Four Dirty Little Secrets

Caveat emptor! In English, this simple Latin phrase translates into “Let the buyer beware!” In today’s rough and tumble world, the modern consumer has to be their own best advocate. To improve the bottom line, everyone from your local gym to that trusted brand of cereal are secretly cutting corners and passing the savings to themselves. Other industries simply don’t want you know how they conduct business. Here’s a few things they don’t want you to know:

1. Drug Companies Love Your Doctor

   You rely on your family doctor to give you the best care possible, including prescribing the right medication for treatment. Drug manufactures know this and spend up to $8000 in advertising annually to get your doctor’s attention with flashy ads in trade publications and mailers. Some target primary care physicians with small gifts such as pens, cups, note pads and t-shirts. Others buy lunch for the office staff to get a few precious minutes with the doctor to tout the latest designer drug. Some even go as far as sponsoring “medical seminars” at posh hotels and resorts. These are usually nothing more than an opportunity for the company to showcase their newest inventory. The result is the patient often pays extra for an expensive name brand drug prescription. To protect yourself, speak with your doctor and ask if a prescription is really necessary to treat your particular illness. If so, ask if a generic alternative is available instead.

2. Fitness Clubs Want You to Break Your Resolution

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   The start of each year brings many to the gym, hoping to keep that most popular of New Year’s Resolutions; getting in shape. On average, a person will stick with a fitness program for about 90 days. Fitness clubs depend on this trend. January is the busiest month for new member enrollments and an unused 2-year membership is pure profit for the gym. To avoid getting stuck with a long-term contract you might not use, ask if the gym offers an introductory or month-to-month membership. This may cost more up front, but if you decide the gym doesn’t fit your needs you should be able to cancel your membership without penalty.

3. Your Odds of Winning are Zero

   State lotteries offer players the chance to win big with scratch and win tickets. The problem is, most states will continue to sell the tickets after all of the top prizes have been won. University Professor, Scott Hoover is suing the state of Virginia after he discovered his chances of winning the grand prize in the “Beginners Luck” lottery was zero. Virginia had already awarded most of the top prizes but continued selling the $5 scratch off tickets. Hoover’s attorney contends the state misled the public by offering $75,000 in prizes that no longer existed. If you play, your best bet is to check the state’s lottery web site. Most show each type of lottery tickets on sale, along with odds of winning and which prizes have already been awarded.

4. The Incredible Shrinking Product

   During tough economic times, it’s common for some companies to downsize labor. Some are doing the same with their products. The shrinkage is usually subtle, in most cases about a half-ounce or a slightly smaller package, depending on the product but that’s all that shrinks. Consumers still pay full price for less product. This practice is nothing new according to industry insiders. During lean times companies have to choose between either raising prices or reducing the size of the product. Since the latter can be done with little notice from consumers, it’s a no-brainer. What can the consumer do about this? Not much. With the cost of grain, oil and other commodities hitting record prices, food manufactures feel this practice is necessary. Marketing consultants find consumers would rather pay the same price for an 11-ounce package of a product than pay more for 12 ounces.