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| Wednesday, November 15, 2006 |
| I lost my bet. |
I fell to the old school trick known as the "white van scam"
I was just about to leave Vivocity with my company's driver and some van pulled up and approach us about some high end speakers.
I rejected them totally and offered only $100. But I guess it was their cost price.
When I left the building with my driver, he convinced me that it was worth it and that the speakers will cost a bomb even if it's the most ULU brand in the market. Moreover, he believe that the story on them having extra stock were very very much possible.
So taking his word for real, we U-turn back to the carpark of Vivocity and hunt the ultra-mindfucking-salespersons.
Negotiated the price and paid $198 in total.
Knowing that I could be part of a scam which I was willingly taking part in, constantly hoping that my $198 bet could be as lucky as a single roulette round, I googled it immediately when I got home.
This is what I found:
Nov 5, 2006
'Pssst, want to buy cheap audio system?'
Operating from public carparks, the salesmen try to offload 'extra stock' of goods at bargain prices and don't issue receipts
By Sarah Ng
THEY drive up in an unmarked white van, wave at motorists getting into or out of their vehicles and shout out that they have audio systems going at bargain prices or even for free.
If the motorists' interest is piqued, the salesmen - often working in pairs - then launch into a well-rehearsed sales pitch.
The stories they tell are almost always the same: A supplier had given them extra stock by mistake which they don't want to return. Another variation: A customer took delivery of fewer sets than expected, leaving them with extras.
The motorists are then asked for anything between $200 and $1,200 as kopi or beer money for the goods, the promise of 'free' sets notwithstanding.
But probe them further on how they would account for the 'lost' goods, they sidestep the question and go on to say that the retail price in shops is in the thousands of dollars.
Some have even been known to try to load the goods into motorists' cars even while convincing them to make the purchase.
The Consumers Association of Singapore (Case) has received 13 complaints about such sales tactics to date this year, up from eight last year.
Going by anecdotal evidence and the heated discussions on Internet forums, however, the practice has become a lot more rampant in recent months.
These 'white-van salesmen' have been spotted across the island at public and HDB multi-storey carparks - from Bishan to Boon Lay.
They are also known to operate in the carparks of shopping malls such as Jurong Point and Parkway Parade as well as the newly opened VivoCity.
The sound systems they sell, said to be from the United States, are not immediately recognisable here, going by brands such as Carlson Audio.
Some of these salesmen have claimed they are from Mystik Entertainment and Dickson Enterprise. A check with the Accounting and Corporate Regulatory Authority revealed that both listed direct selling as one of their business activities.
Of the 21 complaints Case has received, six were against Mystik and three, Dickson. The others who complained could not name the companies involved as they were not issued invoices or receipts.
Their main grouses were the way they were led into buying the sound systems and the seemingly arbitrary way in which prices were finally fixed, depending on how hard they bargained.
Mr Alan Phang, an assistant manager, 39, paid $330 for three speakers after he was approached in a carpark in Bukit Merah.
'I was looking for speakers to upgrade my current system and the salesmen were very convincing about their offer,' he told The Sunday Times.
Mr Phang and 10 others, who had paid between $250 and $600 for their goods, are now lodging a joint complaint with Case.
Commenting on the incident in retrospect, Mr Phang said: 'How can there be so many extra sets of sound systems given by suppliers by mistake?'
The problem, said lawyer Amolat Singh, is that it would be difficult to pin criminal charges on the salesmen or their companies because it is technically, not cheating.
'It is a normal transaction and a case of 'willing buyer, willing seller', where the buyer had agreed on the selling price,' he said.
Indeed, if the salesmen's pitch is true, the buyer could get into trouble for buying stolen goods.
But using such tactics could mean committing an errant practice spelt out by the Consumer Protection (Fair Trading) Act.
Said Case executive director Seah Seng Choon: 'If the business claims excess supply for the sale when this is not so, the business may have run foul of the Act by giving false reasons for selling goods cheaply.'
The consumer watchdog said that if it received more complaints against any one company, it may exercise its power to make the firm sign a 'voluntary compliance agreement'.
