“Rebate promotion may increase price of bed.”
That red flag is contained within the fine print at the bottom of the screen during commercials for a Craftmatic adjustable bed. The way the deal is presented is that you, the consumer, calls a toll-free number to get some information pack about the bed. In the packet is a $200 rebate coupon.
That piece of fine print sucks. Using common sense, that means that they raise the price of the bed in order for you to get that “terrific” $200 rebate.
That’s not really a rebate, is it?
Others have noticed the commercials, too. According to Ohio Attorney General Jim Petro, sales representatives told customers they were getting a discount or special price when the company has no fixed price for the beds. He also stated that “Craftmatic engaged in high-pressure tactics, misleading advertising and claims that the beds would resolve consumers medical problems, which were not medically verified.”
Accordingly, the State of Ohio recently filed a lawsuit against the maker and distributor of Craftmatic adjustable beds. The suit alleges that Craftmatic engaged in false claims of medical benefits, deceptive price comparisons, false advertising, making false or misleading statements, high pressure sales tactics, Home Solicitation Sales Act violations, deceptive warranty practices, direct solicitation violations, bait-and- switch advertising, failure to disclose material financing terms, failure to disclose material contract terms, illegal attorney fee provision in consumer contracts, and unfair and deceptive and unconscionable business practices.
Capatalism at its worst.
Update
In July 2005, Craftmatic settled with the State of Ohio for $425,000 ($200,000 for consumer reimbursements and the remainder for civil penalties and attorney fees to the state), and agreed to “significant changes in its business practice — whatever that means. Frankly, I think they got off lightly. Craftmatic claims to have sold over one million beds, each costing thousands of dollars. Assuming an even distribution of sales, that’s only $10 per Ohioan customer.
I bought my mom a craftmatic bed. Thought it would help with her Parkinsons. The salesman told me that if we were getting a discounted price. He said he reduced a $7000 bed to $4100. He also said that if my mom was not satisfied with the bed they would pick it up. She was very uncomfortable with it, I called them, and they said it is not their policy to take back the bed. So we were stuck with it and paying an outrageous price. It was an expensive mistake, but one that I learned from. Kay
If the manufacturer does not post list prices on its web site and no retailers post prices you can assume they are all in the ‘find a sucker’ business – eg. they find old people who don’t know better and charge them $7000 for a $1000 bed. Note craftmatic is not sold much on ebay-that is because on ebay you can’t make a sucker out of anybody or you will loose your rating. These ‘dinosaur’ companies will not survive with that old-school business model in the internet age.
I just had a craftmatic salesman at the house yesterday (10-12-05) and I ended up screaming at him and physically throwing him out of my house because he was such a crook. I feel sorry for older victims who can’t do what I did.
the sales guy is hear now.he is doing exactly what i’ve been reading about.i can,t give you this offer if i have to come back,$250 off coupon,or 19 inch t.v., or even a microwave oven. he’s talking to my wife now about working with the price on what they can take as adown payment.he’s coming down in price. tring to talke her into it with his offers. very polite but now he wants to youse my phone to do a credit cheek. well thanks for the info & the heads up info. 3:36 p.m.nov.8,2005
I’m looking to buy an adjustable bed for my Mother, after reading all this I am very nerves. I want a good bed at a reasonable price, any ideas. My experience with Craftmatic this week has been two or three calls a day from them regarding appointments that have been canceled twice this week. The calls are coming in from all over the county and even out of the country (Barbados??). Today after the second cancellation and being told Al could not make it because of an illness in his family, my appointment was with George not Al, I told them to forget it, I was not feeling comfortable and if I wanted to make another appointment I would call them. Any recommendations would be appreciated
Hi, Almost 2 years ago, I bought a Craftmatic “Scooter”. I was lied to about the price, was (& still am) ill, and salesman was there for about 2 or 3 hrs., lying to me about the price and telling me the advantages of purchasing it, etc., wearing me down.I paid $4,500, plus interest for it. I tried talking to Craftmatic people in their office, which is just down the street from me. They said they had fired that salesman because he was lying, etc. I should have recorded the conversation. I also contacted BBB, Atty General’s office, and got nowhere. I was (and still am) living on Social Security Disability, and couldn’t afford it….I had to go without food, etc. just to pay for it. I heard of a class action suit in CA. for the beds, but nothing concerning the “Scooter”.
Beleive everything you hear about craftmatic beds style of selling. Just started working for them. It lasted two days, that was about as much of the bûllshìt ripoffs I could handle.
Can anyone tell me please how to make those stupid mother *&%*$%# stop calling me? Someone filled out an information card with my infor and that company calls me day and night trying to sell me their crap! I have told them so very politely that I have no interest in their beds and to please stop calling and they all say the same thing…..”I’ll take care of that right now mam”…yeah right! They never stop! I went on the internet to try to find a number for them and wouldn’t you know it, they don’t have one:-) Anyway, the sales people that call never stay on the line long enough to ask for a supervisor to attempt to assure that they quite calling but it has gotten to a point where I want to send them my telephone bill. Any numbers??????Thanks
800-677-8200 for craftmatic
The Main headquarters is in Pompano Bch, FL
Tel#800-366-7533
The annoying salespeople are in PA
Tel#800-677-8200
Diane Peltzer is in charge of consumer relations in PA.
That should stop it.
Good luck.
I entered a raffle and ended up with a vist from a salesman, I test drove the scooter and was impressed with it. there was a reluctant to tell me the price. In the end the first price quoted was nearly £6000. finally it came down to £10. down &£17. per week or £2700. for cash.
It would appear that craftmatic play the same game anywhere, must give the salesman a nice feeling parting sick people from what little money they have left.
You might like to know that this company’s activities have attracted the unfavourable attention of TV consumer programmes and consumer protection authorities in the UK for much the same kind of dubious practices spoken about here. If they are cornered they will claim that they have fired the salesman involved because he was acting “dishonestly” and/or against company procedures. Two weeks ago I caught them lying and threw the salesman out of the house.
I am a craftmatic salesperson, I think that you are misjudging alot of us on what a few do. THERE ARE HONEST salespeople for Craftmatic…. I have walked out of homes before I would sell something to someone when I knew they couldn’t afford it. How many car sales reps, furniture or appliance reps would do that…… We are not all liars…
So why not sign your name?
entered a comp as well, to win a bed, but didnt expect to be sales pressured to buy one….why buy, when you might win….upshot of it all, I did agree to get a couple, but felt so pressured, googled the company, and have now decided that the tactics have not changed over the years, and will cancel the order. I too had two cancelled appts, then instead of a 2 hr presentation (for a bed!) it turned into a four hour pressure talk, with more than $6,000 knocked off the price, plus an adjustable chair thrown in for buying the beds. That is when I got suspicious ! When I questioned the sales rep she got a bit ‘funny’- and why would they want to know how long I had lived here and what organisations I belonged to locally (?) -oh, lucky me, I passed ! (and now I am going to pass on the beds.) thanks for this blog, long time between blogs, but at least it shows nothing has changed, even in Australia.