Smarthome - Insteon multi-pack pricing - Is this illegal or just shady?

[Teken]

A few weeks ago I noticed that Smarthome had changed all of the 4 packs to align with the Cosco.com pricing which you can see here: http://www.costco.com/CatalogSearch?storeId=10301&catalogId=10701&langId=-1&refine=&keyword=Insteon

 

Keeping in mind the price you see at Costco.com includes FREE shipping in the final cost where as Smarthome does not.

 

This will save a person anywhere from $5-35.XX depending upon where you live in the Con 48 States. As stated above all of these items mirrored exactly what the Costco site had in terms of pricing.

 

Today I received a e-mail indicating the multi packs were on sale and also had a 15% discount on mix and match Insteon products. Upon going to the multi packs it was observed the $99.XX pricing was increased to 107.97 for the LED bulbs, $125.96 Open-Close, 125.96 Leak Sensor, etc.

 

The only item they didn't change I have to gather it was an over sight by them was the 2 pack motion sensor for $59.99 : http://www.smarthome.com/insteon-wireless-motion-sensor-2-pack.html

 

Keep in mind the whole idea was these were the daily retail prices! This wasn't sale or otherwise and at the time I had given them the benefit of the doubt that they wanted to align their prices with big sellers like Costco to avoid looking like fools by gouging the customer.

 

Now, seeing that they changed the daily retail price to align with a sales promotion but the prices are 10 - 15% higher this in many markets is completely illegal and best case it just screams shady practices on every level!

 

I am at a complete loss who is in charge of this web site and why any reputable company would go out of their way to inflate the price prior to a sale?!?!?

 

I honestly don't know of any other company I have dealt with over the 30 plus years that has absolutely no concept of following known and accepted customer service / best practices. Its like they are poking me in the eye at every turn just begging for me to throw them under the bus at every turn WTF?!?!?

 

There is a short poll so please lend your voice as to your views on this. 

[Brian H]

I wounder what is going on myself.

I have gotten varied [15% or 20% depending on which one}  email subscriber offers over the last few weeks.

Either they have an overstock of things like the Lamplinc Dimmers and On/Off modules or they are cleaning house for an improved module.

 

I am not surprised on the retail price changes. I noted the retail price of a module in the clearance sales where $10 more than a new one. Then take $15 off the inflated price and actually save $5.00 on a 30 day warranty module over a 2 year warranty new one.

 

To top it off. A few of the ones I bought where not 100% tested. No way a On/Off module could be tested completely if the green LED is dead and only the red one worked. Or even better. No screws in the PCB. It was just floating loose in the case.

[Teken]

I wounder what is going on myself.

I have gotten varied [15% or 20% depending on which one} email subscriber offers over the last few weeks.

Either they have an overstock of things like the Lamplinc Dimmers and On/Off modules or they are cleaning house for an improved module.

 

I am not surprised on the retail price changes. I noted the retail price of a module in the clearance sales where $10 more than a new one. Then take $15 off the inflated price and actually save $5.00 on a 30 day warranty module over a 2 year warranty new one.

 

To top it off. A few of the ones I bought where not 100% tested. No way a On/Off module could be tested completely if the green LED is dead and only the red one worked. Or even better. No screws in the PCB. It was just floating loose in the case.

Really?

 

I would not accept that at all and send it back even though they state another refurbish unit would be sent out. That isn't acceptable at all and as you stated the price / warranty simply isn't enough to take a hit for a 30 day coverage. As I stated many times I don't begrudge anyone trying to sell their wares based on the belief the market will accept said pricing.

 

What I take issue is the constant moving target of pricing that is clearly marked as the *Everyday Price*. As noted above the daily regular price was changed to $99.XX for those multi-packs.

 

Now, with a Insteon sale that daily price has been inflated to 10-25% plus?!??!

 

Then, they believe they can insult your intelligence by offering a sale of 15% off on something they literally just jacked up the previous day WTF?!?!

 

In most markets in Canada this sort of practice is highly illegal and for a good reason. Then again it doesn't surprise me in the least as I received a e-mail for a HUB package for a great deal only to find out it was revoked as I submitted the purchase button.

 

Everyone makes mistakes and most places indicate in the verbiage typographical errors will not be honored and can be corrected blah blah. But most companies will honor the actual sale if it was paid for forth-wit and simply take it on the chin as a cost of doing business because its not like millions were sold at that discounted price etc.

 

Here is one of the sales that I purchased and then had it killed off by Smartypants . . .

 

[bpwwer]

I've seen them do the same thing on non-Insteon devices when having site wide sales.   I had been researching a particular device so had prices from various vendors and SH's price was a bit higher than some other places. Then they had a site wide sale and I thought great, I'll get it now only to find that they had raised the price so that the final, with discount price, was within a few cents of the previous non-sale price.  I queried then and got some response that some manufacturers don't allow them to sell for a lower price and that's why they adjust the non-sale price during the sale.  Seems shady to me.

