Banks & Insurance Companies

[Rufys]

So... Why all the whining and carrying on in mainstream media and whenever people brink up banks or insurance companies.

They're all businesses. They're all being run in order to make money as best they can. Why is it people think the customers get to dictate the terms?

They offer services that people can pay for. If you don't like the services you're well within your rights to negotiate different terms and failing that, you have the choice to go elsewhere for the same or similar services.

Why are they vilified for making business decisions in order to maximise profits? I know if I owned/ran my own business it's be about making as much profit as possible. Customers would always have the choice not to buy my products/services so it's a balancing act between making a profit and not setting unrealistic pricing.

Bottom line - if you don't want to pay for a product or service, nobody is forcing you!

And why does our ridiculous government issue statements and meaningless warnings about how the businesses are being run? I don't see them issuing statements/warnings to McDonalds when the price of a Big Mac increases (first example that came to mind). So why do they think they need to try and dictate to the banks & insurance companies?

If people are struggling, they only have themselves to blame. Can't afford a mortgage or an insurance policy, don't have one! Or try cutting back elsewhere.

I'm getting so sick of the whinging Australian attitude of entitlement and hand out. Where did it come from? I grew up during times when my grandparents and parents knew that to have everything you want, you HAVE TO WORK HARD! What's changed?

[minux]

Ironic...considering you are against what music companies etc are doing to online file sharing...

[Jonah 101]

For starters I work at Mcdonalds and I have to say people do complain about the prices going up on everything, also a business is nothing without the customer. Thats why our bosses tell us that "customer is always right" because without the customer, you guessed it. NO BUSINESS!!

We complain because what else can we do? Besides Insurance and banks are something we cant do without, your philosophy "if you don't want to pay for a product or service, nobody is forcing you!" dosent really cut it.

For the record I am happy with my insurance company and my bank.

[Rufys]

Ironic...considering you are against what music companies etc are doing to online file sharing...

No - I'm not against it. I'm against the approach they're taking and the assumptions they make. As I have stated elsewhere......

This pretty much sums up my views!

from here: You Will Never Kill Piracy, and Piracy Will Never Kill You - Forbes

For the record I am happy with my insurance company and my bank.

Likewise.

[MikeCuzzy]

So... Why all the whining and carrying on in mainstream media and whenever people brink up banks or insurance companies.
They're all businesses. They're all being run in order to make money as best they can. Why is it people think the customers get to dictate the terms?
Bottom line - if you don't want to pay for a product or service, nobody is forcing you!

That's exactly it, obviously there is a slight difference in that, almost everyone who wishes to own a home must take out some form of loan. Even if you rent, you will bear the cost of rate rises, so effectively there is no way to avoid it. That said, my parents bought their first home in... 1990 I believe, so they were at 17% interest rates. To be fair, the price of a mortage, relatively speaking was lower and took up a smaller percentage of take home income (relatively we are paying more today than back then).

It's a hard service to avoid, but we generally have don't have the same options we have with say a lawn mowing service (I choose to mown my own lawn becuase I find it relaxing, yes I am that weird :P )

And why does our ridiculous government issue statements and meaningless warnings about how the businesses are being run? I don't see them issuing statements/warnings to McDonalds when the price of a Big Mac increases (first example that came to mind). So why do they think they need to try and dictate to the banks & insurance companies?

If people are struggling, they only have themselves to blame. Can't afford a mortgage or an insurance policy, don't have one! Or try cutting back elsewhere.

I'm getting so sick of the whinging Australian attitude of entitlement and hand out. Where did it come from? I grew up during times when my grandparents and parents knew that to have everything you want, you HAVE TO WORK HARD! What's changed?

Exactly, maccas is luxury in every sense of the word. People might have more luck affording a mortage if they cut back on the maccas (decent example).
As for people struggling, everyone occasionally will fall behind in payments for something or have issues with money, it's a fact of life. Sometimes you have bad luck, hot water service blows up or something. For example, my car's radiator just decided to cark it after only 2 years, an expense I didn't expect, I do have the money as I plan for when things go wrong. I have never taken government entitlements, and my aim in life is to avoid doing so, the money should be there for people who really need it - sadly a lot of well off people think they have a right to government hand outs.

http://www.dailytelegraph.com.au/a-s...-1226053482213

If you remember this story from last year, where families earning more than $150,000, "the government said it would freeze indexation of family tax benefits, the baby bonus and the paid parental leave scheme for four years for families earning at least that amount"

The claim a lot people in the bracket were making is that $150,000 is not rich, and indeed that was the prevailing opinion of the readers of the article, with only 26% stating that $150,000 was "rich". If $150,000 is an insufficient amount of money to earn per year, either get a higher paying job or maybe cut back on the standard of living.

