Four sneaky sales tactics exposed

Make sure companies don't make a mug of you with these rotten sales tricks!

Last month, the government announced new measures to crack down on the worst type of cold callers.

Many companies use automated calling systems to contact consumers in their homes. Sometimes, these systems dial more numbers than there are staff available to take up the calls when people actually answer their phones. This results in silent calls, which are at best annoying, and at worst, frightening and distressing.

In an effort to combat the problem, the Department for Business, Innovation and Skills has announced that companies generating silent and abandoned calls will now face a maximum fine of £2 million. This is a big increase on the current limit of £50,000; but of course, we’ll have to wait to see how the new regulations are applied in practice.

Unfortunately, cold calling isn’t the only rotten sales tactic out there. Here are four more sneaky tricks you should watch out for!

1. Store card-pushing

Many retailers will encourage you to sign up for a store card when you make a purchase. These cards often come with extortionate rates of interest attached, so take your eye off the ball and you could suddenly end up knee-deep in debt.

Shop staff are often put under a lot of pressure to push these dubious products. But very often, they know next to nothing about them. I once asked a ‘pusher’ what the interest rate was on the card in question - and she couldn’t tell me! This certainly isn’t the atmosphere in which to make a balanced financial decision.

To find out more about the pitfalls of store cards, read These cards charge sixty times base rate. And if you’re determined to apply for one, take the paperwork away and read it properly rather than signing up on the spot!

2. Rip-off extended warranties

When you buy a new product - usually an electrical appliance - you may be encouraged to take out an extended warranty on it. This is another area in which staff are often driven by targets, so you can’t expect their warranty-pushing motives to be whiter than white.

Warranties sold with particular products are very often over-priced and full of annoying exclusions. And in some cases, they’re completely unnecessary, because the ‘protection’ they give you is only what you’re already entitled to under your basic statutory rights.

To find out more about extended warranties, read Watch out for this Christmas shopping rip-off.

And if you do want to buy an extended warranty for a new product, you’ll probably find that a ‘stand-alone’ deal offers much better value than one sold at the same time as the original item. For example, a stand-alone provider like Warranty Direct can cover three items for £10 a month, and using promotional code RAOX108 will get you a 10% discount.

3. Doorstep selling

Some people argue that doorstep selling has its benefits, because it gives elderly and housebound people some valuable personal interaction. However, doorstep sellers aren’t there to cheer you up. They come with an agenda, and often target the most vulnerably members of society.

Of course, not all doorstep sellers are manipulative shysters; but there certainly have been some repulsive examples of sellers using scare tactics and intimidation to push people into buying pricy and unsuitable items they don’t need.

In short, never sign up to anything on the spot; it’s very difficult to think clearly and logically with a salesperson in your own front room, breathing down your neck. If you’re really tempted by an offer, ask to look at the paperwork in your own time, and ask a friend or relative for a second opinion.

And remember that Doorstep Selling Regulations afford you extra protection. In a nutshell, if you change your mind about a purchase worth more than £35, you have at least seven days to cancel the contract.

Recent question on this topic

• NielsRak asks:

  Dodgy-sounding phonecall - can anyone confirm it's a scam?

  • 
    Swarbs answered "It's a scam. The guy will usually tell you they are planning to go to court, and you will lose your..."
  • 
    NielsRak answered "Thought so, thanks! Slightly worrying that they already had my address, but it's not like that sort..."
  • Read more answers

4. Customer baiting

This is when a company tempts you to sign up for a great deal - which turns out not to be all that great after all. It isn’t illegal, but it is sharp practice, and it can come in many shapes and forms.

Financial products are often flogged in this way. For example, you might apply for a saving account offering a market-leading rate of interest - only to find that the rate drops like a stone the following day.

Alternatively, you might find a current account with all sorts of extra benefits; then discover that you can only apply for it if you also take out a poor value life insurance policy with the same provider.

In short, you need to do your research and read the small print. For example, to avoid the ‘bait and drop’ savings rate tactic, you might decide to opt for a savings account with a guaranteed rate of interest, instead.

Most companies are out to make the biggest profits they legally can. Make sure that’s not at your expense!

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