Lowest Price of the Season
If you watch television, you will be familiar with stores that run sales for special occasions. It might be Back to School, Columbus Day, Lowest Price of the Season, or some such silliness. Some stores run two to three sales a week and in many cases the same items are on sale, for the same price.
Most states have laws regulating what can be advertised as “on sale.” To circumvent these laws, all a store has to do is have a “list” or “suggested” price and occasionally sell the item at that amount. Usually it is so high that no one would buy it; but tomorrow it will be On Sale again.
One crafts store is noted for having huge signs outside their building and announcements in their ads for “50% off all picture frames.” This sale has been running for years. In actuality, the price they sell the frames for is so high that even at the discounted rate you may not be getting a good deal.
Clothing stores are prone to special occasion sales since no one knows what the products actually cost to make, ship, and handle. Silk shirts may sell for $20 each, and next to them are silk ties, using a quarter as much fabric, requiring no buttonholes, buttons, and few seams, selling for more than twice the price. What is the justification? Two blocks away, at the same chain’s outlet mall store, the shirts may be “discounted” to $30 and the ties are selling for $15.
This is no longer a supply and demand market. Today prices are set by the store, and if the items do not sell they simply spend more money on advertising stating what a great deal the high prices are.
One of the reasons you can frequently get good deals in a discount store is not that the products cost less to make or are of lower value, but the stores do not spend millions weekly in advertising and then have to raise the prices of the products to pay for the ads.
Toothpaste is a good example. There are actually few companies manufacturing this product. Each may place the same formula in as many as three-dozen competing packages. The ones that advertise, the so-called name brands, have to charge two to three times what the unadvertised store brands get, yet it’s basically the same product.
Americans, and in increasing numbers others around the world, have been tricked into believing ads. You MUST have this specific brand (only available at this store), and you “MUST buy it now since it’s on sale at THE LOWEST PRICE OF THE SEASON.” Next week it will no longer be on sale, it will no longer be the same season, and the price will be 20% less.
Friday, August 29, 2008
Saturday, August 23, 2008
Colleges Want to Drop Drinking Age
("Seeing is NOT Believing" will return next week)
Hidden in the news about rising prices and rising tension between Russia and the world, was an article in USA Today entitled “College presidents want lower drinking age.” It appears that “College presidents from about 100 of the best-known U.S. universities, including Duke, Dartmouth and Ohio State, are calling on lawmakers to consider lowering the drinking age from 21 to 18, saying current laws actually encourage dangerous binge drinking on campus.”
Their rationale is that college (and probably non-college) students 18 to 21 are drinking anyway, so why not make it legal? Pressure has been put on these college leaders by a group called “the Amethyst Initiative,” headed by a former college president from Vermont, which has been lobbying for this change. If you are interested in their reasoning, visit their web site. One thing lacking there, though, are reasons not to lower the drinking age. Here are a few.
1. When states increased the drinking age from 18 to 21, drunk-driving accidents, especially in college communities, dropped significantly.
2. Around 40% of all college students already have signs of alcohol abuse or even dependence. There is no study to indicate how this would change by lowering the drinking age, but it certainly would not decrease.
3. The use of alcoholic drinks reduces cognitive abilities. The resulting reduction in both creative and rational thinking is not what we expect to see on college campuses.
4. The availability of alcoholic drinks for 18 year olds would increase the likelihood that those under 18 would have an easier time getting such products. Many school districts already report students as young as 8 coming to school drunk.
5. Mixing alcohol with the strong hormonal impulses of those in their late teens may result in an increase in pregnancy, date rape, vandalism, aggressive responses, and similar undesirable behavior.
6. By reducing the drinking age, more young people will have access to the product and develop a life-long dependency on alcoholic drinks.
7. During the last twenty years we have seen that restricting easy access to cigarettes has contributed to a reduction in smoking. A corollary can be seen with drinking. By making alcoholic beverages available to those 18 to 21, we will be indicating to a highly impressionable age group that drinking is acceptable.
8. Alcohol abuse is already a social, medical, and emotional problem for many. By lowering the drinking age we risk increasing the number of people who will become alcohol dependent and increase the impact alcoholism has on our society.