You can live very comfortably, on a lot less than that. Maybe just do away with all the stupid expenses, and not live in the inner city and you'll be fine.

[MasterOfReality]

Damnit, I wanted interest rates to go up.

And whats with the size of Macca's burgers over the last few years?

[PaRaDoX]

So... Why all the whining and carrying on in mainstream media and whenever people brink up banks or insurance companies.

They're all businesses. They're all being run in order to make money as best they can. Why is it people think the customers get to dictate the terms?

They offer services that people can pay for. If you don't like the services you're well within your rights to negotiate different terms and failing that, you have the choice to go elsewhere for the same or similar services.

Why are they vilified for making business decisions in order to maximise profits? I know if I owned/ran my own business it's be about making as much profit as possible. Customers would always have the choice not to buy my products/services so it's a balancing act between making a profit and not setting unrealistic pricing.

Bottom line - if you don't want to pay for a product or service, nobody is forcing you!

And why does our ridiculous government issue statements and meaningless warnings about how the businesses are being run? I don't see them issuing statements/warnings to McDonalds when the price of a Big Mac increases (first example that came to mind). So why do they think they need to try and dictate to the banks & insurance companies?

If people are struggling, they only have themselves to blame. Can't afford a mortgage or an insurance policy, don't have one! Or try cutting back elsewhere.

I'm getting so sick of the whinging Australian attitude of entitlement and hand out. Where did it come from? I grew up during times when my grandparents and parents knew that to have everything you want, you HAVE TO WORK HARD! What's changed?

I'm pretty sure if you ever owned a business you'd be out of business in no time, Can't afford an insurance policy? who needs that, It's not like Natural disaster happen often in Australia right?

What you've failed to take into account is at the time most people enter into say a mortgage is things are fine and dandy, then 5 years later they have a few kids. The Wife or Husband stops work to look after the newborns and you're onto 1 income, Then out of nowhere they are made redundant and suddenly your situation is completely different. Can you predict how the next 25-30 years of your life will play out?

[MikeCuzzy]

Damnit, I wanted interest rates to go up.

And whats with the size of Macca's burgers over the last few years?

The only change to maccas burgers were year before last. Quarter Pounder, McChicken, McFeast and so forth. Those buns decreased in size from 4.5 inches in diameter to 4 inches, which is in line with their new global standards.

All other buns have remained unchanged since their introduction.

[Reaper]

For starters I work at Mcdonalds and I have to say people do complain about the prices going up on everything, also a business is nothing without the customer. Thats why our bosses tell us that "customer is always right" because without the customer, you guessed it. NO BUSINESS!!

Pffft - "customer is always right" is just wrong. So a customer is pissed at you because there was a fraction too much (or little) salt on his chips that you handed to him (but didn't have anything to do with preparing) and insists you be fired. By your thinking you should resign right there. It's nothing more than a catchy slogan that really is very wrong. As for price - people will always complain about the price going up. The real question is weather they actually stop buying because of it. Further to that, in many cases business have no choice but to raise prices when input prices go up.

We complain because what else can we do? Besides Insurance and banks are something we cant do without, your philosophy "if you don't want to pay for a product or service, nobody is forcing you!" dosent really cut it.

For the record I am happy with my insurance company and my bank.

Most big business makes a huge bottom line number when it comes to profit. BHP just made $9billion profit! In terms of turnover and money invested however it is very low. If I ran the business I'm in now at such low ROI that most public companies run at, I'd be out of a job.

Reaper

[Jonah 101]

Pffft - "customer is always right" is just wrong. So a customer is pissed at you because there was a fraction too much (or little) salt on his chips that you handed to him (but didn't have anything to do with preparing) and insists you be fired. By your thinking you should resign right there. It's nothing more than a catchy slogan that really is very wrong. As for price - people will always complain about the price going up. The real question is weather they actually stop buying because of it. Further to that, in many cases business have no choice but to raise prices when input prices go up.

It has nothing to do with whether they are right or wrong. My boss explained it to me like this. we had 120 complaints last year, now thats just the people who bothered to write a formal complaint! now say they all tell 10 people why out maccas is shit, thats 1200 people who will think twice about buying our food or go to KFC just down the road. We operated in a rather small town too.

think about it, we have to keep customers happy or it will cripple our business. The same goes for any work shop too. The only exception being that replacing a burger is cheaper than replacing an engine because you stuffed up the service.

