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."
Remember, you're helping them by saving them the loss N years from now when it breaks and they didn't buy an N + 1 year warranty.
My work here is dung.
Why would you buy a computer at office depot?
Heh, that sounds about right.
I worked for OfficeMax a few years ago. Everybody who worked there received commissions for selling those overpriced plans to customers.
I'm wondering if the examples discussed in TFA are a companywide policy a la Best Buy with their seperate pricing for internet and intranet, or the brainchild of some greedy store manager. When I worked as a film-developer for a major drugstore chain, the store manager approached me about finding a way to cheat customers using standard processing for customers who turned in their film with premium envelopes(which means that customers who wanted offsite "premium" processing would instead have their stuff done in-house, saving us tons of cash and leaving us hoping that the customer wouldn't notice the lack of the extra features they wanted ^_^).
My biggest mistake in that job was mentioning the word "ethics" to my manager. I was never promoted ^_^
Wow, if you get appalled over scripts for cashiers, wait until you find out about telemarketers, what THEY have. I fear the day you learn about politician's speech writers. Oh, and did you know? Those bills that get passed through congress, often the congresspeople DON'T EVEN READ THEM.
OK I'll stop now to keep your rage meter from going overboard.
(This message brought to you from the 'please channel your anger towards things that actually matter dept').
Man, I must be feeling bitter today.
Qxe4
did not look that bad to me. It seemed to stick to the facts. They are supposed to make money
Nullius in verba
I bought a keyboard yesterday. I was asked if I wanted a warranty. I said "On a keyboard?" with a sardonic sound. It went right over her head. Then she put a tape over the edge of the box "Whats that?" I asked "our return policy" she said. "So if I break the tape I cannot return it? You do realize I need to open the box." " I'm sorry sir, that is the policy" she smartly replied. I left with my wallet, but not wits intact...
- Minutus cantorum, minutus balorum, minutus carborata descendum pantorum.
About a year ago, I walked into a local Best Buy, and was shocked, appalled, angry, but not surprised, to see anti-filesharing propaganda set up throughout the store.
I counted over 25 fliers hanging on walls, telling people "DOWNLOADING IS A CRIME!", and other propaganda. The most elaborate display they set up was in the MP3 Players section of the store. They mounted two flashing strobe lights on top of a display, designed to look like a police car's flashing lights. They then placed a large sign stating that "DOWNLOADING IS A CRIME. DON'T GO TO JAIL, DON'T DOWNLOAD".
So I asked one of the employees about the signs. They said it was an order by their upper management (as in, from their corporate offices). I then asked if they believed that downloading music is a criminal offense that can result in arrest, as they clearly try to say. They did not know. Some of them said "Yes", while others didn't answer the question.
Needless to say, I guess people complained, because the signs were gone after a while...
"This _____ is eligible for our replacement plan. I recommend it because if the product fails after the manufacturer's warranty, it will be replaced with an Office Depot Merchandise card for the full price you are paying today."
If this shocks, amazes, or angers you. Get a fucking life. How is this news at all? If they want to lose a sale b/c they're not selling a protection plan, well I would think they are just shooting themselves in the foot.
I used to work for Office Max for over a year. These exact same employee "policies" were in place there too.. though our plans were called "Max Advantage". We'd be told to only help customers on the floor that were looking at or thinking of purchasing items that carried a service plan... and got "write ups" if we didn't sell X amt. of plans per month. And since the day I quit, I haven't worked retail again...
Wait till they get a patent on this method!
Believe it or not, I bought my current PC at Circuit City. I know, I know. But at the time, Circuit City had the same model HP Pavilion for as little or less than anyone online, with the additional advantage that I could jump on the bus and go buy one today, rather than having to wait around for UPS to deliver it. A week later, Amazon.com dropped the price by $50, so I went back to Circuit City and said, "Hey! I you guys ripped me off!" The nice kid at the cash register promptly credited $50 to my card. Total time without a working computer: 18 hours. Total money lost due to not shopping online: $0.
Am I sorry they're out of business?
I dunno. Not really.
Breakfast served all day!
When I am to buy anything from stores like Office Depot, and happen to be coaxed into these service plans, I tell them:
"Look, this is a gift. If I must purchase a service plan before walking out with this product, then I will leave it. Now, can I have this product without a service plan or not?"
