Gary Martin: The rise of the rip-off economy means pay more, get less

The rise of the rip-off economy

It might be a mechanic charging for repairs that were not needed, a so-called “sale” built on already inflated prices, a “limited-time offer” which never actually ends or a fitness program promising results we know are never going to be achievable.

On their own, these situations might seem like minor frustrations though taken together, they point to something much bigger: the rise of the “rip-off economy”.

There is a growing sense across society that being ripped off is no longer a rare occurrence – it has become a regular part of everyday life.

For many, it is no longer surprising but expected.

The rip-off economy is not about obvious or illegal scams – and far more subtle than that.

It means paying more and getting less, often without realising it at the time.

Examples of rip-offs in everyday life are rife.

They appear across almost every part of daily spending.

This can be seen in something as simple as a call-out fee just to have someone look at a faulty home appliance – with that cost added to the invoice before repairs even begin.

Then there are those loyalty programs that have become widespread. Some programs promise elaborate rewards but require so much spending that the benefits will never materialise.

The problem continues with free trials that roll into paid plans without notice. This can turn something which seemed risk-free into an ongoing cost.

On top of that, surcharges can apply simply for paying by credit card while even withdrawing your own money from an ATM can attract a fee.

Even having a bank account is not always free, with charges sometimes applied just to keep one open.

Travel is no exception, with discount airfares appearing cheap at first but costing far more once luggage, seat reservations and other extras are added.

And hotels can appear polished and inviting in promotional photos though the reality on arrival can be something quite different.

At the same time, everyday groceries are affected, with packets of items like chips, chocolate and cereal getting smaller while the price stays the same. Customers are paying the same but receiving less.

Put simply, many of these practices come down to the same thing: charging more, offering less and making it harder to see the difference.

In many cases, the price itself has not gone up in a straightforward, linear way – it has been broken into smaller parts with fees, add-ons and conditions introduced along the way to often obscure the actual rise.

What once would have been a single clear price is now spread across multiple charges, making it harder to understand the true cost.

At the same time, the value being offered has often been reduced.

Products do not last as long, portions are smaller and services deliver less than expected.

The difficulty is that these reductions are not always obvious at the point of purchase.

It is only after the transaction – or after starting to use a product or service – that the gap between what was expected and what was delivered becomes clear.

The upshot is that trust can no longer taken for granted – and value for money no longer assumed.

While not every business operates this way, enough do to shape the overall experience.

When these practices become common, they influence how customers approach almost every purchase – often with a sense of caution rather than confidence.

There is a growing responsibility on organisations to be clearer, more transparent and more consistent in the value they provide.

Clear pricing and straightforward offers should be standard practice – not something that stands out as unusual.

In the end, the real cost of the rip-off economy might not just be financial – but the trust that is slowly being ripped away.

This, in turn, raises a simple question: why are people being asked to pay more and accept less, without fully realising it?

Professor Gary Martin is CEO of AIM WA and a specialist in workplace and social trends