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[00:00.41] We belong to an organisation that puts you in touch with pet-sitters when you go away.

[00:07.05] People who can look after your house and animals while you're on holiday.

[00:11.04] And it was coming up for renewal, wasn't it?

[00:13.69] The subscription, yes.

[00:14.49] Every year. Fine.

[00:16.88] But what they didn't tell us was it was more expensive than the previous year.

[00:21.93] And what's more, it was more expensive, a lot more expensive than new customers were going to pay.

[00:28.83] We're looking at customers' loyalty.

[00:32.55] It wasn't the first time that we found out that we as existing customers were paying more for a product than new customers coming on.

[00:41.32] We're not the only ones.

[00:42.64] In the UK, Citizens Advice, which is an independent charity, have recently complained to a government department about these loyalty penalties, which people are paying in essential markets.

[00:58.58] Yes, now these essential markets, they include things like paying for your mobile, broadband, home insurance is a big one, bank savings and mortgages.

[01:11.86] They're all more expensive for their loyal customers than for new people joining.

[01:17.18] Yeah, their existing customers.

[01:20.36] Up to 64% of consumers didn't know that they were being charged either the same or much more than newer customers.

[01:29.39] Yes, and they found that 8 in 10 bill payers are currently charged significantly higher prices for remaining with their existing supplier rather than getting a new supplier.

[01:41.08] And I suppose, Richard, part of this is because of privatisation.

[01:45.33] In the past, a lot of these – especially gas and electricity, things like that – the government provided those.

[01:53.30] And now you have to go and look, and it's difficult to choose which company to go for.

[01:58.88] And when they've got special offers to attract new customers, that's got to be paid for by someone.

[02:05.25] So, we're feeling very sympathetic towards these people, especially because of our own situation.

[02:11.63] However, Richard... Yes?

[02:14.82] I'm wondering whether this might change your mind.

[02:18.80] OK. Now, we have a couple of dogs and we go to the supermarket and we buy dog food.

[02:24.65] Yes. We can choose to switch to a different brand if we discover that it's cheaper.

[02:32.88] We have the option to do that.

[02:35.00] Yes. And it would actually be very nonsensical of us to stay with our normal brand if it has become more expensive.

[02:43.77] Do you agree with that?

[02:45.36] If the quality is identical, you go for the cheaper the product.

[02:49.88] Right.

[02:50.67] OK. Because this is all about a competitive market.

[02:54.66] And competition is for the benefit of the consumers.

[02:59.44] And so, if you're going to have a competitive market, this includes switching from one brand to another.

[03:07.14] Loyalty doesn't pay.

[03:10.07] Right. OK. So, there is less sympathy for people being penalised for being loyal if, in fact, they just need to do a little bit more work and go for the cheaper brand.

[03:25.21] It's just like buying in a supermarket.

[03:28.92] I'm not so sure about that.

[03:30.52] Obviously, there's more to it, isn't there, Richard?

[03:36.36] Because in the supermarket, the switching is very simple, isn't it?

[03:39.28] You just choose the other brand.

[03:42.47] Exactly. And I think what's happened nowadays, it's much more difficult to switch from one brand to another.

[03:44.86] And there are often penalties.

[03:46.99] And also, if it's an auto-renewal subscription, then that price increase should be communicated to customers.

[03:54.69] Definitely. Actually, recently we changed our web host that hosts the site, Podcast in English.

[04:01.86] I didn't choose the very cheapest host.

[04:04.78] I chose one a bit more expensive because their renewal price didn't actually go up that much.

[04:10.89] You're computer savvy, you see.

[04:13.55] So, at the end of the day, if you know there are cheaper options out there but don't switch, that's your problem.

[04:21.25] However, if you stay with a brand who is overcharging because the barriers to switching, you know, it's too expensive or it's difficult to understand, those barriers are too big, then that is not acceptable.

[04:36.40] But really, people are going to be less sympathetic to us because we can find out about the switching and go for the cheaper option.