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Macy*s: When the Price is Wrong

Here is part of an ad for a recent Macy’s “one day sale” (yes, I know, they are never really only for one day):

Macy's items

(Note: the ad above is from the main section of the newspaper, and not the Macy’s color circular itself. But, it contains the same items for the same sale.)

While shoppers may have hoped to scoop up these items at the advertised bargain price, that was not to be the case. Why? Because most shoppers probably didn’t pay attention to the little “we’re sorry” box that appeared in the first few pages of the newspaper. It corrected the errors in Macy’s then current print advertisement (Dec. 6, 2008).

*MOUSE PRINT:

Macy's Correction

It is interesting to note that the five items mentioned with pricing errors were all advertised at a price lower than the correct price, so consumers will be asked to pay more than they expected at the store.

ITEM AD PRICE REAL PRICE
Cuisinart Food Processor $99.99 $149.99
Presto 20″ Griddle $19.99 $29.99
Stainless Accessories $8.99 $9.99
Tools Soup Pot $8.99 $9.99
Pyrex Baking Dish $8.99 $9.99

While it may appear that Macy’s is trying to bait customers with low advertised prices that they will not honor, it is hard to find a pattern in their corrections to substantiate this.  Many times, the actual price is lower than they advertise, and they correct that too.

The ultimate questions are, why are so many errors being made, and where are the corrections for all the other retailers?  Surely their prices are not perfect, and sometimes they run out of goods too.

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Toilet Paper Downsizes in a New Way

We all know that toilet paper has been downsized for decades.  Charmin has gone from 600 or 650 sheets on the roll all the way down to 200 or so over the years. Other brands followed suit.  Even Scott’s 1000 sheet roll was downsized in a sneaky way in 2006 by making each sheet shorter.

The case of Cottonelle’s downsizing is a bit unusual, however.  Look at these two packages of their toilet paper purchased at the same time last month:

Cottonelle 

*MOUSE PRINT:  Both packages give the exact same dimensions for the contents — they say there are 304 sheets on each roll, and that sheets are 4.2 inches by 4.0 inches.  Clearly the package on the left is taller by about 3/4 of an inch (with rolls stacked on top of one another core to core).

What is going on here? The company said:

Because of all the precautions taken in our manufacturing plants, it is difficult to explain how the product you received escaped our detection.  Please accept our apology and our assurance that we will do our best to prevent a recurrence.  The proper roll height is 4.2 inches.  During 2007, we reduced the size of our COTTONELLE® bathroom tissue slightly to align our roll height [number of sheets per roll] with other premium tissue products on the market.  At that time, the sheet width was reduced from 4.5″ down to 4.2″.  The length of each sheet (4.0″ between the perforations) did not change.

So it looks like some of the older 4.5″ width rolls were put into a newer wrapper that had the new lowered sheet count and narrower width on the label.  One can only wonder if this was truly a “mistake” or rather an interim step in the downsizing process to hide the change for anyone comparing the older label to the newer one.

This then appears to be the industry’s latest ploy — downsizing toilet paper by making each sheeter narrower. Toilet paper has historically been 4.5 inches wide as demonstrated by Quilted Northern:

  Northern

If you peruse the supermarket aisle you will notice that very few brands are 4.5 inches wide anymore. (Scott 1000 sheet role still is, for the moment.) Others are 4.3 inches, 4.27 inches, 4.2 inches, or even 4.0 inches.

Angel Soft Charmin Northern

If this trend continues, soon they will be marketing products to us that look more like dental floss than toilet paper.

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Newpro Windows’ “Save 40% on Heating Costs” Guarantee

NewproNewpro is a brand of replacement windows that relies on salespeople coming to the house and demonstrating the product.  There are many stories online about aggressive sales pitches and outrageous initial price quotes.  One person was quoted $17,000 for 12 windows, another was told the price was $29,000 for 17 windows.  Borrowing from the timeshare salesperson’s book of tricks, the window pitchman typically checks with his boss, and gets permission to lower the price several thousand dollars.  The price still remains quite high, according to reports.

But that is not what this week’s Mouse Print* is about.  It is about the 40% fuel savings guarantee that Newpro advertises on TV and on the Internet.

On their website, Newpro elaborates on their promise that you will “Save 40% on your Home Heating Costs — Guaranteed!*”

Newpro

So far, so good, (except for having to replace all the windows in your house) until you follow the asterisk to the footnote:

*MOUSE PRINT:

**Restrictions apply. Fuel Savings Guarantee applies to homes where all windows are replaced with Newpro 2000 Windows. $500 limit applies. See Newpro Associate for details.

A $500 maximum?  If the windows did not reduce your fuel costs at all, in order to earn the maximum refund, your heating costs could be no higher than $1250 a year. ($1250 x 40% = $500).  For most homes, you probably pay much more than that annually for heat. Another example:  if your fuel costs were $3000 last winter, and you only experienced a 20% reduction this coming season, you would only qualify for $500 of the $600 you were owed.

While the 40% fuel savings claim is a great marketing tool, by limiting the refund to $500 and only making it apply for the first year, your new Newpro windows may not ultimately save you as much money over their life as you might expect. 

The even deeper details  say they do not calculate your refund based on the costs of heating from last year to this, but rather on your consumption (with oil falling in price, this is a good thing). Additionally, only their high-end windows qualify. And, if it is a really cold winter this year (“abnormal weather conditions”), the claim will be reduced.

So if you plan to make a $10,000, $20,000 or $30,000 purchase of new windows, keep in mind that a possible refund of $500 is miniscule in comparison, for what many say are grossly overpriced windows.

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