Rogers Communications Misses Me and Wants “the Opportunity to Earn Back My Business!”

Wow. A VP of Rogers Communications personally wants me to be a Rogers customer again. I know because he sent me a letter. Well, when I say “letter” I guess you might call it an ad on cardboard. And when I say “personally” I guess I should admit it’s addressed to “Resident” at my address not to my name. I’m not quite sure why it took him so long. After all, we cut our cable service in mid-2013, almost a year ago. It’s a very Canadian letter. It says, “We know you had your reasons for leaving Rogers.” Well, that’s certainly true. Having our cable costs increase 53% in fewer than 10 years was one of them. Another big one is that we weren’t getting any channels for that money that we watched that we couldn’t get for free using an Over the Air antenna. The letter continues by saying “If you’re at all open to reconsidering your decision, please let us know.” And it lists a toll-free number to call. Really. They think I want to phone them to chat about their various packages? Do they not remember that they told me I had to get a lawyer’s power of attorney before they would let me talk to them to cancel our cable service that was in my husband’s name? I did quickly check their website. They’re not advertising “pick your favourite 10 channels for $10.” Until they are, it’s highly unlikely I’ll be calling them. There are at least 2 other reasons, too:

1: What Rogers Spends Your $25-115 Internet Connection Fee On: Duct Tape and a Very Long Stick

Photo of Rogers Cable Up and Through Trees Look for the white duct tape tree then follow the cable up to the top left of the photo. In the neighbourhood where I walk to work, I’ve been watching white and black duct tape rings appearing on the trees. It’s not to repair ice storm damage or to trap Emerald Ash Borer larvae. It’s just Rogers “installing” and repairing its cable lines for high quality telephone, TV and internet access. Photo of Cable Up Tree Trunk That’s right. Their lauded service includes running a cable, probably coax by the look of it, from their in-ground box loosely across the grass, then up the nearest city-planted street tree. The cable is attached to the trunk with two bands of duct tape. Then it winds through the branches and arcs over to another tree, this one belonging to a homeowner. Then it arcs over again to the house it is servicing. Photo of Cable on Street Lamp I’m not at all sure the city knows that Rogers is using city street light poles for its cable. Yes, eventually Rogers will send someone out to properly run these cables underground. They will even slice through various homeowners’ asphalt (at the end of the driveway owned by the city) to do it. Based on last year, I expect them to get right on it in about 6 months. Photo of Cable on Grass Notice the artistic tripping hazard of the cable on top of the grass. Yes the ground has been thawed for two months, long before this loop was run. In the meantime, your high speed internet access and digital TV is at the mercy of lawnmowers, falling branches, passersby with some attitude and a hockey stick to reach high overhead, and your neighbour who might decide to take down the tree that is serving as a distribution pole. Photo of cable on grass and up tree Not my idea of “best in class” service. Rogers “fine print” says for their internet packages they charge: “a $14.95 one-time activation fee, and a one-time installation fee (Self $9.99; Basic $49.99; or Professional $99.99).” For their TV packages it says: “One-time installation fee of $49.99 may apply.” These prices were on their website on May 12, 2014. Photo of Cable Street Lamp At a Different Location

2: Rogers NETFLIX Speed Is Also Not a Plus

In a strange timing coincidence, there’s also an article on the CBCNews site today in which NETFLIX reports that the average download speed for Rogers customers was 1.67 Mbps. By comparison, Bell Fibe averaged 3.19 Megabits per second in April 2014. We don’t have a NETFLIX account although we’ve considered getting one eventually. If Fibe is really almost twice as fast as Rogers that would be an important factor in picking a data provider.

Sorry Mr. Perrotta but I Won’t Be Calling Soon

All things considered, I don’t expect to be giving Rogers the opportunity to earn back our business any time soon. Photo of Eastern Cottontail My relative’s pet rabbit loved chewing through the phone line inside the house: I hope this wild Cottontail doesn’t like Cable!

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Retirement Planning: What Rate of Inflation Should I Use?

Michael James on Money started it. Then BigCajunMan took over— trying to estimate how much income he could draw out of a retirement nest egg based on various factors including inflation and the rate that the investments grow before withdrawal. As he says, it is very hard to pick what percentage to use for inflation. CPP is also “indexed” to inflation at a rate picked by the government so your monthly check can go up. I’ve generally found our bills go up more in a year than that government rate, though. So for my personal retirement planning I wondered what rate of inflation I should use.

Being an Information Pack Rat Has Some Uses

I’ve always been an information pack rat. In fact, I could tell you how much income tax I paid for working for the public library one year while in high school. (I can guess how few people are actually going to ask that.) For this exercise, it’s handy though. I know how much we’ve paid each year, actually each month, for most of our billable household costs.

