Last week, we discussed one of the two major scams in the solar industry. If you missed it, click here for Part I.
The cash back or the bonus via redemption trick.
Say you are in the market for a new fridge. You’ve narrowed it down to 2 options. Both fit into the space in your kitchen, both have the right amount of shelves and storage you are after. Both are $500 each but one is offering $100 cash back via redemption.
So which is cheaper?
Actually you have to pay $500 to have both options leave the store but in your mind you have associated one as having a price tag of only $400.
You go home with your new fridge, fill it up with food and few beers. Sit down and watch the footy and get on with life. What didn’t you do?
You most likely didnt do the online or via post redemption process to get your $100 gift card or however it works. You know how I know this? Because over 80% of people don’t do it. There is an actually name for this and it’s called ‘slippage’.
It’s a benefit designed to sway a persons decision to purchase an item at that crucial point of sale moment and the manufacturers know the majority of the time they dont have to pay out anything.
Some solar products have additional warranties available via redemption. For example this inverter has a 5 year warranty but if you jump through this hoop and follow these steps we will increase the warranty for another 5 years. So at the point of sale people go cool an inverter with a 10 year warranty I will have that one. Year 6 and the inverter blows up and they go to claim and they are met with did you register this product or send back this warranty card? Umm no, well yeah no warranty for you.
But I have even seen solar systems offered with cash backs with zero dollar down. It almost reads as though you are getting a free system with cash thrown at you as well. That sound to good to be true? What they are really saying is there is no deposit and you will be on a fixed payment plan and any cash back is just been added to the cost.
These marketing scams exist because they work.
How do you avoid being part of the gullible that drives these marketing scams?
Simple buy local, never buy off a sponsored Facebook ad , Twitter, Instagram, etc. Have these conversations wth your family and friends as forewarned is forearmed. Ask some awkward questions on these Facebook posts with these limited offers and watch the lack of detail in the answers or any answers at all as they usually just block dissenting enquires.
Personally what I do is to the right of their posts there a 3 little dots. Click on those and report the ad as misleading. As it is. They are duplicitous and fundamentally false and Tasmanians should look out for Tasmanians.
Buy local is the message I want to reinforce though. You can check out their products, meet the people involved. There is no where to hide for local suppliers if it all goes pear shaped as we are part of your community and you are part of ours.
And you are only as good as your last job in Tassie which one of the things I love about this island.