9. The increase rate of college-aged suicides continues to rise. This is an accurate assessment of the emotional fragility of this age group. Alcohol abuse is a leading cause of depression and is, itself, a depression-causing drug. By lowering the drinking age we are not combating this trend, and will, rather, see an increase in youth suicides.
10. By admitting that they can neither control nor discourage their students from drinking, the college presidents who are joining this organization are admitting defeat rather than putting increased effort into combating alcohol abuse.
Hidden in the news about rising prices and rising tension between Russia and the world, was an article in USA Today entitled “College presidents want lower drinking age.” It appears that “College presidents from about 100 of the best-known U.S. universities, including Duke, Dartmouth and Ohio State, are calling on lawmakers to consider lowering the drinking age from 21 to 18, saying current laws actually encourage dangerous binge drinking on campus.”
Their rationale is that college (and probably non-college) students 18 to 21 are drinking anyway, so why not make it legal? Pressure has been put on these college leaders by a group called “the Amethyst Initiative,” headed by a former college president from Vermont, which has been lobbying for this change. If you are interested in their reasoning, visit their web site. One thing lacking there, though, are reasons not to lower the drinking age. Here are a few.
1. When states increased the drinking age from 18 to 21, drunk-driving accidents, especially in college communities, dropped significantly.
2. Around 40% of all college students already have signs of alcohol abuse or even dependence. There is no study to indicate how this would change by lowering the drinking age, but it certainly would not decrease.
3. The use of alcoholic drinks reduces cognitive abilities. The resulting reduction in both creative and rational thinking is not what we expect to see on college campuses.
4. The availability of alcoholic drinks for 18 year olds would increase the likelihood that those under 18 would have an easier time getting such products. Many school districts already report students as young as 8 coming to school drunk.
5. Mixing alcohol with the strong hormonal impulses of those in their late teens may result in an increase in pregnancy, date rape, vandalism, aggressive responses, and similar undesirable behavior.
6. By reducing the drinking age, more young people will have access to the product and develop a life-long dependency on alcoholic drinks.
7. During the last twenty years we have seen that restricting easy access to cigarettes has contributed to a reduction in smoking. A corollary can be seen with drinking. By making alcoholic beverages available to those 18 to 21, we will be indicating to a highly impressionable age group that drinking is acceptable.
8. Alcohol abuse is already a social, medical, and emotional problem for many. By lowering the drinking age we risk increasing the number of people who will become alcohol dependent and increase the impact alcoholism has on our society.
9. The increase rate of college-aged suicides continues to rise. This is an accurate assessment of the emotional fragility of this age group. Alcohol abuse is a leading cause of depression and is, itself, a depression-causing drug. By lowering the drinking age we are not combating this trend, and will, rather, see an increase in youth suicides.
10. By admitting that they can neither control nor discourage their students from drinking, the college presidents who are joining this organization are admitting defeat rather than putting increased effort into combating alcohol abuse.
Saturday, August 16, 2008
Seeing is Not Believing, Part 4
Discount Stores
During the last 20 years, the United States has seen a growth in both high-end and low-end stores that advertise that they provide deep discounts (or similar euphemistic advertising slogan). Generally these stores fall into three categories: “Dollar” shops, membership clubs, and outlet malls. A careful consumer can obtain many good bargains at these places, but they can also spend more money on items here than they might at a supermarket or variety store.
In the dark ages of the modern world, the Five & Dime stores held the place that the Dollar shops do now. There were several important differences: Woolworth, J.J Newberry, Kresge, and similar stores offered many items at small prices, but they did not stop there. It was also possible to spend several dollars for products. They were “variety” stores that provided a huge range of products.
Today’s Dollar stores, and there are several national and many local names, state that every item in the store is the same price. For the most part that’s accurate, although some may be 2-for-a –dollar and others higher, usually marked as “special purchases.” Comparing the typical product in such stores with WalMart and Target will show that you can purchase similar products for slightly less or more elsewhere. Many items in the discount stores are discontinued, overstocked items, or holiday specials that, while still in date, have passed their intended target.
You can obtain many items in these Dollar stores that are not easily available elsewhere, especially gift boxes and packaging, Mylar balloons, and trinkets. There are also major savings on telephone and computer cables and jacks, electrical tape, pet toys, and simple kitchen gadgets.