[Teken]

I've seen them do the same thing on non-Insteon devices when having site wide sales. I had been researching a particular device so had prices from various vendors and SH's price was a bit higher than some other places. Then they had a site wide sale and I thought great, I'll get it now only to find that they had raised the price so that the final, with discount price, was within a few cents of the previous non-sale price. I queried then and got some response that some manufacturers don't allow them to sell for a lower price and that's why they adjust the non-sale price during the sale. Seems shady to me.

Yes, I've heard many fairly tails spun my way and have spoken with many of the distributors for various wares. There are lots of cases where there are formal agreements that stipulate that certain price structures must be held in place until the manufacture has given the retail sales channel the go ahead to lower said pricing.

 

There are other well known cases where vendors are simply conspiring to gouge the consumer. This is seen in the oil business all day long and we the consumers have no choice but take it on the chin.

 

But unlike the two examples here this is a Smarthome owned and operated brand and product. They know how much the cost is and what the profit margins are and even take into account all of the other over head. The most expansive item in the Insteon line up way back in the day was the KPL relay / dimmer to make.

 

This is the retail price right now $79.99 with their make believe list price of $94.XX: http://www.smarthome.com/insteon-2334-222-keypad-dimmer-switch-dual-band-8-button-white.html

 

The actual cost for this item is something like $3.87 per unit . . .

 

I want everyone to say that again the unit price was approx $3.87 for a KPL relay / dimmer! This is why when you see some random store blowing Insteon items out the door at unbelievable prices. Don't think for a second Smartlabs / Vendor is taking a loss for them, ever . . .

 

Here is a perfect example of blow out prices and the vendor is still making a profit and Smartlabs.

 

 

Do you all see the 2477D for $9.99? The LED bulb for $14.97, and the HUB II combo for $59.99? This is at the Canadian price too!

[larryllix]

This is very common practice in North America and I see nothing illegal about it at all, especially in Canada.

 

MSRP is just that manufacturer's suggested retail price and the manufacturer can suggest anything they want as well as change it whenever they want.

 

OTOH, what is litigable is raising the price and advertising $20 off the "Regular price". "Regular price" has a clear and contestable legal definition. Sears was taken to court and successfully sued for advertising a nation wide ale of so much off the regular price when the regular price was never that high. IIRC this was in the late 70s. The judge fined the Sears chain $1000.00. Just a little more than their Sunday profits for 2 minutes on that item.

 

I want some income tax back due to our government not practicing the due diligence  required for our best interest as promised publicly in their election campaigns. If I die holding my breath I hope some of my taxes pay for my rotting body to be disposed of from the gutter. I also hope they charge themselves taxes on the service provided on their dime.

 

Dustbin is laughing now.

[Teken]

This is very common practice in North America and I see nothing illegal about it at all, especially in Canada.

 

MSRP is just that manufacturer's suggested retail price and the manufacturer can suggest anything they want as well as change it whenever they want.

 

OTOH, what is litigable is raising the price and advertising $20 off the "Regular price". "Regular price" has a clear and contestable legal definition. Sears was taken to court and successfully sued for advertising a nation wide ale of so much off the regular price when the regular price was never that high. IIRC this was in the late 70s. The judge fined the Sears chain $1000.00. Just a little more than their Sunday profits for 2 minutes on that item.

 

I want some income tax back due to our government not practicing the due diligence  required for our best interest as promised publicly in their election campaigns. If I die holding my breath I hope some of my taxes pay for my rotting body to be disposed of from the gutter. I also hope they charge themselves taxes on the service provided on their dime.

 

Dustbin is laughing now.

 

Larry,

 

I believe you missed what I said the everyday price not MSRP was $99.XX for the four pack which I listed above. This price was present and in effect until this e-mail came out.

 

It now says $107 - 125.XX for the same four pack items . . . Perhaps others may not see it as illegal but sure as sh^t that is shady in my eyes.

[MWareman]

I know that in the UK their are consumer protection laws that make it criminally illegal to raise the price in order to show a discount. The product had to be offered at the original price for at least 30 days prior to the publisher discount or sale. I wouldn't be surprised if a similar law exists in Canada, and I know that no such law exists in the good old USA.

[larryllix]

Larry,

 

I believe you missed what I said the everyday price not MSRP was $99.XX for the four pack which I listed above. This price was present and in effect until this e-mail came out.

 

It now says $107 - 125.XX for the same four pack items . . . Perhaps others may not see it as illegal but sure as sh^t that is shady in my eyes.

Oh I agree it is shady but now the "everyday price" is $107-$125. They don't promise to hold those "everyday prices"  forever.

 

Have a look at the investors crapola. When an investment drops 50% and later it rises back 50% they and they encourage the misconception or the public to think the investment is back to what it started with.

 

100% - 50% = 50%;     50% x 150% = 75% of the  original investment.

 

Fools and their money are easily parted.

 

"Don't go away angry, Just go away....

 

             so that the next fool will not hear your warning."

 

There is no honesty anymore. Call your lawyer, they need to work too,