Are You “Well Qualified?”
We are used to hearing the term “…for well qualified buyers…” on auto advertisements, but recently this phrase has also been appearing in advertisements for homes, mortgages, furniture and appliance ads, and elsewhere. None of these ads, except occasionally in the tiniest of print that appears for a few seconds only, explains what makes someone qualified for the special treatment or low rates offered.
We checked hundreds of online ads to discover what some of these requirements are and discovered that none of the advertisements we saw explained this phrase on the advertisement page. You had to go as far as eight clicks below the ad to discover a definition, and not all of them even provided a definition. Most offer no explanation at all. Some examples:
> “Three important factors - adjusted capitalized cost, residual value and the money factor - determine the monthly rate of a lease.”
> “See your local [brand] automobile dealer for program details and offer. This is not an offer of direct financing.”
> “Financing is simple, quick and no-obligation.”
> “Dealers set actual vehicle sales prices. See participating dealers for details. For well qualified buyers. Not all buyers may qualify.”
> “If qualified, dealer retains all rebates and incentives.”
> “Upfront acquisition fee and capitalized cost reduction with no security deposit; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Not all buyers may qualify.”
> “Not valid with current offer. Does not apply to prior or future purchases. Restrictions may apply. Void where prohibited.”
> “Incentives available to residents only.”
Generally, “well-qualified” can mean whatever the dealer, company, or salesperson wants it to mean as it is not a legal term, nor is it regulated by law. It may be based on a variety of factors including:
> Credit score
> Prior purchase from same store
> Prior ownership of same model
> Residency within a township or distance from store
> Trade-in
> Membership in an approved organization
> Limited time offer
> Availability of a limited stock item
It is recommended that, when you see an offer of special consideration for a “well-qualified buyer,” that you ask to see, in writing, the company’s policy regarding the advertisement. If they have no written policy, you should not trust the dealership or company and purchase the product elsewhere.
Saturday, September 27, 2008
Sunday, September 21, 2008
A Tail of Two Attitudes
In the world of commerce, there are two conflicting truisms: “Buyer Beware,” and “The Customer is Always Right.” It is rare that either of them is completely accurate in any given situation. On the other hand, it is true that “You catch more flies with honey than with vinegar.”
When it comes to customer satisfaction, some stores and many salespeople do not wish to put customers first. Although I try not to mention specific company names in this blog, several must be mentioned today. These stories relate to Sears, ShopRite, The Tractor Supply Company and two clothing chains.
Our local ShopRite (a North-East food supermarket) has many super-sized stores that carry just about everything. The one nearest to us, though, is more than 40-years old and, by today’s standards, antiquated. There is another Shoprite 10 miles away, twice the size, yet I avoid it when possible. The small store may not have everything in the newspaper ad, but it more than makes up for it by having courteous concerned people working there.
On three occasions during the last month the store did not have an advertised product in stock – in fact they probably never had and never would. Each time, as soon as I showed the ad at the “Courtesy Counter” The phone was picked up, the floor person called, the product was found or something was substituted. (With personal thanks to Dennis, and many others, whose efforts make this small store seem like the best place to shop.)
On the other hand…. One of these stores is a clothing shop. Six months ago, a customer on crutches and starting to feel pain asked a clerk for a chair. She was told they do not provide chairs. When told there were four by the front registers the response was, “So, go there and use one.” Eventually the manager was called and she stated, “We have a wheelchair by the front door, you should have taken that if you felt you were not going to be able to walk around.” Not customer satisfaction.
Sears’ Craftsman promises a lifetime guarantee on their non-power tools. I purchased a hoe there more than 20 years ago and, as the blade bent, got another in exchange with no questions asked. Six years ago I bought their most expensive rake and exchanged it four years later when seven tines snapped off. Now I want to exchange it again as this one did not hold up too well, but the company has discontinued the model and the nearest to it is of lesser quality. No one at Sears can tell me what to do. (I can be reached at info@slightlycreaky.com.) Hopefully this will soon be resolved as the leaves are already starting to fall.
One other clothing store…. Towel sets were advertised on a half-price sale. At the store there were only a few left and nothing matching. I asked the salesclerk for assistance and she seemed bewildered. The department manager told me that this was an in-store special only and not available online, yet they had none in stock and the store did not give out rain checks (which violates New York State law). I really wanted those towels so I asked for the store manager.
