Overinflated discounts at one day sale websites - dishonesty or poor fact checking?

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timmmay

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Topic # 89812 8-Sep-2011 13:16

One day sale websites are pretty popular. People like to think they're getting a good deal, and they often are, even if it's a good deal on something they wouldn't have otherwise purchased. I've gotten some great deals from some sites, especially on weekends away in nice hotels.

This morning I saw a claimed 50% discount from Groupy on a 16GB Kingston DataTraveler G3 USB drive. I thought that sounded like something i'd use, so I checked it out. They claim a retail price of $60, on sale for $30 plus $4 delivery.

Of course I checked other sources, and found on pricespy that the same product can be be had for as little as $27.32 inc GST, or $35 delivered. You can see it on Aquila here, or Ascent here. Aquila say the RRP is $35.

When I asked them about it Amanda replied "Retailers sell different products at different prices. The product that we are selling is correct with the value of $59.99.".

My take on it is they use an inflated price so they can claim to be giving everyone a great deal, whereas they're really just selling it at the same price as most other places. They're only $1 cheaper than Ascent when delivery is taken into account. I'd like to see them held to account for what's either dishonesty or lack of fact checking.

The moral of the story is Caveat Emptor - let the buyer beware. Don't take a marketers word for the value of a product.

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Geese

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Reply # 518532 8-Sep-2011 13:23

As good as half price pots.

floydbloke

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Reply # 518540 8-Sep-2011 13:38

Agreed, another of these sites carefully get around this by saying 'Why Pay?"

Same old really, the buyer needs to do their research.

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bazzer

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Reply # 518572 8-Sep-2011 14:24

It's especially noticeable on older products. The RRP might have been current at the time but it's not necessarily worth that now.

mattwnz

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Reply # 518717 8-Sep-2011 18:41

bazzer: It's especially noticeable on older products. The RRP might have been current at the time but it's not necessarily worth that now.

As long as there are some retailers offering it at the why pay price, then I believe they are within the law. I however wonder if a deal website could setup their own alternative business and website with the products at the higher price, just so that they can show that it is price higher elsewhere.

I personally haven't purchased anything off these deal websites for ages. I think the novelty has worn off for me.

timmmay

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Reply # 518723 8-Sep-2011 18:50

In this case the highest price on PriceSpy is $59.69, so their stated "retail value" of $60 is higher than it costs anywhere. The median price on pricespy is about $30.

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muppet

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Reply # 518734 8-Sep-2011 19:15

A fool and his money are soon parted.

Especially when it comes to daily deals sites.

I don't think it's dishonest, but it's certainly not up-front truthful either. They're just benchmarking themselves against the worst price instead of the best price. Save $1.90 wouldn't look so enticing for people.

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stevenz

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Reply # 518738 8-Sep-2011 19:39

A certain tech-oriented site frequently has VERY old hardware for sale, listing the RRP of the item from way back when it was new. Not sure how this works given that the items generally aren't available anywhere as the discounted ones are refurbs dug out of the back of a warehouse somewhere.

They obviously make enough money from doing this that they're going strong, plenty of people out there are either too lazy to do their own research, or lack the knowledge to do so, or simply don't care.

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bazzer

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Reply # 518851 9-Sep-2011 08:13

timmmay: In this case the highest price on PriceSpy is $59.69, so their stated "retail value" of $60 is higher than it costs anywhere. The median price on pricespy is about $30.

Pricespy is hardly the final word on RRPs, and in any case I'd say $59.69 and $60 are the same, aren't they? Or are you quibbling over 31c now?

timmmay

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Reply # 518863 9-Sep-2011 08:44

bazzer:
timmmay: In this case the highest price on PriceSpy is $59.69, so their stated "retail value" of $60 is higher than it costs anywhere. The median price on pricespy is about $30.

Pricespy is hardly the final word on RRPs, and in any case I'd say $59.69 and $60 are the same, aren't they? Or are you quibbling over 31c now?

The RRP is $35, according to AquilaTech.

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scuwp

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Reply # 518875 9-Sep-2011 09:05

My understanding is that as long as the price quoted is referenced somewhere, such as being the manufacturers RRP, or the item is available at the stated price 'somewhere', then they are not committing any offence. However if not then it is misleading advertising and they can be charged and penalised for it.

I think people get carried away with the hype of these sites and 'sales' in general. Just because it is on 'sale' does not mean it is the best available deal.

If you don't do your homework these days they you are a mug.

Caveat emptor...buyer beware!

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Kyanar

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Reply # 518962 9-Sep-2011 12:24

RRP is an interesting beast. Apparently there is precedent for prosecuting someone for claiming an RRP that they had no intention of ever selling a product at. From a Commerce Commission newsletter from 1998 (!):

Courts have ruled previously that if a comparison is made to an rrp, then the advertiser must have charged that price.

You'll note it specifically states the advertiser must have charged it. So that means that Groupy itself must have sold the product at that price at least once.

robbyp

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Reply # 518990 9-Sep-2011 13:23

Kyanar: RRP is an interesting beast. Apparently there is precedent for prosecuting someone for claiming an RRP that they had no intention of ever selling a product at. From a Commerce Commission newsletter from 1998 (!):

Courts have ruled previously that if a comparison is made to an rrp, then the advertiser must have charged that price.

You'll note it specifically states the advertiser?must have charged it. ?So that means that Groupy itself must have sold the product at that price at least once.