| Metric
Conversion Rip-Offs |
CHRISTMAS RIP-OFF
Internet shoppers face a
rip-off Christmas after a decision by
leading electronics companies to force up online
prices for DVDs, stereos and hi-fis to high
street levels. Manufacturers, including Sony, are
charging shopping websites between 10 and 15%
more for their products than their prices to high
street stores.
The rises mean that online sellers will find it
difficult to carry on undercutting prices in the
high street. Manufacturers prefer traditional
retail outlets because it allows them to
showcase their goods.
Sony said its policy was not aimed at pushing up
prices but at offering incentives to retailers
that trained staff to demonstrate to shoppers the
functions of complicated products. (Source: Times Online) |
LOOPHOLE
TO CLOSE
A tax loophole which allows Britons to buy cheap
CDs and DVDs from the Channel Islands could soon
be closed. Several leading retailers, including
Tesco, Asda, HMV, Woolworths, Boots and WH Smith
have set up special mail order businesses to sell
VAT-free goods from the tax havens of Jersey and
Guernsey. DVDs which normally cost £15 are being
sold online for around £12, while CDs are going
for £8.07 instead of £15.99. (Source: Sunday Mirror, Feb/06) |
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SHOPPING RIP-OFFS
Holidaymakers expecting duty free bargains at Britain's
airport shops are in for a shock, sky high prices can
make the goodies four times dearer than the High Street.
Travellers expect top discounts on gadgets, books,
cosmetics and chocolate before they fly because there's
no mark-up for VAT. But most buyers are better off at
their local supermarket. The greediest airside cash grab
was at WHSmith, where the price of 200 gram bags of
Haribo sweets has really taken off.
Suckers are fleeced £2.29 a pack, hard to swallow when
they're just 50p in Asda. And a large 440g Toblerone bar
costs a fiver at the World Duty Free chain but only £2
at Asda. Amazingly HMV charges air passengers more for
The Band Of Brothers complete series Blu-Ray DVD than it
does on its own website open to anyone. Pay £21.23 at
the airport but online it's £15.99 including free
postage.
With 40% of travellers still shopping at the airport,
consumer watchdog Rebecca Leach of Which? Holiday warned,
"Don't assume duty free shops are the cheapest.
Check internet or High Street prices first."
Cigarettes and alcohol are mostly still cheaper at the
airport, although you still have to pay the duty unless
you fly outside the EU. But Mintel retail expert Neil
Mason said that at Christmas supermarkets can even
undercut the booze prices. (Source: News of the World, Aug/10)
Food companies are serving up a raw deal for
shoppers, slyly shrinking pack sizes while keeping prices
the same. Popular brands like McVitie's, Muller, and Pot
Noodle have cut pack sizes by up to 14%, as they maximise
profits in the recession. Analysts say shoppers are very
quick to spot price increases, but less likely to notice
they're getting less in their baskets. An investigation
by grocery comparison site mySupermarket.co.uk uncovered
hundreds of everyday items that had been cut in size in
the past year, without a fall in price. The four main
online grocery retailers, Tesco, Asda, Sainsbury's and
Ocado, shows, for example, that McVitie's strawberry mini
croissants now come in packs of six instead of seven, yet
still cost £1 at Tesco. Beef & Tomato flavour Pot
Noodle tubs have shrunk from 96g to 90g, while rising in
price from 85p to 87p at Sainsbury's.
And Muller Original Rice Desserts have been downsized
from 200g to 190g while staying at 54p in the same store.
Supermarkets are also cutting the size of many own-brand
goods. Jonny Steel, from mySupermarket. co.uk, said,
"Shoppers will feel hard done by." And Which?
chief policy adviser Sue Davies said, "This is a
growing trend and something consumers need to look out
for." A spokesman for McVitie's said, "We
decided to change to a six pack of croissants to achieve
a £1 recommended selling price." A Muller spokesman
said, "In the current economic climate, we felt it
more appropriate to make a small change to the weight
rather than increasing the wholesale price to
retailers." Some manufacturers claim to have cut
their recommended price along with the pack size but say
prices in store are decided by the supermarkets. (Source:
News of the World, May/10)
SUPERMARKETS
Supermarket "three-for-two" and kilo
discount offers can save shoppers only a few pence,
according to a survey by consumer magazine Which? They
are designed to tempt people into buying more than they
want and in some cases the deals actually cost MORE than
buying items individually. One Asda deal offering
"three for 99p" pasta shapes saved just 3p and
a similar Sainsbury promotion for one-litre bottles of
tonic and soda water saved only 6p. An Asda promotion for
three two-litre bottles of soft drink was 18p dearer than
buying the bottles individually. Granny Smith's apples at
Asda were 96p in 1kg bags while the loose version were
£1.07 a kg. Tesco's "save £1 per kilo" on
pre-packed broccoli worked out at £2.99 per kg but loose
broccoli, without a discount, was just £1.58 per kg.
