Insist on value when you're shelling out money

Raman (name changed) purchased a Louis Vuitton golden handbag at an enormous discount from online retailer. After paying for it he waited anxiously for its arrival as he wanted to gift it to his wife on her birthday. After several weeks of follow-ups it finally arrived. When he unpacked it, it was not golden but blue in colour even though the invoice and the packing declared the bag to be golden. Angry and annoyed he contacted the retailer.

They promised to remedy the mistake. Nothing happened. A few weeks later he read an article in a newspaper mentioning this retailer to be a purveyor of fake goods. He was left quite literally holding the bag. In another case, a lady gifted herself a smartphone only to receive a week later a brick (beautifully packaged) by courier.

The one billion dollar sale of a leading retailer too made the papers. After individuals bought and paid for what they believed to be "steals" they were told that the goods were out of stock and that the money they had paid would be refunded in due course. They were out of funds without having anything to show for it while the retailer enjoyed the float for several days (which must have helped lower the interest they pay on their overdraft).

This is not confined to online purchases. Rahul was in the process of buying a luxury car. The representative spoke to him of insurance too and the selling point was that if there was even a scratch on the car, the car could be sent to the garage and it would be repainted "with no questions asked". Several months later there were some scratches, and when the car was sent back he was told that he had to pay for it. The representative feigned ignorance and the insurance company claimed that this is not covered. In another instance a car, in order to avoid hitting another car, hit a divider and the tyre burst. The body of the car was not damaged in any way and by changing the tyre the car was roadworthy.

The insurance company was contacted and the owner was told that its assessor would need to evaluate the damage and that the car should be sent to a garage as the assessor would not view it anywhere else. The owner requested that he be allowed to use it and that he'd bring the car to the garage at the time the assessor would arrive. He contacted the assessor whose number he was given and was told to have the car at the garage by 12 noon. The car was sent there. Even at 3 pm the assessor had not arrived. When the owner rang the assessor the assessor began shouting at him telling him not to interfere with his work and that he would inspect the car whenever he wished and that if the car was not there, he would then never assess the damage. He said that the owner could complain to who-ever he wished including the insurance company as though he was a law unto himself. Rahul could do nothing as he had already paid the insurance premium.

The other day a friend mentioned to me that he assumes that the life of a white good (washing machine, refrigerator et al) is only as long as it does not break down. He argued that annual maintenance contacts are money grabbing ruses because the technicians have no understanding how to repair the machines. When one of his appliances breaks down he just buys another one. He submits that it is better in the long run as good and dependable after-sales service does not exist in India, and if any person believes it does – he is living in a dream.

Service agencies take advantage of the consumer because as a nation we are lax in demanding service. When we go to a 5-star hotel having booked a sea facing room but are given a city facing room we do not complain and demand our right and the service giver knows this. In fact we are apologetic. An American or a European would never permit this. They would holler and they will take the agency to task. They would even sue. And until we as a nation begin doing this we will be taken for a ride. And the sad thing is that we have no one but ourselves to blame. If we are shelling out good money we must insist on value. Follow the money trail.

The writer is MD Cortlandt Rand and an author.