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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."

22 of 492 comments (clear)

  1. It's just Good Business by GodfatherofSoul · · Score: 4, Interesting

    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.

    Paraphrasing a quote from The Grapes of Wrath, "Steal a tire and you're a criminal. Sell a man a tire with a hole in it and that's just good business."

    --
    I swear to God...I swear to God! That is NOT how you treat your human!
    1. Re:It's just Good Business by Anonymous Coward · · Score: 1, Interesting

      This is why stores like Walmart/HomeDepot/Target are thriving with no one to hassle you but associates to help if you need it. Walmart has overtaken most of the electronic purchases in my household with online filling the rest nicely.

      Places like Circuit City, CompUSA and the rest have fallen by the wayside, and I'm not sure if Best Buy / Office Depot / Staples isn't close behind. It's not just their prices are expensive compared to say Walmart or Costco or online, it's just that I don't relish ever going there even though they are closer by.

    2. Re:It's just Good Business by Fred_A · · Score: 4, Interesting

      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.

      Sad but true. Remember that even structures like IBM gave up on selling PCs because they couldn't make a profit on them.
      And for having known very intimately the workings of [very large western computer maker (not Dell)], the margins were (it got sold since) in the 1.5% range. It's a nasty business.
      Nowadays the "brick and mortar" retailers have to fight the online resellers who have quite an edge on them. So if anything the fight has gotten even more nasty (but then with sales people, what can you expect ?).

      --

      May contain traces of nut.
      Made from the freshest electrons.
    3. Re:It's just Good Business by Lumpy · · Score: 5, Interesting

      And it's how I am thriving in this economy and others are not.

      I have been pissed at how customers have been treated for a while now. I vowed to give top notch customer service and it is paying off. I still get jobs for photography in this really tough economic climate. When a corporation weighs paying you $1500.00 a day to do photography for them or have kenny in accounting who is handy with a camera do it on the clock, you had better bring to the table something that they remember.

      Circuit City died because their business motto was "screw the customer" we will see a whole lot more businesses die in the water this year simply because they have the same attitude.

      Honestly, good riddance, the world is better off without companies like that.

      --
      Do not look at laser with remaining good eye.
    4. Re:It's just Good Business by jellomizer · · Score: 4, Interesting

      We need good consumer classes in school. I remember back in school (6th grade) we had 1 class (like 1 45 minute block) dedicated to seeing how advertisers make us interested in the product. That was one of the most impressionable classes I have ever took. Ever sense then when I look at these adds I can go wow they said the product name like 20 times in one minutes. Or listen to the scary music in the background when they show the competitor.

      Americas success of capitalization is dependent on smart consumers. Brainwashed consumers are not good for capitalization and could cause it to fail.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    5. Re:It's just Good Business by Molochi · · Score: 2, Interesting

      When I shop for a sale item in a big box store, I expect the sales person to try to pad the the price. The "we're out of stock" trick mentioned in the article has been used for a long time.

      I had an acquaintance 3-4 years ago who's a computer tech. He'd buy several notebooks, system deals, free after rebate hardware from OD, BB, whoever has the super deal going on, each month. This stuff was all resold to clients and he did/does it because it's cheaper than buying wholesale or building systems himself. The guys over at Office Depot would recognise him and refuse to sell to him (using the "sold out, sorry" excuse). He'd complain to a manager that he spent thousands a year at the store, but once they wised up that stopped working. So he'd send his wife in or call ahead, to get around this. From what I gathered there were many small shops and work from home techs that do buisness this way. They do a good job at cleaning out the stock of loss leaders. The two groups are like Hyenas vs Jackals. Don't really care who comes out ahead.

      OD should just point to the "We Reserve The Right To Refuse Service" sign to customers that they don't want the business of. Nothing wrong with that.

      --
      "The Adobe Updater must update itself before it can check for updates. Would you like to update the Adobe Updater now?"
    6. Re:It's just Good Business by Herkum01 · · Score: 5, Interesting

      Yeah right it is the customer. What about Christmas sales, or more correctly after Christmas sales? Companies hate that consumers will try to wait until after Christmas when companies make huge discounts on products to clear out their inventory. So why should the customer pay full price when next week it will be 25% off? Oh yeah, the bean counters say that it costs more to store product that is out of season, because they bought it on credit, than to hold onto it. So on clearance it goes!

      Companies love to bitch and moan about customers to, but business taught the consumer everything they know. So I guess businesses are their own worst enemy!