The woman who approached me seemed friendly, but when I asked for a rain check and was refused, then explained that it was state law, she walked away from me. I asked for her name so I could complain to the company and the Attorney General’s office, and she started screaming, went into the stock room, and got two young men, considerably larger than me, and told them to throw me out. After she walked away, the larger of the storage clerks asked me what the problem was, offered to call me if the towels came in on that afternoon’s truck, and gave me the manager’s name. While the company did respond positively to my e-mail and telephone calls, that lady was never reprimanded.
Now for The Tractor Supply Store. I used to laugh at their commercials, but when one opened near me a few years ago I had to go in to see what it was all about. I am now a confirmed shopper there for four reasons: they always have what they advertise, their prices are reasonable, their quality is high, and everyone in the store puts the customers first. Whether it is a company-wide policy, or just that the manager (Kay Covert – Highland, NY) sets such a wonderful example, I’m not sure, but they have my vote for what a company needs to do to retain customers.
When it comes to customer satisfaction, some stores and many salespeople do not wish to put customers first. Although I try not to mention specific company names in this blog, several must be mentioned today. These stories relate to Sears, ShopRite, The Tractor Supply Company and two clothing chains.
Our local ShopRite (a North-East food supermarket) has many super-sized stores that carry just about everything. The one nearest to us, though, is more than 40-years old and, by today’s standards, antiquated. There is another Shoprite 10 miles away, twice the size, yet I avoid it when possible. The small store may not have everything in the newspaper ad, but it more than makes up for it by having courteous concerned people working there.
On three occasions during the last month the store did not have an advertised product in stock – in fact they probably never had and never would. Each time, as soon as I showed the ad at the “Courtesy Counter” The phone was picked up, the floor person called, the product was found or something was substituted. (With personal thanks to Dennis, and many others, whose efforts make this small store seem like the best place to shop.)
On the other hand…. One of these stores is a clothing shop. Six months ago, a customer on crutches and starting to feel pain asked a clerk for a chair. She was told they do not provide chairs. When told there were four by the front registers the response was, “So, go there and use one.” Eventually the manager was called and she stated, “We have a wheelchair by the front door, you should have taken that if you felt you were not going to be able to walk around.” Not customer satisfaction.
Sears’ Craftsman promises a lifetime guarantee on their non-power tools. I purchased a hoe there more than 20 years ago and, as the blade bent, got another in exchange with no questions asked. Six years ago I bought their most expensive rake and exchanged it four years later when seven tines snapped off. Now I want to exchange it again as this one did not hold up too well, but the company has discontinued the model and the nearest to it is of lesser quality. No one at Sears can tell me what to do. (I can be reached at info@slightlycreaky.com.) Hopefully this will soon be resolved as the leaves are already starting to fall.
One other clothing store…. Towel sets were advertised on a half-price sale. At the store there were only a few left and nothing matching. I asked the salesclerk for assistance and she seemed bewildered. The department manager told me that this was an in-store special only and not available online, yet they had none in stock and the store did not give out rain checks (which violates New York State law). I really wanted those towels so I asked for the store manager.
The woman who approached me seemed friendly, but when I asked for a rain check and was refused, then explained that it was state law, she walked away from me. I asked for her name so I could complain to the company and the Attorney General’s office, and she started screaming, went into the stock room, and got two young men, considerably larger than me, and told them to throw me out. After she walked away, the larger of the storage clerks asked me what the problem was, offered to call me if the towels came in on that afternoon’s truck, and gave me the manager’s name. While the company did respond positively to my e-mail and telephone calls, that lady was never reprimanded.
Now for The Tractor Supply Store. I used to laugh at their commercials, but when one opened near me a few years ago I had to go in to see what it was all about. I am now a confirmed shopper there for four reasons: they always have what they advertise, their prices are reasonable, their quality is high, and everyone in the store puts the customers first. Whether it is a company-wide policy, or just that the manager (Kay Covert – Highland, NY) sets such a wonderful example, I’m not sure, but they have my vote for what a company needs to do to retain customers.
Saturday, September 13, 2008
Seeing is Not Believing – Part 7
Pressure Sales
During the 1970s and 1980s, Time Share marketers perfected the “used car” selling technique known as pressure sales. This is a multi-step procedure involving getting you interested and involved in a product (in this case time share vacations) and selling it to you at an extremely high price. The sales person knows that it is unlikely that you will purchase the item at the price quoted, but they have a great offer for you, in fact a whole bunch of great offers.
