Oh, the lure of a discount… we all love a good bargain – so much so that there are strict rules to protect UK consumers from deals that really are too good to be true. This summer has shown that from strawberries to sofas, retailers do not always play fair when they set out to seduce us with the promise that we’re getting extra value for money.
Tesco red-faced after strawberry court case
In August, Tesco was fined at crown court for misleading customers with a promotion on 400g punnets of strawberries that netted it an estimated £2.32 million for its 14-week ‘promotion’ in 2011.
It was thanks to the efforts of pensioner Daphne Smallman, shopping in her local branch in Birmingham, that the unfair practice was brought to the notice of the city council’s trading standards officers.
As The Telegraph reported: “She asked staff when the fruit had ever been available at its claimed previous, crossed-out prices of £2.99 or £3.99, believing she was being misled about how good a bargain she was really getting. Tesco never got back to her. “That failure to respond to Mrs Smallman cost Britain’s biggest supermarket a fine of £300,000.”
Tesco issued an apology and said that staff have been given extra training “and reminded of their responsibilities to ensure we always adhere to the guidelines on pricing.” Even if other customers noticed the ongoing sale, no one else bothered to report or pursue the matter. Sadly, Daphne Smallman died in February at the age of 78. The judge in the case described her as ‘tenacious’ and it is a fitting testimony. Consumers – and that’s all of us – could do with more people like her.
Carpets, cabinets and caveat emptor
Just a few days after the strawberries case, six leading furniture and carpet retailers have been accused of misleading their customers with phoney prices. The Office of Fair Trading (OFT) said the stores had highlighted ‘reductions’ from previously higher prices, which tricked customers into thinking they were getting a bargain.
“Furniture stores use fake prices, says OFT,” the BBC reported in August. “Carpetright and the ScS chain are among the six being investigated. During its inquiries, the OFT said it found systematic examples of inflated reference pricing. That is where a retailer claims the price ‘was’ £500, for example, and is ‘now’ £300.”
The Latin phrase ‘caveat emptor’ – let the buyer beware – shows there’s nothing new about a bit of smoke and mirrors when it comes to retail.
Investopedia.com explains the phrase and puts the emphasis on the consumer to be alert: “Essentially it proclaims that the buyer must perform their due diligence when purchasing an item or service.”
As Will Thomas, from eccount, says “it’s all too easy to be lured by the thought of a discount. People tend to think ‘look at the money I’ve saved’ when it should be ‘look at the money I’ve spent’. Since the financial downturn, consumers are becoming more cautious – but inevitably retailers are becoming more wily at persuading them to part with their cash.”
The Two Ronnies
There’s an old Two Ronnies joke where one says “I remember that day, it was the day Allied Carpets didn’t have a sale.”
So with seemingly continuous offers and promotions about, what can a consumer do to make sure they’re not being manipulated by phoney pricing?
How to be a canny bargain hunter
- Be aware. From grocery shopping to more expensive items, keep an eye on what things cost. Don’t be like one of those politicians who don’t know the price of a pint of milk or loaf of bread.
- Play a long game. If you know you want to replace your kitchen in a year or two, check the big and independent retailers to see the different promotions they run. Often big furnishing retailers will offer different deals back to back.
- Ask. If you know a store has run a deal before, ask if they can offer you the same bargain. Even if it has run out, they will want your business and may be able to offer you something. Finance website thisismoney.co.uk says: “furniture has a high mark up, leaving room for the buyer to negotiate. Quite often you’ll find employees have a discretionary 10% discount that they can offer when asked.“
- Walk away. Even if you’ve chatted to the sales rep, even if they have warned you that the current deal is about to run out – take your time to evaluate what you’re buying and do some research.
Finance writer Jessica Bourne lives in Chesire and writes articles on topics ranging from finance to family and education matters. You can connect with Jessica on G+ and read more of her budgeting advice in the eccount money blog.
