Redsave redefines RRP and offers bigger savings
You'll all be familiar with the history of Redsave, the online retailer that's had a barrage of criticism from consumers, solicitors, Hot UK Deals and others besides. There's plenty of history to read up on if you've don't know about the company, but we wanted to let you know that the BBC's report into Redsave that we reported on last October, finally aired on the BBC last week.
The company was featured in a segment on Inside Out South - most of the country doesn't see this regional version of the show, so thanks to several Bitterwallet readers for letting us know about it. You only have a few hours left to view it on the BBC's website, but it's definitely worth a gander:
Redsave have acted on previous complaints and changed their site to more clearly explain the £20 monthly subscription fee. But what we didn't know about was how Redsave justified charging the subscription. We'd heard the company claim they're saving many satisfied customers hundreds of pounds, but how does that work?
One thing Redsave does, as boss Max Walker explains, is they redefine what an RRP is. Absolutely true. It's fair to say there's a very public understanding of what an RRP is, and what it's an abbreviation for - Recommended Retail Price. Therefore, you might think Redsave would explain if they deliberately changed the meaning of RRP when using it on a retail website, otherwise it might cause some confusion.
You'd think wrong.
Every product on the site has an RRP. The programme features a 32GB iPod Touch - Redsave states the RRP is £269.99 but sell it for £229.99 - a saving of £40! Yet you can order the same item from Apple for £234, so it's clearly not an RRP. What are these RRPs that Redsave are quoting? Watch Walker squirm as he attempts to explain in the report, but here's the gist of it:
Walker: "We don't refer to it as a Recommended Retail Price... it's quite a difficult thing... in consumer-"
Reporter: "Well it says RRP...
Walker: "No, that's our Redsave Retail Price... so we're not quoting RRPs."
The Redsave Retail Price! Of course that's what it means! So Redsave aren't quoting RRPs, they're just giving the standard abbreviation a completely different meaning which in turn may exaggerate the savings available - as it clearly does in the case of the iPod Touch - and all the while not explaining the fact. Nothing confusing about that, at least not according to Walker, who appears astounded that RRP may have another meaning:
Reporter: "Do you think that's clear to most people?"
Walker: "Well I think so because we've got so many people shopping with us every day."
Reporter: "Could you make it clearer, though? Because RRP to most people is Recommended Retail Price."
Walker: "Right. Well I'll consider it, but I don't think it's unclear."
Not unclear at all, apart from the fact the definition is NOT EXPLAINED ANYWHERE ON THE WEBSITE. There's also another interesting claim from the mouth of Walker:
"All our Redsave prices are cost price - we don't make any money."
Anyone familiar with Quidco knows that Apple offers affiliates 3 per cent on sales, which would make the same iPod cheaper than the Redsave price, and we'd be of the opinion that retailers tend to buy in goods to sell with wider margins that that.
Next - Max Walker redefines space-time and sells you your own great grand-children. And that hoverboard from Back to The Future 2.