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EnergyMultibuy rip-off revealed
Filed under: Shopping & Deals
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DPA DEUTSCHE PRESS-AGENTUR/DPA/Press Association Images
Which? has discovered that a sizeable proportion of goods increase in price when they are offered as part of a multibuy deal.
Rip-offs
Supermarket Sweep - Tips & Advice
Rip offs
The consumers' association looked at 115 products over the period of a year and discovered that some weren't as good a deal when they were part of the offer. Around 10% of products increased in price when they went onto multibuy and decreased afterwards, at some point during the year.One example from the research was the Goodfella's Deep Pan Pepperoni pizza. It was for sale at Asda at roughly £1. However, when it went onto multibuy the price increased to £2.50 or £4.50 for two.
This is a bit of a hobby horse of the consumer group, which wants to see government action to tighten regulation on pricing. Back in May it revealed similar findings after a piece of research involving 700,000 products.
Response
The supermarkets responded that Which? had looked at a tiny proportion of their products, and did not get a representative view. They added that their multibuy deals were good value. Asda said its prices were "consistently low, with no surprises". Sainsbury's said: "We never seek to mislead customers. We always clearly display the price." Tesco added: "We work hard to offer value, through low prices and promotions." And Waitrose said: "All our promotions offer genuine savings."Supermarkets may like multibuy deals, but we're going off them. Some 73% of people told Which? that they'd rather have a discount than a multibuy. We don't like the requirement to do mental arithmetic; we don't like that we're encouraged to buy things we may not want or need; and now it emerges that they may not save us any money anyway.
However, they look set to stay. Which? found that the products were on multibuy for 46% of the first half of 2012, compared to 37% in the first half of 2011.
False economies in a recession
- 1. Using Appliances At Night<p> Consumers are often tempted to use appliances such as washing machines and dryers late at night when energy tariffs are typically lower. However a Fire Service representative said it was not advisable to leave a washing machine, tumble dryer or dishwasher running overnight since they are a fire risk because of their high wattage, friction and motors.</p> <div> "The practice of leaving these appliances on after you have gone to bed, means if anything goes wrong, you are not in a position to do anything about it. Electrical faults have frequently caused fires that have proved fatal to those sleeping upstairs," the source said.</div> <div> But it is not just fire hazards a burst hose could mean the whole downstairs of your house is flooded resulting in a hefty insurance claim and undoubtedly increased premiums as a consequence.</div> <div> </div>
- 2. Changing utility suppliers<p> There is nothing wrong in itself in switching utility suppliers as if you do it properly you can reduce your bills. However if you are not careful you might actually increase your outgoings. </p> <div> If you don't establish the type of tariff that best suits your needs you could be throwing money down the drain. With some suppliers, for instance, you pay less for the energy you use during the night than the energy used during the day. However, you'll need to use about 20% of your energy consumption at night to really make a saving (cheaper tariff starts at 1a.m. and finishes at 8a.m.). For those on shift work this might be very useful but for others there may be little benefit and we have already talked of the dangers of running appliances when you have gone to bed.</div> <div> Fixed or capped price plans offer a set price for a period of time (usually 18 months to 2 years) but sometimes this includes a premium on the supplier's standard unit rate.</div> <div> Finally, be wary of sales people who call at the door and try to talk you into switching to their company. It is just as easy to switch online yourself when you have time to make a considered and non-pressurised decision.</div> <div> </div>
- 3. Avoid panic share selling<p> When stock markets go into freefall – and we have seen plenty of that over the last 12 months – there is always a tendency to try and save money by selling shares quickly or just trying to move investments to another provider. But some times all you are doing is incurring extra trading costs or charges on fund switches. Unless you are totally convinced that the only way is down, it is usually best not to sell shares when they have hit rock bottom – all you are doing then is crystallizing a loss. It makes sense to plan a less knee-jerk exit strategy.</p> <div> </div> <div> And as far as funds go, investors have a habit of chasing the latest theme and piling in at the height of the market only to see their investments fall as sanity returns to proceedings </div> <div> Glasgow-based IFA Alan Dick believes investors are getting severely short changed by active fund managers and he insists investors are far better off in low-cost Index tracker funds.</div> <div> "This idea that fund managers can beat the market and pick out the winners just doesn't stand up to close scrutiny. Constantly switching fund providers only piles up extra charges and costs and offers no added value."</div> <div> </div>
- 5. Extended warranties<p> Anyone who has ever bought electrical goods at a major retailer will have been subjected to the hard sell of 'have you considered taking out an extended warranty?' Then follows the spiel about how you will have piece of mind if anything goes wrong blah, blah, blah….</p> <div> In theory it sounds like a way of saving you hefty repair bills in the futuer but in the vast majority of cases extended warranties are overly expensive and not necessary. With most electrical goods you have a legal right under guarantee for the retailer to repair or replace faulty goods within a specified amount of time – typically 12 months. The only conceivable reason for buying an extended warranty would be for something like accidental damage cover - but in most instances that would be covered under a typical home contents insurance anyway.</div> <div> Extended warranties are of course designed to cover goods for a longer period than the 12-month guarantee the product is sold with. They normally cover the three or five years, after the guarantee has run out. But you are not obliged to take out this insurance when you buy the goods nor do you have to buy the policy from the retailer selling you the item. You can pretty much bank on the fact that the in-store policy will be more expensive than any stand-alone policy as the retailer will take a commission charge. If you really feel you need an extended warranty at least shop around for it.</div> <div> </div>
