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How Office Depot Pushes Service Plans On Customers
Harry writes "I was amused, appalled, and angry — yes, all three — when I spotted signs above every register at my local Office Depot with handy scripts for clerks to use in 'recommending' that customers buy extra-cost, extremely profitable protection plans. And now Laptop Magazine has posted an eye-opening investigative report that charges local Office Depot stores with instructing staffers to lie and tell people who want to buy laptops without service plans that they're out of stock." Update: 03/13 00:53 GMT by T : An employee with Office Depot, somewhere in the southeastern US, wrote to respond to this story as a employee of the company, but in his off time and not in any official capacity:
"I will only say that what is described in your article and the Laptop
Mag article is not something that occurs across the entire company as
sanctioned or ordered by the Corporate Higher Ups and is certainly
nothing I have experienced as a 10-year employee of the company, we
want sales. Yes, we want add-ons, but we will take the sales regardless."
Circuit City had a bad reputation. If you could buy something somewhere else, you would probably go there. Now it looks to me as though Office Depot is ODing on the same foolish management ideas.
It would be interesting if we could know two things: 1) Exactly how much Office Depot makes by selling overpriced "protection" plans. 2) How much it will cost Office Depot because of stories about the company being abusive on Reddit.com, Digg.com, and Slashdot.
That Digg link leads to a New York Times article about the Office Depot CEO. Quoting: "The worst chief executive of the year was Steve Odland of Office Depot, according to Glassdoor.com's reviewers. He had an 80 percent disapproval rating."
CEOs in the U.S. often make 475 times the pay of the average person. I suppose it doesn't matter to many CEOs if the company they are managing dies. The CEOs make millions as fast as possible, and when the company dies, they retire or do something else.
That isn't honest, I think it is psychologically self-destructive, but it seems to me that's the way things often are.
Warren Buffett warned about bank failures in 2003. It was certainly no secret; anyone with any interest in financial business knew about the problem. Bank executives knew that what they were doing would be the end of their companies. I suppose they were making so much money (sometimes $40 million per year) that they didn't feel it was necessary to care. It was understood, and often discussed even on TV, that the U.S. taxpayer would pay for any problems that were created; that is happening exactly the way it was planned.