The large membership stores, not limited to BJ’s, Sam’s, and Costco, charge an annual fee that is advertised to provide a discount on prices saving you more than the membership cost. There are two catches, though: you generally have to buy larger sizes and they rarely put items on sale. If you are a small business and have need of gallon sizes of pickles or mustard, or if you go through diapers, snack food, and kitty litter so fast that you need a huge supply, then these stores are for you.
But not all is at a discount. If you compare prices to your local supermarket, you will find that many items, even those not on sale, are less expensive, and you have a wider selection of products and brands elsewhere.
In addition, some membership stores, especially those who specialize in furniture and home goods, do not always offer either quality or discounts. Shop around and compare prices before buying. You need not waste gas or run all over: check online. Slightly Creaky’s Consumer Assistance Page provides a list of Price Research Sites to assist you.
Likewise, outlet stores are best for those who either know typical prices for the items they are seeking, or those who absolutely have to have name brands. In many cases, the discounted off-name products are made on the same assembly line or in the same Chinese factory that the advertised products are.
During the last 20 years, the United States has seen a growth in both high-end and low-end stores that advertise that they provide deep discounts (or similar euphemistic advertising slogan). Generally these stores fall into three categories: “Dollar” shops, membership clubs, and outlet malls. A careful consumer can obtain many good bargains at these places, but they can also spend more money on items here than they might at a supermarket or variety store.
In the dark ages of the modern world, the Five & Dime stores held the place that the Dollar shops do now. There were several important differences: Woolworth, J.J Newberry, Kresge, and similar stores offered many items at small prices, but they did not stop there. It was also possible to spend several dollars for products. They were “variety” stores that provided a huge range of products.
Today’s Dollar stores, and there are several national and many local names, state that every item in the store is the same price. For the most part that’s accurate, although some may be 2-for-a –dollar and others higher, usually marked as “special purchases.” Comparing the typical product in such stores with WalMart and Target will show that you can purchase similar products for slightly less or more elsewhere. Many items in the discount stores are discontinued, overstocked items, or holiday specials that, while still in date, have passed their intended target.
You can obtain many items in these Dollar stores that are not easily available elsewhere, especially gift boxes and packaging, Mylar balloons, and trinkets. There are also major savings on telephone and computer cables and jacks, electrical tape, pet toys, and simple kitchen gadgets.
The large membership stores, not limited to BJ’s, Sam’s, and Costco, charge an annual fee that is advertised to provide a discount on prices saving you more than the membership cost. There are two catches, though: you generally have to buy larger sizes and they rarely put items on sale. If you are a small business and have need of gallon sizes of pickles or mustard, or if you go through diapers, snack food, and kitty litter so fast that you need a huge supply, then these stores are for you.
But not all is at a discount. If you compare prices to your local supermarket, you will find that many items, even those not on sale, are less expensive, and you have a wider selection of products and brands elsewhere.
In addition, some membership stores, especially those who specialize in furniture and home goods, do not always offer either quality or discounts. Shop around and compare prices before buying. You need not waste gas or run all over: check online. Slightly Creaky’s Consumer Assistance Page provides a list of Price Research Sites to assist you.
Likewise, outlet stores are best for those who either know typical prices for the items they are seeking, or those who absolutely have to have name brands. In many cases, the discounted off-name products are made on the same assembly line or in the same Chinese factory that the advertised products are.
Saturday, August 9, 2008
Seeing is Not Believing -- Part 3
Bait & Switch: 2008
We all recognize the old Bait & Switch advertising. Illegal in every state, companies advertise one product to bait you into the store and then either do not have the product or it’s of such poor quality that you are easily switched to another more expensive item.
They still do it, more subtly, and they still get away with it. Here are a few examples:
Vacuum Cleaner: The bait: Advertised for a seemingly low price, probably with several free “exclusive offers” such as a car vac, computer attachments, or a steam iron. The switch: buy a better model and get extended warrantees and free cleaning for up to 20 years at ever increasing prices. Beware: The “free” products may be of poor quality and generally not things you might use. Note, though, that if you do keep the vacuum in good condition and get it cleaned using their program, it will probably last the 20 years and do a good job.
