Originally posted on Compass Consulting & Solutions – Paul Nottingham
The term “bait-and-switch” is complained about often by consumers, but it is rarely used correctly. A shady or unusual selling tactic may not be to your liking, but that does not make it illegal. Here is a short definition of Bait and Switch:
The action of advertising goods that are an incredible bargain, with the explicit intention of substituting inferior or more expensive goods at the time of the purchase.
In short: the business owner knowingly offers something that they have no intention of providing at the price point to any and all consumers. The idea is to get bodies in the store and then when the original offer is no longer available they try to sell you on a more expensive item or a similarly priced item that is far inferior to the original offer. This offer is designed to lure you in, but instead of getting something too good to be true, you get a very different deal in the end. (the “switch”)
The practice is most commonly used on electronic items like TVs, Blu-Ray players, audio equipment and computers, but that does not mean you will not find bait-and-switch in other areas. At Restaurants or even the kind of Internet service you get can all be sold using bait-and-switch techniques. Black Friday is probably the biggest culprit of consumer distaste for the marketing practice of Super low prices for items. The unheard of prices this last Christmas shopping season creates chaos and even violence in retailers, but boy does it generate the traffic. Unfortunately, many of the great deals have severely limited quantities or a very short window in time, making it a real challenge to be able to take advantage of the deal.
I believe that the vast majority of Business owners are hardworking, ethical, and have a strong desire to create a value for their customers. Sometimes while attempting to do so, they can inadvertently create a situation where despite their best efforts, they fall short of meeting their advertised offering and this can leave a very bitter taste in the mouth of customers causing damage to the reputation of the business. Have you ever been to an all you can eat Crab legs buffet and they run out of crab legs? If you have 200% increase in your normal traffic it is difficult to balance the need to plan ahead with the risk and expense of the additional inventory. This is why it is imperative to follow the old axiom- “Promise less and deliver more”. This will rarely if ever create a perception of bait and switch in your customers minds.
Bait and Switch is actually an illegal marketing practice and can result in fines and even jail and loss of the business license in certain egregious cases. But being accused of it can be almost as deadly to your lively hood. Be careful to always follow through with your marketing offer and be sure to compensate for the additional business you will most likely generate with your enhanced value offer!