Once upon a time there was a car company called Saturn. You may have heard of it. But just like dinosaurs and Earth Shoes it no longer exists. General Motors shelved Saturn production in 2010 as a part of major downsizing. Nobody seemed to care about the loss and that is too bad.
Saturn had a unique approach to sales, novel really. You see, their sales pitch really wasn't a pitch at all. That is, the sticker price of each new Saturn car was posted on the window, much like other cars. But get this, the Saturn car actually cost what the price said on the sticker.
Can you imagine that? There were no markdowns or add-ons. And the sales process involved no haggling and required no special skills on behalf of the customer. First-time buyers didn't need to bring their dads to protect them from being bullied into a purchase. Trade-ins were welcomed and the Kelley Blue Book determined the trade value. Salespersons had little or no discretion regarding price and mostly stuck to a scripted sales process that was neat and clean. In essence, the car sold itself.
“No Saturn was ever mistaken for a Corvette, but their sales concept was honest and refreshing.”
I had two Saturns over the years. The cars were fine, no frills but comfortable and reliable. Often I returned to the dealerships for routine servicing as I found the environment congenial and not sleazy. I never got that disingenuous feeling one often has at a car dealership. You know, it's that feeling of not being totally in control of your money. Now, don't get me wrong, the Saturn brand had its flaws and wasn't exactly God's gift to the automotive industry. No Saturn was ever mistaken for a Corvette, but their sales concept was honest and refreshing. Saturn touted itself as a “different kind of car company” and I think it worked.
There are times when haggling is necessary and useful. I get that. Most people buying a house, for example, usually make an offer less than the listed price and then the agents engage in some tête-à-tête in an effort to strike a deal. I've been through it before and so have you.
The process is kind of fun though sometimes nitpicky, nerve wracking and less than friendly. But it is expected in that situation. Each house is unique and has its own qualities and nuances. It makes sense, therefore, that each house has its own price. That is fair. But I would love to hear a logical explanation for why a new car price varies from dealer to dealer—same car, different price. I don't get it. The funny part is that every dealer claims it will not be undersold. Exactly how is that possible? When we buy a new car we are basically saying, “I know I am going to get screwed, but I would like to get screwed for as little as possible.”
So we said goodbye to Saturn and their fresh approach, but some consumer practices remain intact. Coupons have always been part of the deal and have actually made a big splash as of late, an extreme splash, in fact. The clip and save process makes sense on the surface, but begs for further examination, especially when the coupons require the consumer to jump through hoops. Early bird specials and door buster sales have basically forced us to arrive at 5 a.m. to get our hands on the marked-down goods, and that is not fair. Is it really justifiable for a store to charge less for an item earlier in the day? What in the hell is that? Shouldn't a pair of jeans cost the same in the morning as in the evening? The coupon thing really doesn't make much sense. When you think about it, the coupon is just another way of the store or manufacturer saying they can actually charge less for an item when they want to do so. Why don't they drop the coupon idea and pass the savings on to the customer? Less mess, no fuss.
And since we are on the subject of clipping and saving, I don't think the Bed Bath & Beyond coupons that arrive in my mailbox are big enough. Sure, they can double as a placemat on a dining room table or perhaps provide shelter from a storm, but I need a really big coupon, something that can be used as a billboard. All kidding aside, the mailman can barely get the thing into the box.
I get annoyed with the Sunday newspaper inserts. Rummaging through the flyers to save a buck on diapers really sucks. The good folks at Target are experts at the diaper thing, and they don't even require a coupon. Rather, they offer a gift card to spend more money at their store when you buy two giant-sized boxes of diapers. So I spend $50 and they give me $10 to spend on whatever I want. I guess I come out a winner on that one, even though it still feels not quite right. And by the way, these days “whatever I want” really means “whatever the baby needs.” Target urges the customer to expect more and pay less. I can't argue with the philosophy even though the gift card concept still involves some gamesmanship. A rock-bottom price on the diapers would negate all the chicanery.
The new JCPenney approach is interesting. The time-honored department store has apparently opted to ditch the usual retail insanity that includes all kinds of sales, clearances, specials and anything else designed to entice the consumer. Now they have a new look for their advertisements and a pricing guarantee that is in their words, “fair and square.” The concept is simple really. The store promises everyday low prices without coupons or sales, along with month-long values and additional markdowns twice per month to help clear out their stock.
“Why is it okay that a store blatantly tells us that they can charge us whatever they want for an item, but offer a lesser price if we succumb to their terms?”
I couldn't tell if this approach was just another sales come-on or a genuine effort to help the customer, so I decided to give it a try. On the surface there appears to be less trickery than usual. This new square deal is a huge departure from what JCPenney has done in the past. The last time I was in the store, customers were fretting in the checkout lines hoping to get their purchases in before the sale of the day ended promptly at 10 a.m. Silly. I honestly didn't know what was happening. By the time I figured out what was going on it was past 10 a.m. and the sale was over. Who ever heard of a sale that ended in the middle of the morning? How on God's green Earth can an item be priced differently during the same day?
So I went to the store and it really had a different look. The signage had changed and the prices were clearly marked according to their new plan. I asked a sales representative about the new deal and he was eager to explain how the system worked. The process is a bit clunky but seems to give the customer a fair shake. He also mentioned that on those big sale days (the first and third Friday of each month) the store gets pretty crazy as some items, even jeans, are marked down to $2. He felt that the big change has made an impact on sales and that the concept seems to be working for both store and consumer.
This win-win situation on the surface seems fair. Of course, being the skeptic that I am, I couldn't help but wonder about those Friday sale dates. Friday is not a good shopping day for me. So once again it appears that a customer like me would still have to jump through some hoops to get a good deal. I bought a pair of jeans that day but soon wondered whether or not that same pair would cost $2 just three days later. That didn't sit well, but I just don't have the time to run back and forth for the best deals. That process is worse than clipping coupons.
I recently noticed that Boscov's countered with their own circular that promised “honesty in pricing.” Does this suggest that in the past there was dishonesty in pricing? And if so, by whom? Have we become so anesthetized that getting ripped off is somehow acceptable? And if so, to what degree? The last thing I need is another credit card but it stings when I am offered a discount if I apply for the store's card. Why is it okay that a store blatantly tells us that they can charge us whatever they want for an item, but offer a lesser price if we succumb to their terms? The system is stacked against the average consumer, let alone the person who does not pay off the balance each month. This practice, in my opinion, is a form of predatory lending, especially since the interest rates on department store credit cards are typically through the roof.
I know I am complaining a lot but I just don't have the time to play games. There are other things more important that occupy my precious time. I am sure that some people love the whole process of bargain hunting, getting the best deals and standing in line for early-bird specials, but wouldn't it be great if the store just told you what the damn thing costs? Where is Saturn when you need it? Peace.
by vince ramunni | illustration by melissa rose
