Seeing is Not Believing Part 15

Others Charge More – Do It Yourself

Have we gotten so lazy that we no longer attempt to do the simple things ourselves? Americans have become the slaves of advertisements so much that even in this time of recession, when many of us are cutting back on purchases, we still hire expensive companies to change a dripping faucet, to mow our lawns, and to do the things our parents and grandparents would simply do themselves.

Three years ago, we were frustrated with our inability to grow grass in one part of our lawn. Falling for the advertisements, we responded to a national advertisement stating that the company will turn our lawn green, get rid of weeds, and all we had to do was sit back and enjoy. Their price was about twice what I would have paid for the “organic” fertilizer that I had been using, but they would do the work and guarantee it.

The franchise owner visited us and walked the yard. Their price (based on a minimum square footage) would cover the front and side lawns only. To do the back yard would be an extra $90 for the year. Not bad, we agreed. Two days later one of their employees pulled up, took out a spray tank, and walked the yard spraying. Twenty minutes later he was done, put up warning signs, and left. According to those signs, they did not use the non-toxic chemicals they had advertised. It was a warning to keep children and pets off the lawn for three days.

I complained. The contract I signed was for the chemical they used. They never offered the option of the non-toxic product, but should I desire, I could now switch to it. They cost would be almost five times what was originally agreed on.

The next time they came, the worker was using headphones and singing while working. He sprayed the side of the house, some of my flowerbeds, and a few shrubs. Within a day the flowers were wilted, the shrubs turning brown, and the side of the house stained. I complained. The owner came back and looked. He said he would fire the worker for being so careless (I saw him at another house, still working for the company, two months later), but there was nothing he could do about the dead flowers and shrubs.

I told him to cancel the contract; I’d take the loss. Even this summer there was one area where they sprayed that, with the original soil removed and new dirt and flowers put in, nothing grows properly.

As soon as I fired the company, I did what I should have done originally: Googled them. There were web pages filled with similar complaints, people who had negative experiences not only with this company but also with other “lawn experts.”

Using the Internet to research lawn care, and taking a few books from the library, I discovered that by trimming some branches that were shading part of the lawn, using a few bags of lime, and removing the thatch in the spring, my lawn should improve. It did.

Today, with plumbers and electricians charging almost or over $100 just to come to the house to give an estimate, with service contracts costing $400 and up, and with $40 oil changes, we need to stop depending on others, to take the time and the pride and learn to do many things ourselves.

Many school districts, colleges, libraries, and community organizations offer low cost or free adult education courses. If you no longer have the maintenance manuals that came with your lawn mower, leaf blower, or similar product, try the Internet. Companies offer free or inexpensive replacements. These manuals will show you how to change the oil, sharpen the blade, and replace fluids. If you cannot get a replacement from the company, try a bookstore. Ask the hardware store owner or worker. Lowes and Home Depot have done a good job training their employees. They also have many low cost do-it-yourself books.

Use the Internet. There are many online forums where people share their knowledge of small repairs and product reliability. One great online resource (see below for more) is newsgroups. If you have never used one, see TechFAQ first. Google Groups is a good place to start.

Other online Do-It-Yourself resources:

Slightly Creaky’s Leaky Pipes

Michigan State University: Home Maintenance & Repair

DoItYourself.com

How Stuff Works

How Things Work

This Old House

AutoZone

Lowes How-To Library

Home Depot Know-How Center

Monkey See

DIY Network

Seeing is Not Believing -- Part 14

The No-Price Policy

A friend recently responded to an advertisement for a bathtub refitting company. The product was just what she needed to solve several issues, loss of mobility and an aging bathroom. The advertisement did not list a price, and she invited a salesman into her house to demonstrate, with sample material, without asking how much the product cost. She never made the purchase as, with free installation and a $500 discount, the new bathtub was more than four times what she was willing to pay, over $20,000.

