Yesterday, I heard an ad on the radio station Smooth (95.3FM). There are a lot of ads targeting an older demographic, there are also a lot of ads targeting the ‘working class’ listener. What I mean by these propositions is that there are ads on this station relating to workers compensation, funeral insurance and ‘cheap’ financial planning.
Anyone worth their salt knows that financial planning is a lucrative industry where money can be made. The Australian government suggests that a dedicated financial planner is likely to cost the consumer upward of $10,000 per annum. That is a lot of money to be told to be responsible. Nonetheless, my gripe is not with fiscal responsibility, it is with the financial planning firm ‘Aussie’.
Aussie rose to prominence in the mid 1990’s as a mortgage broker offering itself as an alternative to the major banks. Aussie is, however, 100% owned by Commonwealth Bank of Australia shareholders. Since then, the firm has grown with a market share spanning more than 50 billion dollars of the financial planning market.
The ad that I would like to critique was played on Smooth FM during the afternoon of Monday October 22nd. The ad stated that Aussie is a competitive mortgage broker and if a consumer found a better priced mortgage broker, Aussie would give the consumer $100 for their time. This is an interesting tact to take with financial service advertising within the competitive ‘free-market’ because the consumer is being encouraged to hedge their bets and take a chance on a service offered by Aussie.
“Either way, you win” is the final phrase uttered in this ad. It is unlikely that the consumer will actively seek a better deal if they are promised the best initial deal with Aussie. Aussie stands to gain more than the consumer has to gain, and Aussie stands to lose less than the consumer stands to lose. This is a win-win deal for Aussie alone and it is a stretch to say that the consumer will win “either way”.
This critique of a single radio advertisement points toward a larger problem found within contemporary capitalism and consumption orientated business models. What Aussie is doing is hardly new. Firms selling a service or product that promises the notion of ‘win-win’ for the consumer is common today. One need only look at advertising for gambling, car advertisements or more broadly, political rhetoric.
There is always a consequence to the decisions we make. If you choose the ‘win-win’ option offered by Aussie, then you either lose the service you were seeking and gain $100, if you meet the terms and conditions (see below) or pay upward of $10,000 for a year of explained financial responsibility. I know what I would prefer, but after all you are the rational, self –interested consumer who must make your own mind up.
Enjoy Aussie’s fine print:
“Entry is open to persons who meet the following criteria, are: a) 18 years or over; b) an Australian citizen or permanent resident; c) living and working in Australia and receiving income or wages for duties performed as an employee (including self-employed) or contractor; and d) have savings and/or equity of at least 5% of the value of the proposed security property held for at least 3 months. Must undergo a full Needs Analysis (approximately 1 hour) between 17/9/18 – 30/11/18 with an Aussie mortgage broker. Additional requirements apply, see full T&Cs for details. If unsatisfied with appointment, complete survey online at aussie.com.au/aussieguarantee within 2 weeks of appointment to claim a $100 EFTPOS gift card. Final claims close 11.59pm AEDT 14/12/18. Max 1 claim & gift card per person. T&Cs apply, see aussie.com.au/promotions. Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. © 2018 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.”