[MikeCuzzy]

It has nothing to do with whether they are right or wrong. My boss explained it to me like this. we had 120 complaints last year, now thats just the people who bothered to write a formal complaint! now say they all tell 10 people why out maccas is shit, thats 1200 people who will think twice about buying our food or go to KFC just down the road. We operated in a rather small town too.

think about it, we have to keep customers happy or it will cripple out business. The same goes for any work shop too.

You'll know this working at maccas, they complain and say maccas is the worst thing in the known universe - then come back a week later. You'll never make the people who want 11 pickles or 2 pieces of ice in their drink or exactly 1/2 shot of Big Mac sauce happy. But for the vast majority of customers when they come to maccas, you just give them want they want to shut them up - the ones who are real idiots still go and tell everyone maccas is shit though.

[Reaper]

It has nothing to do with whether they are right or wrong. My boss explained it to me like this. we had 120 complaints last year, now thats just the people who bothered to write a formal complaint! now say they all tell 10 people why out maccas is shit, thats 1200 people who will think twice about buying our food or go to KFC just down the road. We operated in a rather small town too.

think about it, we have to keep customers happy or it will cripple our business. The same goes for any work shop too. The only exception being that replacing a burger is cheaper than replacing an engine because you stuffed up the service.

Yeah, perception is very important but you will also find that some people go out of their way to find something wrong, no-matter how perfect your product/service may be. Mmmmmmmmm KFC - deep fried fat encased in chicken skin..........arrrrrrrrrrrrrrgggggggggghhhhhhhhhhh hhhhhhh.....................................

Reaper

[Rufys]

What you've failed to take into account is at the time most people enter into say a mortgage is things are fine and dandy, then 5 years later they have a few kids. The Wife or Husband stops work to look after the newborns and you're onto 1 income, Then out of nowhere they are made redundant and suddenly your situation is completely different. Can you predict how the next 25-30 years of your life will play out?

That's not me failing to take it into account. It's the people that put themselves in that situation failing to plan for the future - which is just plain stupid!. I'm of the opinion that you PLAN FOR THE FUTURE!!! I can comfortably afford 15% interest rates. My fiancée and I once we're married will not be having children until they're fully planned (up until the age of 20) financially. We will also be factoring in single income for the duration of primary school (not that it will be necessary - but based on worst case scenario).

If you make decisions without planning for the future, then more fool you! If your maximum capacity for your mortgage is based on anything less than 10% interest rates then you shouldn't be buying (or living in) such an expensive house.

Yeah, perception is very important but you will also find that some people go out of their way to find something wrong, no-matter how perfect your product/service may be. Mmmmmmmmm KFC - deep fried fat encased in chicken skin..........arrrrrrrrrrrrrrgggggggggghhhhhhhhhhh hhhhhhh.....................................

LMAO!!! "OMG There's a hair in it!"

[Jonah 101]

You'll know this working at maccas, they complain and say maccas is the worst thing in the known universe - then come back a week later. You'll never make the people who want 11 pickles or 2 pieces of ice in their drink or exactly 1/2 shot of Big Mac sauce happy. But for the vast majority of customers when they come to maccas, you just give them want they want to shut them up - the ones who are real idiots still go and tell everyone maccas is shit though.

Its not about maccas in general, they just wont come to our McDonalds anymore. there is another 3-4 within an half hours drive from us lol

[MikeCuzzy]

Its not about maccas in general, they just wont come to our McDonalds anymore. there is another 3-4 within an half hours drive from us lol

lol same issue for mine when I worked there (left 3 months ago). They'd be all "I'm never coming to this maccas again!!! I'll go to (one on other side of town)!!!"

Little did they know, same owner for all stores in region. All the money goes into the same pocket at the end of the day.

EDIT:

That's not me failing to take it into account. It's the people that put themselves in that situation failing to plan for the future - which is just plain stupid!. I'm of the opinion that you PLAN FOR THE FUTURE!!! I can comfortably afford 15% interest rates. My fiancée and I once we're married will not be having children until they're fully planned (up until the age of 20) financially. We will also be factoring in single income for the duration of primary school (not that it will be necessary - but based on worst case scenario).