This is an old sales technique. Get the person to want the product badly enough and they may not argue about the price. Automobile ads make cars look sexy for that reason. Door-to-door encyclopedia salesmen (I was one, briefly, in the 1960s) hooked the parents on why their kids needed the product before mentioning the $1000+ price. Many products are now advertised in magazines and newspapers using this technique.

As an example, we can examine a magazine many people trust: the October, 2008 AARP Bulletin. AARP sells space for these ads, they do not profit from the advertising techniques. The information below was garnered during the week of October 12. (Slightly Creaky often links to AARP articles as we find them to be well researched and worded so any one can understand.)

Page 2 – full page. Sleep Number Bed. The Select Comfort web site offers both a 4-day delivery and a $500 discount, but to find the actual price you have to actually order the product, including inputting a credit card (we did not). The small print includes: “$500 cash off only for Queen and King Sleep Number® 9000 and Sleep Number Memory Foam T bed sets, and is not stackable on extended financing plan,” as well as, “As of September 1, 2008, variable APR is 22.98% and on all accounts in default, 28.99%.”

There were two additional ads for Sleep Comfort beds in this issue

Page 15 – full page. Nutrisystem. The advertisement says “Eat FREE for 3 weeks.” (Capitalization and color as in original ad.) It states that Tony Orlando lost 103 pounds and Marie Osmond dropped 40. The small print states, “Results not typical.” The only price listed is “All for about $10 a day.”

Their web site did not list the price and made additional promises. Their disclaimer is, “Offer good on Auto-Delivery order only. One additional free week of food will be included with your first and second deliveries. With Auto-Delivery, you are automatically charged and shipped your 28-Day program once every 4 weeks unless you cancel…. However for this offer you must stay on Auto-Delivery for at least two consecutive 28-Day program deliveries to receive the second free week of food,” Three pages down you find that each 28-day program costs a minimum of $329.95. If we are to believe that this is for 28 days, which comes to $11.78 a day, which is “about $10 a day.”

You need to be careful, though, as hidden in a scroll-down box is, “Substituted food items may contain different ingredients and allergens than those in items originally ordered.”

Page 34 – quarter-page ad. Premier Walk-In Tub. “As seen on TV.” The web advertisement promises, “Low entry, built in seat and temperature control are some of the benefits our tubs offer.” Some models offer optional hydrotherapy jets.

To view their products, you pop a virtual soap bubble and are taken to a different page. Thus it is nearly impossible to compare the products. Nowhere on the web site are prices listed – you need to call, mail, or e-mail a request. There were dozens of companies, in addition to the manufacturer’s home page, advertising for this product. None listed a price.

Back Cover – full page. BOSE Acoustic Wave music system. As with the others, there is no hint as to how much it costs, but you can make “12 easy payments.” The small print stated, “on orders of $299-$1500,” does give you an amazingly wide range. The BOSE web site lists the price right on the top right: $1,378.00.

Seeing is Not Believing Part 13

The Gifts That Keep Taking

Here comes Christmas, a birthday, any event that calls for the giving of a gift. Everyone’s interests are so diverse that you might not even know what your spouse, neighbor, or third cousin wants. So you solve the problem by purchasing a gift card.

Just about every store now has them: grocery, clothing, beauty parlors, tool shops, and phone companies. Most people think that giving a gift card solves many problems, but actually it can create even more.

Most gift cards come with a time limit – use them within a certain number of months or the store starts deducting a percentage or cash amount each month for “maintenance.” Some of them expire completely on a set date. Thus if the person receiving the $100 card does not use it by the set time, you may be only giving $85 or $60, or nothing at all.

Stores like gift cards. Not only are they inexpensive to produce, it ensures that someone will be coming in to make a purchase. Frequently the item bought exceeds the value of the card generating additional profit for the store. This is one reason many stores now give such cards rather than cash when you get a refund – it ensures that you must come back, and you will probably purchase more than the value of the card.

