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.

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