Under this agreement, the firm will have to stop its errant practice and compensate consumers who have filed complaints with Case, if it is shown that they have breached the Consumer Protection (Fair Trading) Act.
Case has managed to get a full refund of $360 from Mystik Entertainment for a motorist who filed a formal complaint. He had bought a home theatre system that turned out to be defective.
Dickson Enterprise's owner and manager Victor Toh, 33, said that he was not aware of the sales tactics used by his salesmen.
But he added: 'I will talk to them. I think there's some misleading. I think it's better that they not use this pitch of extra sets.'
Still, he argued that buyers should know that the goods cannot be extra sets if they were given a receipt.
When contacted, Mystik Entertainment's co-owner Karen Chee said she would get the company's business development manager to respond but this did not happen. Subsequent calls to Mystik's office went unanswered.
The advice from Case is to shun sales made from the back of a van. Said Mr Seah: 'Even if a receipt or invoice is issued, consumers may not be able to ensure that it is given in the name of a legitimate company.
'Without a permanent shopfront, the vendor cannot be traced easily and the consumers may not be able to seek redress if anything goes wrong.'
ngsls@sph.com.sg
Here's their sales manual...
An Unethical Guide to the Street-Sold Stereo Speaker Business:
- kindly submitted by Le Saint, of Montreal Canada.
Do you want to make money? Does the thought of bringing home a $1,000 a week while having the time of your life interest you?
It's easy as long as you (1) have a legal business license for the town you intend to sell in, (2) work for the local stereo speaker scam company, and (3) want to make money!
All you need to learn are these few skills:
"The Hit"
Here you will learn to pick the best target to sell to. Within the business, these people are referred to as "hits." For obvious reasons, the ideal person to choose is the single male, age 20-35. These particular individuals seem to enjoy their electronic gadgets, regardless of cost, and the more high-tech they sound, the more they want them.
Men in expensive cars and trucks are the best to choose because they don't mind spending the extra money on nice things.
Preferably, these men are driving alone because when there is more than one person in the car, it makes it twice as difficult to focus your energy and influence on the "hit." Also, the other person can have time to think about what is going on and may clue in their companion.
Avoid the elderly! Unless they seem to be particularly hip, the majority of the population of over-60 individuals in this country have no desire to spend their social security checks on big speakers. Also, you may be putting all of your energy into the show that will have no results while the perfect hit is driving right past you.
Wives and girlfriends can be dangerous to your efforts, as well. If you see someone fitting this description with your intended hit, pass on them unless you're feeling brave, because there is nothing more demoralizing than a spineless man who after buying into your whole story says "I love these things, but let me go ask my wife." Ninety-nine times out of a hundred the man will return, crestfallen to inform you that SHE doesn't want them.
A single woman in a car is a different story, however. While never as easy to sell as a man, women can also be convinced that they need speakers, but remember that you cannot be as aggressive with the sale.
"The Pitch"
This is the most important part of the entire process. The pitch is which you quickly (since you may be speeding down a road yelling out the window) tell your hit what you have to sell and why.
The story that you use is always the same. Why? Because we have been in this business since the seventies and it works! The pitch must be given with all the excitement that you can muster. Remember, you are trying to convince your hit that you are sitting on $6,000 of surplus equipment.
The pitch is:
"Hey man, hey guy! Want a big set of speakers for your house? I work for an audio company and they just overloaded me!"
The majority of the population has an attention span of thirteen seconds before their mind begins to wander. This is because everyone is so used to the short spot commercials they see all day long on TV, so make it quick.
After shouting out the pitch, follow it immediately with "Pull over and I'll show you!"
Always tell your hit what to do. The concept is to take control of their mind, making them think in an ordered way as you follow through your routine. Therefore you never ask the hit to pull over, because they have the option of saying "No." Just tell them to and you will be surprised how many people follow you to the side of the road.
"The Show"
This is the time to let your dramatic skill shine. You are about to bring the hit to the van and actually show them the product that you are trying to sell for much more than its worth, so you must be convincing.
