How retailers make money on consumer gullibility
Some people lie to get into your soul, others — to get into your pocket. But if protecting yourself from ordinary human lies is very problematic, then saving the contents of your wallet from the machinations of crafty traders is very possible. It is enough to know the list of frauds used by unscrupulous manufacturers and sellers. Body kit, working with “overdue” items, tricks with price tags — and these are not all the ways to deceive buyers. What tricks do unscrupulous market players use when selling goods? How to avoid getting hooked by them and save your money when shopping? The director of the analytics department of Roskachestvo, Vasily Smirnov, the chairman of the National Union for the Protection of Consumer Rights, Pavel Shapkin, and the chairman of the board of the Confederation of Consumer Societies, Dmitry Yanin, sought answers to these questions during the conference at MK.
— Of course, the economic challenges that our country has recently faced have had a serious impact on the behavior of consumers, sellers and producers. Today, every fifth Russian seeks to reduce expenses on food and essential goods. Some of them switch to products with discounts and promotions. More than half are looking for cheaper analogues of familiar products. 55% are abandoning certain product categories in favor of more affordable ones. There is also a transition from traditional trading formats to stores with low prices that specialize in these prices, the so-called discount stores. All this provokes retail chains to use various tricks to increase sales. For example, they offer visitors large carts. It has been proven that people who take a larger cart buy 40% more on average. You come to the store with specific needs, and end up buying something you didn’t really need. Often, basic products can be scattered around the room. While you go from one product to another, you look and buy additional things that you did not originally plan.
— A retailer always wants to earn more money. Therefore, he uses both legal and illegal moves, which can be classified as marketing tricks that are not immediately obvious. For example, you go into a store, there is slow music playing, which puts you in a calm mood. But even if you go to buy a pack of pasta, you still have to walk through all the aisles, look at all the products and, perhaps, make unplanned impulse purchases. Such invisible traps are everywhere, especially in large supermarkets. Buyers are conditioned in a certain way. Everything is subject to the laws of logic and psychology. Consumers are literally being forced to spend unplanned amounts of money. There is even the practice of buying food on credit, but so far only in a number of remote regions. Or take, for example, carts in shopping areas. Why are they often bulky, uncomfortable and ride very poorly? It's not because manufacturers can't make good carts, but because shoppers have to walk very slowly around the store. And retailers are the main participants in this deception, because they are the ones who determine what will be sold. In many cases, manufacturers themselves are forced to make concessions to retail chains: they have to fulfill the set conditions if they want to sell their goods.
— Tricks on the part of sellers are, if you like, the law of trade. The supermarket was invented to sell more compared to a regular store, where sales take place over the counter. The entire sales technology “from entry to exit” is fully calculated. And it is aimed at ensuring that the buyer leaves more money than he originally planned.
— Manufacturers also have several interesting techniques in their arsenal that are widely used. Take, for example, the names familiar to the ear: stewed meat, condensed milk, cottage cheese. Most often, products with such inscriptions are cheaper. In fact, if you see such an inscription on the label, then most likely it is not an adapted product “sweetened condensed milk”, but a product made using vegetable fats. In principle, this is all indicated. But the consumer sees a lower price and no longer pays attention to the ingredients printed on the label in small print. Another recent trend is the craving for healthy eating. Manufacturers often cling to this need and use various images and concepts in their names that are associated with a healthy lifestyle and the environmental friendliness of these products. In fact, in a large number of cases, this is pure marketing.
— Apparently, lobbying for the interests of retail chains is behind this. In the developed part of the world, for many years there has been a law that obliges two prices to be indicated on the price tag: for a specific package and in terms of one kilogram or liter, the so-called “fair price”. In Russia, such an initiative was not supported. Let the consumer walk around with a calculator and convert the cost of each product into liters and kilograms, if he is not too lazy. This is a huge industry of collecting additional money from the consumer, this is a distortion of competition. Because only a few can mentally recalculate twenty positions in a few seconds.
