Monday, November 17, 2008

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.

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