Hey guys, I browse the site for great bargains everyday and I just wanted to share an article I wrote which has been mulling over in my mind for a while now. It's rather lengthy so I thought I'd post a link:
http://gadgetloop.com/2009/03/how-price-matching-is-killing-…
Since price matching is a regular practice and mode of operation for many on this site - would love to hear your comments or thoughts on the issue!
Jules
Its a touchy issue - does a person who has seen a $500 item at store A, and can get 5% off at store B swallow their pride, or save $25.00? I think if you asked the majority of consumers, they would take the money.
Price is important to me, but it really depends on the amount saved vs convenience. It would be great if we could all support smaller retailers, but in reality its a price driven world.
I wont sit on the fence and say: If the money saved beats the inconvenience of printing reciept, asking manager etc, ill go for the better price. sorry if that sounds evil!
-Rawm
Hey guys, thanks for the comments. I totally agree - a retailer should offer the best price they can, instead of using the lazy mode of operation which is price matching.
a retailer should offer the best price they can, instead of using the lazy mode of operation which is price matching.
Except, they are gaming on the fact that the majority of consumers actually don't know better. Having a guarantee there makes them look good, and they are hoping they may only need to price match 3% of the sales whereas they can get better margin from all other 97% of the buyers. It's just basic consumerism. I reckon they actually get more profit by offering price matching to selected few, and higher price for other consumers, than just ofer the best price they can.
I guess the only way to get out of this is by actually getting more and more people to ask for price match! If 50% of people coming in asking for price match, merchants will be forced to re-evaluate their position, drop the price match guarantee, and then offer the goods at the price point that actually match their cost.
Well. For me I have neither the time nor the "thick skin" to ask for price match :P
By the way, it would be good if you actually link back to OzBargain, rather than stating "A typical comment on a bargain website" :)
I think Officeworks is probably the only one that really does have the price match guarantee. Their manager will actually look up the price and ring up a store to check. But it does take sometime (about 15min + ) and so on cheaper items I can't really be bothered.
On the other hand, franchise stores are less willing - Harvey Norman for example. Price matching is very much dependent on the manager and salesman - and to me, non-existent. On several occasions that I have asked for a price-match they've simply turned me down or just told me to buy it from their competitor "while I still can". The salesman's attitude is absolutely arrogant, and said and I quote "if you are just here to ask questions and not interested in buying, then why should I be serving you instead of the customer that is waiting over there? "
I think they rather do business with the 95% of the consumer who don't know better. Plus the fact, HN price matching model is you make the purchase first and if you found a cheaper price later we'll refund the 110% difference. I think most of the time people just can't be bother going back.
Price matching is very much dependent on the manager and salesman - and to me, non-existent.
It shouldn't be.
Harvey Norman specifically and openly advertises PRICE MATCH 110% OF THE DIFFERENCE:
http://gadgetloop.com/wp-content/uploads/2009/03/pricepromis…
It is ILLEGAL for Harvey Norman not to Price match when a legitimate cheaper offer exists (it is actually an illegal tactic called "Bait and Switch").
Report any instances of Harvey Norman refusing to Price Match, BY POSTAL MAIL ONLY, to:
Director-General,
NSW Department of Fair Trading,
PO Box# 972,
PARRAMATTA, NSW, 2124
and
Chief Commissioner,
Australian Consumer & Competition Commission,
GPO Box 3131,
CANBERRA, ACT, 2601
Ensure you get the Salesperson's name from their name tag, and put the person's name in your Complaint.
Do not email or ring the above Authorities. They will not look at your complaint comprehensively enough if you do.
On several occasions that I have asked for a price-match they’ve simply turned me down or just told me to buy it from their
competitor “while I still can”. The salesman’s attitude is absolutely arrogant, and said and I quote “if you are just here to
ask questions and not interested in buying, then why should I be serving you instead of the customer that is waiting over
there? “
Get the ultimate revenge:
Report them to above Authorities and specify specifically the Salesperson BY NAME.
Ummmm i have no idea what you are talking about. Are you sure you mean Bait and Switch? http://en.wikipedia.org/wiki/Bait_and_switch
HN price matching is stupid, because it's only AFTER you buy the product, can you go back in and be refunded 110% of the difference. It's pretty silly and a lot of effort. Imo just go to the cheaper place.
“if you are just here to ask questions and not interested in buying, then why should I be serving you instead of the customer that is waiting over there? “
this is silly, if the sales guy said 'yes' to the price match, he had a sale there and then, and then go serve other customers.
but his loss.. haha.
