Thursday, October 4, 2007

High Pressure Sales Tactic

There are some Financial Advisers adopting high pressure sales tactic to get you buy their policies or investments. There are some who simply are not able to do it. Those not able to do such things and being too honest sometimes suffers with lesser income.

I have a recent experience whereby I did complete analysis, recommended proper investment allocation and funds selection in 3 appointments. She eventually did not buy from me but from a bank which she don't even know that she is investing in just 1 meeting. Initially angry with her but later feel that there is a problem. Does the problem lies with me, with her or the Bank adviser? The adviser might have adopted a more creative or agressive sales tactic whereas I rely too much facts and analysis for her.


What are the tell-tale sign of such agressive sales tactics?
Below are some common phrases used.

1) "You can get the latest camera for free if you sign up!"
The financial product often comes bundled with an irresistible free gift to win you over.
2) "You can get a 10% annual return and enjoy many other benefits."
The benefits and high returns of the product are emphasized while the risks and fees are only briefly mentioned.
3) "This product is offered at a special rate now, for a limited period. You'll be missing out on a good opportunity."
This plays on your fear of missing out on the opportunity to make more money.
4) "Many people have signed up for this. What are you waiting for?"
The "majority is always right" concept is used to make you feel more assured.

How to protect yourself against such High Pressure Sales Tactics?
a) Never make a hasty decision without understanding what is being recommended.
b) Seek independent advice from trusted persons who are more knowledgeable.
c) Beware of sales persons who only promote the benefits of the product.
d) Read the fine print and ask as many questions as you need, e.g. about the risks, fees and charges.
e) Deal with your own emotions. Do you really need the product? If not, learn to say "No" and walk away.


Anonymous said...

Just say Buzz off

Anonymous said...

If i were you just walk away loh.

Khiat Han Hwee Adrian said...

Not all will just walk away and daring enough to say Buzz off.

Some will get the product and only to regret months later.