Retail Conscience???

I those of you that followed my previous TV thread know, I recently aquired a Samsung 50" 1080p Plasma TV.

I purchased it from an electrical retailer down in Albany last thursday week on 24 months interest free. (Otherwise I reckon I'd never end up buying one LOL - also it allowed me to purchase it whilst the wife was in a 'weak' period Tongue out).

BUT!

That same retailer had an add (please - no names mentioned) in the following (last) thursday with what looks like exactly the same TV for nearly $500 less!!

Now; if the time lapse had of been, say, 2 months, I'd just accept it - the luck of the draw. But with only 7 days between purchase and the add appearing - I would say the sales campaign and prices presumably would have been known (add design/lead time for copy and imaging etc).

I've spoken to the Manager of the store, explaining that I was otherwise very happy with the person I dealt with (don't want the young sales guy to cop strife) but fealt that I should have been offerred the TV at that price, be advised on the forthcoming sale, or that they would at least price match.

Before I spoke to the (overall) Manager, I also spoke to the Sales Manager of the IT/TV etc dept and she tried to say the advertised price was the CASH price. I renounced this, saying that advertised price is the "ticketed" price and that cash prices are usually the ticketed price with some cash discount.

When I spoke to the (overall) Manager on Friday, he said he was looking into it and would contact me on Monday.

I've told them I want to sustain a good relationship with them and intend to purchase further goods in the near future and want a WIN WIN outcome.

I know I bought a study chair from Office Works a few years back and they advised me that the chair would be on sale in a weeks time and sold it to me for the (at the time unadvertised) sale price. That to me is about equitability and customer retention.

What to you think guys? Do I have a case? Am I beeing reasonable? Is it just my tough luck?

 

 

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UncutTriggerInWA's picture

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Maybe a compromise?

Sun, 2009-06-07 12:07

If the Manager is looking into it Colin I would keep at him as there is a fair chance he will offer some form of compromise. I do agree with everything that you said. Some stores will do everything they can to help you make a very good deal, others will just fob you off. In technical terms the store has every right to stand firm and do nothing and yes; they  are right, cash sales often provide for much greater discounting.

If it were me as the store manager and knowing your social networking talents Colin I would seriously bend to keep you happy as referal business is the best way to make sales. Good for you on taking it up and good luck mate.

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That same retailer had an

Sun, 2009-06-07 12:38

That same retailer had an add (please - no names mentioned) in the following (last) thursday with what looks like exactly the same TV for nearly $500 less!!

Is it 24 months interest free?

Interest free is never interest free.

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Dreamweaver's picture

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Interest Free

Sun, 2009-06-07 14:26

Salt,

In my contract, it is over 24 months. There is a one off $25.00 establishment fee and a $3.50 'administration fee per month. There is no penalty for paying the purchase off earlier. Obviously, if you do, you save the $3.50 per month. 

But there IS a trap. The finance company only requires you to meet the minimum  monthly payment. BUT and this is a BIG BUT; IF you only make the minimum monthly payment - you will NOT pay off the item within the precribed period and THIS is where folks get caught and the finance company makes money - with a whopping 29 percent interest.

There is no other monetry cost, providing you avoid using information services and some payment methods that incur costs. Of course, if you pay cash, you (should) get a better deal from the retailer because they have a margin.

It costs the retailer if people use the third party interest free facility, BUT, they get to sell the product at the advertised (undiscounted for cash) price (unless, of course the product is advertised as as 'cash only' price as sometimes occurs) and are able to move more product items than they otherwise would.

So technically, yes it CAN be interest free PROVIDING you pay it off within the period.

EDIT -following added:

  • The convenience of in-store finance is what makes it so appealing. You can enter the shop with only proof of income and residence in order to obtain finance.
  • Often, retailers will offer extensive interest-free periods to entice customers to buy. If you use this bonus effectively, and pay off all that you owe before the interest-free period expires, you won't have to pay a cent in interest. However, if you have not paid back all that is owing by the time the interest-free period is up, you will probably be hit with a substantial interest bill since thereafter interest is compounded (ie. all of the interest that you would have paid over that period if you weren't in an interest free arrangement is now added to the principal amount and interest is calculated on that interest retrospectively).

This is straight off the WA Dept of Commerce - Consummer Protection website.

 

 

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Vince

Sun, 2009-06-07 14:03

Well, it would be in their interest to do the right thing by me, and, as you say, I come into contact with a lot of people (thanks for your kind words :)   ).

Technically, they may be right - but that doesn't mean it would be the right (or best) thing for them to do.

As you said, referrals is the best and cheapest form of advertising and means of customer growth (or shrinkage).

At least the Manager at this stage is not (yet) saying no.

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similar from same shop??

Sun, 2009-06-07 13:18

yeah mate I recently bought a Sony Bravia 46" on 60 months interest free, more than likely from the same shop in Albany .

saltatrix - it is interest free if you make the minimum payment each time, if you miss the final payment you will get slugged interest on the total amount (not just the final payment) and this, along with their minimal fees, is where they (GE finance, etc.) make their $. 

As far as the $500 goes it is worth getting some more ideas of prices on the net and working out how this compares. I know with mine that if I waited I could have got it cheaper but would have missed the interest free deal. Over the 60 months it would have only made a difference of $5 a month (or in your case $20/month over the 24 month period - thats 3 bags of mulies).

