Electric heating should be affordable. Some special offers make it look just plain cheap. In this blog, we look at the marketing from another perspective…
Most people like to see a saving or get something extra when they make a purchase. It’s in our nature to look for a good deal, and saving money is better than not saving money, right? Well, it depends. On the face of it, the deal may appear to be great, but what’s really in it for you?
Some electric heating retailers tempt us with the opportunity to save 30% or even more on the recommended retail price. What’s often unclear though, is whether the electric radiator on offer was actually ever sold at the claimed RRP. In many cases that we’ve seen, it wasn’t.
The Committees of Advertising Practice (CAP) have dealt with this matter, and the advice on their website to retailers is clear: “Do not use RRPs given by the manufacturer as your only substantiation for savings claims. Even if they can provide documentary evidence that the quoted RRP was recommended by the manufacturer, marketers should be aware that if they cannot demonstrate it was actually sold at this price the ASA is likely to uphold complaints.”
It’s a stark warning from CAP, but one that is often ignored.
It stands to reason that if an electric radiator was in fact 40% higher in price previously, very few would ever have actually sold. If the radiator really did sell successfully at that higher asking price, then why would the retailer reduce the price, and their high profit margin?
Let’s assume that the huge price reduction is genuine. That premium-priced radiator is now a very cheap one. Surely, something has to give? Some may surmise that the very cheap radiator was actually manufactured at a very low cost – impacting on the quality. Others may think that the retailer is now selling the radiator at a loss. It’s seems highly unlikely that the latter would be true, so how do we explain the original price or RRP?
Increasing a price can increase the perception of quality. Reducing that price then gives the false impression of value. This method is used increasingly by marketers in online retail. Unfortunately, unlike the high street, online retail prices are rarely checked.
At Electric Heating Expert we show complete transparency. We don’t advertise huge savings on our product range. We also want to make it very clear that don’t sell “cheap”. We offer value. There’s a big difference.
“Price” is the amount you pay. “Value” is what the product or service pays you. In all cases, transparency should be key, shouldn’t it?