Product Ads come in four basic types: The Door Buster Ad, The Step-up Ad, The Rebate Ad, and The Finance Promotion Ad.
The Door Buster Ad:
Be wary of the Door Buster. These items are intended to bring bodies into the store; they are usually money losers, no name branded units that may not be a great consumer value either. Door Buster Ads are very common during holiday shopping periods, such as Black Friday, the Day after Christmas, New Year's Day, July 4th, and Labor Day.
If you are looking for something for your home theater system, is that bargain TV going give you great picture quality? Does that $29 DVD player have all the needed outputs or features you need and play ALL types of DVDs, CD, CDrs and CDrws? For this I would bring a DVD and or CD/CDr to play on the demo unit to make sure.
Ask yourself: "Is it really worth it to get up before dawn on the day after Thanksgiving to do battle with the "masses" for the first crack at something that you may end up waiting in another long line to return the day after Christmas?"
The Step-up Ad:
Alongside the door buster Ads are Ads for "step-up" products that may suit your purposes better. The strategy here for this type of Ad the retailer hopes that the consumer will actually by the step-up product, rather than the door buster. Although, on the surface, this might be considered a "bait-and-switch" scheme, it is, and it isn't. Legally, as long as both products are in stock, the bait-and-switch issue is minimized, as long as you are not pressured into the step-up item.
A reasonable step-up item may actually represent a better value. These units are usually recognizable brands and have features and performance (such as a TV or DVD player with an HDMI connection, a home theater system with better speakers, or a Blu-ray Disc player with an internet connection) that will benefit the consumer more than the door buster.
This is where your previous product research comes in handy. Of course, these items are better money makers for the store. However, that is not a bad thing. The consumer can get a good value and, at the same time, the retailer can still make a little money; if not, the store eventually goes out of business.
The Rebate Ad:
Take note of any rebates or promotions that may be in an Ad. An ad may say BrandX DVD player for $29, but the fine print might say "after $50 mail-in rebate". You pay the $79 and the sales tax on the $79 at the register, and then get a coupon for the $50 mail-in rebate. Make sure the rebate coupon has a contact number or address that enables you to track your rebate. Rebates typically take 6-8 weeks to process.
Additional rebate or similar promotions that are offered by retailers may include:
- Free Satellite TV receiver with paid subscription to programming service for a specified period (similar to a cell phone contract).
- Free DVD player or DVD recorder with purchase of big-screen television.
- Free Movies with purchase of Blu-ray Disc Player.
- Free Video Game with purchase of Sony Playstation 3, Xbox, Nintendo Wii, or other game console.
- Additional store gift certificate with purchase of a product above a certain dollar amount.
The Finance Promotion Ad:
Here is a type of Ad that you really need to look at carefully. Many times you will see an Ad, such as: "No Interest or Payments" for a specific time period, which can vary from 6 months to 2 years. However, this can be a fatal credit trap if you don't pay attention. The reason is that while it is true that you don't have to make any payments or pay interest during the specified time period mentioned in the Ad, interest still accrues during the time period, which can be quite substantial.
In other words, while you aren't required to make any principal or interest payments during the credit line period, make sure you make as many payments as possible, or pay the whole thing off, before the end of the credit period, otherwise you will start owing all of the interest charges accumulated since the date of purchase. This might be more that the price of the product.
For more tips on how to shop for home theater or consumer electronics products, check out my Practical Tips for Home Theater and Consumer Electronics Shopping and Holiday Shopping Survival Guide.