“I think there are two reasons why the government did not support this bill. First: this will ultimately lead to higher prices in stores. You will have to recalculate weight volumes; all this must be done automatically, which is fraught with additional costs. The second point is related to the fact that not all types of goods are traditionally sold in kilogram or liter volumes. The abundance of numbers on the price tag can to some extent confuse the consumer. Here, in our opinion, it is much worse when there is underweight. When a manufacturer declares one weight on a package, for example a liter, but actually pours a lower volume into the package. And this is already a gross violation of the technical regulations of the food product regarding its labeling.
— I don’t agree that if all price tags are changed, product prices will increase. Price tags are still printed all the time. A few extra symbols will not lead to an increase in the cost of the product. And now about additional information that may confuse buyers. Indeed, people will be very surprised to see that, let’s say, parsley, which grows in everyone’s garden, will cost 17 thousand rubles per kilogram in some retail chain. Consumers will compare this amount with their median salary, which in Russia is now about 40 thousand rubles, and will understand that in a month they earned only two kilograms of parsley. But here we must not hide the truth, but think about how to help those who are poor.
— All discounts are at the expense of the supplier. It is not the store that gives the consumer a product at a low price, but the supplier who is subject to the retailer’s strict conditions, often at a loss. The manufacturer is given the conditions that he must meet in order to supply the product to this network. So you have to “throw it off.”
— In general, we do not recommend purchasing sliced cheese and meat products. It is better to buy industrially packaged products. The reasons here may be different. For example, the poor condition of the slicing machine. It is not usually sterilized after each use, there is a constant flow. Even if one product is contaminated with E. coli, the bacteria can spread to other types of products. The risk increases.
“You can’t argue with this: the fewer hands touched the product, the better.” Where is the guarantee that the seller who cut the cheese was wearing gloves? While the authorities are solving the problem, we, as consumers, must be responsible for our own safety. For example, avoid promotional offers for perishable products. There is a risk here: the promotion is due to the fact that the product is not the best. In this case, you can either not take the product, or use your sense of smell, touch and other senses. In general, as for promotions, I believe that the price tag should contain the promotional price, as well as the lowest price for the product in thirty days. Then, I assure you, many stocks will no longer seem so attractive. This rule applies in Europe. There, if you see, for example, a promotional cottage cheese, the price tag will look like this: 2 euros (the lowest price for the product for the month), and next to it is the promotional price — 1 euro 50 cents. In Russia, shares are not regulated; the issue is completely left to the discretion of the seller. Probably, the antimonopoly agency should monitor this.
— Go to another store, a small one, near your home. There you will not only get a higher quality product, but also support those few producers who are still working “on the ground”. You can, of course, advise taking a photo of the price tag and filing a lawsuit. But this is a long story, unfortunately, price tags change quickly and prices rise. Another option is to go online. Order groceries and check that everything has been delivered to you.
— I have a slightly different opinion. In each such case, it is necessary to write a complaint to the local department of Rospotrebnadzor. The department will issue a warning to the seller. You also need to write to the local trade department and the governor.
— For now, you can only complain to Rospotrebnadzor, formally they are responsible for the food retail sector. But Rospotrebnadzor itself will not compensate for the damage; it can punish and fine the violator. To compensate for damage, if it is associated with a large purchase, it is worth considering the option of filing a claim in court and through it seeking compensation.
— It is important to be involved in the decision-making process and not make impulsive purchases. Try to initially make a list for yourself and strictly follow it. Read the name, volume and composition of the product carefully. You definitely need to find this information and become familiar with what you are paying for.
— It makes sense to order groceries online. Almost all networks have delivery, and in this case the consumer knows exactly how much he will pay. There will be no impulse buying, it's faster, and in the end, consumers won't fall for many of the tricks like walking around with big carts. And if you end up in a store, then pay attention to everything and write a complaint if you still fall for the trick. In this way, you can reduce the number of low-quality goods, there will be less fraud, and you will save other consumers who may fall for one of the tricks.
— In times of crisis, you need to refuse to purchase product categories where the risk of falsification is higher. Take not dumplings or sausages, but, for example, chicken. Also try to choose healthy products, because health is one thing — you can’t buy it!