Received my obligatory renewal letter through the post from the AA that I had been with for 11 years now. I do still like them, but the prices are making me think otherwise. I used to call them out at least once a year, but personally don’t think it’s worth it at the moment when I can put the money into savings
The letter I received
To make your Gold Membership even better value, why not choose one of our great offers? Take a look at the details on the flap below.
Alternatively, if you don’t want to take advantage of a special offer, simply check your cover details overleaf and the enclosed Terms and Conditions and we will collect payment of £230.44 on or around 21st of May 2015. AA membership may cost a little more than some others, but to the 14 million people we look after, we give unrivalled peace of mind
Now, when I first joined AA I only paid around £50 membership for everything, which went up to around £130 on renewal. Fair enough. The policies have been increasing around £20 each year and for those people who pay by direct debit, if you don’t remember to ring up, your paying an extra £20 more each year on top of your cover.
If AA have 14,000,000 members each paying around £130 that is £1,820,000,000 or in other words (£1.82 billion) per year. If all the members only paid £50 each every year, that would be £700,000,000 (£700 million) per year they would make
I highlight doubt they’re suffering their losses and simply ripping people off. I’ll make rough estimates on their expenditure
10,000 Call Centre Agents @ 20k P/A – £200 million
4,000 Vans @ 20k P/A – £80 million
1,000 Recovery Vehicles / Driver @ 30k P/A – £30 million
4,000 Technicians @ 25k P/A – £100 million
Miscellaneous (CEO’s etc) – £100 million
All the above totals £510 million per year
I don’t know all the figures for AA, although they are posted on the website, basically they’re ripping people off who aren’t wise to following their money.
I’m not going to bash AA for their service. I think they’re amazing. They’re reliable and I’ve never had issues. I am going to bash them for their practices and rip off prices. If they want to attribute their rising costs to running costs then design a business model with a fixed fee and use it!
Anyway, I went on moneysupermarket and took out some new cover @ £50 and cancelled my membership. I got a bit heated on the phone with the agent so I apologise to the agent which is why I become so blunt.
Anyway. Would I join AA again.. Yes, without question, but at this moment I am trying to save money and can’t afford to pay lump sums of £140 in one go when I pay bills. Nor do I wish do be charged monthly
So they have lost 11 years of my business because they pissed me off basically