By Rebecca Styles
Research Lead | Hautū Rangahau
Harvey Norman promised a “great price”, “super deal”, “huge deal” or a “massive stock sellout” every week on most of the products we tracked online. We think constant discounts risk misleading customers.
That’s why we’re awarding Harvey Norman the ‘No Harvey, No’ award for potentially misleading specials, as part of Consumer NZ’s annual Yeah, Nah Awards.
We tracked 10 products online across four big box retailers over 9 weeks to see what deals they had on offer.
Harvey Norman stood out amongst its competitors for promoting its products as a “great price”, “super deal”, “huge deal” or a “massive stock sellout” for nine out of the ten products we tracked, for nearly every week we tracked them.
This continual promotional pricing, designed to give customers the impression they’re paying less than they usually would, is potentially misleading and a breach of the Fair Trading Act.
In 2017, the Commerce Commission wrote to retailers reminding them of the rules around promotions. It noted that if a business constantly sells a product at a special price, that special becomes the usual selling price.
We asked Harvey Norman what the price labels mean. A spokesperson said, “in the majority of cases, Harvey Norman’s ‘great’ prices are less than those of competitors.”
The retailer added that it doesn’t make “promotional claims where a product is not being sold at a promoted price” and that its practices are consistent with the “industry approach to pricing and labelling decisions.”
Harvey Norman also said customers compare prices across retailers rather than checking the price of a product at the same retailer over time.
However, given the pricing concerns Consumer NZ has, Harvey Norman is reviewing them, “as a matter of priority.”
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The ‘specials’ at Harvey Norman
Samsung microwave 23L
This Samsung microwave was on ‘special’ every week throughout the entire 9 weeks we tracked. The price ranged from $199 to $259 but it was always labelled as a “great price”, “super deal”, or “massive stock sellout”.
We’re not convinced anyone was getting a “great price” at $259, when we only found the same microwave for sale at a higher price once, at Noel Leeming, during the 9 weeks. The fact the special continued for 9 weeks straight is also concerning.
Kenwood Chef Mixer
There seemed to be no rhyme or reason to the language and pricing Harvey Norman used for the Kenwood Chef Mixer.
At a “great price” it was on offer for $439.00, while for a “super deal” it was just $11 cheaper two weeks later.
A “massive stock sellout” was the same price as the “super deal” at $428.00.
The mixer was also on special every week over the 9 weeks and there was just a $50 difference between the cheapest and most expensive prices.
By comparison, at Briscoes, the same mixer was $999.99 at a normal price, and at 50% off was $500.00.
Farmers also clearly indicated when the mixer was on special, as did Noel Leeming.
Russell Hobbs Compact Kettle
This kettle was also on sale for 9 weeks straight; and was labelled a “great price” for 5 out of those 9 weeks. The “great price” ranged from $39.00 to $49.00. In the same price range, it was also labelled as a “super deal”, a “huge deal” and a “massive stock sellout”.
Breville the Big One Sandwich Maker
This toastie maker was priced at $64 for 7 of the 9 weeks we tracked, during which it was variously labelled as a “great price, “super deal”, “massive stock sellout” and even a “huge deal”.
We would argue that $64 is the normal price rather than a special.
The rules about specials
A sale has to be a genuine opportunity to buy a product at a reduced price and should be for a short time.
If a retailer usually sells a product at a special price (regardless of what the recommended retail price (RRP) is), the special price becomes its usual selling price.
Do your research before you buy. If you’re looking for a particular appliance, track a few retailers’ prices online for a few weeks, or use a price comparison website like Priceme or PriceSpy, before you go to the shops to make sure you’re getting a good deal.
Yeah, Nah Awards
Our second-ever Yeah, Nah Awards highlight the worst of the worst in business to pressure poor-performing companies to up their game.
