Most of us are savvy shoppers who use the Internet to do research before buying a big-ticket item. But impulsiveness and the lure of a good deal can sometimes overcome us.

By now, most Singaporeans know to avoid certain shops in Sim Lim Square, Lucky Plaza, or Chinatown. Of course, not all shops in these places are bad. Many are reputable merchants who actually can give you a good deal.

Unfortunately, we still have people falling prey to some unscrupulous merchants. They could be your parents who are not in the habit of researching on the Internet first, or they could be your friends who are not well-informed about consumer electronics. And they could walk into Sim Lim Square thinking that every shop is a good one.

Time to share this list with them of the various shady tactics some electronic shops use to cheat money:

1. Advertising prices which are too good to be true

If you know the Apple store sells an iPhone for over $800, your alarm bells should ring if a shop advertises it for a ridiculously discounted price. Like say $300 - $500.

Once you're hooked by that price, the following tactics will be used to inflate the final amount you have to cough out to upwards of $1,000:

2. Making you sign invoices with fine print

This is one of the tactics that are actually above the law. To get you committed to buying the phone at a low price, the salesman will get you to sign an invoice with fine print which makes the invoice into some sort of a binding agreement - to your wallet's detriment of course.

The fine print comes with conditions such as a mandatory 'unlocking service' for your phone.

The cost of this service? It's up to the shop to decide.

Because you signed the agreement, the Police, CASE, and small claims tribunal cannot help you much.

By the way, phones sold in Singapore already come unlocked.

3. Buying 'international warranty'

If a product is under warranty, it is under warranty. There is no difference if it is local or 'international' because you will be bringing it to a service centre in Singapore to get it repaired.

Shops selling you the 'international warranty' is just re-selling you the warranty that your product already has.

*Editor's note: As rightly pointed out by reader Aaron Loy's comment, some shops do sell legitimate International Warranties that ensure the product is covered in other countries as well.

As such, it is not accurate to say that there is no difference between a local and international warranty. Consumers should read the warranty terms clearly before committing themselves to buying an international warranty to ensure they are getting what they want.* 

4. Add GST

If you see a price that has been displayed without the words 'excluding GST', it means that GST has been included into the displayed price. That's the law.

But unscrupulous shops love to add that 7% GST after you're committed to buy the product at the cashier. Why not? It's quick and easy cash from a customer who is already taking his credit card out. Which leads to the next point:

5. Charging 2 - 5% extra for using credit cards

Credit card companies charge retailers a transaction fee whenever customers use cards for a purchase. That's their business model.

Retailers obviously would prefer customers to pay in cash so that their profits are not skimmed off.

So shady shops will pass this cost on to customers. But why stop there when they can profit from it? Credit cards normally charge less than 3% for the transaction fees, shady shops can quote customers an additional 5% fee or flat fees of $10 - $25.

6. Selling bundled accessories separately

Some shops know that there are wary consumers, so they price their phones just slightly below recommended retail prices. When you're lulled into a false sense of security, that's when they hit you.

It could be the phone charger or even the bundled headphones, but they will sell it to you as a 'package deal' that would surely cost more than what you would pay at a legit store.

7. Using old parts or a selling you a display unit

While you're not looking, it could be the battery, charger, or even the entire unit. Shady shops would stop at nothing to turn a handsome profit. Some will even sell you refurbished products masquerading as new ones. Make sure the product you're buying is sealed and only opened in front of you. Keep your eyes on the product at all times.

8. Pressure tactics

'This is the best price', 'If you don't buy now, I have a another customer waiting for this last unit', 'I like you and that's why I'm giving you a discount'. All these type of comments are preying on people's fear on missing out on a good deal. If all else fails, having several other hustler-looking salesmen stare you down would help them close the sale.

9. The 'sorry sold out, but here's a better alternative' trick

You know how you see advertisements of your dream TV going at rock-bottom prices?  Like point number 1, if it's too good to be true, it's probably a ruse to get you down to the shop. From there they will introduce you a 'better' model. The alternative may be cheaper, but 'better' would be up for debate.

10. Useless extended in-house warranties

Most products come with a one to three-year warranty from manufacturers/distributors. These typically cover hardware failure and would replace parts for free.

Shops would sell you the idea that an extended warranty would give you longer warranty coverage. These extended warranties cost anywhere between 5 to 15% of the product price. You have to scrutinise the fine print of such extended warranties.

More often than not, these warranties only state that they would help you send your faulty product to the manufacturer for repairs but will not pay for any repair or replacement part costs. You have to bear that cost. That is to say, the extended warranty is useless because you can bring the product to the manufacturer yourself.

11. Changing shop names

When reputations of these shady shops go down the drain, a simple change of the signboard is enough to throw unsuspecting customers off. Since their new name can't be found on black lists on CASE as well as on the Internet, these shops can continue to operate and run their shady business.

Now that you know of these tactics, please don't fall prey. More importantly, share them with your parents and older relatives who may not be as savvy and may be cheated of their hard-earned money.

Top photo from Public Domain

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