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Office Depot Employee — "We Changed Prices Too"
Avram Piltch writes "Last week, LAPTOP reported that Office Depot employees were routinely lying to customers about notebook inventory, telling them that systems were out of stock if they didn't want to buy extended warranties or tech services. Now LAPTOP has spoken to more Office Depot associates, one of whom goes by the name Alex and reports widespread altering of prices in his region. He says he even Photoshops higher price tags on clearance notebooks so that associates can tell customers that they're getting a free warranty or tech service, when the price has been raised to cover it. LAPTOP also talked to a representative from the FTC, who would not comment on Office Depot specifically, but said that the sales practices described by LAPTOP clearly violate federal law."
Apparently the rogue salesman wasn't impressed with my wanting a "cheap Linux laptop" and told me there were none left. Never mind I checked the website half an hour earlier before coming in and there were about 270 in stock at that store. So I went up front to customer service. They checked for stock and had two people help me. One to go back and fire the salesman and the other to get my laptop. That store appears to have stopped the practice of giving salesmen credit for purchases soon after. The salesmen no longer act like vultures. Customers do the store and community great service by reporting the problem.
I used to work there. I can see how their employee incentives would lead to these kind of practices. There's something wrong when your focus has to be selling an "attachment" item over the actual product. And no one ever uses their extended warranty (don't tell me a story about a time you used it, you're the exception, not the rule) It's dishonest. Insurance on an item you can afford to replace is always a bad deal.
Why the heck does anyone buy electronics from brick and mortar stores any more? Yes, occasionally you can find "deals" compared to online - but those always HAVE to be at a loss compared to online stores.
The reason is that online stores have several massive advantages. Economies of scale are one : newegg.com and the others can supply the entire United States with electronics using just a few large warehouses, with heavy use of automation. The real estate, labor, energy usage, advertising costs, management...it's all cheaper with a few large warehouses.
The second massive advantage is that electronic goods inherently plummet in value very rapidly. The longer something sits in inventory, the less money the store makes by selling it. Again, the online stores need vastly smaller inventories relative to their total sales, and I suspect sometimes work so efficiently as to unload goods from the shipping containers from china and immediatly send it on the buyers.
I know what most of you are going to say : "instant gratification" isn't there. True. Still, electronics are cheap and light to ship. It's cheaper to have a video card overnighted from newegg than it is to pay the usual price the same video card is listed at in Best Buy.
The overwhelming majority of us don't need instant gratification, we can wait 2 days. If we are doing something where high uptime is critical, then it's still cheaper to order a few extra parts from newegg as spares than it is to buy stuff from Best Buy or Fry's. Or just keep your old stuff for spares.
Fortunately, the editors here catch and correct...oh, that's right.
Advice: on VPS providers
...that no one ever uses their extended warranty is just fantasy on your part.
That's assuming you actually can use it. Many times, when you actually try to make a claim, the insurance company that backs the warranty, will not back it up - they'll find something in the fine print of the contract that they'll use as an excuse to tell you to take a hike; which then it becomes a battle. Many times, they don't even have a legitimate reason not to honor the warranty, but they do anyway because they're crooks.
A Consumer advocate's take:
Why extended warranties are a rip
Why extended warranties are no good
There's enough greed to go around, certainly, and I don't support deception--but the consumers love to bitch and moan but they're never willing to accept their own share of the responsibility.
Why is it so important to these companies to push service plans and insurance and batteries, and mark up a cable to $60 and sell you a hot apple pie with that? Because they've slashed their margins on the things you're actually there to buy so low trying to get you in there to buy them. Think about the people you know. If they could choose between Store A which has their product at $300 and Store B that has it at $250 but are going to push as hard as they possibly can to get you to buy their $50 warranty, which are they likely to choose? The majority of people are going to choose Store B and then bitch about the pressure to buy a warranty as if the two things were unrelated.
I don't condone deception or fraud, but it's this prioritization of the lowest price above all else that brings these things about. It's a lot like how people bitch and moan about Wal-Mart strangling out small mom and pop shops that had that friendly atmosphere and great service. They're dead because they weren't willing to pay for that service; they'd rather save a few bucks by going to that Wal-Mart. So be it, it's their right as consumers--but let's not be naive about the choices being made.
