I am sure that from time-to-time you have been lured in by a magazine ad or those television commercials and infomercials that offer you a product for a low price and then make it sound even more desirable by saying that if you “ORDER RIGHT NOW” they will send you another product or double your order for free.

Over the years I have been asked by many of my readers and viewers how these companies can advertise something in a magazine or on television for just $19.95 and when it arrives they find out their costs are much higher. The answer is in the hidden cost represented by the letters “S&H” or “S&P” that stand for shipping and handling or processing.

I recently had a consumer from Palmdale on my television show who told the story of how she ordered a power auger to dig holes for plants in her garden. It was advertised on television for just $19.95 and the sleazy pitchman said they would include another item for “FREE” with the consumer only having to pay the “SEPARATE” cost of S&H. After making the purchase and receiving her credit care invoice she was shocked to see she was billed $176 for the $19.95 purchase. Yes, she did pay $19.95 for the auger, but the separate S&H on the second product was a staggering $156.05.

Remember the disclaimer for these prodcucts is usally in print so small it is almost unreadable and only on the screen for seconds, or said as an aside by the fast talking announcer. I’m sure you have heard the radio spots where the announcer reads the disclaimer so fast no one could understand it.

SEPARATE S&H OR S&P CAN COST YOU BIG BUCKS!

While the price for shipping something is basically fixed and easy to calculate or check, the big hidden charges in these scams come in the handling or processing fee. If the ad or commercial does not say how much the handling or processing is, you can be sure you are leaving yourself open for a heavy rip-off. The scammers never say in the ads how much these fees will be. That’s why they always include a second item for free that all you have to do is pay the separate S&H or S&P – that’s where they make their big profit.

FREE COINS AND JEWELRY!

Consumers also frequently ask me about the ads that offer free jewelry and coins. Are they rip-offs? Again, it all depends on how much they will charge you for the handling and processing. You will notice, that in most cases, they don’t tell you what that cost will be. So that “free” sapphire ring may actually cost you well over $100.

Another thing you should be aware of in purchasing these “too-good-to-be-true” offers is that when you order a “free” item your name and address are put on a mailing list that will be sold to numerous merchandise companies who tend to make the same sort of underhanded offers. This usually happens with the ads that offer “free” antique coins. They will ask for your home mailing address and e-mail address. In return you will get the “antique” buffalo nickel that isn’t worth much of anything, a ton of junk-mail and an e-mail box filled with loads of spam.

REMEMBER…

1) Always make sure the ad or commercial clearly states how much the S&H or S&P will cost for EVERY item you will be receiving. If it does not say, call the number and ask them. If they refuse to tell you or give you some double-speak, hang up and know it’s a rip-off!

2) Be forewarned and knowledgeable that when you sign up for free jewelry or coins your information WILL be sold to many companies and you will get lots of junk mail and spam on your computer. That is the only reason they make these offers!

3) Along with “too-good-to-be-true” product offerings you will also see free seminars advertised that guarantee you all sorts of happiness, beauty or untold riches. These “free” seminars are simply high-pressure sales pitches to get you into their grasps and sell you their books, tapes or products.