Source: Consumer NZ
Consumer NZ’s 12-week price-tracking investigation in the lead up to Black Friday reveals how two retailers could be more naughty than nice when it comes to genuine deals.
Gemma Rasmussen, head of research and advocacy at Consumer NZ, says her team of investigators are always sceptical of the “fizzed up” deals that appear this time of the year.
“We’ve been tracking 10 products across Briscoes, Harvey Norman, Farmers and Noel Leeming for 3 months to find out how good the specials around Black Friday really are,” says Rasmussen.
“Based on our price tracking, we think Noel Leeming and Harvey Norman could be bending the rules with their promotional pricing, while Farmers and Briscoes follow a rhythmic ‘up and down’ price pattern, where if you wait long enough, you’ll get a special. They are all contributing to a chaotic, ‘FOMO’ energy as we sprint towards the hyped-up sales tradition and the start of the Christmas shopping spree.”
Rasmussen is dubious that the sales on Black Friday will blow anyone’s minds when it comes to them offering genuine value.
“Our suspicion is that the retailers will continue to fluctuate prices and dazzle us with colours and promotional language as they have over the last few months. But we’d love to be pleasantly surprised.”
They play the game: Briscoes and Farmers
Rasmussen says Briscoes has really created a name for itself for almost always having a sale. In reality, they’re playing by the ‘specials’ rules, where prices regularly rise and fall.
“With Briscoes, our data shows us that if you wait a week or two, generally you will get a deal. Having prices that shift back and forth feels sneaky, and it can make it hard for those who don’t understand there’s a pattern to know what’s a good deal and what’s not.”
Of the 10 items Consumer tracked, 9 were frequently on special at Briscoes, with most falling into a pattern of being on special for one or two weeks and then the normal price for a week or two.
“Our spot-check found Briscoes is playing by the ‘specials’ rules because it does offer shoppers a genuine opportunity to buy at a discounted price, for a limited time, before returning the product to its usual price.”
Consumer found a similar pattern at Farmers, where goods were on special for two weeks, then back to their usual selling price for the following one to two weeks.
“If you’ve got your eye on something, watch the price across a fortnight, and grab it when it next drops. It’s OK to feel the FOMO, but you don’t need to act on it straight away. Check your finances and what other shops are offering, then, if you still want it, head back – you probably won’t miss out.”
They lure with language: Harvey Norman and Noel Leeming
For 10 of the 12 weeks, most products tracked at Harvey Norman were promoted with deal-saving claims almost every week.
“Harvey Norman stood out in our investigation for the wrong reasons,” says Rasmussen.
“While the promotional tags changed frequently, the prices only shifted a little.
“Promotions were labelled ‘great price’, ‘super deal’, ‘huge deal’ or a ‘massive stock sell-out’ for 9 of the 10 products we tracked nearly every week we tracked them.
“A toastie maker was priced at $64 for 10 of the 12 weeks we tracked, during which time, it was variously labelled as a ‘great price’, ‘super deal’, ‘massive stock sell-out’, ‘now’ and even a ‘huge deal’.
“When you look at it like that, wouldn’t you reach the conclusion $64 is the normal price, rather than a special?“
Consumer thinks Harvey Norman could be at risk of misleading customers with all this hype by creating the impression customers are paying less than they usually would.
Consumer’s investigation found Noel Leeming regularly uses the word ‘now’ on its online pricing. “We think the continual ‘now’ pricing creates the impression products are cheaper than their usual price. But the ‘now’ price jumped around from week to week, too.
“For example, the NutriBullet appeared to be ‘now’ on special for 10 out of the 12 weeks, and yet the special price varied between $69 and $91,” says Rasmussen.
“You’d be forgiven for thinking the continual ‘now’ promo means you’d be paying less than you usually would. But that’s not necessarily true.”
They capture our attention – so do this instead
Rasmussen says the pull of a special is always stronger when cost pressures are hitting hard.
“Even though most of us know that Black Friday and Cyber Monday sales are mostly just a big hit of dopamine, you’d be hard-pressed to find a New Zealander who’s immune to the allure of a red strike-through or a percentage discount.
“Use sites like PriceSpy and PriceMe to track sales and learn when pricing is genuinely low. Don’t get sucked into the hype. Chances are, there will be another sale in a fortnight,” says Rasmussen.
“Our research shows time and time again that the prices around Black Friday are a bit like shaking up a bottle of Coca-Cola – it’s all fizzy and bubbly and exciting, but when you take a sip, it’s flat, and you realise you’d probably have been fine without it.
“If an advertisement or promotion raises your eyebrows, send it our way. We’re not afraid to call out this year’s naughty retailers.”
Note:
Read the full article on Consumer’s website: Is it really on special?: https://www.consumer.org.nz/articles/is-it-really-on-special
About Consumer
Consumer NZ is an independent, non-profit organisation dedicated to championing and empowering consumers in Aotearoa. Consumer NZ has a reputation for being fair, impartial and providing comprehensive consumer information and advice.
