By Marianne Bickle
Robert C. Gallagher said “Change is inevitable – except from a vending machine.” And so too change is coming from the banking industry. Bank of America’s announcement last week of the $5.00 monthly charge for debit cards users drew outrage from consumers. The media jumped on the story with vigor. The bank is being examined under a microscope by a bevy of news analysts.
You may be wondering why I, as retailer, would write on BofA. This topic fascinates me because as a retailer I have have long understood that once you offer a product or service for free to customers, the process of raising prices can be a very loud and painful experience.
Based on recent news media, I’m not sure consumers remember that they have choices. I am always amazed when people complain about a product or service and then say they can’t live without the stated service. Let me clarify – - I don’t mean health care; I mean everyday product and services (e.g., fashion clothing, cosmetics or banking services). Everyone has choices. We all have the right to say “Yes I chose to purchase this product or service” or “No take business and its services to the curb and dump it.”
Let’s examine several scenarios – - a “what if” game if you wish.
Scenario 1: The banks could back down from public pressure. BoA apologizes for any miscommunication and the debit cards may be used without a fee. Reality 1: This will never, ever happen. BoA has carefully considered all scenarios. Some consumers may switch banks. In actuality more banks will probably follow with the monthly fees. Large banks are strong, tough and run a tight ship. Top executives don’t make a decision and public announcement without carefully analyzing all scenarios. I just included this as an option because it is possible, but not probable. Read more