Initially they sell you a one-week vacation, but once you turn it down they offer the right (at a nominal fee, which, once it is closely examined is not at all inexpensive) to shift your week to another week and even another location almost anywhere in the world. Even better, if you buy two weeks, and they do not have to be together, you get a substantial discount.
Once you show resistance to that, they bring out the big guns: if you sign up today, and today only, they will throw in a major discount. That might be a significant percentage off the price, a third week for free, or some such “sweetener.” Turn that offer down and the sales manager comes over with an even better offer. High pressure and even insults are used to persuade you to BUY NOW.
Recently that technique is being used for other products, especially home improvement items. At least one bathroom remodeling company offers to replace your existing shower with a state-of-the-art enclosure that does wonderful things and provides increased comfort, usage, and safety, for only… a price that far exceeds what you would expect to pay. Once you turn them down they sweeten the offer with free products, a reduced price, a quick installation, and other high-pressure tactics, but only if you make the purchase immediately.
Home alarm companies use the same technique. Their advertisements appear to offer a free or inexpensive home alarm system, but once you get to the contract you discover it only covers a few doors and perhaps no windows (substituting an interior motion sensor). Then they offer small add-ons at “low cost,” which, once added up, comes to a substantial selling price. But if you do not purchase it today you will not be able to get all of this at the same price tomorrow.
Television and radio sales use a similar technique. Purchase within the next ten minutes and you will get two for the price of one (although you may have to pay a high “shipping and handling” cost for the second item), or get other products as part of the promotion. But the offer is only good for the next ten minutes. Of course, twenty minutes later you hear the ad repeated, and tomorrow… and next week.
Automotive and computer products give you “limited time offers.” They may have reasonable sales in their advertising, but with a time limit. Next week you will find a new advertisement, a new time limit, and possibly a better deal. It is almost impossible to know when to buy as they confuse you with double-talk.
The best thing to do is to determine for yourself, without looking at the advertisements, whether you need a new or replacement item (or vacation home) and then do online consumer research. Find a reasonable price range for the product you want. Consider all options ahead of time. Then seek at least three companies that provide the product you want. Investigate and compare price, quality, installation or delivery time, and warranty (watch for the small print – many warranties are worthless). After each sales pitch make a comparison chart so you can easily see which company is offering closest to what you want at a price you are willing to pay. If the company offers you a buy-today-and-save option, show them the door.
During the 1970s and 1980s, Time Share marketers perfected the “used car” selling technique known as pressure sales. This is a multi-step procedure involving getting you interested and involved in a product (in this case time share vacations) and selling it to you at an extremely high price. The sales person knows that it is unlikely that you will purchase the item at the price quoted, but they have a great offer for you, in fact a whole bunch of great offers.
Initially they sell you a one-week vacation, but once you turn it down they offer the right (at a nominal fee, which, once it is closely examined is not at all inexpensive) to shift your week to another week and even another location almost anywhere in the world. Even better, if you buy two weeks, and they do not have to be together, you get a substantial discount.
Once you show resistance to that, they bring out the big guns: if you sign up today, and today only, they will throw in a major discount. That might be a significant percentage off the price, a third week for free, or some such “sweetener.” Turn that offer down and the sales manager comes over with an even better offer. High pressure and even insults are used to persuade you to BUY NOW.
Recently that technique is being used for other products, especially home improvement items. At least one bathroom remodeling company offers to replace your existing shower with a state-of-the-art enclosure that does wonderful things and provides increased comfort, usage, and safety, for only… a price that far exceeds what you would expect to pay. Once you turn them down they sweeten the offer with free products, a reduced price, a quick installation, and other high-pressure tactics, but only if you make the purchase immediately.
Home alarm companies use the same technique. Their advertisements appear to offer a free or inexpensive home alarm system, but once you get to the contract you discover it only covers a few doors and perhaps no windows (substituting an interior motion sensor). Then they offer small add-ons at “low cost,” which, once added up, comes to a substantial selling price. But if you do not purchase it today you will not be able to get all of this at the same price tomorrow.
Television and radio sales use a similar technique. Purchase within the next ten minutes and you will get two for the price of one (although you may have to pay a high “shipping and handling” cost for the second item), or get other products as part of the promotion. But the offer is only good for the next ten minutes. Of course, twenty minutes later you hear the ad repeated, and tomorrow… and next week.
Automotive and computer products give you “limited time offers.” They may have reasonable sales in their advertising, but with a time limit. Next week you will find a new advertisement, a new time limit, and possibly a better deal. It is almost impossible to know when to buy as they confuse you with double-talk.
