Tuesday 19 March 2013

Exorbitant hidden charges 'could be consigned to history' by new up-front legislation...

The popularity of price comparison sites has influenced firms to highlight low headline prices, forcing hidden extra costs 'underground', into the small print.

In a new report by the Law Commission, cited by The Telegraph, reforms, along with airline pricing, could also affect mobile phone contracts, cancellation charges for weddings, payday loans and estate agents, with courts able to intervene to stop any unfair hidden charges.  In practice, an attempt by the law to frustrate the hit-and-run marketing tactics of those who do not understand the laws of repeat-purchase...

In other words, the law will try to put true like-with-like price comparison 'on-the-tin', theoretically making it easier for the non-savvy consumer to make an informed choice at the point of purchase...
However, the super-savvy consumer will appreciate that the ultimate responsibility still remains with the person paying the money, and remains unwilling to outsource the purchasing decision to marketers and retailers ever again.
In addition, the meat scandal has shown that even on-tin descriptions are no guarantee of the ingredients within...

While the Law continues to seek a one-stop solution to betrayal of trust, there has to be an opportunity in the marketplace for suppliers who are prepared to break ranks with 'normal industry practice' strip their offering down to basics, and strive for clarity in helping the consumer to satisfy a need via their combination of Product, Price, Presentation and Place.

Being 'in the business' such suppliers are in a position to identify where all the bodies are buried,  understand how easily the consumer is deceived, once, and can focus on formulating  a trust-based offering that truly does what it says on the tin.

This honesty will obviously result in a shelf-price in excess of 'less-honest' competing products in the category, and advertising would need to focus on explaining the difference. In effect, the supplier is thus creating a category bench-mark in the brand, educating the consumer on what they should seek-and-compare in evaluating available alternatives...

However, the consumer is still left with, and should retain, the ultimate responsibility for the decision-to-buy. The supplier simply facilitates the process, and relies upon the resulting 'tell a friend' endorsement to grow the brand, like in the old days...

What if:     Airlines sold paint

No comments: