Festive advice on trying to sell-out Christmas stock

09 December 2005

The nights are drawing in, mulled wine suddenly seems drinkable and Santa’s reindeer are getting into shape.  Yes, Christmas is fast approaching and, with competition for the festive buck ever more fierce, sales and promotions have started to appear even as last year’s decorations continue to gather dust.

So now seems the right time to offer a few words of advice to any company planning to slash prices to win over customers:

1. Is the discount attainable?  The ASA recently upheld complaints that an advertisement for Telewest digital TV services claiming “The Premiership for 25% less than Sky” was misleading.  Although the specific TV channels were indeed 25% cheaper with Telewest, potential customers were obliged to buy an inclusive telephony package.  Throw that extra cost into the mix and Telewest was only a little cheaper than a Sky package plus basic BT line rental.  So, a tip for any retailer offering discounts on one part of a package is: make sure savings claims take into account the complete commitment required by consumers, because the ASA will consider an artificial separation of component parts misleading.
2. What are you comparing against?  Massive percentage savings claims always catch the eye; but are they as good as they seem?  Numerous advertisers have been pulled up by the ASA for comparing against higher prices that have applied at some time in the past but were not those available immediately before.  Consumer benefits should always be clear, so say what you’re comparing against: last week’s, last month’s or last year’s price!  Vagueness is the enemy of comparisons!
3. Can you meet demand?  Your box of sales delights is likely to contain a few gems that will sell out as soon as you make them available.  The ASA has never objected to attempts to lure people in store with super special limited offers, so long as the ads make the nature of any limitation clear.  If a reduction applies to the “first fifty customers only” or only “very limited stock” is available, an ad that omits to mention those important conditions will lead to disappointed customers and perhaps several complaints to the ASA about sharp practice.  Of course, claiming that products are likely to be out of stock very shortly if you were have tens of thousands locked in your warehouse will also be a problem.
4. Know the statutory rules.  The DTI has just revised the Code of Practice for Traders on Price Indications, essential bed-time reading for every retailer.  The updated code includes new guidance on the conditions you have to meet when quoting a sale price as well as on the use of RRPs and special rules for food retailers, ticket agents and, well, nearly everyone who exchanges goods and services for money one way or another.  Download it for free from the HMSO website or you could face an unwelcome knock on the door from a Trading Standards officer.

Never thought a simple “x% off” claim could be so fraught with problems?  Well, with a bit of care, there’s no reason why any ad, or promotion, money-off or otherwise, should breach the CAP Code.  And, if you’d like some help from the experts, you can consult Copy Advice for fast and free advice about the Code by e-mailing copyadvice@cap.org.uk or ringing 0207492 2100.  Remember, the Code applies to many types of marcom, including mailings and leaflets and a lot of material you’ll find in store, too, so why take any chances?

PS To any reader who has got this far … Have a very merry Xmas!