If you make decisions without planning for the future, then more fool you! If your maximum capacity for your mortgage is based on anything less than 10% interest rates then you shouldn't be buying (or living in) such an expensive house.

Exactly, my parents always said a) a lot of the time it's best to lock in your interest rates if they look like there's a decent chance they may go - worst case scenario you don't save quite as much.
b) always plan that the interest rates, energy bills, food will all go up. You want at least enough savings that, if you lost work tomorrow, you'd be absolutely fine for at least 6 months.

LMAO!!! "OMG There's a hair in it!"

Don't talk too loud, or everyone will want one!

[Rufys]

Just a quick update - this isn't a Maccas thread. Start one if you like. But Maccas was just a very basic example in one of my posts for clarifying my point.

[BumbleBeeSSVR]

Spot on!

I'll be honest, i didn't plan the baby thats on the way, but by cutting back on un-necessary expenses, we will be living comfortably.
When i first left home, i used to feed myself on $30 a week. It can be done quite easily.

[MikeCuzzy]

Spot on!

I'll be honest, i didn't plan the baby thats on the way, but by cutting back on un-necessary expenses, we will be living comfortably.
When i first left home, i used to feed myself on $30 a week. It can be done quite easily.

Congrats mate! Sounds like your kids going to be very lucky having you as a parent

[monkeys437]

I don't get this hating on the banks. It seems like everyone expects them to be a generous non for profit organisation. I read it in the Age comments every day and it shits me. Most people have shares in their super fund with the main banks and I'd like to see how they would feel if they actually did embrace philanthropy and forget about turning over huge profits.

Personally I'd rather the banks in a strong position than see what happened in the rest of the world. If profits don't grow every year it affects the share price and the last thing our economy needs is the share price for the "big 4" to crash. As my small brain understands it, the banks are having a harder time securing finance for the money they lend (something to do with greece) us so as a result they are more careful about lending money. The days of giving a young couple $500k with no deposit at 105% of their first homes equity to go along with their $75k combined income seem past us for the time being. If banks are lending less money, they're obviously going to make less money so need to find other ways to boost profits. At the moment they chose to sack a bunch of workers (Not real cool with this) and not pass on RBA interest rate cuts to so they can earn more money for every dollar they lend out (totally cool with this).

[Banicks]

My concern with insurance, nobody is forcing anyone to buy it as you say. I shudder to think how many cars are on the roads without insurance. Should someone smack into you without insurance, I’m sure you will find the experience very enjoyable satisfied in the knowledge that the person involved didn’t buy a policy because of price gouging, but that insurance company is reporting a large profit. Should help your case immensely.

As for the banks, was only with CBA until I turned 16 and they started charging fees. Try a credit union as an alternative, any fees will always have an option around them and excellent customer service. I should know, work for one. The banks are doing their best to hide the alternatives but we are out there.

[vicarious]

My concern with insurance, nobody is forcing anyone to buy it as you say. I shudder to think how many cars are on the roads without insurance. Should someone smack into you without insurance, I’m sure you will find the experience very enjoyable satisfied in the knowledge that the person involved didn’t buy a policy because of price gouging, but that insurance company is reporting a large profit. Should help your case immensely.

As for the banks, was only with CBA until I turned 16 and they started charging fees. Try a credit union as an alternative, any fees will always have an option around them and excellent customer service. I should know, work for one. The banks are doing their best to hide the alternatives but we are out there.

credit union fees are not always cheaper, as im shifting my accounts to a bank as they were cheaper with better benefits such as term deposit rates

[monkeys437]

If you make decisions without planning for the future, then more fool you! If your maximum capacity for your mortgage is based on anything less than 10% interest rates then you shouldn't be buying (or living in) such an expensive house.

Agreed. The advice i've been given is I cant "afford" a house unless I can comfortably make the payments with 2% higher rates than what the banks are offering. Similar to what your saying in allowing for 10%. You hear these McMansion owners saying if interest rates go up 25 points they'll have to sell the family home. If you're cutting it that fine you should never have brought it in the first place.

[Troy711]

Bloody gumment!

[Rufys]

Bloody gumment!

Huh? That has absolutely nothing to do with anything in this thread...

[Banicks]

credit union fees are not always cheaper, as im shifting my accounts to a bank as they were cheaper with better benefits such as term deposit rates

Not always best fees etc, but you should always judge products based on what is best for your needs. My credit union is very decent.

Their interest rates are usually always higher because they have a larger portion of the loan market (liquidity 101). But you cant beat them on service by any bank.