Consumer power lies in the pocket

‘Who can I complain to if a shop is overpricing goods?”

That question leapt out at me in my Twitter feed this week.

It was posed by UK consumer guru Martin Lewis, with a link to his popular website, www.moneysavingexpert.com.

“This question, in various guises, is one of the most common I’m asked,” he began.

It’s the same with me, and his answer is the same I give.

“In a nutshell, the answer is no one…

“Stores can sell goods at any price they choose. Your right is not to buy it at that price.”

Yes, the price of a box of popcorn at the movies is a complete rip-off, with possibly the biggest profit margin of all, but you can choose not to buy it.

Yes, it’s annoying when you’ve bought a TV at one retailer, only to find exactly the same one for a few hundred rand less at a competing retailer, but you can’t compel the first one to take it back and refund you so that you can buy the cheaper one.

If it becomes defective within six months, you do have the right to insist on a refund – or a replacement or repair – but that’s another issue.

The time to do price comparisons is before you do the deal, not afterwards.

Lewis tells his readers: “If you do find it over-expensive, while you have no ‘rights’, you can have legitimate expectations. Feel free to tell the world that you’ve found outrageously-priced goods. It may hit a store’s reputation, which can be as powerful as legal rights.

“If you later discover you have overpaid, you have no rights to take an item back. Some stores may allow it, but on price at least, it’s ‘let the buyer beware’.”

Social media is a great way to vent, feel free to tweet me (@wendyknowler) if you come across a real rip-off of a price.

But before you let rip, there are a few things you should bear in mind when comparing prices of identical goods.

Convenience costs.

Sometimes it costs a lot. The milk or cat food you buy at 10pm from the shop at the petrol station is going to cost more than it does in the supermarket which isn’t open all hours and isn’t quite as easily accessible.

Stores that offer credit – even if you don’t avail yourself of it – generally have higher prices than those which don’t.

Good after-sales service has benefits built into the retail price.

Some stores go beyond the provisions of the Consumer Protection Act and will take items back, in exchange for a credit note even if they are not defective, while others don’t even comply with the CPA’s implied six-month warranty on defective goods.

Compare after-sales policies along with their prices.

Ultimately, a retailer will charge what sufficient numbers of consumers are willing to pay. You get to decide whether you’re willing or not.