Consumer Reports cautions against the use of gift cards: “Earlier this year, TowerGroup, a research firm in Needham, Mass., estimated the value of unused gift cards in the U.S. at $8 billion for 2006. And in its fiscal 2006 annual report, the retailer Best Buy revealed a $43 million gain from gift cards that were unlikely to be used.” Recently their parent company filed a report with the FTC about people losing the value of the cards when a store closes or files for bankruptcy. (Also see “$8 Billion in Gift Cards Went Unredeemed Last Year”.)

The FTC has been active, warning people that gift cards are not always the best way to go. “But before you buy a sack-full of gift cards from your favorite retailer, restaurant, or local financial institution, the Federal Trade Commission (FTC) wants you to know that some strings may be attached.” Among the problems reported are identity theft, loss of funds, counterfeit or fraudulent cards, and hidden fees. Be sure to read the FTC Fact Sheet (PDF file) about gift cards before buying or even accepting one as a gift.

With a growing number of scams revolving around gift cards, even those you buy in your favorite store might be tampered with prior to purchase. Think twice before purchasing one.

Additional resources:
New Gift Card Scams
Beware New Gift Card Scam
What is a Gift Card Scam?
Gift Card Fraud
Buyer Beware: Gift Card Scam Alert

Seeing is Not Believing Part 12

Most people use coupons when they shop. They appear to save us money, especially since many stores double them. But in reality, they are simply another form of advertising and generate additional profits for both the manufacturers and the stores.

There are two common types of sales coupons: those from the manufacturers on specific products and those from stores. Both serve the same purposes – to get you in so you will shop, and to get you to buy a product you may not otherwise purchase. In some cases the items are new, and providing a discount coupon is a major sales technique to win your loyalty to the product. Manufacturers believe, and they are frequently correct, that once an item is tried many shoppers come back to it.

Over the years, stores have tried to attract customer loyalty by placing their own coupons in advertisements – you only get the discount on the product at that specific store. Of couse the manufacturer gains as well, and has probably reduced the wholesale price to that store during the sales period. One advantage to the store is that they do not double their own coupons. A 75 cent off manufacturer’s coupon may cost the store $1.50 if they double, but their own coupon for the same amount would cost them half that amount.

Stores usually limit the doubling to coupons under a dollar. Thus a 75-cent coupon is worth $1.50 to the consumer, but a $1.00 is only worth face value. This explains why manufacturers have so many $1 coupons. BUT – to use them you need to buy multiples of the product. Thus you see $1 off two or three items, which forces you to buy more than you might need or reasonably use. You may be tempted to pass the item by, but the name remains in your mind through this subtle advertising technique.

Recently one cat food manufacturer has been offering a dollar off if you purchase 24 cans at one time – thus less than three cents per item – and each can sells for over 60 cents. Thus to get your dollar back you have to spend at least $14.

So how can a consumer win at this game? Selectively use coupons only for items you would otherwise purchase. I happen to use the brand of cat food mentioned above, and wait for it to go on sale, usually around once a month. I currently have around 60 discount coupons for items I generally use anyway and compare them to what is on sale, using a coupon only if it is to my advantage to do so.

One of my favorite grocery stores offers coupons that seem to provide significant discounts. They may be for $1 off any frozen food item in the store or 25 cents for a loaf of bread. The catch is that you have to spend $15 (not including the coupon items) to qualify. Since I make a shopping list and rarely vary from it, there are times I pass on such items.

One way you can take advantage of such promotions is to have a separate list of items you know you’ll need sometime within the next few weeks that do not normally go on sale: garbage or storage bags, detergent, spices, tea… If you need a few dollars more to make the spending requirement, purchase one or more of these items.

Used properly, couponing can save you several hundred dollars a year as well as give you the opportunity to try items you might not normally purchase. Just remember that neither the manufacturer nor the store is losing money on them, and they are gaining a customer.