the author Wendy Maki
          Originally Posted by Rob Whisonant View Post

          Because all months are not the same length to start.

          Look at cellphone prepaid programs. They are usually based on a 30 day cycle. That way each cycle is equivalent.

          Billing by the 28 day (4 week) cycle makes all billing cycles even.

          Even billing cycles make more sense than un-even billing cycles. The old monthly billing cycle is just outdated. At least in my opinion.

          Re's
          Rob Whisonant

          Do you think we should pay all our bills every four weeks? Let's see... rent, gas, mortgage, credit cards, car payments, electric, etc. Hmm. 13 electric bills? 13 car payments? ...

          Personally, I think we've managed to work with uneven months for decades, maybe even hundreds of years. The credit card companies and everyone else doesn't seem to have such a problem with it.

          Of course, we could just change all the months to the same length so we don't have to memorize that silly rhyme (30 days has....).

          Actually, the company in question DID have a 30 day billing cycle previously, and it worked quite well. The issue is that they went to a 4 week billing cycle, calling it a "month" and effectively adding a full month of cost to the year, without any notice to customers. And they did it specifically so they wouldn't look like they were increasing the monthly price of the service.
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          • Profile picture of the author Kay King
            Because all months are not the same length to start.
            Nothing new there. Some months are 31 days and one is 28 days (most of the time) but you pay the same amount every month.

            This is a ploy to raise the price higher than might have been possible by changing a "monthly" fee. Nothing more than that.

            It is much like the recent practice of keeping the price of ice cream or canned goods the same - and reducing the weight or size of the can. It's meant to fool customers...and obviously it works.:p

            Personally, I think we've managed to work with uneven months for decades, maybe even hundreds of years. The credit card companies and everyone else doesn't seem to have such a problem with it.
            But it isn't really "uneven". My water bill is due on the 15th of each month...mortgage on the 1st - power bill on the 5th, etc. Would be frustrating to have due dates that change every month.
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            • Profile picture of the author Wendy Maki
              Originally Posted by Kay King View Post

              Nothing new there. Some months are 31 days and one is 28 days (most of the time) but you pay the same amount every month.

              This is a ploy to raise the price higher than might have been possible by changing a "monthly" fee. Nothing more than that.

              It is much like the recent practice of keeping the price of ice cream or canned goods the same - and reducing the weight or size of the can. It's meant to fool customers...and obviously it works.:p
              The comparison I used in my correspondense with the company is the comparison to toilet paper. They kept reducing the number of sheets per roll instead of increasing the price per roll, and now they sell what used to be a normal roll, calling it a "double roll."

              Personally, I resent down-sized cans that won't work with my recipes, and down-sized cans of frozen juice that no longer fit in my jugs.
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            • Profile picture of the author fredlee
              Originally Posted by Kay King View Post

              Nothing new there. Some months are 31 days and one is 28 days (most of the time) but you pay the same amount every month.

              This is a ploy to raise the price higher than might have been possible by changing a "monthly" fee. Nothing more than that.

              It is much like the recent practice of keeping the price of ice cream or canned goods the same - and reducing the weight or size of the can. It's meant to fool customers...and obviously it works.:p



              But it isn't really "uneven". My water bill is due on the 15th of each month...mortgage on the 1st - power bill on the 5th, etc. Would be frustrating to have due dates that change every month.
              If you want to pay the different amount every month,I think that company has to hire more financial employee. The company would loose money!!!
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          • Profile picture of the author Rob Whisonant
            Originally Posted by Wendy Maki View Post

            Do you think we should pay all our bills every four weeks?
            Personally I would not have a problem with it. I work for my self so I don't get a regular paycheck.

            But, most people are paid every 2 weeks. That works out to 2 extra pay checks a year. So they are getting paid in effect 13 months. So a 4 week cycle for bills would fit perfect with a 2 week pay cycle.

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            • Profile picture of the author Kay King
              A lot of people (like me) have their bills schedule to pay automatically on a certain day each month. This avoids hassle and late fees. This ISP has a right to set whatever pricing they want and customers can respond with their feet. I would just hope this pricing model doesn't spread to other utilities and payments.

              If you take your isp and your other utility bills - and put them all on a four week schedule at the same price.....you are paying a full month of extra bills a year. That would be a big hit for family budgets.

              Banks found recently with $5 fees they announced - customers can leave, too. Netflix had a harsh lesson a couple months ago when they slid in a price increase and lost customers in droves.

              Customers today are not apathetic about price changes. I think any business that appears to be manipulative in pricing will pay a price in the end.

              kay
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              • Profile picture of the author Wendy Maki
                Originally Posted by Kay King View Post

                A lot of people (like me) have their bills schedule to pay automatically on a certain day each month. This avoids hassle and late fees. This ISP has a right to set whatever pricing they want and customers can respond with their feet. I would just hope this pricing model doesn't spread to other utilities and payments.

