Efficient Windows
Monday, January 20, 2014
Wednesday, January 15, 2014
A Story About Discount
Chapter Two
Any company that uses a cute dog or kids would never try to gimmick prices, right?
I shared about my oversized postcard announcing that
I am eligible to save $200 off windows or $400 off doors for my home. I also
will not have an interest for a year but I read I cannot use both offers at the
same time though I know that for this offer it is a gimmick.
The president of J.C.Penny, Michael Frances said they were going to stop marking up prices in
order to have fake sales. A quote from Time Magazine Business section
online said ‘In early 2012, JC
Penney promised the end
of “fake prices”—ones that
were inflated just so that shoppers could be tricked into thinking the
inevitable discounts represented amazing deals. Well, it’s already time to
welcome back discounts and inflated prices alike.’ (2013)
According to the Wall Street Journal, Penney’s ousted president Michael Francis after just
eight months on the job, saying his marketing strategy had failed to explain
the pricing strategy to consumers; this in reaction to a 10% drop in store
traffic in the first quarter and worse after that.
 |
| We can give you affordable and effective windows. You need to supply the view. |
The New York Times from April 4, 2013, explains “But most shoppers, coupon collectors or
not, want the thrill of getting a great deal, even if it’s an illusion. In
recent months, Penney recognized that human trait and backtracked on its
pricing policy, offering coupons and running weekly sales again. And it started
marking up items to immediately mark them down for the appearance of a
discount.
The problem, economists
and marketing experts say is that
consumers are conditioned to wait for deals and sales, partly because they do
not have a good sense of how much an item should be worth to them and need cues
to figure that out.”
You see ladies, gentlemen and intelligent dolphins; in
marketing this is called anchoring. Consumers
infer that they get a great deal based on the reference point provided by the
higher, presale price. Social scientists refer to this idea as anchoring, and
it applies to all sorts of consumer behavior and expectations. Without that
anchor, consumers have trouble determining whether the store is actually giving
them a good price. Even the words a retailer uses in its marketing can affect
how a customer judges a deal — “sale” or “special” leads people to think the
item has a high value, but a straight markdown leads them to think it’s a
cheaper item. This is according to a study in
the Journal of Retailing. (2005)
 |
| Big Sale-Limited Time-Don't Wait |
How
do I know the information in this coupon is a gimmick using the principle of
anchoring? For years every two to three months we dedicated a sales meeting to
what offer shall we advertise. If a company constantly advertises the same
sale, without changing the offer, the Better Business Bureau and some state
attorney generals question is the sale price the regular price. Is the sale
legitimate?
Let
us hear what industry expert Dave Yoho, a
sales trainer with over forty years in the business, has
to say about the Washington State
attorney general going after contractors and how the industry is being affected
“He doesn't
understand marketing or the emotional connotation of the buy/sell relationship.
He understands law not psychology. He says: I want to take the emotionalism out
of selling these products. Well, there is no such thing as a cold,
rational buyer purchasing this type of product purely on merit. Some people
want a Cadillac, some want a Lincoln. Color, style, accessories ... it's about
how that product makes the [consumer] feel. “
“A vinyl window in this industry,
totaling 90 united inches, could range in price, at retail, from $350 to $950
or more. What does that imply? That there are different products offered at
different prices. What the attorney general wants to know is how you establish your retail price and how many jobs do you
sell at this price. That's where he's utilizing prior Federal Trade
Commission guidelines.
Yoho went on to say “Two
of the companies tell me that their lawyers told them drops like that aren't
illegal because they do it in the automotive business. Well, it's not illegal, but it doesn't defend well in court. The
price of jobs can vary for many reasons, but if you don't have a base price and
sell jobs at that price occasionally, you're going to run into trouble in front
of a jury.”
The
company that sent me the coupon always has some type of special or sale but
changes it every month or so. The bottom line is the phone will not ring if you
do not perceive a savings. I will not share any specific numbers because it is
unethical to but I can attest from memory that the sales price, the discount
from list, closing rates, and salesmen commissions were pretty constant month
to month no matter what the offer. The company is a good reputable company with
caring people and great products but fake sales and discounts are the standard
operating conditions of the industry and the consumer’s mindset.
 |
| We offer you straightforward advice and no gimmick pricing. E-mail us for an upfront estimate. The best bargain is no bargain unless the product, service, and customer experience is worthy. |
If
everybody believes a lie, does it make it true?
Clifford S., Rampell C. (2103)
Retrieved May 24, 2013 from http://www.nytimes.com/2013/04/14/business/for-penney-a-tough-lesson-in-shopper-psychology.html?pagewanted=all&_r=0
No Author (2011) Dave Yoho on
Deceptive Sales Practices Retrieved December 17, 2011 from http://www.replacementcontractoronline.com/contractors/q---a--dave-yoho-on-deceptive-sales-practices-and-the-washington-state-civil-suits.aspx
Ryan D. (20120 Frequent Sales vs
Everyday Low Prices Retrieved May 22, 2013 from http://rswpartners.com/frequent-sales-vs-everyday-low-pricing/
Jerry Hartman is an expert in fenestration, a 25 cent word for windows and doors, but novice at life. He is the owner of American Renovations Ltd. a remodeler specializing in commercial and residential windows, doors, insulated siding, metal roofing, and walk in tubs in Cincinnati Ohio. He may give you a better discount if you share your LEGO brand building blocks.
