October 19, 2021

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Wholesale, construction materials |  "Always" campaign on windows: expert warns

Wholesale, construction materials | “Always” campaign on windows: expert warns

There are only a few days between the campaign periods of Tindevindu.No. Experts believe that consumers are manipulating when they turn on the countdown clock at the same time.

Since this winter / spring this year, 30% of windows on Tindevindu.no have regular campaigns. There are not many days between each campaign period, Netavision experiences.

In early September / October, their previous campaign expired. Already on Monday, October 4, a new campaign period was underway – a 30 percent “discount”.

– Sell enough items at regular prices

The Norwegian consumer company oversees marketing law, and there are clear rules for what is called a sales campaign.

During continuous sales, there should be intermittent periods where a certain number of items are sold at “regular” prices so that these prices can turn back into actual comparative prices, says Christopher Bjorn, divisional manager of the oversight department. Norwegian Consumer Institute, To Netavision.

He emphasizes that he speaks on a general basis – not about this particular example. The number to be sold should be considered separately in each individual case. This varies depending on the type of item in question and how common it is to sell the item in question.

There is no set rule for how long a store can sell – so it is important to consider whether marketing is misleading in each individual case.

The Norwegian consumer company is aware of the frequent campaigns in some stores, and questions arise about actual pre-pricing documents, Bjørnum says. But a countdown showing the continuous time period of the sale run by Tindevindu, no problem, the sale will actually be stopped as stated.

Pikemaker currently has a campaign that runs 50 percent on all windows, except for a few brands. They also write that the offer applies to the price list of suppliers.

– If a 50 percent discount is marketed for an item, the discount must be true. Bijarn says that when it comes to pointing prices, the actual prices in the market should be the indicator prices.

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– Discount machine

According to the Norwegian School of Management Professor Dorvalin Andreason two elements are important here. One is pricing, the player must specify the actual normal price in the market based on the discounted advertising price. This is something that is required by marketing law, Andreason points out.

Second, they have a fixed offer, but keeping the countdown clock creates time pressure for consumers.

When they start thinking, creating a feeling of “now you have to shop, now the offer is expiring” and then three days later there is a new campaign, and then it borders on unethical marketing, says Anderson.

– It’s about manipulation. They treat you like an ad offer expires. This creates time pressure on you, but it is not true when there is a new campaign after a while.

He does not think it will affect the reputation of the company to the extent that it is considered junk, but it can affect how customers view the player – always with advertising prices:

– They will be perceived as a discount machine. Everyone thinks there is always a discount here. But how many times can one shout “wolf wolf” before losing the effectiveness of the propaganda message? Andreason asks.

– I agree that it loses effect

Christine Risnes, general manager of Tindevindu, came under fire and asked why they campaign so often.

– It’s true that we – like our competitors – run campaigns often, and 30 percent of campaigns occur frequently in our campaigns, she responds.

– We can admit that campaign news often loses its effect due to campaigns. As a small player in a market where big competitors have a 40-60 percent discount throughout the year, we expect customers to often get a discount when they ask for offers on the windows, he responded to some criticism.

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When they often run campaigns, Riznus does not answer Netavisan’s question as to why they can only keep a fixed low price instead of saying advertising price.

Why the online newspaper refers to “list price” instead of “pre-price”, and Risnus responds to the following:

He says the term “list price” is a well-used term in the window industry, and it is basically based on a price list where professional customers can get X percent fixed discount deals.

According to the Norwegian consumer company, a sufficient number of products must be sold at “normal” prices so that prices become real relative prices. The online newspaper asked if they could prove this, as well as how many windows they sold this weekend.

– Yes, we sell windows and doors at list prices outside of campaign periods. I can confirm that the windows have been sold this weekend, but I think the number of windows we have sold, in general, is not fair to go, she says.

However, Risnus says it’s interesting to hear reviews of the Countdown clock.

– I’ll take this internally for evaluation, she says.

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– Items ordered

Peter Natchen, Director of Communications, Comments and Ecom at Bigmaker, was given the opportunity to respond to what the Norwegian consumer company has to say about Jorce’s sales marketing, which is the campaign currently being run by Bigmaker.

How can consumers be sure that there is a real front price on the windows you are selling at half price now?

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– Because he says we can document the price from the supplier’s invoice and the 50 percent discount only applies during the campaign period.

– What is the reason you refer to the “supplier’s price list”, not your own pre-price?

This is because the offer applies only to the items ordered as advertised and not to the stored items. The reason we specify the supplier’s price list is because we do not have our own price list, so there is no pre-price. Pikemaker’s sellers use the supplier’s price list and use these to calculate the customer’s price, he responds.

Natsan points out that the building materials industry calls windows “purchasing materials”. This means goods that are not in stock, but items that are always ordered in the customer’s measurements and specifications, he explains.

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The online newspaper asks why the pre-price or price is not listed on each product from the supplier’s invoice, so it becomes clear what the “pre-price” is and what the ad price is.

– Because we have no personal products to mention. Here, customers can make special orders according to the size, shape, color and characteristics and types of glass, perfectly tailored to the customer’s needs, Natsan responds.

– Windows for a home are generally not standard, there are many sizes and qualities where we collect the price from the supplier from time to time, based on the supplier’s price list. Many suppliers have digital solutions where sellers enter profiles and get prices back, he points out.