Smugglers in the floods
In Dr Robert Cialdini’s Principles of Persuasion (POP) workshop we talk about Smugglers as people who exploit the principles for personal gain. In the Queensland flood it is has been interesting to look at the situations where businesses are exploiting the hardship of victims particularly through Scarcity (where opportunities appear more valuable when they are rare or dwindling in availability).
Services
Some cleaning companies price gouging after floods - January 14
Professional cleaner Graham Dean has warned Queensland residents that some companies may be quoting exorbitant fees to clean homes.
Mr Dean is a member of the External Cleaning Industry Association.
He says demand for cleaning services is skyrocketing, and he has warned people to carefully consider quotes.
"In a normal situation in a 3 bedroom household environment, you would expect to pay around about the $600 externally for a house clean," he said.
"That would be the same sort of figure for the internal as well.
"I have had several phone calls from people wanting a pricing and they've been extremely surprised because they've been quoted in excess of $3,000 and $4,000."
Food
Food supplies still low – 15 January
In examples reported to The Queensland Times, an Ipswich store was alleged to be selling a loaf of bread for $9 and another pricing a loaf of bread at $10.
Silkstone resident Chris Mitchell said he was shocked when he found a local service station selling Woolworths-branded bread for $4 a loaf and Aldi two-litre milk for $4.50 a bottle, close to double their usual price.
Source: http://www.qt.com.au/story/2011/01/15/ipswich-food-supply-low-flood-rain/
Scams
Victims duped by scam 'vultures' in Queensland floods – January 17
Queensland Deputy Police Commissioner Ian Stewart said "the vultures have started to come out" and a number of scams were operating in flood-ravaged areas.
Some of them involved bogus tradespeople demanding money in advance for repairs and clean-ups, then disappearing without doing anything.
Other scammers were phoning or electronically contacting householders, saying they knew best how to handle money from federal and state authorities, then demanding their bank details.
The Queensland Office of Fair Trading is warning against “people pretending to be licensed tradespeople offering their services to carry out repairs to your home” and others pretending to be Charities and the OFT warns “Please be aware that there are people who try to exploit disasters for their own gain”.
Source: http://www.fairtrading.qld.gov.au/disaster-assistance.htm
Comment
As has been seen in previous situations, the smugglers may make profit in the short term but in the long term their reputation will be damaged and it may ultimately cost them their businesses.
An example of this is a post on Youtube that has gone viral. It is from a Youtube regular called the “Fat Aussie Barstard”. The post is full of swearing and profanity and he is speaking out against the profiteering in the floods. He names the Lucky 7 Convenience Store at Leichardt and some of the comments from the 54,000 views are vehemently targeting the business. Whether these reports are true or not the reputational damage to the business could be unsurmountable, especially if locals have had to pay $10 for a loaf of bread. History shows us when supply returns to normal the customers will not.
Youtube post: http://www.youtube.com/watch?v=-VcLa76pUj8 *warning extreme profanity
Anthony McLean is one of 25 Cialdini Method Certified Trainers (CMCT) in the world and the only CMCT in Australia and New Zealand authorised to deliver Dr Cialdini’s Principles of Persuasion Workshop. For more details see: http://www.newintelligence.com.au/site/POP.php
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