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ABC GOOD MORNING AMERICA
(7:00 am ET)
AUGUST 28, 1998
Transcript # 98082818-j01

KEVIN NEWMAN, Host: OK, do you ever get the feeling every time a salesperson asks, "May I help you?" that that's really the last thing on their minds? The truth is, they know secrets and strategies that they're counting on you not knowing. But our consumer editor, Janice Lieberman, is here to reveal them all in her new book. It's called "Tricks of the Trade: A Consumer Survival Guide."And she joins us now. Hey, Janice.

JANICE LIEBERMAN, Consumer Editor: Hey!

KEVIN NEWMAN: All right, are salespeople honest, or are they really just trying to make a buck?

JANICE LIEBERMAN: I think for the most part there are a lot of good, honest salespeople. I think the problem is, some of the industries try to confuse the consumer, and the salesperson goes along with it. Take, for instance, the mattress industry. The big manufacturers come out with the same mattress...

KEVIN NEWMAN: Right.

JANICE LIEBERMAN:... but call it three different names, and three...

KEVIN NEWMAN: And they're always on sale.

JANICE LIEBERMAN: There are (crosstalk)

KEVIN NEWMAN: They're always 30 percent off.

JANICE LIEBERMAN: That's right. And you try to comparison shop, they make it impossible... because the names are never the same. So that's something that's out to fool you as consumer.

KEVIN NEWMAN: OK, so tell us how we can make sure we're not taken.

JANICE LIEBERMAN: What you have to do is do a little bit of research. I mean, it just behooves me to say that people will clip coupons and save 25 cents, but when they go and they buy a VCR, they're, like, "Oh,what do you have? I'll buy every bells and whistles. I don't need it." They get bumped up. Do a little bit of research and you'll be on the right track. You'll level the playing field a little bit

KEVIN NEWMAN: What are some of the other mistakes that people make typically when they shop?

JANICE LIEBERMAN: I think they shop for price strictly. The lowest bid on the home contractor, there's a reason. You're probably going to get stung. Do alittle bit of research, shop around, see if the prices are in line. That's where people really get hung up the most, I think. And then we say, "Didn't you know?" I mean, you've got the lowest bid by a lot.

KEVIN NEWMAN: Yes, hello!

JANICE LIEBERMAN: Right.

KEVIN NEWMAN: Do you know one thing I always have a problem with is bargaining. I'm not a great bargainer. But when I get a bargain and I have done somebickering, I feel really great. Are there ways you can help people get over that?

JANICE LIEBERMAN: First of all, only a fool doesn't bargain.

KEVIN NEWMAN: Right.

JANICE LIEBERMAN: You might as well try. And if you absolutely hate it, bring someone along who loves to. Don't you have an uncle or a dad or somebody? The industry calls these people "heroes." "Oh, they brought their hero along to negotiate." Ask them, "Will you meet or beat my price?" It's worth asking. You'll never see the salesperson again. What do you care?

KEVIN NEWMAN: Yes. Well, you just mentioned something that the industry has names for things, and you have a couple of other things in the book, like, word-- these are words, folks, that the industry knows, and some things they call you that you may not know.

JANICE LIEBERMAN: Right.

KEVIN NEWMAN: One of them is "cheese." What's that?

JANICE LIEBERMAN: That is the extended warranty that the salesman will send. That's the topping to his sale. That's the cheese. That's where he makes his money. You probably don't need it, but that's his paycheck.

KEVIN NEWMAN: All right, when you're rolled and sold, what have you done?J

JANICE LIEBERMAN: That's a person who caves in on a car deal. They like that.The car dealers love people who are rolled and sold.

KEVIN NEWMAN: All right, and what's a dump display?

JANICE LIEBERMAN: A dump display is at the end of the supermarket. When you see everything sort of in a mess and it's at the end of the display, you think it's on sale because it's a mess. It could be overpriced or old.

KEVIN NEWMAN: All right. Now, how did you come apart -- like -- Was this something when you were 3 years old, you were out looking for bargains? Or whydo you care so much about this?

JANICE LIEBERMAN: I always want -- I mean, it sounds corny, but I wanted to helpthe little guy out. I hate being -- people being ripped off. And we thought this would be a fun thing, and we used a lot of our investigations throughout the years to do it, my co-author, Jason Raff, and myself. So we're really proud of it.

KEVIN NEWMAN: All right. "Tricks of the Trade," Janice Lieberman. Thanks alot.

JANICE LIEBERMAN: Thanks for having me.

KEVIN NEWMAN: All right. Well, we knew -- we'll know you'll be back.

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