The best thing to do is to determine for yourself, without looking at the advertisements, whether you need a new or replacement item (or vacation home) and then do online consumer research. Find a reasonable price range for the product you want. Consider all options ahead of time. Then seek at least three companies that provide the product you want. Investigate and compare price, quality, installation or delivery time, and warranty (watch for the small print – many warranties are worthless). After each sales pitch make a comparison chart so you can easily see which company is offering closest to what you want at a price you are willing to pay. If the company offers you a buy-today-and-save option, show them the door.
Saturday, September 6, 2008
Seeing is Not Believing – Part 6
Size Matters
Consider the life cycle of a package of cereal. When you first purchase it you get 18 ounces for $1.99. The package has no particular advertising slogans on it. Six months later, although you are not aware of it, while the outer package stays the same, the contents shrink to 17 ounces. Six months after that it’s advertised as “a full pound for the same price.”
Two years after your initial purchase, there is a special: 10% more for the same price. (That’s an extra 1.6 ounces.) Strangely the package is a smaller size, although the contents now fill the inner bag. Once the sale is over, the box remains the same yet the contents have shrunk to 14 ounces. Soon after you see a “new larger size,” 16 ounces, and, glad to be getting more for your money, you may not notice that it’s now selling for $2.49.
Watching the weight of the contents is of major importance when making purchases. Many products come in several sizes, although the larger one is not always the best bargain. One of the finest food stores we have ever visited has been selling carrots at 59¢ a pound with 5-pound bags going for $2.99. When you weigh the 5-pound bag it comes to a few ounces over. Each of the one-pounders is also a few ounces over, and five of them weigh around 6 pounds. Yet together they cost 4 cents less.
Larger sizes, if you are going to use the entire item while it’s still fresh, may be a great deal. You may only need two pounds of ricotta for the lasagna, and it costs $2.99, yet the 3-pound may be selling for the same price or $3.49, still far less per pound than the smaller size. What else can you make with ricotta this week?
Personally, I do not think “churned” ice cream tastes any better than the old-fashioned type. By churning it, there will be more air and less actual product in the package, yet it looks like you are getting more. Therefore the new 56-ounce “half gallons” look the same size that the 64-ounce half gallons did.
Another trick is for the company to make you think they are doing something for you: easy to hold bottles contain less than the previously not so hard to hold ones did. “New and improved” is a sure sign that there is either less in the package, a higher price, or the company has somehow saved itself some cost. How does a brighter color on the package translate to a better deal for the consumer?
Consider the life cycle of a package of cereal. When you first purchase it you get 18 ounces for $1.99. The package has no particular advertising slogans on it. Six months later, although you are not aware of it, while the outer package stays the same, the contents shrink to 17 ounces. Six months after that it’s advertised as “a full pound for the same price.”
Two years after your initial purchase, there is a special: 10% more for the same price. (That’s an extra 1.6 ounces.) Strangely the package is a smaller size, although the contents now fill the inner bag. Once the sale is over, the box remains the same yet the contents have shrunk to 14 ounces. Soon after you see a “new larger size,” 16 ounces, and, glad to be getting more for your money, you may not notice that it’s now selling for $2.49.
Watching the weight of the contents is of major importance when making purchases. Many products come in several sizes, although the larger one is not always the best bargain. One of the finest food stores we have ever visited has been selling carrots at 59¢ a pound with 5-pound bags going for $2.99. When you weigh the 5-pound bag it comes to a few ounces over. Each of the one-pounders is also a few ounces over, and five of them weigh around 6 pounds. Yet together they cost 4 cents less.
Larger sizes, if you are going to use the entire item while it’s still fresh, may be a great deal. You may only need two pounds of ricotta for the lasagna, and it costs $2.99, yet the 3-pound may be selling for the same price or $3.49, still far less per pound than the smaller size. What else can you make with ricotta this week?
Personally, I do not think “churned” ice cream tastes any better than the old-fashioned type. By churning it, there will be more air and less actual product in the package, yet it looks like you are getting more. Therefore the new 56-ounce “half gallons” look the same size that the 64-ounce half gallons did.
Another trick is for the company to make you think they are doing something for you: easy to hold bottles contain less than the previously not so hard to hold ones did. “New and improved” is a sure sign that there is either less in the package, a higher price, or the company has somehow saved itself some cost. How does a brighter color on the package translate to a better deal for the consumer?
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