financial freedom

Home
Up

Sales Deceptions

When is a sale not a sale?  Be alert for sales that may not be a deal at all.  Fortunately more and more sales cheats are being prosecuted but they still spring up.  Here are some of the common sales deceptions that you should be aware of.

  • Perpetual sales:  the item never goes off sale.  For a sale to be valid the item must be sold predominantly at a higher price.  Major chains have recently settled lawsuits against them for engaging in this practice.  According to the Better Business Bureau “If the sale price is offered for more than 30 days, this becomes its regular price and the store should discontinue advertising the item as being “on sale.”
  • Inflated regular prices:  we bought several items at a major chain department store just a few months ago.  Unfortunately we did not do our pricing homework until we got home.  We found that the regular sticker prices were double that of other suppliers (local and internet) and the seemingly great 40% off seasonal clearance sale still left the prices way over what we could get elsewhere.  Fortunately we were able to return the items.  That store is now on our list…not the good list.
  • Car dealers don’t always tell the truth: be alert to what the dealer advertises and what ends up in the contract.  Be especially sensitive to extra charges that they may add.  Do not sign the papers until you are satisfied that the deal is exactly what you agreed to and any extra charges are acceptable. 
  • Going out of business – still: there have been so many abuses of this promotion technique that most jurisdictions have a requirement that the vendor have a license and meet certain regulations including what’s allowed in the sale and the duration of the sale.  This is an attempt to make it a valid sale.  Some vendors will bring in cheap goods to sell along with the better goods in the store hoping you won’t know the difference.  Not all vendors comply with the law and if you are just traveling through an area you cannot readily validate that the business is closing.
  • Lowest price guarantee:  if you think a store will have great prices because they offer a “lowest price guarantee” with an extra 10% payback of the difference if you find a lower price item, think again.  Such a guarantee is actually a tactic that can allow for higher prices because the vendors know that very, very few people actually take the time to satisfy the fine print requirements and apply for the payback.  The stores count on you being unconscious about pricing and intent on making a purchase in spite of the cost.

    Shop carefully.  And if you find a better advertised deal take it to the store and give it a try.  I have actually saved hundreds of dollars doing that with appliances and other purchases.
  • Bait and switch: this is the old tactic of advertising a really great price on an attractive item but then running out of it just as you arrive at the store or pressuring you to buy a different item.  Laws are catching up with this deceptive sales tactic so advertisers have to indicate that the supply may be limited, possibly offer rain checks, or other options.  A major electronics chain store tried to tell me that the advertised item would not meet my needs and I really needed to spend twice as much.  I fooled them.  I bought the cheap item because it was exactly what I needed.  That store is on the list too.
  • Outlet store bargains: maybe twenty years ago bargain outlet stores were just that.  Now they are an industry of their own.  Companies have product specially made to sell there along side their more expensive regular retail goods.  Yes, you can find great deals but be aware that the item right next to that deal might be of lesser quality and be priced just what it is worth.
  • Buy one get one free:  this may not be deceptive at all but if you don’t really want or need the additional item, it’s really not a deal for you.  Don’t fool yourself on this one.

Sales problems?:  Always hang onto your sales documentation and the sales advertising materials if you can.  If you have problems try working them out at the customer service desk.  Ask for a manager if you are not getting satisfaction.  If that does not work, ask the manager for the corporate contact information and follow up with them.  Document every contact and keep a copy of all correspondence.  Then try the Better Business Bureau and/or your State Attorney General.  Here is what the Federal Trade Commission has to say about fair advertising.  The Better Business Bureau has some great information for avoiding scams and frauds.

The best sale advice is still to buy only based on the net price and the value to you not the percentage off.

More huge money saving ideas.

© 2006 - 2008 The Positive Way.  All rights reserved.  Duplication other than for individual personal use
without permission is prohibited by international law.  webmaster@positive-way.com