Saturday 16 June 2012

Marketing Uncovered: Price Wars

You've seen the discounts, the sales, and the shops fighting to be the cheapest. Or is it just clever marketing? Let's find out in the latest "Marketing Uncovered" episode!

Here are my top phrases in the shopping category, together with their alternative meanings.

"We guarantee our prices are unbeatable"
This doesn't mean that the prices are the cheapest. You'll often find a host of terms and conditions attached to claims like this. Usually, if you buy the item and then find it cheaper elsewhere, you can get a refund of the extra you paid. But the devil is in the detail - you may have to jump through hoops to get your refund.

"10% off"
And what was the original price? If the company were already more expensive than their competitors, then they still may be more expensive! It's the price you pay at the checkout that counts, not the discount.

"Our customers save £150, on average"
This is designed to lure you away from your current supplier, but again, doesn't guarantee that you'll save money. The key here is that the phrase talks about "our customers", and not the entire population. That's because, with services like insurance and utility companies, no company is cheapest for everyone - it depends on where you live, how much you use, and a whole range of other factors.

"Special offer!"
Why? Is the product a limited edition? Is there a temporary discount? Or is the company trying to offload some outdated products from the back of their warehouse?

A side note
Don't get too sidetracked by prices. A cheap product that doesn't last long can be worse value than a more expensive product that lasts. After-sales service can be important too, and may be worth paying extra for. These are factors that are easily overlooked when comparing prices.

If you've ever wondered why competing companies can seemingly have "cut-throat price wars", while still managing to make a tidy profit at the end of the day, then you might now have an inkling as to how this is done!

(as always, the phrases above are generalisations, and are not intended to reflect any particular company's claims)

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