ReplayTV's Bait And Switch Pricing
from the holiday-promotion dept
Let’s say you’re a company that has just recently bought a struggling PVR maker like ReplayTV. You know that there’s a lot of competition out there this holiday season, coming from all different directions, such as market definer TiVo and all the various cable and satellite TV providers. So what do you do? You drop your prices to a very low price and put bright green stickers on the boxes saying that the first three years of service are free. When people call you up and ask you if this great deal is for real, you tell them “absolutely”. Next, you let people snap up these boxes in short order realizing that at $150 and no service fees for 3 years, they’re getting quite a deal. Then, just as they’ve wrapped up the wonderful gift for their loved ones, you put out a press release saying that the retailers screwed up, and you will be charging a $13/month service fee after all – despite the bright green stickers. In most places that’s called bait & switch or simply lying, but the folks behind ReplayTV seem to think it’s a way to get good holiday sales.