This script has worked remarkably well at all times. I have never been disappointed.
Since the days of the Romans, the adage has been "Caveat emptor." (Let the buyer beware.)
Now Modern Marketing has their own adage: "Carpe emptor!" (Seize the buyer.)
Let the Battle of the Adages Begin!
Selling up is hardly new with computer stores. Long time ago I bought a high-end VCR (Yup, THAT long ago) from a Silo store I had frequented. They always tried to sell the warranty, and this time I was damn sure I wasn't going to buy one. The sales lady rung up the order without asking, so I sarcastically asked, "Aren't you going to try to sell me one of those extended warranties?" "No," she said. "I can see it in your face that you aren't going to buy one." which I thought was pretty funny.
About the scripts: I worked retail for awhile and I gotta tell you, some of these 'sales associates' are so afraid of what to say that they demand scripts. They'll say, "What do I say?" so I'd say, 'Just talk to the customer and answer his questions.' "But what, exactly, am I supposed to say?" and it just goes on and on until you write them up a script to keep them quiet. This was especially true for customer complaints where no one wants to say the 'wrong' thing. As you know, once in awhile a customer can be kind of unreasonable, and there's this old aphorism that "the customer is always right." But as far as I'm concerned, that doesn't mean a front-line flak catcher has to take abuse. What the phrase means is, "The customer knows what he wants to buy, and if you don't have it, you screwed up." It doesn't mean if he starts yelling at tou that you have to stand there and just take it. Leave. get a manager. Whatever.
How about a moderation of -1 pedantic.
When I was 17 I worked for Office Max.
The incentives that they gave the salesperson who sold the extended "warranty" on any electronic/furniture item far outweighed any moral obligation for me. I would push a $5.99 1-year replacement warranty on just about anything I could, selling someone a $29.99 inkjet printer with a warranty gave me an extra $12 bucks in my check. Some weeks my check gross amount just about doubled from the volume of extended replacement plans I sold.
I don't blame them.
A few years ago I worked at Office Depot for about a month while I was looking for other work. I was hired on as a stocker, though they'd occasionally have me cover the computer department when we were short staffed. At our store, management set a quota for each employee for how many service plans we were supposed to sell each week with a required Saturday morning training session for any employee who did not reach their quota where we would do crap like train on these scripts and brainstorm incentive plans on how to motivate us to sell more.
I went to one of these stupid meetings and all I could say for myself is that since I worked as a stocker in office supplies, I didn't even sell anything that I could in theory have pushed a service plan on, even if I didn't think they were crap. They responded that I was mistaken because batteries were in my department and they qualified. WTF? How the hell are you supposed to sell a service plan on a pack of AA batteries? I quit before the next Saturday as I'd found another job, though I probably would have given them notice if it weren't for the crappy work environment.
"Nice little laptop you got here... shame if anything happened to it!"
I've abandoned my search for truth; now I'm just looking for some useful delusions.
Just another scam. Why go through the hassle? I just bought a netbook for my wife from Amazon. Has as low a price as I could find for that particular product, no hassle, no muss, no fuss. The only hassle I can see is that I can't walk out of their establishment with my purchase that day. But I didn't have a sales clown in my face telling what I need, getting in my way, forcing me to smell his BO, etc... For this kind of service I can wait.
Python: 'And then suddenly you have a language which says "we're all stuck with whatever the whiniest coder wants".'
Will they replace a candy bar under the plan?
I can see it now.
Just buy a candy bar and they ask do you want a protection plan you say yes eat it right there and ask them How do I make a clam?
As for batteries will they give new ones for free when they go dead or does the plan cost more then the batteries?
I once worked at a bank that set high goals for the "sale" of credit life insurance on consumer loans. Without exception, credit life insurance obtained through the lender is a bad deal for the borrower and a great deal for the bank - DON'T EVER BUY CREDIT LIFE INSURANCE. If the borrower "asks" for it, the premium is not counted in the A.P.R. calculation; if it is required, it must be part of that calculation, vastly inflating the A.P.R. Guess how much credit life was sold as "asked for" and how much was sold as "required"?
We were instructed as to patently illegal and devious means to write it as "asked for" while the bank President stood in the room. The one fellow who questioned the practices was fired within the month. I left shortly thereafter.
It happens everywhere. That's the sad, harsh real world.
This is not news.
