Originally Posted by PHLDividends
I understand what you're saying, and I like the economic analysis. But the real issue for me is not so much the extra $9.50 (I can afford the extra 10 bucks - and many people on this board probably can too) -- it's the apparent culture of attempting to profit by deceiving unsuspecting customers. Why should I do business with a company that thousands of times a day tacks an extra fee, often undisclosed, onto people's bills, and then makes it incredibly hard for them to have the charge taken off? I find it offensive, quite honestly.
Suppose that you go to a restaurant -- let's call it Al's Amore -- and the entrees are all priced at $20. You chose Al's because when you reviewed online menus, you saw that Bill's Bistro charged $30 for all entrees. All entrees at both restaurants are the same. Now, Al's didn't tell you, but they add a $10 charge to your check if you don't finish all of your succotash. But when you receive your check and ask about the $10 charge, you are told that you can have the charge refunded if you leave your date at the table for a few minutes and run 20 laps around the parking lot while wearing a silly hat. Even though the effective cost of Al's and Bill's may be the same -- and even lower at Al's if you're willing to do some calisthenics, I think I would go to Bill's restaurant - I just think Bill is a more honest businessman.
Perhaps I am not understanding this Budget surcharge completely. Judging from your illustrative example, this is what Budget does.
You reserve a car from Budget and let's say it costs $20 total (let's assume it's all inclusive to make it simple). When you arrive to pick up your car, Budget makes no disclosure of what your refueling options are and never mention a word about the "automatic" surcharge (and how it can be avoided, if at all). You politely decline all possible optional stuff so that your pick up invoice shows a grand total of $20 and you are given the key after completing the paperwork. When you return the car to Budget after fulfilling all of your obligations outlined in the rental contract such as topping off the gas tank, you are billed for $29.50 ($20 + $9.50). If that's the case, I would have to agree with you that Budget is pretty deceptive (perhaps dishonest) in its rental practice.
I supposed this is where the famous "read the fine prints" line comes into play--it's probably disclosed, but not brought to your attention at the time of rental. I can totally understand if you are turned away by this practice, but Budget really doesn't make you "run laps in the parking lot" to get the charges off. Plus, if all I have to do at your "Al's Amore" is to walk over to the cash register (as in walking inside at Budget) to remind them that the $10 surcharge should be taken off, I wouldn't mind patronizing "Al's" if its food is just as good as "Bill's" and cheaper. Perhaps what I would do is to remember to go to "Bill's" if I have a movie to catch after dinner because I can leave the restaurant quickly after I leave the money on the table!
LAX