A company’s job is to turn a profit, they spend billions on marketing, advertising & training staff to sell, sell,

1. Companies • A company’s job is to turn a profit, they spend billions on marketing, advertising &training staff to sell, sell, sell! • It’s not there to look after you, it’s not your friend • How do businesses attract students? Using cheap prices, student discounts, store cards, offering the best product, giving excellent customer service. • Just because a company has one good deal, doesn’t mean it’s great for everything. • Supermarkets are a perfect example of a super-honed marketing environment; here are some of the tricks that they use so we part with our cash: Sweets and magazines placed by the till. These are impulse buys, so putting them near the till gives them one last attempt to grab our cash. Store layouts make us walk the whole distance. Regularly bought items tend to be spread around the store, so we need to pass many other tempting goodies to complete our shopping. Same goods, different prices, depending where in the store you are. Supermarkets charge as much as possible and differentiate prices around the store. For example, if you're buying snacks such as nuts or dried fruit, they're much more expensive in the snack area than in world food or baking. Eye level products are the profitable ones. The most profitable stock is placed at eye level (or children’s eye level if it's targeted at them), yet profitable goods tend not to be the best deals. The age old adage ‘look high and low for something’ really does apply.

3. Banks • What is a bank? It’s a financial institution that accepts deposits and then uses those deposits to lend money. • It’s a heavily regulated industry, here in the UK the banks are licensed and regulated by the Financial Services Authority (the FSA). • The central bank is the Bank of England. It’s responsible for issuing bank notes and for financial stability. • What is a bank’s primary job? Is it to make money or to offer a social service? • Ultimately it’s there to turn as big a profit it can, like any other profit driven company.

4. Sneaky tricks banks use to make more cash from students and some counter manoeuvres: Debit cards that fine you every time you spend abroad: Use your debit card abroad and banks with levy a stealth charge each time – around £1.50. So use it 30 times on holiday and that’s around £45.Counter-manoeuvre:Simply avoid these cards if you can. If not, better to take out a lump sum from the ATM and spend that instead.  Cash withdrawal fees on credit cards: Withdraw cash on a credit card and you’ll pay heavily for it. Counter manoeuvre: Never withdraw cash on a credit card. This is because even if the ATM itself doesn't charge the credit card will - a £2 or 2% fee plus interest. Student Account incentives: Banks offer attractive ‘free’ gifts when you open a Student Account. Such as Laptops & Railcards Counter-manoeuvre: Always shop around and read the fine print. A free Young Persons Railcard should not be the only reason you open a Student Account with a bank. TOP FACT! You are more likely to get divorced than to change your bank in your lifetime! This is why banks try very hard to attract students when they are young! Counter-manoeuvre: Every few years, shop around and look for banks that offer you better interest rates on your savings and better services! Cross-selling:Banks love to cross-sell. If you have a current account, it’ll bombard you with information about all its other products and badger you to get its loans, savings, ISAs, the whole caboodle. Counter-manoeuvre:Never assume one company is cheapest for all products. Search out the cheapest provider for each type of product.

5. Students (that’s you!) • Consumers equal pounds in the eyes of companies, without them, they would be nothing • How do companies try and target, you, the consumer? • What should consumers think about before they decide to buy? • Should you be loyal to one company if they’ve treated you well? • What’s more important, customer service or price? • Remember: loyalty doesn’t pay. It’s a fact that not one financial provider is top of the best buy list for all products, in fact for more than one. Therefore if you have two products from the same company, one of them won’t be the best. Loyalty only pays them, NOT you, it’s an easy way for companies to boost profits. • Beware brands – brands are loyalty’s biggest weapon. They’re simply a way of companies to increase our spending and their profits without adding any real value to a product. • You have rights. Here’s a quick pneumonic to help remember your core legal rights when it comes to shopping. SAD FART Satisfactory QualityAs DescribedFit for purposeAnd last a Reasonable length ofTime

7. Case Study: University of Birmingham COMPANIES • Most university sell merchandises. E.g. university hoodies & stationery • Many companies based on campus: Supermarkets, STA Travel, Hairdressers, vintage shop and restaurants • Some own properties and rent them out. E.g: University accomodation, The UoB Great Hall was rented to host the Prime Ministerial debate (2010) BANKS • Most offer a student account • Attractive offers to get you to join: Natwest: Young Persons Railcard, Student discount card • You can get an interest free overdraft for up to £2,000! E.g. Barclays • Watch out for them at Fresher'sFair • UoB: has Barclays, Lloyds TSB and Natwest on campus! CONSUMERS • Students! http://www.youtube.com/watch?v=PFqu-jmy1QQ