"Office Depot Provides Legitimate Extended Warranties At No Extra Cost" would be news.
"I believe in Karma. That means I can do bad things to people all day long and I assume they deserve it." : Dogbert
I found one vintage keyboard model that I like, and I've stuck with it, accumulating them when they come up on eBay and various other places. The one I'm typing on now has dual English-Japanese key caps on it which, IMHO, is cool and different. I have to use an AT to PS2 converter, which I plug into a PS2 to USB converter. If anything supersedes USB (doesn't seem likely) it might get really ugly though.
For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
If USB goes away... start collecting USB-equipped dumb terminals, as ethernet isn't going anywhere any time soon. Use them to VNC into your main computer, and just use it for the keyboard.
I've avoided buying anything at Office Despot since I walked into one years ago and they had a sign boasting that they test their employees for drugs. Even aside from the fact that I find that invasion of employees' privacy troublesome on principle, why would I - as a customer - care whether the guy ringing up my sale smokes a little weed once in a while, or even if the girl restocking the shelves does a line of coke every night? What kind of business brags about how worker-unfriendly an employer they are?
http://alternatives.rzero.com/
instructing staffers to lie and tell people who want to buy laptops without service plans that they're out of stock.
I don't get how this would work. Generally, extended service plans are pushed at the end of the sales transaction, when you are standing at the cash register.* They might be good, but I've yet to meet a sales person that can convince me that the laptop I'm holding is out of stock** and must be a figment of my imagination.
*Any earlier and the issue of product reliability becomes an issue. "What! I need a service plan? Does this thing break down a lot?"
**Generally, when I walk in to a store to buy something, the first thing I do (before aking about all of the expensive accessories) is to see if they actually have one in stock. Yes? Well, bring it out and let me take a look at it. The continuation of the transaction is predecated upon them actually producting the item in person.
Have gnu, will travel.
I remember going to one of these big box retailers - I vaguely remember it to be The Wiz (sometime known as Nobody beats The Wiz) and buying a VCR or a DVD payer (I forget which). The salesman told me about the extended service plan. I told him that I don't need one. He said, 'Sir, it is simple. Please buy the extended service plan. It will cost you $45.00. But you have 3 days within which you can come back to the store and cancel it. Please do it for my sake'
I did buy the extended service plan and then canceled it a couple of days later.
One other time, when I was buying one of those ultra-cheap DVD players ($20 or so) from Circuit City (I think - it could have Best Buy too) and the sales guy tried to foist a $25 extended waranty on me). When I told him that it would be cheaper for me to buy 2 of the players, instead of his warranty, he didn't know where to look.
All in all, pretty sad the way they catch unwary customers.
All views my own. Anyone else with the same views needs to have his/her head examined.
read this for the real stormy on car sales men
http://www.edmunds.com/advice/buying/articles/42962/article.html
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.
I worked at ChimpUSA in college (same shit, different company), and once of my co-workers with less than stellar morals managed to sell some lady a 1 year warranty on printer ink.
When the boss found out, he yelled at the guy, not for being a total slimeball, but because the woman could have probably come back and got free replacements for her 'defective' (re:empty) ink cartridges for the next year...
HA! I just wasted some of your bandwidth with a frivolous sig!
While this is an annoying policy on paper, there are several ways I could see this actually playing out, and none of them really seem to work.
Scenario 1
Customer: "Hi, I want to buy this laptop"
Clerk: "You wanna buy an extended warranty?"
Customer: "No thanks"
Clerk: "We don't have any in stock"
Customer: "Uh... then yes I do?"
Clerk: "We just got some in right now!"
Customer: "Then I'll take one without the warranty."
Clerk: "Aw, what a shame, we just sold out."
Scenario 2
Clerk: "Hey, you seem interested in that there laptop, you want to buy one?"
Customer: "Sure."
Clerk: "Extended warranty?"
Customer: "No thanks"
Clerk: "Sorry, I just checked, we're out of stock"
Customer: "But... you didn't go anywhere, you didn't even act like you were looking in the stock room"
Clerk: "Uh... Telepathy!"
Scenario 3:
Customer: "I want this laptop."
Clerk: "You want extend waranty."
Customer: "No"
Clerk: "No computer in stock"
Customer: "Yes you do, this box right here, in my hand, I want to buy it."