    7. Re:It's just Good Business by hairyfeet · · Score: 4, Interesting

      Well IMHO the key is you DON'T try to compete with a Wal Mart or a Dell, you just find your own niche. I have watched countless shops that I have done freelance work for fold because they were stupid enough to try to get into those markets and as other said you just can't compete with them on price. The worst is laptops, I don't know how many PC shops I have watched go broke by getting into the laptops sales and repair game. Yes, laptops are more popular right now, but Dell and the like rip you off so bad on replacement parts and they are so proprietary on the designs that even having an identical model on the outside often means the internals may not be compatible if the have switched revs. And of course with sales the laptops are so dated so quickly that the customer can end up getting a new for cheaper than a used.

      So how come my little shop is still here and doing okay? Because I found my own niche. I can't compete with Dell or Wal Mart on a new desktop price wise, but I design the machine to what the customer needs. I also take a lot of the work out of it when they buy a desktop or laptop through me as I take the time to set up the AV, antispyware, defrag, data backups, etc on a schedule based on how they use their machine. Leave the PC on 24/7 and don't use it late at night(like my last customer)? Then I set everything up to take care of itself at 3AM so by the time you come into work it is ready when you are.

      The key to dealing with the prices of the Wal Marts and Dells is NOT to try to play the game on their rules, but to change the rules. I make sure my customers know the differences between what you get from Dell and what you get from me. How I design the specs based on their usage and how long they plan on keeping the PC, with a clearly written upgrade path so if they plan on keeping machines for many years it has the capability to grow with them. But trying to make yourself look capable of competing with the big boys and then pulling asshatery like in TFA is the surest way to alienate your customers. Folks don't like to feel used. Better to offer them a good value and compete on service than to use lame trickery like in TFA. I just hope they get royally busted for the crap they are pulling.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    8. Re:It's just Good Business by Archangel+Michael · · Score: 4, Interesting

      This doesn't work, at all.

      Here's my story, from back in the day (late 80s early 90s), but I'm sure it is still the same today.

      I worked at a small town computer store that was geographically isolated away from any big city. We had HP Printers (Deskjets) on sale for around $400-500, and people would price shop the crap out of them. To the point that they would drive 90 miles to save 5 - 10 dollars (seriously). That 5-10 was about what our margins were.

      I was commission sales back then, and quite frankly it cost me money to sell those things. Someone would come in price shopping for a printer, I'd point to the printer and say "the price is clearly marked", and if they mentioned they could buy it for $5 less 90 miles away, I'd turn and walk away.

      Yeah, I was an ass over it, because I saw too many of those people willing to drive 90 miles to save $5.

      The funny thing is, about 1/2 the time, I'd see the very same people in in a few days, needing a cable for their printer, because nobody at the other store told them they needed a cable.

      Now the cables we got cost us $.50 ea. YES FIFTY CENTS. And we sold them for $14.95 or something. I made more money on a cable than the printer.

      So, when people complain about sales associates that don't know shit, or act like they don't care, that is probably right. They probably don't care or don't know. What do you expect when you're asking them to bleed the last ounce of profit out of a product.

      By the end of my stint there, I sold equipment practically at cost. I sold the hardware as a means to sell services. If you wanted help, I'd charge you for training or whatever. If you wanted to buy a computer or printer, I'd say which one and try to ring you up at the register as fast as I could, because you were costing me.

      I'm sure plenty of people thought I was lying (though I never did). I'm sure plenty of people thought my service sucked. But the people who paid for my service always got top notch. My last day at the store, I accounted for 1/3 of all sales, and 25% of that was services. The other 5 sales persons fought over the other 2/3 and didn't have much in services. I was nearly 60% of the store profits on sales and service.

      I left, and within six months they were out of business.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    9. Re:It's just Good Business by Anonymous Coward · · Score: 1, Interesting

      I hate to burst your bubble, but the computer store you worked for didn't go out of business because their "Biggest Sales Man" left. They went out of business because of jerks like you interacting with customers.

      A good sales man would have price matched the printer and ate the nominal difference, then pushed the cable sale for a huge profit. Go figure, you now have a net positive sale AND a happy customer who will return.

      Instead Mr. AwesmoSalesMan here is calling customers out on being penny pinches and alienating them. Doing this will surely keep any business afloat

  2. Not much of a surprise by El_Muerte_TDS · · Score: 2, Interesting

    Well, except that for once sales people admit that they lie to customers.

    1. Re:Not much of a surprise by commodore64_love · · Score: 4, Interesting

      Most salespeople will admit they lie if you ask (outside the store). When I worked at Sears I couldn't stand how much pressure management placed on us to sell ripooff "extended warranty" contracts. We were expected to lie and convince customers that it was a good investment, when in reality most extended warranties go unredeemed. Most hardware will last a long, long time after it survives the initial 3-6 month "infant mortality" period... there's no need to extend the warranty, except to pad Sears pockets with free money.

