Lesson From Northwestern Utility Billing Service


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Yes, I'm a renter.

My apartment complex has good management and my neighbors seem friendly. However, my friendly neighbors do have a problem with crashing into my parked car. :)

I pay for rent, utilities and telecom separately. The only thing included with rent is trash.

The apartment management uses this service called Northwestern Utility Billing Service a company founded in 1998 in Sonoma County, CA.

Northwestern fairly allocates utility usage for each resident and at the end of the month we get one bill with our water, sewer, gas and electricity usage tabulated (plus a $3.50 monthly billing fee).

The usage tabulation isn't 100% exact, but its fairly accurate.

Northwestern's website claims their utility billing has the following benefits:

• When residents are financially responsible for the cost of utilities they become
more conscientious and conserve more.

• Protects your rents from utility cost increases.

• Increases property value.

• The cost of Sub-metering will be recovered faster than most capital
expenditures and revenue continues long after the cost has been recaptured.

I just thinks its handy to get all your utilities on one bill.

Once you get your all-in-one utility bill via snail mail you can make your payment. They offer three payment options: mail, phone or online.

Here's the kicker: They add 9% more to your monthly bill if you choose to pay online.

Seriously.

If you choose to pay by mail or phone there is no extra charge. But, if you pay online they add 9% more.

My apartment manager explained this online payment charge to me when I signed the lease but I'm still pretty shocked.

I called Northwestern's Customer Service the other day to ask them why they tacked on the extra 9% for online payments.

The customer service rep was really nice and even quipped about the extra 9% being outrageous. The rep explained that they were a small company and that the extra 9% was used to cover credit card transactions.

The rep also explained that larger companies were able to offer online payments with no extra charge because they had billions of dollars to waste on credit card transactions.

Who knows how the rep's response fits with Northwestern's actual reason for adding 9% to online payments. I know credit card transactions eat up something, but not 9%.

I think this can teach us all a lot about smaller, local businesses.

Lesson: Smaller, local businesses have a lot to learn about how the Internet can streamline and bring efficiency to their business. Most of them don't have the knowledge or skill to develop clean, functional websites or implement online services that can bring added performance to their business.

The above lesson is what makes blogging about innovative solutions, disruptors, the techsphere and startups so fun. You can spotlight cool new stuff for all the metaphorical "Northwestern Utility Billing Service" businesses and people out there.

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