Clerk: "Me ring up"
Customer: "Okay here"
(Customer hands computer to Clerk, Clerk smashes the computer with a primitive club)
Clerk: "No computer in stock."
Then again, I haven't worked in retail for a long time, maybe my "Lying to strangers" skills are rusty.
When the purpose of a store becomes to avoid the simple sale of the product at the marked price, management has failed and the store is doomed.
Help stamp out iliturcy.
Back in high school, I worked at a Media Play. It was a chain similar to Best Buy and Circuit City, but it had a massive book section alongside video games, software, music, and movies.
I worked in the video games/software section as a sales associate. Unfortunately, they didn't pay us commissions, but they sure as hell threatened us with losing our jobs if we didn't meet quotas.
Let me list out what we had to push on customers:
- "Free" issue of some general entertainment magazine (That would automatically charge your card if you didn't cancel in a week)
- "Free" issue of some movie magazine (That would automatically charge your card if you didn't cancel in a week)
- Dish TV subscription. (Yes, they wanted 16 year old 'associates' pushing a new TV form. Needless to say, only one person EVER sold one, and that was a manager)
- Media Play Rewards Card (The only semi-reasonable thing, low signup fee and money back - worth it if you spent more than a hundred dollars a year there)
- A Discover credit card... what the hell?
These were required to be pushed on EVERY CUSTOMER we saw, regardless of if they were walking to another section or not. I felt worst for the people heading towards the book section, as they had to pass through two other sections and were accosted at least once or twice before even reaching the book section.
This was only required if the customer was buying something electronic: (Gameboy, XBox, Playstation, etc)
- Extended Warranty Plan
We were told to lie about this, saying it was 100% coverage no matter what happened. Needless to say, 16 year old employees do not care to read a 10 page document of fine print to find this out. Not to mention that the store was on the way to being closed down (and they knew it) so these 3 year warranties wouldn't be honored anyway.
I never sold a single 'extra', even going so far as to tell people directly that these 'deals' were scams (except for the Media Play Rewards card, but I told them it'd be easier to just ask the cashier about it if they were interested) but I kept my job because I got a half dozen reports to my manager from customers about what a great employee I was. ;) I still got bitched at, but I kept my job.
And this is a situation where there's no commission.. ;)
I worked at Office Depot in Seattle for almost two years as a technology salesman. I know the system very well, and I can, with complete honesty, say that our store managers and the employees who sold the plans cared very much about the customers.
Yes, the employees and managers make a profit and bonuses (both) from selling them. And perhaps the plans are a bit more expensive than they should be.
But ya know what? If a customer ever came back to the store, complaining about a product that they had purchased that broke, for WHATEVER reason, we would ALWAYS take care of them if they had purchased a plan, even if they were still under the manufacturer's warranty. You can hate on OD all you want, and there very well may be "evil" stores out there who are just out to screw customers, but my experience was very different.
Our store had frequent repeat customers, because we would simply ask them if they wanted the plan. If they said no, we let it be. If they were hesitant, we would explain exactly what it would do for them. Because of this straightforward, honest, approach, people liked us and we always sold more plans than most other stores in the whole company.
So, again, it sucks that there are these bad policies put in place by certain stores, but you should know that not all stores take this approach, even if it is demanded by upper management. Having the customer's trust always brought more business.
Everyone here knows not to buy these warranties. People who do buy the warranties subsidize the cheaper purchases that YOU make. This is how they offer the good deals on priceline (except on priceline stores, they call it "accessories").
By bringing attention to the matter, you are making it harder for us in-the-knows to buy things for subsidized prices.
-- I was raised on the command line, bitch
16 years ago when I worked for Circuit City they had a similar procedure. Sales counselors (as we were called) weren't explicitly instructed to deny the product to customers who didn't want the "cheese" (aka extended service plan or ESP) - but we too were subject to management scolding and eventual firing if we didn't meet our quotas. So there was a significant incentive to tell customers who didn't want the ESP, especially on a promotional item with a low spiff (aka commission) that they should either buy something else or maybe wait around awhile while the sales person ignores you until you leave. From the sales person's perspective, why bother selling a laptop that pays the sales person a dollar or 2 (if it's on sale) and reduces his or her ESP percentage? The only way out is to lie about stock, sell lots of overpriced accessories, or upsell to a higher margin unit with a higher spiff.