      If I worked at Office Depot, Best Buy, or some other place that engaged in illegal tactics like saying, "We don't have that laptop in stock" even though you have several, or creating false price tags, I'd start collecting documentation so I could turn it over to the FTC.

      Yes I'd be a whistle-blower. I cannot tolerate corruption. (Of course that also means I'd probably be blacklisted by our corporate overlords.)

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    2. Re:Not much of a surprise by tomhudson · · Score: 4, Interesting

      If someone goes to park illegally they should be encouraged to move on, but instead the traffic wardens will hide, wait for them to park and walk off, and then dive out to ticket or even clamp them

      So do like I did - one time, the bozo left the keys in the tow-truck while arguing with someone about whether they would be towed or not. The tow-truck operator was trying to shake them down for the $65 towing fee even though he hadn't even hooked up. When they balked, he then "offered to settle" for $25.00 cash ... which we all know would have just gone into his pocket. While they were arguing, I pocketed the tow-truck key, then walked into a restaurant and called the cops about a tow-truck driver blocking someone's car.

      Went home, got changed (different clothes, a hat, jacket), went back and sure enough, 2 hours later, the tow-truck was still stuck there - but getting ready to be towed.

      I simply don't like people trying to scam (or in this case, outright extortion) other people.

  3. Re:They can't do this without help from the store. by Hurricane78 · · Score: 4, Interesting

    Aware? Do you think a employee would actually care about that crappy company, to pull off shit like that?

    I bet they even have to tell the employees that they can choose between lying to customers, or getting fired.

    --
    Any sufficiently advanced intelligence is indistinguishable from stupidity.
  4. Re:Ex Office Depot Employee by Anonymous Coward · · Score: 1, Interesting

    I don't think people would be complaining too loudly if the salesman was pushing a bag and a couple of blank disks at them. It's the warrenties that piss people off, especially when unethical scumbags try to sell them on mice, keyboards and the like.

    A former employer of mine discovered our office supplies company had been charging us a hidden 2% "insurance" on all our purchases...

    Yes, insurance on tape, staples and envelopes. Honestly. It took a few weeks to get it removed and backdated too, and he now has to call in every order and request it's not added to the invoice.

  5. Re:I had this happen to me at Microcenter by commodore64_love · · Score: 4, Interesting

    Sometimes though "reporting it" does absolutely no good. The damn government which is *supposed* to help the People which created it, refuses to do its job and crack-down on dishonest businessmen. Case in point:

    I was staying at a Motel 6 week-after-week, and everything was great. Then about 6 months (and $3000 room rent) later the manager decided to no longer accept the "click to get 10% off" that I had been using via the website. I contacted the national office who said he MUST honor the rate. The manager responded by saying, "I am sick and tired of you. I told you I don't do the 10% off rate, and you refuse to listen so I'm kicking you out of the hotel." He ignored what the national office had told him to do (refund 10% of my money), and even went so far as to call the police and have them remove my luggage from the room. I complained to the Virginia Consumer Protection department, and they didn't do shit other than talk to the manager. The manager made-up a bunch of lies about how I had sex with a maid (false), yelled at employees (I'm quiet and timid, not a yeller), and falsified reservations (impossible; I'd have to hack the central corporate computer to do that). The VA government was completely worthless and this manager is still mistreating customers (I was not the only victim as it turns out).

    Those reading this probably think this is non-relevant, except that it is. It goes back to Customer Service, and the lack thereof. Whether the product is hotel rooms or laptops, there is a prevailing attitude amongst Sales people and managers that WE the customer are there to serve them.

    I hope the current economic collapse quickly corrects that misconception. Without customers, business can not survive. Mistreat the customer and soon you'll be the next Circuit City.

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  6. CompUSA by Anonymous Coward · · Score: 1, Interesting

    When there was a CompUSA in my area. I went to buy a laptop. The sales person tried to sell me the extended warranty. When I refused, he indicated he was able to drop the price of the laptop enough so the end price was still the same with the warranty. When I refused and insisted on the lowered price, he indicated that he was not able to sell at the lowered price w/o the warranty.

  7. Not business as usual by TehChubbz0r · · Score: 2, Interesting

    When I worked electronics at Staples a few years back, 2 or 3 stores in our district were "reorganized" and all management at those stores fired for similar practices. One store was printing the higher price tags for big ticket items to sell warranties and replacement plans without having to even offer them. Another would lie about inventory levels on everything from printers to laptops.