 You could always see if you can get a good deal on extended warranty or something.

 

 

 

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Scott

Sun, 2009-06-07 13:59

Yeah mate - I know where you bought from - I bought from the other mob.

I did go for an extended warranty (that had to be paid for by cash).

So, we'll see what the Manager comes back with.

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I understand what you are

Sun, 2009-06-07 17:04

I understand what you are saying. What you may find though is that they may have changed their sales strategy for going to a lower price without the interest free.

You can pay the interest free price at Goodguys but pay less for "cash".

What theyre sayin is the price will be higher if you dont want to pay for it now.

Maybe they went the cash road to get a few sales on that angle?

Really at the end of it their is some interest hidden in the end price of the interest free offers.

Ive just been through the white goods hunt and a few other things. Some sales people will lie through their teeth to get the sale. Hardly Normal said the fridge would be there tomorrow but it didnt arrive until about a week later when I bogged up their switchboard with calls. Even then the delivery guy said we wont charge you for the delivery because of the hassels and income I had lost waiting aorubd for the delivery truck. Then the sales guy rang back up trying to swindel the money out of me. Theyre not the only ones that tried to pull the wool. Yell

Jibber about they dont sell that model anymore, li9es lies and more lies.Surprised

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Salt

Mon, 2009-06-08 19:48

Essentially, you are correct, cash will always buy more for less.

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PilbaraBrad's picture

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tough one i feel for you ,

Sun, 2009-06-07 17:14

tough one

i feel for you , that sort of crap always happens to me, i buy it then it goes on sale

i have never bought on interest free but what i have done in the past is return the item the buy it again, after all consumer protection laws mean you can always take it back

regardless of store policy they can not refuse a refund by law, check out the government website

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Cheers Brad!

Mon, 2009-06-08 19:51

Ah! Good point mate! Many retailers say 'no refunds' BUT that is illegal (I've checked it out). Now we are getting into different realms with refunds - tomorrow's court list is less hectic - I'll be talking to a few legal colleagues Wink

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I bought a tent a certain store once

Sun, 2009-06-07 20:50

And the next day they brought the price down by $50. I was spewing. So I took the tent back and said I didn't like it and then got my Mrs to go by another one at the $50 cheaper price.

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Cheers #1

Mon, 2009-06-08 19:52

Hmmm, I'll have to consider that more carefully!

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as they might sat sh@t

Sun, 2009-06-07 22:14

as they might sat sh@t happens but i would do the same as Brad done

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"Poo Occurs"

Mon, 2009-06-08 19:54

Indeed Russ!

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7739ian's picture

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Poor b..... retailers

Mon, 2009-06-08 08:17

i think can refuse a refund if the goods are suitable for the purpose they were bought for - ie if it's not faulty i don't think they have to refund your money. I worked in retail years ago and people used to come up with all sorts of bulls.... to get a refund for gear they had purchased - often against good advice and it was frustrating. In saying that, i would think a nation wide chain would know at least weeks in advance what specials were going out when - but i doubt they told the poor floor jockey - nail the manager Col - he would have known and should consider your request unless it was stock purchased prior to the special and they did not get a deal from the manufacturer.

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Poor b.... retailers

Mon, 2009-06-08 08:19

as an instance of how despicable the purchasing public can be i know of a case where a bloke bought a sports jacket from Roger David, wore it to a job interview and then took it back for a refund - a very low act but i got the job.

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Lol Ian I like it

Mon, 2009-06-08 08:36

I know a guy who something similar test driving cars and trying to impress girls - no it wasn't me - but I wish I had thought of it.

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Used to be

Mon, 2009-06-08 09:23

a regular Saturday morning thing in the early 70's for a few of us to test drive cars - always picked a busy yard and of course they were more trusting then so they often let you take a car out if yours was left in the yard. I am ashamed to say we could put a couple of thousand miles wear on a vehicle in a 10 minute jaunt around Vic Park.

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Lol

Mon, 2009-06-08 09:34

Poor buggers who bought those cars though - oh well it was the 70s

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LMAO Ian! Salient!

Mon, 2009-06-08 19:58

Yes, I'm dealing with the manager. I believe you are correct - unless the product is deemed unsuitable (for the plethora of (retail) reasons that entails), one cannot returns goods.

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Thanks Dave

Mon, 2009-06-08 20:12

Was talking to Dave(y) today - suggested I peruse the website corprorate culture (what was the term you used Dave? GREAT IDEA!

Ah - Customer Charter - perusing the website now - will insist on a face to face interview tomorrow Wink

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Dreamweaver's picture

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Closure

Wed, 2009-06-10 19:48

Well, after discussing the situation with the store manager today, I've negotiated a $300 refund. After quite some research I understand that he's not legally obliged to do that but agreed that it would be in the store's best interest to sustain my customer. I'm comfortable with that result.

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good work Colin

Wed, 2009-06-10 20:00

It's good to see big shops being reasonable and still caring about the customer.

There's not too many options down here in Albs, but at least they dont have the monopoly of being the only store.

 

 

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That's it Scott!

Wed, 2009-06-10 20:07

Cheers mate!

I went in firm and fare and had to convice him that a cash refund would be seen better than a credit Wink

Any good sales person, especially a sales manager should look at a sus/retained customer experience - not just a single opportunity - you don't grown business that way.

You're right mate - at least they each have ONE competitor LOL! 

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