                If you take your isp and your other utility bills - and put them all on a four week schedule at the same price.....you are paying a full month of extra bills a year. That would be a big hit for family budgets.

                Banks found recently with $5 fees they announced - customers can leave, too. Netflix had a harsh lesson a couple months ago when they slid in a price increase and lost customers in droves.

                Customers today are not apathetic about price changes. I think any business that appears to be manipulative in pricing will pay a price in the end.

                kay

                Hassle is right. That's actually how the date shifting got really obvious. The company does automatic credit card billing, and when the date shifted earlier so it ended up before the date I clear that credit card to pay for the service, the payments weren't going through -- because now the due dates for the two things weren't in sync -- and it just got worse -- every month my own cash flow got more and more out of sync.

                For me, I understand that companies need to raise their prices sometimes. It happens. But it's the hassle it has caused me in my cash flow, and more importantly the manipulativeness (is it even legal really if it's misleading, or at least it was for 6 months) ... its the manipulativeness that really bothers me. Of course the attitude I've been sensing, the 'there's nothing we can do about it' like it's a fact of nature or something, that's bothered me too.

                What's really lunacy about this whole thing is that it was instead of a $5 per month increase (for the particular package I use). Was it worth it to disguise it?
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    • Profile picture of the author KarimPPC
      Originally Posted by Rob Whisonant View Post

      I am actually surprised more companies are not moving to a 4 week billing cycle.

      Re's
      Rob Whisonant
      no a monthly billing cycle is good, sure it may make it slightly uneven in that some months have 31 days and other months (feb) hasve 28 and 29 days.

      But most people get paid monthly, even us affiliates, i get paid by cj.com (my main earner) on the 20th of the month. Clickbank is the exception most other networks go by calendar month. We have monthly outgoings as well, which are taken out on the same day of the month every month.

      A 4 week billing cycle is retarded it takes funds out at unpredictable days, makes monthly budgeting a nightmare. Talking of which accounts are done monthly as well. Some months you're going to get billed twice in one month because the first bill is on the 1st or 2nd of the month and the other bill is on the 29th or 30th of the month

      A monthly billing cycle is the industry standard, when you come alomg and do a four week billing cycle it just makes it difficult for everyone else.
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  • Profile picture of the author seasoned
    This DOES present accounting, and legal issues. The world is on a 12 month a year system. They have three months to a quarter. BUT....

    Paying every 4 weeks IS more consistent. Otherwise, you pay more in february than you do in january. ALSO, some finances are based on a 30 day month, and 360 day year!

    Steve
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    • Profile picture of the author Wendy Maki
      Originally Posted by seasoned View Post

      This DOES present accounting, and legal issues. The world is on a 12 month a year system. They have three months to a quarter. BUT....

      Paying every 4 weeks IS more consistent. Otherwise, you pay more in february than you do in january. ALSO, some finances are based on a 30 day month, and 360 day year!

      Steve

      The company previously billed on the 30 day cycle, so more or less 12 months in a 12 month year.
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  • Profile picture of the author Wendy Maki
    I just did a quick survey of similar companies to the one I've been dealing with (actually there are several versions 'licensed' or private labelled of the same service) and they're all now using the *note on their prices page when they use the word "month" to say they are billing on the 4 week cycle too. At least now it's upfront, and someone who takes the time can actually do the math.

    Since these services are used by many internet marketers, I'm sure many here on the forum are affected by the 4 week billing cycle too. Did you notice the change?

    It's still a real pain in the rear for their client's cash flow and "monthly" budgetting.
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  • Profile picture of the author flx89
    remember few months ago, astrologist discovered a new zodiac sign, so now we have 13. Why wonder if we will have 13 months soon?!
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    • Profile picture of the author Wendy Maki
      Originally Posted by flx89 View Post

      remember few months ago, astrologist discovered a new zodiac sign, so now we have 13. Why wonder if we will have 13 months soon?!

      hey - problem solved!
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  • Profile picture of the author WebPen
    It's kind of smart-

    If they want more money, they either have 2 options:

    1) Increase the monthly price

    2) Charge the same price more often

    A lot of people would get frustrated with a price hike, but they may not give a second thought about the changing billing cycle.

    Maybe this company asked Netflix what happens when you suddenly raise the monthly price on customers...
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  • Profile picture of the author AmandaT
    That would drive me crazy... I like having set days when I pay the bills. Half my bills are due the first, the other half on the 15th. A changing date would drive me nuts as well as mean me having to think more on when money was coming out of my account.
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  • Profile picture of the author mmrmm
    My bottled water company is this way....originally it was a "monthly" rental fee.....but they have moved to the 4week invoice. I also get paid once a month and it drives me crazy that the invoice due date keeps moving earlier and earlier .....and makes me angry that is how they impose a $$ increase to the customer. This frustration along with their website letting me schedule a payment with an expired card (it was one i had "on file" with them) and then not having the decency to let me know that the payment did not go thru and then charging me a late fee -- I'm exploring other companies and options!!!
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