    All of this happened about 2 weeks after they sent 2 people from each store to the highest performing in our district for "training". This store had been performing TOO well, and as soon as the training session started, most of us start exchanging puzzled looks, as their methods were clearly against company policy.

    --


    Rarely is the question asked: Is our children learning?
  8. This happened at CompUSA too by Anonymous Coward · · Score: 1, Interesting

    I worked at CompUSA when I was a teenager, and I saw this kind of thing happen there too. The most successful salesmen would print up a second set of price tags for desktops and laptops that built in the warranty and put them up and then "stake out" that section of the store. They would sell customers that didn't know any better the machine at the inflated price and bundle in the warranty.

    I also saw people sell electronics warranties on overpriced items that clearly didn't need them (the worst offender sold a 10 dollar warranty on a 15 dollar network cable. Both outrageous to begin with).

    In the long run I think that these kinds of shady practices will alienate the customer and the company will go out of business, as we saw happen with CompUSA (and oh, how I rejoiced).

  9. Convenience costs money by Anonymous Coward · · Score: 1, Interesting

    The brick and mortar stores have every right to charge whatever they want for RAM. Local stores at double the price are for emergencies only. Sure, you can get it online for half the cost. IF you are willing to wait.

    It costs a lot to run a local store and maintain inventory -- even before the returns by morons whose computers are STILL broken because RAM wasn't the problem in the first place. They might not be so quick to spend the time shipping it back to Newegg, but they will surely return to the local Office Depot (even if they bought it at Newegg).

    In the old days (before internet), local computer stores woulds sell RAM for 900% of mail order price. In those days, an plain (dual floppy) IBM PC would cost about $3600, a generic clone would be about $2500 from the local PC dealer, but you could make it yourself from mail order parts for a little over $1000.

    When companies figured out that each PC they bought was overpriced from $1500 to $2500, purchasing was centralized and these overpriced shops went out of business. I know of at least one large defense contractor that started up a miniature PC factory just for their own needs. Workers would build PCs from commodity parts and the IT department would deploy them. Today, it's hard to buy a PC unfit for business use (assuming you can avoid Vista). Meanwhile, the DIY incentive is almost non-existant. Prices are very competitive.

    We like to think our IT department is getting the best price and/or quantity discounts. But unless you are a Fortune 500 company, quantity discounts seldom beat the loss leaders (either locally or online) available to the general public. Software is the same story: Most of Microsoft's volume purchase agreements are packed with "management tools" instead of discounts. At best, the IT people get a few perks from the vendors and the "economies of scale" fantasy is kept intact.

    We are afraid of overpaying if we decentralize the function. But today's problem is the cost of our own internal red tape. It would probably be cheaper to give each new employee an allowance for a new computer and have them make the purchase directly.

  10. If the service plans were honest ..... by King_TJ · · Score: 4, Interesting

    The extended warranties and service plans would be FAR easier to sell if *those* things were honest in the first place!

    Honestly, I tend to *like* the service plans, in theory, on many of the things I'd buy at a store like Office Depot. My resistance to them comes from being screwed over on multiple occasions when I went to actually USE one of them!

    As one example, years ago, I purchased the 2 year extended plan for an HP inkjet printer I got for my work. I knew that out in the shop where it was used, they had a track record of breaking or wearing out the things on about a 1 1/2 year basis, so I figured it was a good gamble we'd use the plan. Sure enough, it broke down - so I called the ext. warranty toll-free number and tried to make a claim. Turns out the company went bankrupt and all warranties were transferred to a different firm. When I called THAT firm, they had "no record" of my warranty - and told me I needed to go to Office Depot and have them look it up in their file, and fax over proof.

    I went through that whole fiasco, only to have the place refuse to pay to replace the printer with a comparable unit. Instead, they said all they were willing to do was mail me a check for the cost of the extended warranty and wash their hands of it!

    As another example? I paid about $100 for a furniture warranty on a new sectional I bought at "Weekends Only". The microfiber started tearing in a corner, so I called to make a warranty claim. The place was *impossible* to work with though! They kept putting me on hold for 30 minutes or more and hanging up on me, or insisting the person handling the "Weekends Only" warranties was out of the office, and to "leave a voicemail". After leaving numerous messages, I got them to return my call a total of 2 times, both at odd hours (like late evenings, at my work number, when I was already long since back at home), so they left me messages simply saying they "tried to reach me" and to "give them a call back at my convenience". Never was able to get any service before the warranty expired, and I *still* have holes in my sectional!

  11. Office Depot USB Cable for $55 by Anonymous Coward · · Score: 1, Interesting

    Here's a prime example of how people get f---ed at the stores.

    http://f---you.com/2008/12/55-for-one-f-in-usb-cable.html