Why do people get cheated / duped while dealing with salesmen?

Here are my reasons:

1. They have no patience to listen: when the salesman is talking the buyer is too full of himself, and does not even hear / listen to the salesman. So in many cases he does not know what he is buying.

2. Ego prevents him from asking: I know one girl wanted to ask me whether it was all right to buy a financial product. Her husband (MBA finance IIM)’s ego was hurt, so he said ‘I am telling you buy this product’. She is now stuck with this lemon. Sheer ego, she tells me. ‘Your money, I told her. ‘Domestic peace Subra’, she said. LoL.

3. When it is your money and you do not understand keep asking questions. Till the cows come home you can ask questions. Alas it is only till the cheque is issued. The ability to ask questions cease once the cheque is encashed.

4. The fact that the client is successful in one field (nuclear physics) makes him arrogant to think that finance is too simple for him to spend time on. So he signs on the form that he sees.

5. I can understand maths, so I can understand finance – another brilliantly wrong theory.

maybe there are more…not sure..

  1. “I can understand maths, so I can understand finance – another brilliantly wrong theory” – I agreed Subra sir

    Earlier my thought also same like point no 5. Later I realized, that was a wrong thought after reading so many articles from the financial blogs

  2. Till the cheque is encashed. How true. It is very important to ask the relevant questions at the time of buying of the product. I think we should resist the pressure of the edlers also if there is logic in our not buying the financial product.

  3. These agents always start with products, like Sir/madam this product has this, this has that (usually products with good commission). But actually this process should never start like this. I think it should start with what customer wants, i.e. what is the financial goal of customer? why he wants to invest. is it long term returns, tax saving, returns with liquidity, only risk cover, etc. Still havnt met a agent like that.

  4. Caller: We have an excellent investment product with us, can you spare 2 minutes to listen to it’s awesome features
    Common Man: What is that product called as?
    Caller: It’s a financial product suitable for working people.
    Common Man: What is that product called as?
    Caller: Ours is a long term investment product
    Common Man: What is that product called as?
    Caller: ULIP/Insurance
    Common Man: Thank you!

    Thanks Subra for keeping the common man informed 🙂

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