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Advertised Sales Now Limited to the Diligent

soup saleOnce upon a time, when you looked through the Sunday advertising circulars, and saw Tide on sale for $1.99, you simply went to the store, put Tide in your cart, and paid $1.99 at the checkout. Simple.

Sales were advertised broadly, and open to everyone. And even if you didn’t know the item was on sale before you walked in the store, you nonetheless got the benefit of the sale price when you checked out. Then, maybe a decade or more ago, some supermarkets questioned why they were giving discounts or offering sale items to everyone who just walked in off the street.  So they created loyalty cards or club cards so that only customers who allowed the store to track their purchases could buy the items advertised in their circulars at the sale price.

*MOUSE PRINT:

card only

Clever. Very clever. Saves them a ton of money (at our expense). But now it gets even worse. All three major drugstore chains — Walgreens, CVS, and Rite Aid — have figured out a way to get customers to pay full price for sale items and only get credit for the discount price toward a future purchase.

CVS started it several years ago with “extra bucks”. That is a system whereby cardholders are shown a sale price for an item in an ad, but pay full price or close to full price for it. On their register receipt will be a coupon good for the difference between the advertised price and full price. That coupon can be used toward a future purchase.

For example:

In this case, you are attracted by the $4.97 sale price (“it’s like getting it for $4.97” they say), but you really have to pay almost $9. You get back $4 in merchandise credit for future purchases on a subsequent visit to the store.

What’s problem with that? You are really getting a discount on something else, and not on the sale item that attracted you to the store to start with. You have to make a second trip to the store (or go back and do a second shopping on the first trip.) You only have a few weeks to use the credit before it expires, so you could lose the money (and in effect really would have purchased the original item at full price). You also could wind up having to buy more merchandise on that subsequent trip that you may or may not want or need.

Walgreens followed suit a couple of years ago offering “register rewards”, and sometime after that, Rite Aid jumped on the bandwagon with “+UP Rewards”.

To make matters worse, Walgreens will only accept one register reward per item. So if you have collected a dollar credit here, and a two dollar credit there, and want to apply them to the purchase of a $3 item, you can’t. (CVS and Rite Aid will accept multiple credits toward a single item.) And Rite Aid won’t let you use credits earned today until 6 am tomorrow, thereby necessitating a second trip.

This whole system of giving discounts only to cardholders, coupled with making you pay full price instead of the advertised sale price is all designed to SAVE THEM MONEY by getting you to spend more and potentially save less. That’s some system.

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Walmart Touts Free Layaways But Quietly Adds Cancellation Fee

Retailers are making a big push to promote early holiday shopping. Kmart began TV advertising last week, and Toys-R-US just announced modified store policies. And Walmart started promoting its holiday layaway plan:

Walmart layaways

“This time it’s free,” the ad boasts. This refers to the fact that last year Walmart charged a $5 fee to initiate a layaway, but they reimbursed that fee to shoppers at the end by giving them a $5 gift card.

What Walmart doesn’t tout is another inconspicuous change.

*MOUSE PRINT:

Walmart cancellation fee

Yep. They have introduced a $10 cancellation fee which is imposed if the consumer cancels the purchase. It is also triggered if all the payments are not made or if the item is not picked up by December 13.

No one is disputing Walmart’s right to add a cancellation fee, particularly if they have taken the shopper’s goods off the selling floor for three months. What is interesting, however, is that their marketing folks have taken a net negative change to the layaway plan (the $10 cancellation fee) and essentially no change to their start fee (since it was rebated), and turned it into a positive advertising campaign.

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Product Dilution: Breyers Lightens More Ice Cream

Last year, we reported that Breyers “cheapened” many varieties of their ice cream by reducing the amount of butterfat content to the point where the product could no longer legally be called “ice cream,” but rather had to be renamed “frozen dairy dessert.”

Some stalwart flavors, like MrConsumer’s beloved lactose-free vanilla, remained untouched until now. To MrConsumer’s horror and surprise, Breyers quietly converted that ice cream variety to “light ice cream.”

*MOUSE PRINT:

Breyers old - new front
Click to enlarge

In the new packaging, the “All Natural Ice Cream” claim is replaced with the phrase “Quality Since 1866.” Of course, it doesn’t say the same quality. And the words “ice cream” are replaced with “light ice cream.”

What exactly is “light ice cream?” According to FDA rules:

“Light” ice cream contains at least 50% less total fat or 33% fewer calories than the referenced product (the average of leading regional or national brands).

Looking at the nutrition panels of the old Breyers lactose free ice cream and the new one reveals only a minor reduction in calories.

*MOUSE PRINT:

Breyers old-new

The old “ice cream” product had 130 calories and the new “light” one has 110 calories, only 20 fewer calories. It does however have half the fat. And, the federal law says that light ice cream must have EITHER half the fat OR 33% fewer calories.

There is just one problem, though. The front of the package claims very clearly that the new light ice cream has BOTH half the fat and 1/3 fewer calories.

Breyers fat-cals

Clearly, this new lactose free light ice cream does not comply with that representation when compared to their old regular lactose free ice cream. So how do they get away with this claim?

*MOUSE PRINT:

breyer one-third fewer

Tucked away on a side panel is that tiny disclosure. They are not comparing this new light ice cream with THEIR old regular ice cream, but rather with some super premium brands like Ben & Jerry’s and Haagen Dazs as well. Those have been thrown in to up the average amount of fat and calories in “full fat” brands, and thus make Breyers’ reduction seem more impressive than it really is. (Haagen Dazs has 250 calories and 17 grams of fat per serving, while Ben & Jerry’s has 230 calories and 14 grams of fat.)

Mouse Print* asked the PR firm representing Breyers three times to explain why they cheapened some of their products, and they provided no response.

If you spot a new example of “product dilution,” please send complete before and after details to edgar [at symbol] mouseprint.org .

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