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Consumer Traps: What You Are Getting for Free ... Really

Over the years, we have heard people ask about purchasing accessories when they were under contract for a cellular phone. The contracts that you sign are for the cellular phone service and do not cover cellular phone accessories. Many people thought that they could only buy the accessories exclusively from the store in which they contracted for cellular service. This is simply not true. Such a practice would go against anti-competitive laws, as well as other federal laws. The fact remains that you have a choice in where you purchase your products.

Let us say that you are a high volume user of the cellular phone. You aren’t an expert on cellular phones and you’re a small business owner. You don’t have time to research what is available for a cellular phone. Your battery dies out and you call the store. The representative who sold you the phone said they will take care of you and give you a battery free of charge. They tell you this battery is a bit different since you have to discharge it all the way before you recharge. A different charging procedure from your battery that is being used now since it doesn’t have to be discharged all the way before it can be charged again. But, it is free and you are being taken care of now.

Wrong. What you have been given is a Nickel Cadmium battery instead of the Nickel Metal Hydride battery you were using. Either way, you will still use the same amount of minutes on your cellular phone but now you have to worry about discharging your phone completely before recharging. It costs the retailer a minimum amount of money to give away the battery since they are getting a residual commission on the cellular phone user’s high volume of minutes. In reality, they have done you no favors. This was an experience that had actually happened to a cellular phone user. Why the retailer wouldn’t have invested in a higher capacity battery was beyond us.

We have already discussed the bait and switch tactic. This is where a company will draw you in with advertising a great deal on a product. You arrive to find the advertised item is of the lower end of the product lines and you start to look at other options available to you. The goal of the retailer is to draw you into the store. You will find this strategy used quite often by large retail stores that sell business equipment like fax machines, copiers, and laptop computers. Experience has shown that once someone stops into a store, they will usually find something to buy rather than walk out empty handed. A store depends on traffic for its sales. Even if they sell a pack of batteries, they sold them that much faster.

 

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