Electronics Retailers: Tactics You Should Know About
When shopping for electronics, it’s hard enough trying to find the item you want without running into pitfalls at the store. But some retailers have been using some pretty shady tactics on unsuspecting consumers in order to cushion their profit margins. Once you’re ready to make a big purchase, here are a few of the tactics electronics retailers don’t want you to know about.
Bait and Switch – Out of Stock
This scenario is becoming more prevalent as more consumers turn to the internet to do their shopping. You’ve done your research, found the item you want, and have compared prices across several different retailers. You found an amazing bargain at one retailer and placed your order online, then logged off and waited for your item to arrive. Instead, you receive an email or phone call stating that the item you purchased is actually out of stock.
This issue is especially prevalent during big sales when many customers are placing orders at the same time, such as on Black Friday. The software may not synch with the warehouse in real-time, enabling more sales to take place than there are actually physical units available to ship out. In the meantime, you might have missed out on another sale from a different retailer.
If this happens to you, you may be able to wait until the item is restocked, but be careful about being offered a different product at the same price. Some unscrupulous retailers will see this as the perfect opportunity for a bait and switch, unloading an older or less expensive model on an unsuspecting customer. Make sure the substitute item has the same specifications and functionality as the item you originally purchased. A good retailer may also sweeten the pot and offer a gift card for you to use in the future for your inconvenience.
Warranties
Believe it or not, the profit margins on big-ticket electronics items are quite slim, but the profits on extended warranties are not. Consider carefully whether or not you really need that extended warranty before you purchase it. It’s something you should plan in advance – don’t wait for the sales person to ask you in the store and make an uninformed decision.
First, ask about the manufacturer’s warranty and what it covers. You will notice a major defect in most electronics within the first month, so you’re covered in most cases anyway. You can also protect yourself by paying for your purchase with a major credit card, because most credit card companies automatically double the manufacturer’s warranty on electronics as a free service.
But know yourself and decide accordingly. If you have lost or dropped the last three cell phones you had, purchasing an in-store extended warranty would probably be in your best interest. Be sure to read the fine print first so you’re sure it will cover wear and tear, accidents, and loss. Instead of having to buy another phone in the near future, an inexpensive warranty will save you a lot of money in the long run.
Commission
Most electronics stores have done away with commission for their salespeople, but there may be other reasons why a salesperson is still pushing a more expensive product than the one you had in mind. Some stores give more hours to those with the best sales track records. So if your helpful salesperson doesn’t meet a certain quota, they might see their hours cut when the next schedule comes out. Another incentive comes from the manufacturers themselves, who might offer a kick-back to salespeople who will promote their products over other brands.
The best way to avoid becoming a victim of these tactics is to do your research in advance. If you’re looking for a new television set, decide in advance what size will look best in your home, which specifications will satisfy your needs, and how much you can afford to spend. When a salesperson comes on the scene to help you, pass all this information along to them up front. If they start showing you items that don’t fit your criteria, politely say you’d like to decide on your own, or head to another store.
As a consumer, knowledge is power. The more you know about the products you want to buy and what’s currently available on the market, the more money you’ll be able to save in the long run, and the more satisfied you’ll be with your purchase once you’ve brought it home.
Author: UK resident Mary Blanchard, a stay-at-home parent, understands the importance of making her dollars stretch. She frequently visits the coupon croc site to access web discounts to stay within budget.
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