News

Industries

Companies

Jobs

Events

People

Video

Audio

Galleries

My Biz

Submit content

My Account

Advertise

Marketing Grist for the marketing mill South Africa

Killing the consumer with absurdity

I keep thinking about that cabinet minister who, a few weeks ago, said that e-tolls wouldn't hurt the poor because the rich would pay for it all. What he didn't realise of course, was that when the rich pay the tolls, they put it on their expense accounts or add it to their truck fleet operating costs and eventually pass it on to the consumer. Including the poor consumer.

It is precisely the same thing with all those added fuel levies that are going to hit motorists on 1 April 2012. Predictions are that the cost of petrol will rise by about 60c a litre.

Consumer killers

And, without a shadow of doubt, those costs will be passed on to the consumer, starting with increased taxi fares and just about every product in the known universe which will go up in price.

But, there are even more hidden ways in which the consumer ultimately ends upon paying a heavy price.

Take my pet nemesis, the well-meaning Advertising Standards Authority (ASA) and all those complaints from a tiny handful of citizens who are offended by an advertisement or product claim.

Costly watchdogs

Towards the end of last year, a single complaint was lodged with the ASA from a fellow who had a problem with claims made by a multi-national dishwashing detergent brand. The long and the short of it was that, after investigation and consideration by the ASA, the complaint was turned down.

Of course, that good citizen didn't have to pay a thing. He just got a polite letter.

Meanwhile, in defending the charge, the company concerned spent in excess of R150 000 in legal fees, not to mention hours and hours of executive time defending what was, from the start, a completely ridiculous complaint.

Pass it on to the consumer

Now, it is only natural that all those companies that have to spend millions of rands this way every year, completely unnecessarily, have to recoup this money somehow and the only way that can be done is to pass it on to the consumer.

Which means that just one complaint from one person can end up costing the rest of South Africa's 50 million consumers more money.

The e-tags saga and this example from the ASA are just two of what I am convinced are all sorts of ways in which companies in SA are being forced to spend money, for which the consumer ultimately pays. Rich consumers and the poorest of the poor consumers.

Do something about this scandalous situation

And the greatest tragedy of all is that, while there are all manner of groups of well-meaning people and watchdog bodies protecting the rights and sensitivities of consumers, there is absolutely no-one to watch over actions that are ultimately costing those same consumers a lot of money.

It is ludicrous. Somebody really needs to do something about this scandalous situation. Maybe I will.

About Chris Moerdyk: @chrismoerdyk

Apart from being a corporate marketing analyst, advisor and media commentator, Chris Moerdyk is a former chairman of Bizcommunity. He was head of strategic planning and public affairs for BMW South Africa and spent 16 years in the creative and client service departments of ad agencies, ending up as resident director of Lindsay Smithers-FCB in KwaZulu-Natal. Email Chris on moc.liamg@ckydreom and follow him on Twitter at @chrismoerdyk.
Let's do Biz