When a Money-Saving Deal Probably Isn't

How many times have you reacted to “price guarantee” advertising? Most people hop in their cars and head to the big name store to get a fantastic deal—guaranteed. But do you know why most price guarantees are nothing but marketing gimmicks to lure you into a unique location?

It all boils down to the “same model” stipulation. You see, large chains, who most often pull this legal trick, pay manufacturers to create special SKU or stock-keeping unit for that store chain. The functionality and even the make and model type may be identical to inventory in another store, but the good old SKU is different: You can't find the same SKU or unique UPC that matches anywhere else. So what actual good does a price guarantee do the consumer? None. They aren't for the consumer.

Of course, they don't tell you that. That would completely derail the entire theme.

Beat the game and use Pricematch on the Internet to find the item—not the unique model—and compare honest prices found near you.

Clearance Sales

Clearance sales, especially on the Internet, run rampant with not-quite-deals. Seriously, most clearance items are not high quality items. They are often—not always, but often—failed merchandise. They are the “irregulars” of retail. Clothing often isn't cut or sewn well. Toys break easily, or they are cheap knock-offs that barely meet US import standards. Add costs of “shipping and handling” and sometimes add “freight,” then multiply times two, because you'll need at least two of the items to last well-made items' lifetime, then compare prices. Admittedly, not all clearance sales are running cheaply made, poor-quality items, but face facts: Over 80 percent of “clearance items” are marked down, because they just aren't worth much in the long run.

And by the way, “freight” and “shipping” are the same thing. Don't fall for duplicate charges. This attempted relabeling is common in drop shipping arrangements or through third parties. You buy from an agent, and your “shipping and handling” covers costs to you from the agent, and the “freight” covers the shipper's cost to the agent. Avoid this whenever possible. If necessary, “join” the sales force at the minimum level and buy for yourself.

Frequent Flier Miles

Credit card plans are notorious for this “incentive,” but larger department stores offer the same deal on their own store cards: Purchases made with such-and-such cards grant frequent flier miles (FFM) per $X spent. However, when do you travel most? Holidays, right? Guess what the biggest FFM black-out occasions are?

And your bonus in saving on airfare is compensated by every airline sponsoring the plan in normal ticket prices that everyone—including you—pay anyway. So what precisely is the deal for the consumer? Don't answer that. It's a rhetorical question.

Dissatisfaction

Consumer's dissatisfaction with these and other false marketing tricks is the only way merchants and businesses will treat you fairly. Educate yourself and tell the advertising world and their customers—those businesses—that you are smarter than they are.

Save money, absolutely, but don't just think you're saving when you actually aren't.

This post was contributed by John Walker, who writes finance news for a payday loans site. John lives and works in London, UK as a financial analyst.