Meal Discount Coupons: The Bait: buy one meal at the regular price and get the second for free or at a discount. Possibly buy two meals and get a discount on both. The Switch: There may be many exceptions to this policy: minimum purchase prices (spend $50 to qualify), good only on certain days or at certain meals, or limited menu selections. Beware: When you use such a coupon, check the bill carefully. The restaurant may ignore your coupon (“we forgot,” “computer error”) charge you more than the listed price for the meal, or add a surcharge to make up for using the coupon. We have experienced restaurants adding non-ordered or delivered items onto the bill, such as soup, an extra appetizer, or a beverage.
Furniture: The Bait: Buy a complete living room set and get free end or coffee tables; possibly “close out” sales with deep discounts. The Switch: The free products, and possibly the items offered are of poor quality or do not match. Beware: the sales staff is trained to use high-pressure tactics to move you up to items they want to sell. Most showrooms are so large, and the sales staff follows you so closely, that they show you what they want to sell, not what you may wish to purchase. Ask to be left alone to browse at your own pace. Many companies now charge for delivery and for removal of old items.
If you have replaced a large item, and the old product is still in somewhat usable condition, consider advertising for it at a local college. Offer it for free “as is.” That way a needy college student gets something they can use and you do not have to pay removal charges.
Membership Clubs: The Bait: Pay a small annual fee to join and get deep-discount prices. The Switch: A few companies offer low quality and limited selection at prices that really do not provide a discount. While Costco, Sam’s Club, and BJ’s have made this business model a success, and if you need to buy in bulk these companies have a reputation for providing what they advertise, you can frequently find items for less at a non-membership food market. Beware: A few home supply stores have used the membership ploy to sell low quality items at discounted prices. Be especially careful if the store does not display items but only provides catalogues.
We all recognize the old Bait & Switch advertising. Illegal in every state, companies advertise one product to bait you into the store and then either do not have the product or it’s of such poor quality that you are easily switched to another more expensive item.
They still do it, more subtly, and they still get away with it. Here are a few examples:
Vacuum Cleaner: The bait: Advertised for a seemingly low price, probably with several free “exclusive offers” such as a car vac, computer attachments, or a steam iron. The switch: buy a better model and get extended warrantees and free cleaning for up to 20 years at ever increasing prices. Beware: The “free” products may be of poor quality and generally not things you might use. Note, though, that if you do keep the vacuum in good condition and get it cleaned using their program, it will probably last the 20 years and do a good job.
Meal Discount Coupons: The Bait: buy one meal at the regular price and get the second for free or at a discount. Possibly buy two meals and get a discount on both. The Switch: There may be many exceptions to this policy: minimum purchase prices (spend $50 to qualify), good only on certain days or at certain meals, or limited menu selections. Beware: When you use such a coupon, check the bill carefully. The restaurant may ignore your coupon (“we forgot,” “computer error”) charge you more than the listed price for the meal, or add a surcharge to make up for using the coupon. We have experienced restaurants adding non-ordered or delivered items onto the bill, such as soup, an extra appetizer, or a beverage.
Furniture: The Bait: Buy a complete living room set and get free end or coffee tables; possibly “close out” sales with deep discounts. The Switch: The free products, and possibly the items offered are of poor quality or do not match. Beware: the sales staff is trained to use high-pressure tactics to move you up to items they want to sell. Most showrooms are so large, and the sales staff follows you so closely, that they show you what they want to sell, not what you may wish to purchase. Ask to be left alone to browse at your own pace. Many companies now charge for delivery and for removal of old items.
If you have replaced a large item, and the old product is still in somewhat usable condition, consider advertising for it at a local college. Offer it for free “as is.” That way a needy college student gets something they can use and you do not have to pay removal charges.
Membership Clubs: The Bait: Pay a small annual fee to join and get deep-discount prices. The Switch: A few companies offer low quality and limited selection at prices that really do not provide a discount. While Costco, Sam’s Club, and BJ’s have made this business model a success, and if you need to buy in bulk these companies have a reputation for providing what they advertise, you can frequently find items for less at a non-membership food market. Beware: A few home supply stores have used the membership ploy to sell low quality items at discounted prices. Be especially careful if the store does not display items but only provides catalogues.
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