Why am i not shocked?
I'm growing to hate money and all who seek it at the cost of being fair, honest, and humane. Greed is a disgusting thing.
I'm all for public hangings of guilty CEO and politicians.
Interesting anecdote. The wife and I were at a mall and she decided that she wanted to stop by Sears to see about some new bedding. She rifled through the various sheets that they had going, picked out one she liked, and we proceeded to check out. I handed the lady at the checkout stand my credit card which she tried several times to swipe. After those unsuccessful attempts she gave up and handed my card back. I thought it odd that it wasn't reading correctly considering we had just made some purchases with it a few minutes previous, so I asked her if she could manually punch the card number in.
She looked at me as if I were accosting her to do such a thing! She quite reluctantly did so and the purchase went through. It astounded me how poor the whole payment experience was. This experience left an indelible impression that I would not be returning to Sears anymore. If they were going to put up a stink over punching in a credit card number, I would not want to know what they would do if I had a real problem.
Long story, I know, but with all these companies racing to the bottom of 'low price guaranteed!', the biggest differentiator is going to be service. This is why companies like Newegg will always get my business and peer recommendation. I've had some really big problems with them, but in the end they were able to sort things out and make them right. Now if I could only purchase bedding from them...
We're all hypocrites. We all have hidden parts, it's the contrast between them that make us more a hypocrite than others
The trouble is you are taking a long term view... Businesses these days aim for short term profits and big bonuses because the people running them just couldn't care less about the long term success of the business, they are just in it for the maximum gain they can make in the quickest time, and will then move on. That's why small businesses tend to offer a better service, because the people running them usually are interested in the long term viability of the business.
A couple of years ago banks were making huge profits and paying out massive bonuses, this year they're making huge losses and going bust... All because of short term profiteering.
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Sadly, this is the attitude of many in sales in this country. Good Business is how much you can milk from your customers and how fast regardless of the consequences. I sat with a couple of sales guys (friends at that) last weekend who bragged back and forth about how they were literally screwing associates.
I don't think that word means what you think it means.
"Tell me doctor, with all of your defenses, are there any provisions for an attack by killer bees?"
Wal-Mart's margins are very low too.
It makes it very difficult to compete as a smaller business, since 2-3 percent of a shit ton makes you rich, but 2-3 percent of a couple million leaves very little.
I'm not trying to weigh in on good vs bad in this situation, and I have certainly seen a Wal-Mart revitalize a main street here, but in general I find them very depressing stores full of shoddy crap. I don't like how they and Home Depot wield enough power to get name-brands to make shoddy version of their products too, it makes shopping much more difficult in the second hand market.
At the same time though, I don't want "service" when shopping for things. I will do some research at home and go in with what I want in mind, even if the sales people are honest and knowledgeable, they are redundant at best.
Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
Your confusing issues here. These stores are lying to their customers - that is wrong, period. In your example, a good sales person will say "we are $50 more expensive then the other guy but here you get a warranty, there you have to pay an extra $50 for it" So the customer can decide if they want the product with or without a warranty. Show why your product is better, or if the products are the same then show why your stores services are better. If you are honest you will get repeat business. If you are dishonest you will get irate customers who will bitch to you, your manager and worse for the store...their friends.
hard sell tactics are one thing...lying is another especially when you hit fraud which is against the law.
I do not support "The Man". I also do not support your irrational stupidity
Zappos is good example of store that differentiates itself from the competitors with customer service. From what I've heard, they are doing quite well. My family buys most of our shoes there (probably only 6-8 pairs a year).
There are lots of stories on the net about Zappos legendary customer service. I think the key is that you can't just have good customer service- it has to be outrageously good. And you have to be savvy enough to get the word spread by others.
Is that a worst case, best case, or lower case scenario?
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
Screwing the customer pays off now. Treating them excellently will pay off for decades.
But most brain-dead execs and investors are too impatient, and too focused on quarterly results. If you want a really good business, focus on results four years from now instead of four months from now.
Question everything