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Pricing blunder

Marubeni to sell PCs at 90% off

         

takagi

3:14 am on Nov 11, 2003 (gmt 0)

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The trading company listed a new PC on the site on Oct. 31 for only 19,800 yen, instead of the intended price of 198,000 yen.

"We could have canceled the contracts but we have decided not to, preferring to place emphasis on public trust in us," a company spokesman said. Some 1,500 people ordered the discounted PCs as word spread via online bulletin boards before the company learned of the mistake and corrected the price on Nov. 3, the officials said.
source: Marubeni to sell PCs at 90% off due to online pricing blunder [asia.news.yahoo.com]

ScottM

3:38 am on Nov 11, 2003 (gmt 0)

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as word spread via online bulletin boards

Not sure if I can do a 90% discount, but can I get this kind of viral-press with a 40% discount?

:>)

rise2it

5:17 am on Nov 11, 2003 (gmt 0)

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I've never figured out why companies want to get the business of customers which are intentionally trying to screw them.

Macro

2:19 pm on Nov 11, 2003 (gmt 0)

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Some customers will place orders for mis-priced products in the genuine belief that it is a sale or clearance price. The vast majority are opportunists. They want to benefit from somebody else's mistake or misfortune. They are not far removed from thieves.

I've never figured out why companies want to get the business of customers which are intentionally trying to screw them

Good point. However, and this does not relate to the above company - it is not beyond some companies to trade some stock for a large volume of "free publicity" via pre-planned mis-pricing. Those companies deserve customers who try to, as you put it, screw them.

kevinpate

2:25 pm on Nov 11, 2003 (gmt 0)

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It's nothing more tha making lemonade when you have lemons.
The peeps who swoop in to capitalize on an error and spread news of the 'deal' around are the very same peeps who, if the company said sorry, we're not honoring an obvious typo, would thrash and trash the company aqll over the place as loudly and publically as they can.

Perhaps it's not somuch courting the vultures as it is just handing over a small bucket of oats to a donkey so the critter is busy quietly chewing instead of braying and kicking and mucking up the pasture.

HughMungus

7:01 pm on Nov 12, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Exactly, Scott. Free PR. Too bad Dell didn't do the same with the $.05 monitor fiasco. Says a lot about Japanese corporate culture -- strong on responsibility.

rise2it

11:18 pm on Nov 13, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Good point - Other cultures may indeed handle customer service differently.

Other cultures may also be-head the employee which makes a costly mistake.

:-)

(Betcha my employees would act a whole lot different if that were an option!)

HughMungus

2:27 am on Nov 15, 2003 (gmt 0)

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It's not about customer service. It's about the person in charge taking responsibility for whatever happens within the organization.

Hennatron

12:57 pm on Nov 16, 2003 (gmt 0)

10+ Year Member



Kodak did something similar earlier this year in the UK when they listed a camera at the incorrect price. Once the error had been flagged, emails were sent to those orders informing them of the mistake and the correct price, apologising, then proceeded to ask if they would still like to purchase at the updated price.

I dont think it went down to well...

HughMungus

9:18 pm on Nov 16, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I'm no lawyer but there are laws about deceptive advertising. Listing a product at a certain price and then not honoring that price can be considered deceptive advertising and if there arne't laws to force advertisers to sell at the listed price, advertisers WILL abuse it.

takagi

3:54 am on Nov 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It seems Marubeni automatically sent confirmation emails stating the very low price. That made it harder for them to cancel the orders.

iThink

1:50 pm on Nov 17, 2003 (gmt 0)

10+ Year Member



I've never figured out why companies want to get the business of customers which are intentionally trying to screw them.

It was not customers who screwed that company. It was the mistake on the part of that company that they didn't proof-read their site.

sun818

3:53 pm on Nov 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



If a company wants to sell an item or not sell an item at a specific price, its their choice. Really, what are you going to do? Complain that they refunded your money? Get over it. Companies make mistakes.

Macro

5:02 pm on Nov 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Companies make mistakes

But it seems that because they are companies they should pay for any mistakes!

It was not customers who screwed that company. It was the mistake on the part of that company that they didn't proof-read their site

I'm no lawyer but there are laws about deceptive advertising

Some mistakes are glaringly obviously mistakes. When a company makes a genuine mistake punters go for the "deceptive advertising" angle as that's the best way of securing something for free, or almost free. The only thing that's cheap is the opportunist who tries to exploit a genuine mistake.

(No excuses for companies that intentionally deceive customers. They SHOULD be penalised)

HughMungus

7:38 pm on Nov 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



No excuses for companies that intentionally deceive customers.

The problem is that there is no way to tell what is a mistake and what is an effort to get people to visit your website if they never would have at all without the price that seems too good to be true. THAT is why there are laws about honoring prices that are advertised. And just because a company refuses to honor an advertised price does not mean that it is acting lawfully.

sun818

7:41 pm on Nov 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



If a company repeatedly engages in pricing mistakes, they are incompetent, deceptive, or both. Repetition is the way to know. In any event, the "responsible" way to handle the situation is up to the company.

Macro

9:09 pm on Nov 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The problem is that there is no way to tell what is a mistake

In some cases it's very obvious. A TV for 0.99p, new PCs for £3.99, Dell's monitors for $0.05. I'm not talking about the grey area. I'm talking about the cases where the mistake is very clearly a mistake.

As sun818 puts it

If a company repeatedly engages in pricing mistakes, they are incompetent, deceptive, or both

Repeated mispricing could be deception, I agree. In fact I'd go further - A one off mispricing could also be deception. But if a company, when notified, immediately apologies, makes the correction on their site, emails all customers.... c'mon!

Blanket assumption of devious practice/misleading pricing pre-supposes that it is beyond a company to make a mistake.

If a household name has a gazillion products on their corporate site and on page 876 have a glaring mistake on item 54 then I'd give them the benefit of the doubt. Especially if they took prompt action on being notified of the mistake.

It seems we expect high standards of companies and ALSO expect zero mistakes from them, but we are willing to accept, condone and encourage consumers looking to exploit someone's genuine mistake; we are willing to accept zero morals among customers?