Moral Dilemma

Discussion in 'General Advice' started by Tony Graddon, Jan 19, 2010.

  1. Tony Graddon

    Tony Graddon New Member

    I recently signed up for a new mailing account. I opted for a specific product which was advertised at $197.00. It was what I wanted and I was quite prepared to pay the advertised price. I paid it and then this happened.
    Another screen pops up which reads as follows; Don't leave now! How about paying only $47.00 for the product.
    Yes I was quite prepared to pay the $197.00 for the product, but, if the company is prepared to offer the same product at more than a third of the price less, for the same service, Why not make the $47.00 offer in the fist place?
    After complaining I received an email from the company saying that they have picked up the error and have offered me a refund and a promise to rectify the issue. However, the very service I had signed up for was to eliminate this exact same issue from my business. After all this how could I possibly trust this company to do the right thing for my business? even if they are considered to be the best in the industry.
     
  2. getagrip

    getagrip Gold Member

    Usually, that kind of a thing isn't an "error" - its something that the company does to try and make you purchase the product. If you clear your cookies and revisit the website, chances are, you will get the $47 "error" again. So its your call...
     
  3. Matt Zenittini

    Matt Zenittini Silver Member

    It's simply good business for the company. They want to sell their product at $197.00. So they advertise and market it at that point.

    If someone is going to leave their website.. They would rather a $47 sale than no sale.

    As well some people will buy just because they feel like they are getting a "deal".

    When the company hypes their product up then puts a value of $999 but its not $999.00
    its not $699.00
    its not $399.00
    You can buy it today for the incredibly low price of $197.
    But order now because we plan on raising the price back to "normal" price early 2010!

    Then you have the idea you are getting the good deal but if your still not quite ready the $47 is the kicker when you are leaving.

    If they started off selling it at $47 many people might just think it is cheap OR think I'm not getting a good enough bargain.

    I think they are morally sound for looking out for you after you bought the product and saw the discount.

    Even brick and mortar stores have special "online prices" Where if you don't see them and request that price you need to pay the stores full price.

    It's just good business,

    Matthew Zenittini
     
  4. getagrip

    getagrip Gold Member

    The company called it an "error", and did not acknowledge it was a marketing practice. That tells me something about the company's ethics...
     
  5. VictoriaNTC

    VictoriaNTC Silver Member

    Personally, I do not appreciate those offers.

    My first thoughts are"Why did you not offer your best price to begin with."

    Even though, yes it is probably a great business strategy.

    I am more understanding when they offer additional bonuses.
    Victoria

    Follow your gut feeling, your guidance system. It will never steer you in the wrong direction.
     
  6. Matt Zenittini

    Matt Zenittini Silver Member

    getagrip: The company called it an "error", and did not acknowledge it was a marketing practice. That tells me something about the company's ethics...
    I believe that it was an error. People are not supposed to see that message after they purchase the product.. ^^.
     
  7. A8ch

    A8ch Gold Member

    Hi Tony,

    It may have been a legitimate error.

    I believe there may have been a glitch in the script or whatever was being used to automate the checkout sequence. If the checkout process had recognized your $197 purchase, there would have been no need to prompt you into accepting an alternative discounted offer.

    Even though it's not uncommon for marketers to downsell a prospect after the primary offer is rejected, a blanket 76% discount is a significant counter offer to make on a first rejection for the same product. Smart marketing would dictate that the value of the product/service be similarly discounted.

    Example: Access to certain product/service features would be excluded in the lower price, or the package would include fewer bonuses.

    Otherwise, to routinely offer customers a $47 price after they bought at $197 would result in an endless stream of refunds, an erosion of credibility and zero profits for the seller.

    And if, as you say, this company is "considered to be the best in the industry", I doubt that they earned that reputation using such questionable marketing tactics.

    Hermas
     
  8. Matt Zenittini

    Matt Zenittini Silver Member

    Well wrote Hermas!
     
  9. yasser

    yasser New Member

    this is a marketing trick. some websites when you are planning to leave their website, a pop up come out and say that a virtual agent wants to chat with you and give you a discount. you can go down with the product price even to 75%.[​IMG]
     
  10. williammurray

    williammurray New Member

    These are usually "Deliberate errors" just a marketing tactic.
     
  11. talfighel

    talfighel Silver Member

    Yeah,

    That is not an error at all.

    Buy our product for $169.95


    Then the person leaves the site because he or she feels that the price is a little too high and then they get a new window saying:

    Wait! Order now and pay only $49.


    That is so normal and everyone is doing it. Even many commercials on TV.

    Tal
     
  12. niddy

    niddy New Member

    Tony...did you ever get this resolved?
     
  13. dmitch31

    dmitch31 New Member

    It sounds like something is definitely weird there. I mean, to offer someone a lower price if they choose to pass on the higher offered price makes sense, but to go from $197 and then discount it down to $47 I think is a little whack. I mean, that's 75% off! I think it sounds more like an error of some sort...
     

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