Even buying bigger packs and more bottles, believing they
represent good value, can cost punters extra. A 200g jar
of Tesco's Classic coffee cost £2.20 but two 100g jars
of the same product cost 88p each, a total of £1.76.
Another ploy is to inflate the price of certain products
for 30 days then cut them, giving the impression of a
great bargain. Tesco doubled the price of a 24-pack of
beer for a month then halved it, announcing a huge
saving. In the past 17 years, the real price of food has
gone down, staying well below the rate of inflation, yet
we spend 25% more on groceries. Tesco spokesman John
Church said, "The key thing is transparency. We
don't pretend promotions go on for ever or that prices
don't ever go up, they do." Doesn't really answer
the question though does it? He should be a politician.
HOLIDAYS
UK travel companies are adding hidden extras to flight
and holiday prices, in direct contravention of the rules
on advertising. A holiday which the company offering it
said cost as little as £39 actually cost £105. Phil
Evans, principal policy adviser at the Consumers'
Association, advises avoiding package holidays
altogether. "Unbundle it yourself. Do your own
research and you can often book it cheaper."
CAR RENTAL
Transaction fees, insurance waivers, credit card charges,
an array of surprise penalties. Car rental is a byword
for hidden charges that can catch out even the most
astute customer. One customer was charged £20 simply for
the pleasure of picking the car up. "There's a hell
of a lot of small print with car rental," says Mr
Evans. "So, try to examine it in advance when you
have time. Avoid disputes over the condition of the car
when you return it by photographing the vehicle to prove
that you have not put any dents in it. Sean O'Grady,
motoring editor of The Independent, says that arguing the
price at the end of the transaction has always resulted
in a reduction.
BANKS
Banks have a knack of imposing an array of hidden
charges. This often creates further problems, punitive
fees for an accidental overdraft can add up to £80 a
month. When choosing a financial product check when
penalties start kicking in. Shop around for the best
rates and lowest charges, using a website such as www.moneysupermarket.com. If you are taking
out a personal loan, opt for one that doesn't charge a
penalty if you repay the money early. And with mortgages,
ask for your money back if a lender charges a penalty for
not buying their buildings insurance.
MOBILE PHONES
Mobile phone companies benefit from the complexity
surrounding the myriad of deals and tariffs available. Mr
Evans's first rule is - do your research before you sign
up for a mobile. "Don't be lured by some offer of 2p
a minute. And don't walk in to a store and expect
impartial advice. Get your information in advance. Look
at brochures, and check websites. Also think about how
you are going to use your phone. If it's to keep in touch
with a small number of people, try and be on the same
network. Don't be dazzled by functions you are not going
to use." Beware also of the cost of using your
mobile abroad.
THEATRE BOOKING FEES
Booking agencies say they are providing a
"service" and need to recoup their costs. But
even booking over the internet - ie, doing all the work
yourself - provided no escape from this hidden charge.
One way of avoiding paying more than the face value of
the ticket is to book it in person. But some shows have
no in-person booking facility. There's no such thing as
shopping around. If there's a show you want to see, then
that's the show you'll book for. "We feel this is
one for the regulators," says Mr Evans. "The
Office of Fair Trading needs to look at this."
Complain to the OFT and complain to your MP, Mr Evans
adds. "Objections from the public can only
help."
RESTAURANTS
A scam perpetrated by many restaurants is the
practice of including a 10 or 12.5% service charge on
your bill and then inviting you to fill in an empty
"gratuity" box on your credit card slip.
"A complete no-no," says Mr Evans. This still
doesn't address the problem of service that is included.
Remember, you don't have to pay it. If you think the
service wasn't up to scratch, you definitely shouldn't.
"Subtract it from the total," says Mr Evans.
COMPUTERS
Shoppers in Britain are being rippped off with
computers, software, digital cameras and iPods costing up
to double the US price. While Intuit Quickbooks Pro
software is £270 here, it is £130 in the US. The UK
price for an HP Ipaq HX4700 handheld computer is £390
but only £323 across the Atlantic and a 30Gb Apple iPod,
which costs £230 here, can be had for £188 there.
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