You are only supposed to be a delivery driver who got overloaded, so don't act too knowledgeable about the speaker. You will be give a spec sheet that has the dimensions of the speakers and false power ranges and additions that do not exist, but they won't know this. All they see is the shiny, laminated, professional looking sheet, and you.
When the hit gets out of their car, bounce up to them and grab their hand, shaking it while explaining the following story. Be sure to include any possible detail that you think might have occurred, since it will make your story much more believable.
If you just won the lottery, I bet you could tell someone everything that happened to you that day, minute to minute.
You tell the hit that you arrived to work in order to pick up your daily deliveries, and someone in the confusion of the morning accidentally doubled your order since regular speakers come in pairs, but the "special" studio monitors that you have actually sold individually.
Treat the hit as thought they know more about everything than you do. Build their ego and they will become your instant friend. While at the warehouse, the foreman signed the invoice (an imitation copy given to you every morning at the office), and you left with the extra speakers.
Make your boss out to be a real hard-nose, so that they feel bad for you, the minimum wage earner, and forget about the moral side of the issue. You need to bring back $200 for each pair sold, but the suggested retail price on the spec. sheet is $850 apiece, so you have a lot of leeway since all other money over $ 200 is your to keep.
While talking non-stop the whole time (don't give them time to think) occasionally shove the spec sheet in front of their face for emphasis, but not too often or the hit will concentrate on the sheet and your words will lose their emphasis.
Now show them the speaker, all the while telling them of the different interesting things that these "professional quality" speakers have that others don't. Remember, these people did not leave their house with the intention of buying any speakers that day, so it's up to you to convince them that they need these things.
Always look them in the eye, as well. It may make them nervous at first, but once they become caught up in your voice they will see you as less shady. Tap the woofer of the speaker to show them the quality of the polypropylene, but not too hard. In order to make it sound more solid, hit the wooden box of the speaker with the palm of your while your finger taps the woofer.
After going over the other qualities of the speaker, it's time for the sale. If the guy is still there at this point, you've got him interested so close the sale and get your money! The easiest way to reach this point is when you finish the whole story immediately follow it with "So Bill (always use their name if they tell it to you), what's the most you can do?"
Then STOP! Do not say another word.
The Close
This is the only part of the show where silence is golden. You have asked the buying question, now leave it to the hit to bring up a figure. Wait five minutes if you have to, all the time staring at the hit with an expectant look on your face.
After receiving his offer, blow it out of the water with a ridiculous over-offer. You never know how much money your hit can get his hands on, so don't cut yourself short.
Pitch 'em high, look 'em in the eye, and watch 'em buy.
After haggling ("Come on guy, I know what these are worth, I'm not gonna just give 'em away! What's the most, most, most you can do?"), decide on how much you can get out of this person, and once your reach that figure, immediately say "Where do you have to go to get the money?"
As you say this, grab his hand again and shake it as if you just sealed the deal, pick up the speaker and start walking it to his car. If the door is unlocked, o pen it and stuff the speaker in. If the hit had any doubts about the status of the sale, they are gone now. This is called "the slam."
Off to the Bank
If you are working with a partner, ask the hit if you can ride with him to the bank, already assuming that you are going there: "Not that I don't trust you or anything, man, but you know how it is."
Have your partner follow the two of you in the van, in case the guy tries to flee with the goods. At the bank, get out and follow him to the ATM, teller, or whatever, and stand right next to him, all the while talking about something other than the sale, so that he does not think about the fact that he is about to take out hundreds of dollars for something that he doesn't need.
If you happen to see that he has more money in his account, don't be afraid to make a scene accusing him to trying to scam YOU: "Hey, guy, come on, these are worth almost $2,000 a pair and I'm giving them to you for $600 (a $400 profit under the false front of a good deal), you can do another fifty bucks." They may buy this, they may not, but it's worth the try, and the sale is technically already over so it's hard to screw up at this point, since you are in control.
You have just successfully made $400 (which you split with your partner) for fifteen minutes of work. Not bad! Of course, the majority of your pitches will not be successful, but the more you pitch, the more you sell. Happy Hunting! |
posted by Lawrence Yash Lee @ Wednesday, November 15, 2006   |
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