From that information, I can calculate an approximate rate of inflation.

Estimating Inflation When Costs Don’t Always Increase

It gets a bit tricky because costs don’t actually always increase. Our Natural Gas costs, for example, are significantly lower now than in the past. (Thanks to shale gas frac’ing: We now have cheap nat gas but one day when we can’t get any clean drinking water at any price we may not be so thankful.)

During the interval 2001-2012:

  • Highest Natural Gas year: 2006: $1727
  • Lowest Natural Gas year to date: 2012: $924

What should I use to estimate the rate of inflation if it’s actually deflation?

Well, if I estimate inflation too highly I will have extra money to spend on the occasional rutabaga; if I estimate it too lowly I will have to forfeit my semi-annual clementine: I vote over estimate. So I will cheat and pretend the price of natural gas rose from $924 to $1727.

Car insurance can also dip for some people as their car ages. Not for us of course! We live in a “car accident capital of Canada” so we pay almost identical insurance on our brand new Camry as we do on our 15-year-old Corolla. Go figure. We’re insured basically against what we can do to someone else. (Good thing we usually walk to work.)

Our Personal Planning Inflation Estimates Based on Costs from 2001 to 2012

Not all the numbers are in yet for 2013 so these estimates are based on payments from 2001 to 2012.

Our Property Tax Inflation

Our mayor has made a valiant effort to keep these increases as low as possible. Even so our property taxes have increased: 2.9% per year

Our Home and Car Insurance Inflation

I’m lumping these two together since we buy both from the same company and there is a discount involved.

Our insurance costs have increased: 0.46% per year

(Yes, that was surprising! Please remember though that the replacement value for one car in that time has dropped 12 years worth to basically 0.)

Our Natural Gas Inflation

NOTE: This is not the increase in cost per BTU. This is the increase in our total bill. It includes tax increases and if we had any increases in consumption per year.

This is the one I’m lying about and flipping from deflation to inflation. This is my “mad rutabaga” money.

Our natural gas rates have (decreased) increased: 5.8% per year

Our Electricity Inflation

We use more electricity now than we used to. I blame the kids.

Again, this is not the increase in cost per megawatt. This is the increase in our total bill including all the lovely surcharges added by the government and the time of use rates.

Our electricity costs have increased: 1.7% per year

Our Water Inflation

Strictly speaking, we pay for both water, waste water and water infrastructure based on how many m3 of water we use per year.

Our water costs have increased: 4.1% per year

Our Cable TV Inflation

Well, this is a bit misleading. We got rid of our cable this year when they tried to raise my rates again. However, in the interests of historical accuracy, and shock, here goes.

Our cable TV costs had increased: 3.5% per year

Our Telephone (Landline) Inflation

We aren’t really cell phone users having simple pay-as-you-go emergency phones only. So luckily, there’s only one number to report here.

This cost includes our long distance charges. We barely make any long distance calls and when we do we use one of those “dial 10-10-xxx” things so they only cost 25 cents.

Our telephone costs have increased: 0.8% per year

OK, I admit I was surprised by how low that is, too.

Our Internet Inflation

We were “early adaptors” to using high speed internet so we’ve always paid too much.

Our inflation rate is probably lower than people’s because when you start at the top, there’s less distance to climb.

Our internet costs have increased: 2% per year

Our Gasoline Inflation

This one is a bit tough to calculate too. I’m not interested in the percent increase in the cost per litre, although I could tell you that if you forced me to. I’m interested in the percent increase in total annual spending. The problem is that we only go on a major cross-Canada road trip every second year. And after someone totaled my car last year, we went down to one car for 6 months. So I think I’ll just have to skip this one.

It’s not really a mandatory retirement expense anyway, as we’ll probably have to walk everywhere when we retire because we’ll be too broke to afford a car. Unless there’s some way we could power one off those extra rutabagas….Hmmmmmm.

An Overall Personal Rate of Inflation Based on 2001-2012

So what do I get if I try the same overall calculation but based on the sum of our costs for

  • natural gas
  • electricity
  • water
  • property taxes
  • cable
  • telephone
  • internet
  • house and car insurance

Our overall personal rate of inflation for 2001-2012 was: 2.3% a year

OK, I admit it again. I’m surprised. I was expecting more like 4%.

If you want to know how that compares to our single-year rate of inflation for 2011-2012, please see: Budgeting for Retirement Requires a Good Estimate of My Personal Rate of Inflation for 2012.

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Have you ever tried to calculate your personal rate of inflation? (No, I don’t mean pre- and post-turkey dinner!) Please share your horrific results with a comment.