A topic came up the other day where a person was telling me how he didn\u00e2\u20ac\u2122t get how one of his competitors was able to offer pretty much the same computer related service that he did at such a lower price. His price was more expensive and he barely made any profit on it as is. <\/p>\n
We then started to talk about some of the more questionable ways businesses are able to provide products or services at what appears to be a low price and a great deal. Some of the following came up in our discussions:<\/p>\n
1) Outsourced Cheap Labor \u00e2\u20ac\u201c<\/strong> This is probably the most common method people are aware of as when companies hire cheap outside labor they can in turn put a cheaper price tag on the product and still make a decent profit. Example, if you ever phone a customer support line where the person doesn\u00e2\u20ac\u2122t seem to quite grasp the native language of the area then odds are the company is using cheap labor.<\/p>\n 2) The Practice of Overselling \u00e2\u20ac\u201c<\/strong> A lot of service providers often oversell its actual service capacity in an effort to lure people into believing that they are getting a great deal for the price. This is very common in the low end web hosting industry. <\/p>\n For example, you may see a provider offering you this package stating you get say 50 gigabytes of space for only $3.95 a month which seems great compared to everyone else. Essentially, they know that most people will never even come close to using that much and so it is basically a marketing ploy to get you to sign up.<\/p>\n 3) Knock-Off Products \u00e2\u20ac\u201c<\/strong> This is probably another more common knowledge factor where if you see some place that appears to sell the exact same brand of product at an extremely lower price there are chances that the product isn\u00e2\u20ac\u2122t genuine.<\/p>\n 4) Restrictions To Prevent You From Fully Using It \u00e2\u20ac\u201c<\/strong> More times than I can count, a lot of companies who claim to give you a lot for a low price often place these restrictions and bottlenecks that we often overlook. As a fictional sample, let\u00e2\u20ac\u2122s pretend that we need a lot of specially filtered water and a company agreed that you can get up to 150,000 gallons of water from them each month for $300.<\/p>\n On their guides and restrictions, they indicate that the dispenser you must use to get the water is able to dispense 100 gallons of water an hour. If you think about it, even at 24 hours a day for thirty days that means at max you can only get 72 thousand gallons of water. You\u00e2\u20ac\u2122d be surprised how common this practice is used.<\/p>\n 5) Selling Demo Goods and Products \u00e2\u20ac\u201c<\/strong> This might sound off the wall, but sometimes certain companies sell to the end consumer products that were either given to them for free or at a heavily discounted price for the sole purpose that they were suppose to use it as a display or learning tool.<\/p>\n I remember when I bought a printer from an online vendor back in the earlier Internet days the price for the product seemed to be cheaper than everywhere else. To my surprise, when I actually got the printer it came with all these manuals and stickers on how to set up \u00e2\u20ac\u0153this demo model\u00e2\u20ac\u009d for display at a store.<\/p>\n Those were just some of the things that we were aware of personally. There probably are a lot of other methods used out there and so it never hurts to become savvier about the things you buy.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" A topic came up the other day where a person was telling me how he didn\u00e2\u20ac\u2122t get how one of his competitors was able to offer pretty much the same computer related service that he did at such a lower price. His price was more expensive and he barely made any profit on it as […]<\/p>\n","protected":false},"author":1,"featured_media":11567,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[4],"tags":[5953,897,898,899,900,901,902],"class_list":["post-706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business","tag-cheap-labor","tag-cheap-services","tag-low-end-products","tag-making-a-profit","tag-marketing-ploy","tag-savvy-consumer"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.al6400.com\/blog\/wp-content\/uploads\/2020\/06\/turnout.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p6VnHC-bo","_links":{"self":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts\/706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/comments?post=706"}],"version-history":[{"count":0,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts\/706\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/media\/11567"}],"wp:attachment":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/media?parent=706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/categories?post=706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/tags?post=706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}