Tuesday, January 14, 2014
A Story About Discounts
January, cold, windy, the snow still is pretty and not yet turned black from traffic. Walking across the tiled foyer in socks I discover the rock salt the vacuum left for a cheap laugh at our expense. The mailbox sits an arm’s length beyond the front door so there is no need to bundle up. This afternoon the mail is the normal collection of litter destined for the attractive black wrought iron recycling basket that resides behind the love seat.
One oversized postcard catches my
attention. It exhibits a photo of a stately two story home, snow-covered,
announcing a limited time offer on products to protect me from the harshest
winter in thirty years. The reverse
displays the smiling image of the owner of the company I worked with for years.
A wave of contrasting emotions and memories always battles within me when I see
his photo. He is declaring I am eligible to save $200 off a window, $400 a
patio or entry door. In contrasting color the words ‘no interest for 12 months*’
is highlighted below the headline; again, available for a limited time.
I search the fine print to read the obligatory restrictions.
Yes if I have already purchased the offer is null and void. In the past when a
customer called asking for this new sale and discount I could easily convince them
the price they paid was a better deal; always.
The rules specifically state I cannot use the twelve months
no interest along with the $200 off. It
is either one or the other. The rule establishes the groundwork for a brilliant
sales manipulation technique. I imaging the salespeople I trained at that
company saying something similar to ‘Remember, as I shared before, the company
gives me a little leeway in order to keep a smooth flow of business for the
factory and installation teams. I am authorized, for a very limited number of qualifying
customers only, to give you the $200 off and set it up so there is no interest
or payments until 2015. I have to have a yes or no tonight.’ This is the
principle of the norm of reciprocity, or rule reciprocity of sales, I do
something nice for you, and you feel an obligation to do something for me.
Cialdini R.B. (2001) Influence: Science and Practice (4th ed.) For further
information see Kendra Cherry’s article at http://psychology.about.com/od/socialinfluence/f/rule-of-reciprocity.htm
Since they worked so
hard for me I feel this must be the best deal I can get. I do not have to shop
around anymore.
There are times when discounts and finance offers are not
compatible. If the offer is legitimate, (this $200 is a sales
gimmick, I’ll tell you how I know in a later post) then many businesses cannot afford
it. You probably know that a business has to pay a processing charge to a
credit card company when they redeem their sales. A company with a large ticket
may have to pay 3 percent or more. Credit card companies make money even if you
never pay a penny of interest. When you see delayed interest or payments the
business usually is paying a processing fee to the finance company. This
company used GE Credit (a good company) in the past and that is how they
operated. They are in the business of loaning the money and they need to be
paid for their services.
Now sit down because here is the bottom line on how this
affects you. Normally when you are paying for the tires, furniture, or plumbing
repair and you use delayed payments, the processing charge is already in the
price of the product! For a one year same as cash program we had to pay seven
percent to GE Credit. One company forbade us to inform customers of this
practice or offer a cash discount in lieu of financing. In the case of our $200
off a window coupon it would not be a wise financial decision to use the
financing because you can receive a better price without it. Home improvement
salespeople want you to use the financing in order to convince you to buy at
the time of the presentation. Which is less, $8,500 for windows and a door or
$99 a month?
Be Informed-Save Money-Get More
Jerry Hartman is an expert in fenestration, a 25 cent word
for windows and doors, but a novice at life. He is the owner of American
Renovations Ltd. a remodeler specializing in windows, doors, insulated siding, home restoration, energy inspections, metal roofing, and walk in baths in Cincinnati
Ohio. He may give you a better discount if you shared your LEGO brand
blocks.
Wednesday, November 13, 2013
Thursday, October 31, 2013
Happy Halloween
Have a Safe and Happy Halloween
BE AFRAID... BE VERY AFRAID! Or download our FREE "energy vampire" slaying Window Replacement Checklist at http://
Wednesday, October 30, 2013
Window Sale - Big Free Discounts!
PICK YOUR OWN DISCOUNT WINDOW AND DOOR SALE
Pick your own discount!!!
> SAVE-SAVE-SAVE <
Buy 3 get 1 Free !!!
25% Off !!!
30% Off !!!
Buy 2 get 2 Free !!!
WOW 50% OFF !!!
No payments Until Next Year
Free Storm Door with the purchase of a houseful of Windows
A Houseful of Windows for only $ 2,100.00
NO LIMIT
$189.00 any size Installed!!! (windows that work available also)
We can raise our prices and offer you any discount you want,
or
we will treat you with respect and present you with upfront no gimmick prices.
The Power-Weld
Double hung, 2 lite slider, or fixed unit,
Installed in a post 1978 home,
Triple Glazed Low-E Glass R- 5 Qualified
1/2 Screen
White or Beige Frame Color
Lifetime Warranty
Lifetime Warranty
$447.47
Subscribe to:
Posts (Atom)