The retailers are also getting smart. Got $100 off the price of a washing machine - 30 days later this still lower than any advertised price, but paid $70 for the shipping. Now I just wanted free shipping, but as they price match/guarantee the price, instead of giving free shipping they deduct it off the price, that then limits their price guarantee exposure
From my point of view I don't think that price matching is really an issue, mainly due to the fact that although the catch-phrase of 'price-match and get it for X amount' is often used hereon OzBargain, the number of people who would actually go and ask for a price match successfully would be quite low IMO.
Also, of the people that do go down the price match route, there will always be those for whom it isn't very practical to get to a original retailers store because of distance and the travel time involved. In these cases, the original retailer don't really lose out because the customer most likely wouldn't have purchased it from their store anyway.
I know personally the thought of price matching doesn't even cross my mind in most cases, and even when it does I'll usually disregard it mainly because there is always the chance that the retailer that I go to might turn it down or worse still, don't stock the item in question, making my trip to the price-matching retailer a waste of time and petrol. For me, it is much better to firmly know that you can go to a retailers store, pay a certain amount and leave with the item in hand, and not have to deal with the uncertaintly of price-matching.
Cuteseal,
I agree with you.
Essentially, if every person in Australia did this, we would have the same situation as the Global Trade problem of:
http://en.wikipedia.org/wiki/Dumping_(pricing_policy)
…But the fact is that NOT every person in Australia does this. I work at Officeworks, and we have a price match guarantee (if you find a cheaper price we beat it by 5% (on internet prices this is item price + shipping - 5%) ). And, to be honest, less than 1 in 20 people actually do price match. MOST people are more concerned with getting the product immediately, and, unlike many users on this website, do not hunt around for the best deal.
My local electrical store will match any price inc. internet in Australia.
Amazingly, I always buy there.
In the eyes of a retailer, price matching policy is there to inspire consumer confidence. If you see a "We guarantee lowest price" sign then there is no reason to shop around, right?
In retail, it is also used as a sales mechanism. Suppose a consumer is unsure about the price, the sales person can say "I guarantee we are the lowest priced. Buy it now and if you see it cheaper, come back and we'll refund you the difference". No reason not to buy now, right?
So after the purchase, the consumer is confident they got the best price and usually don't go around looking for a better price. Even if they do, the difference in price is usually so small they won't bother to go get that refund.
It is a good policy. You just have to know how to use it correctly.
It's a great policy for the consumer.
Here's how it usually works for me:
1) Stores that honour it
I want to buy from EB Games to take advantage of their 14 day return policy, or because I have a gift voucher with them, or because the store I'm pricematching is in woop woop. I get them to pricematch anywhere. I get the product at the sale price, and can return it easily if there's a problem.
This is a store that takes price matching seriously (99% of the time - on some occassions they won't match the crazy JB trade deals as with the Harry Potter deal, but that's 'dealmatching' rather than pricematching anyway).
2) Stores that use it as part of their marketing
Recetly I asked a store if they pricematched (I believe it was Dick Smith) and they happily replied with a resounding "yes! How much are they selling it for" - but then seconds later refused because the other store was selling "below the cost price".
These stores don't honour pricematching unless it nets them a profit. These stores will not get my business.
You might say "fair enough, why should the store make a loss" - but that's the risk they must take on board when they advertise a policy that benefits the consumer. It's misleading and deceptive to offer something so long as it benefits you, and withdraw it as long as it no longer profits you. Why should it matter if it's below cost price or not?
These are the same stores that still have Luigi's Mansion for $99.95, and spend most of the time in the "Tell 'em they're dreaming" thread (until they have a massive clearance 80% off to get rid of all the overpriced stock they can't move). They live in denial, and refuse to cut their profit margins, instead choosing to sell to the mums and dads who don't know/have time to shop around.
In the end, the stores that live are the ones that stay active. The store with the original deal gets free advertising, the pricematching store gets customer goodwill and a sale (even if it's at a loss, it gets people physically into the store). Everyone wins, except for the store that doesn't pricematch - that store stagnates, and you see the same stock on the shelf all year round.
Hey, you quoted me in your article!
One point of contention though: the article makes it sound as though I was using 'cash back' to refer to the price difference between retailers. I was actually referring to a manufacturer rebate on that particular bargain.
Regardless of the possibility of price matching elsewhere, the 'mom and pop' stores you mention would probably still sell out of stock at the special price. Thus the same net effect to them occurs in terms of
Price matching/beating in instances like this remains the domain of the hyper-informed ideal consumers represented by OzBargain, whose numbers are probably insignificant in the grand scheme of things.
Totally agree.
As posted on other forum Re: Office works price matching MSY:
Don't mean to be rude, but….
MSY already do a great job competing with big business.
So how about supporting them rather than helping office works drive out of competition business by price matching.
Personally, I won't give anyone my business if they simply price match when asking for the best price.
Offer the best deal or I'll go else where.