- 6. Issue Notice of Correction<p>If you are unhappy with the response or would just like to explain a missed payment on your file you can send a Notice of Correction. This is a statement of up to 200 words that will be added to your file. Although lenders don't have to take this information into account, it at least gives you the chance to tell your side of the story.</p> <p>Experian states that agencies will also help you escalate the dispute to a third party arbitrator if necessary, such as the Information Commissioner's Office.</p> <div></div>
- 6. Health insurance plans<p> You might be paying lower premiums on your health insurance but that's not much good if the policy exclusions mean you are denied the treatment you suddenly find you need. Going for a policy based on budget alone rather than specific levels of cover could prove a false economy. One of the most common exclusions is home care or private nursing – you may think you are covered but the small print says otherwise. If you have to economise on personal health plans, make sure you understand exactly what you are giving up under the terms of your policy.</p> <div> </div>
- 7. Chasing better savings rates<p> With interest rates at record lows, it seems like a no brainer to move your savings to the best rates currently offered on the market. But moving money in this way will often only have short term benefits unless you are prepared to continue this process on a regular basis.</p> <div> For instance the ING Direct Savings account is currently one of the best instant access deals on the market offering a variable rate of 2.75% for new customers including a 2.22% gross pa bonus fixed for 12 months. But after the 12 month period customers go onto the standard variable rate currently 0.5%. If you don't then move on to another provider returns on savings will come down pretty sharply. </div> <div> One obvious plus with this account is that you can move your money when you like with no penalties or restrictions. </div> <div> However the trade off for the decent introductory headline rate is that you have to bank entirely online or by phone there is no branch or post facility available. </div> <div> There is absolutely nothing wrong with this account but the restrictions on access (no branch or post) may mean you don't use the account efficiently. And apathy to switch to another account provider after the introductory period has ended might mean your money gets little in the way of improved returns going forward. The onus is on you the saver to keep moving your money around to get the best rates.</div> <div> </div>
- 8. Paying on credit<p> </p> <div> It might seem like a way of dealing with an immediate cash flow problem but loading up on your credit card to pay your way out of recession-related problems could prove a very bad call in the longer term.</div> <div> Debt counselors frequently hear cases of people paying for their mortgage on their credit card – possibly because they have lost their jobs so there is briefly no income coming into the house. It might seem like a simple solution to a short-term cash flow problem but what if the cash flow problem is not quite as short term as you imagine?</div> <div> Using credit cards in this way is one sure way to rack up debts fast and accumulate interest on what you owe. If you have problems paying a mortgage or any other regular outgoings, contact your mortgage lender immediately and talk through the problem with them.</div> <div> </div>
So how can you be sure you're getting a good deal?
Unfortunately, the only foolproof method is to know roughly the price of everything in your trolley - at a standard price. This is hard to keep an eye on, but it's worth having a rough ball-park for the things you buy regularly, so multibuy deals aren't a complete mystery.Alternatively if you have a smartphone you can do a quick price comparison before you buy, or check alternatives in store. If, for example, you are being offered a multibuy on three cartons of orange juice, is it a better price than a four carton pack?
However, the golden rule is to only buy those things you actually want. Even if the multibuy offers good value, it's essentially worthless to you if you end up with a lot of things going off in the fridge because it was too good to turn down.
So what do you think? Do you like multibuy deals? Do you think they offer good value? Let us know in the comments.
Save money on shopping
- 1) Know the price of everything you buy<p> </p> <p> This takes time, but once you know the cost of a phone call, putting the dryer on, or a bag of potatoes, it enables you to judge far better how much you can afford to consume.</p>
- 2) Shop around<p> </p> <p> Once you know the base price, you are in a position to keep your eyes open for a better offer. If you see a discount you can judge for yourself whether it actually constitutes a bargain. For bigger things like utilities it enables you to do a proper price comparison and see if you can cut your bills.</p>
- 3) Trade down<p> </p> <p> Don't just assume that the premium range is better, try the every-day brand, or even the basic version and see if you spot the difference. Likewise, consider trading down your supermarket from one of the big players to local markets or discounters like Aldi.</p>
- 4) Plan<p> </p> <p> If you plan what you buy to match what you actually cook and eat then not only will you be able to budget far more effectively, but you'll also waste much less and find your money goes further without you having to try.</p>
- 5) Think creatively<p> If you can't think of a way to get your meat for less, consider a vegetarian day once a week. If you can't find petrol any cheaper, then work on making your driving as efficient as possible. The more you can think of clever alternatives the less you will have to make painful cuts to make ends meet.</p>
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