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Dirty Tricks Part 2 - Vague Pricing Terms

This really is the equivalent of those big signs you see splashed across windscreens at used car dealers. Retailers will often use quite vague pricing terms to get around the legalities of, well, giving any accurate information to consumers. They also create greater perceived savings or 'headline' savings. The most common ones we have seen in wine retailing include:

Don’t Pay $xxx for This Item!!
  • e.g. Our Price just $9.95 – Don’t Pay $19.95!! Well here’s a good question – How the hell can I pay $19.95, even if I wanted to? $9.95 is probably the right price for the item in question, and it is quite likely that there is no other retailer charging anywhere near $19.95 for the goods.

Sells Elsewhere for Up To
  • It may be true, but so what. It’s quite possible it sells elsewhere for a lot cheaper too.

‘Normal Retail Price’ or ‘Average Retail Price’ or ‘Full Price’
  • These are so vague that it's hard to believe anyone would genuinely pay notice to them. It's hard to even define what they mean, but I'm guessing it’s a way around the legalities for ‘Recommended Retail Price’. Either way, it’s complete bollocks and should be ignored as a price guide.

So what is the correct practice for retail pricing?

Well, in our humble opinion, when advertising two prices for a wine to indicate some form of savings, the most accurate and transparent pricing policy is simply Was/Now. So - this was the price we had it at, and this is now the price we are specialling it at. The difference between those two figures is the savings. No gimmicks, no headline inflated savings – just a good old-fashioned special. Two simple rules need to be adhered to:
  • The specials should refer back to the was price when the special has ended
  • Special prices should be for a limited period of time

Ironically, we have seen some headline articles in the last couple of weeks about predatory pricing practices of the big retailers, selling wines (and beer) at below cost to get people in the door and increase pressure on independents. What we don't ever see from the big online retailers though is the use of vague and misleading pricing references to inflate perceived savings, probably because they know the ACCC would be on them quicker than .................."Best quote here wins a bottle of Pinot" (please e-mail us at customer.service@nzwineonline.com.au for suggestions - we're out of inspiration).

For us it’s all about building trust with consumers. A headline grabbing special may pull in a customer to the initial sale but they soon grow weary and suspicious of massive savings – particularly if the goods don’t live up to the hype....Over-promise & under-deliver has always been a very short term strategy in any industry (or any relationship for that matter).