Four square sales technique

The Four square sales technique is an unscrupulous psychology/behavioural science technique with any number of boxes where being level headed and unemotional is essential to avoid being scammed.

Originally a car dealership sales tactic with four key numbers, it has inevitably spread to other consumer contracts where monthly payments are used to spread the cost of an expensive item where the number of key values can be anything, often three, total cost, APR and monthly payments, and occasionally five including trade-in and cashback.

Four squares car dealership scams

The initial proposal looks similar to the following

The technique is designed to get customers to focus on the monthly price. With an outrageously high starting point, many customers will be emotionally charged allowing unscrupulous sales reps to trick customers into paying more than they otherwise would.

The Science

Our brain is constantly multitasking, in negotiations we are often balancing multiple tasks to reach our goals. By distracting our attention our focus tends to limit to the thing that's most important, when exploring opportunities we often want to maximize value within our budget - this is often a monthly payment.

By distracting our attention it's usually straightforward to get us to focus on a limited number of items that favour the seller.

There are a number of techniques to encourage a sale, from asking what features are important, reinforcing deadlines, to getting a customer to confirm they are genuine in order to get a better deal.

The Process

After the provocative start presenting inflated numbers, what follows is often a confusing narrative, crossing out and changing figures until the customer is exhausted, leaving them focused on an acceptable monthly payment.

There are a number of techniques to nudge a customer such as:

• asking them to initial the piece of paper with the figures;
• if they're serious the sales person can get a better deal;
• asking them about benefits they've already agreed they want.

It's not uncommon to find some disreputable techniques including shaming, humiliation and bullying to get a commitment to a sale.

The goal: leading them to say "Yes".

It's obvious but extending the number of payments increases the total outlay, something obscured when focusing on the monthly payment.

Under emotional stress our focus narrows considerably often allowing this unscrupulous sales technique to succeed.

Good Cop / Bad Cop

The front of house sales rep pretends to be your friend, while the initial numbers come from the bad manager at the back office. You tend to bond with the sales rep because they get you a better deal, all the while they are really working together to maximize your monthly payments - and their commission.

Four squares phone contract scams

A variation for mobile phones largely eradicated thanks to transparency here in Europe.

High end mobile phones can be expensive so spreading the initial cost over the duration of a contract is a useful technique. However extending the number of monthly payment to 24 or 36 months continues paying the initial cost. Add in extras such as data and insurance cover can significantly increase the cost.

Similar techniques to the Car scam has been used to get customers to focus on monthly payment over a longer period.

By reviewing the initial cost of the phone, monthly data and the various local and roaming costs, it's easier to calculate the real cost of any deal.

Avoiding scams

Focus on the outcome. This may be price, but would probably also include product and benefits.

Most importantly - prepare and research. Good sales staff will help you navigate their process, often highlighting or clarifying the various features on offer.

There is plenty of advice available, from consumer organisations, trade bodies, news groups and social media.

Allow time for reflection. Make it clear from the outset you need to confirm any decision with a significant other or business partner. Good sales will accommodate this.

Although we live in turbulent times and scams are ever present, most businesses are honest and honourable.

Thanks to European consumer protection laws mandating fairness and transparency in contracts, clear information about costs, termination rights, and limitations on unfair contract terms make it easier for consumers to compare and understand their phone plans.