Sunday, August 2, 2009

Magellan Gives Customers the Finger




A crazy thing happened when I went to update my Magellan Maestro 3225 today. I found out that at Magellan, they are trying very hard to steer their loyal customers away to their competition. How else can you explain a $79.95 price tag on a map update? Some might argue that free updates would be the way to go. After all, these updates are gathered for the newer units anyway. Why not show your customers your appreciation for their business? But the reality is that this is a business, and I for one will not fault a company for making a buck where they can. But $79.95? Come on! Here is the email I sent to Magellan:


Why is the maps 2009 update priced so high? You would sell more units and raise profits by selling it at a more consumer friendly price. I think $19.95 is still high, but more reasonable. As a customer, my sense of loyalty to Magellan is shattered by this outrageous price. It will only send your customers to your competition and I'll bet your current sales numbers of this update will confirm it. Better to reduce the price, sell more units, and maintain the satisfaction of your customer base. Do you think I am wrong? If so then please tell me why. As a customer my perception is that this price is set to discourage updates and encourage the purchase of a new unit. That is wrong thinking because the next unit I buy will not be a magellan product.


In this economy how does it make sense to alienate your own customers by pricing them out of the ability to maintain the integrity of the product you sold them? There are basic GPS units for sale right now for a lower price than this update. I will be interested to see if I get a response from Magellan. I will share it if I do.