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Tony Graddon
Forums Member
Joined: 17 Jan 2010
Posts: 2
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#1 · Posted: 20 Jan 2010 05:10
I recently signed up for a new mailing account. I opted for a specific product which was advertised at $197.00. It was what I wanted and I was quite prepared to pay the advertised price. I paid it and then this happened.
Another screen pops up which reads as follows; Don't leave now! How about paying only $47.00 for the product.
Yes I was quite prepared to pay the $197.00 for the product, but, if the company is prepared to offer the same product at more than a third of the price less, for the same service, Why not make the $47.00 offer in the fist place?
After complaining I received an email from the company saying that they have picked up the error and have offered me a refund and a promise to rectify the issue. However, the very service I had signed up for was to eliminate this exact same issue from my business. After all this how could I possibly trust this company to do the right thing for my business? even if they are considered to be the best in the industry.
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getagrip
Joined: 20 Feb 2006
Posts: 1985
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#2 · Posted: 20 Jan 2010 11:51
Usually, that kind of a thing isn't an "error" - its something that the company does to try and make you purchase the product. If you clear your cookies and revisit the website, chances are, you will get the $47 "error" again. So its your call...
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Matt Zenittini
Forums Member
Joined: 16 Jan 2009
Posts: 249
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#3 · Posted: 20 Jan 2010 12:10
It's simply good business for the company. They want to sell their product at $197.00. So they advertise and market it at that point.
If someone is going to leave their website.. They would rather a $47 sale than no sale.
As well some people will buy just because they feel like they are getting a "deal".
When the company hypes their product up then puts a value of $999 but its not $999.00
its not $699.00
its not $399.00
You can buy it today for the incredibly low price of $197.
But order now because we plan on raising the price back to "normal" price early 2010!
Then you have the idea you are getting the good deal but if your still not quite ready the $47 is the kicker when you are leaving.
If they started off selling it at $47 many people might just think it is cheap OR think I'm not getting a good enough bargain.
I think they are morally sound for looking out for you after you bought the product and saw the discount.
Even brick and mortar stores have special "online prices" Where if you don't see them and request that price you need to pay the stores full price.
It's just good business,
Matthew Zenittini
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getagrip
Joined: 20 Feb 2006
Posts: 1985
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#4 · Posted: 20 Jan 2010 12:17
The company called it an "error", and did not acknowledge it was a marketing practice. That tells me something about the company's ethics...
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VictoriaNTC
Joined: 12 Mar 2008
Posts: 650
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#5 · Posted: 20 Jan 2010 19:30
Personally, I do not appreciate those offers.
My first thoughts are"Why did you not offer your best price to begin with."
Even though, yes it is probably a great business strategy.
I am more understanding when they offer additional bonuses.
Victoria
Follow your gut feeling, your guidance system. It will never steer you in the wrong direction.
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Matt Zenittini
Forums Member
Joined: 16 Jan 2009
Posts: 249
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#6 · Posted: 20 Jan 2010 23:11
getagrip: The company called it an "error", and did not acknowledge it was a marketing practice. That tells me something about the company's ethics...
I believe that it was an error. People are not supposed to see that message after they purchase the product.. ^^.
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A8ch
Joined: 24 Jun 2005
Posts: 658
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#7 · Posted: 21 Jan 2010 11:01
Hi Tony,
It may have been a legitimate error.
I believe there may have been a glitch in the script or whatever was being used to automate the checkout sequence. If the checkout process had recognized your $197 purchase, there would have been no need to prompt you into accepting an alternative discounted offer.
Even though it's not uncommon for marketers to downsell a prospect after the primary offer is rejected, a blanket 76% discount is a significant counter offer to make on a first rejection for the same product. Smart marketing would dictate that the value of the product/service be similarly discounted.
Example: Access to certain product/service features would be excluded in the lower price, or the package would include fewer bonuses.
Otherwise, to routinely offer customers a $47 price after they bought at $197 would result in an endless stream of refunds, an erosion of credibility and zero profits for the seller.
And if, as you say, this company is "considered to be the best in the industry", I doubt that they earned that reputation using such questionable marketing tactics.
Hermas
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Matt Zenittini
Forums Member
Joined: 16 Jan 2009
Posts: 249
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#8 · Posted: 21 Jan 2010 12:22
Well wrote Hermas!
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