|
 |
|
|
Four ways to find the "Catch in and Deal"With a little insight into the strategies behind store come-ons and consumer scams, you can protect yourself from being played for a sucker.
Scam artists and consumer-gouging companies are just too creative, regularly coming up with brand-new ways to get you.
Here are some questions to ask that can help you start looking for the catch:
|
| |
1. What's The Motive?
Nobody's in business to lose money or to give away products or services out of the goodness of their hearts. Knowing what they're really up to can make you a savvier consumer.
If you're being offered a discount on a service, for example, the company probably hopes you'll keep it and pay the higher regular price when your introductory period expires. The seller is counting on your inertia. You can still take advantage of the discount, but make sure to note the offer's expiration date on your calendar so you can call and ask for an extension or start looking for a replacement. You also should carefully review the first bill you get to make sure no hidden charges
If you have to give a debit or credit card number to get the "deal," for example, put on the brakes. The company may say it's for shipping costs, but it may use those numbers to make other, unauthorized charges. If the purpose is really to build the brand, the company won't mind taking a money order instead.
2. What's The Out-The-Door Cost?
Car dealerships are notorious for trying to focus buyers' attention on monthly payments, because doing so obscures the real cost of what they're buying. Cell phone carriers are equally well-known for failing to mention taxes, fees and other add-on charges that can double the cost of a service plan.
The best response is to call them on it. Use the phrase, What's the complete, out-the-door cost on this? Get them to write it down, so that if it's wrong you have something to take back and show them.
3. What Are My Friends Paying?
If you're signing up for a new service or buying something you've never purchased before, ask your friends what they've paid.
Friends also can help you spot those too-good-to-be-true deals as well as outright scams. They may have seen the news reports you missed about con artists' latest tactics or how a particular business is inflating its profits with hidden fees.
4. Why Am I Being Pushed?
Virtually everything that's pushed at you at the point of sale isn't worth it.
That includes most extended warranties and add-on services that constitute almost pure profit for the seller. Because they're so profitable, salespeople are given juicy incentives to push them -- hence the hard sell. If what they're selling is worth buying, it will almost always still be available after you've had a day or two to think about it.
©2010, Kelly Ruggles, Spokane, WA. Web site
Kelly C. Ruggles, Spokane, WA. is a fee-based financial planner located in Spokane.
Kelly C. Ruggles, Spokane, WA. President of American Reliance Group, Inc., a registered investment advisor.
Kelly Ruggles, Spokane, WA. is the author of "The Financial Playbook" for Retirement
Kelly C. Ruggles, Spokane, WA. Does not intend to provide personalized investment advice through this publication and does not represent the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decisions
|
|
|
|
