A
few days ago I received a notice from an organization of which I’ve been a
member for many years. It said: “As directed by the President, I have upgraded
your membership, FREE OF CHARGE. This is a special courtesy to you in
recognition of your continued membership.” Acceptance required only my
signature on the enclosed acknowledgement. At the risk of looking a gift horse
in the mouth, I scrutinized the offering and there, buried in the fine print, I
found the hooker – “free of charge” extends only 94 days. At the end of that time my upgraded
membership renews at a newly increased rate unless I specifically instruct
otherwise. As for the benefits of the upgraded membership: a few meager tidbits
of no particular concern; the annual dues increase: from $69 to $117, up about
70%.
There’s
no mystery as to the offer’s intent. It’s a scheme to peddle a grossly
overpriced product disguised as a benefit. This artifice, taught in marketing
schools throughout the nation, is known as Opt-in/Opt-out marketing. It’s based
on the premise that a predetermined portion of persons who accept an initially attractive
offer will, if required to perform some function, fail to cancel out when the
benefits end. The task of its designers is adjusting the parameters so to
predict, within statistical accuracy, what percentage will neglect, for
whatever reason, to opt out.
Though
I regularly receive such duplicitous offerings from various companies – an even
more egregious proposal arrived from a major bank the following day – I don’t
normally take offense at deceptive pitches. I fully expect the nation’s
financial community to operate in a high-handed manner, almost as a matter of
course. My surprise was being treated in this fashion by an organization for
which I had regard. However, perhaps it’s to be expected. It appears that as an
entity grows in size, the activities of its marketing department become more
remote from its fundamental business or service operation. And as these
departments tend to hire persons with marketing school degrees, all taught the
same techniques, the results are inevitable.
A
concluding thought: It’s a hostile world out there, so you must be continually
on guard to avoid being ripped off. And above all, be aware that there are no
sure guidelines by which to distinguish the good guys from the bad guys.
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If you enjoy this
weekly Straight Talk by Al Jacobs, you’re invited to check out my monthly
Financial Newsletter, as well as my new book, Roadway to Prosperity
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