Out of Business Sale

[hobbitt97]

A couple of years ago I was working for a computer retailer. The powers that be decided to sell all the laptops below cost and that the sales people HAVE to sell service plans with them. If we didn't sell each laptop with a plan we would be written up or fired. Now 80% of our customers were from a foreign country. In this country a laptop would sell for almost twice the price that was paid in the USA. Many people would buy a laptop the day that they were returning to said country and that it would cover the cost of their trip here. All these people would buy would be the laptop alone, no accessories, carry bags, nothing. Whoever marketed this idea should be shot.

So, the sale day arrives and it turns out that we sold out almost every laptop. At. A. Big Loss. The retailer was forced to go out of business and sold the stores to another new retailer.

[tamezin]

In this country a laptop would sell for almost twice the price that was paid in the USA.

I am not positive, but it sounds like you are talking about Mexico. My hubby and I bought laptops from here in the US, for our nieces when they graduated from highschool.

It is absolutely true, electronics are ridiculously high south of the border. They should have been pushing printers and ink to help off set the sale. Ink is very difficult to find and when you can find it, it is also very expensive. (something we also send down rather frequently)

It also sounds like management had a moment of epic fail, your customers were taking advantage of a great deal. It sounds like there should have been some qualifiers ie great price with purchase of 1 year service plan etc. Someone wasn't thinking.

[reimero]

In the US, it's actually illegal to require purchase of a service contract in order to get a discounted price. Now, they can lower the price if you agree to purchase the contract, but you're allowed to renege on that agreement and they can't go back on the price.

All that said, it was epic fail on management's part. There are some people who will not purchase an extended service contract, period. Regardless how hard you sell. Tamezin is right: peripherals, printers and ink are where they should have tried to make back their money.

[EricKei]

All that said, it was epic fail on management's part. There are some people who will not purchase an extended service contract, period. Regardless how hard you sell.

If I learned one thing at "GameStore", it's that Corporate simply cannot comprehend the above couple of sentences. They think that all it takes to sell a plan/card/pre-order is to ask, and that a failure to succeed in that is ALWAYS the salesperson's fault.

[CrazedClerkthe2nd]

If I learned one thing at "GameStore", it's that Corporate simply cannot comprehend the above couple of sentences. They think that all it takes to sell a plan/card/pre-order is to ask, and that a failure to succeed in that is ALWAYS the salesperson's fault.

To expand on this, they believe there is a correct method (differing by person) to get everyone to agree to extended plans. I was told in my first go-round with a "Gamestore" like business that we had to ask the customer THREE times and only after three "No" answers could we back off. Not that I ever followed this stupid rule anyway.

[jerkface11]

If retailers would do a better job at honoring their "service contracts" people would probably be more willing to buy them.

[Ghengis51]

To expand on this, they believe there is a correct method (differing by person) to get everyone to agree to extended plans. I was told in my first go-round with a "Gamestore" like business that we had to ask the customer THREE times and only after three "No" answers could we back off. Not that I ever followed this stupid rule anyway.

I've walked out of a gamestore before because of the ask 3 times thing. I understand it's policy but that really pisses me of to no end.

[Gerrinson]

I've walked out of a gamestore before because of the ask 3 times thing. I understand it's policy but that really pisses me of to no end.

I went through the same thing at Best Buy. I was there making purchases for work and rarely - maybe 1 - 2 times per year - ever set foot in the store otherwise. The cashier kept trying to sell me on their rewards card. I said 'No' several times.

Then a woman in a suit - manager or trainer, maybe? - stepped over and tried to sell me the same plan again. Again, I said no. Then she rephrased the approach (poorly, I might add) and asked me yet again if I wanted to sign up (5th time somone had tried to sell the program to me for this one transaction!)

I told her I could just cancel the purchase and go elsewhere, since they didn't seem inclined to just sell me what I wanted to purchase (a grand total of two items that came to less than $20.) That put stop to the questions and I was able to complete the transaction and leave.

And, ever since, I take company money elsewhere, since my paid time is better spent doing things more productive than saying 'No' to whatever plan they're pushing.

[Andara Bledin]

For the OP: Why didn't they just give away the service contract with the purcahse of a laptop, and then on the accounting side, ring the laptops as sold at their price minus the contract price, and the contract at full price. Viola! Guaranteed that some people will actually do what needs to be done to make the contract active, and you probably end up charging more for the laptops than with the store's "brilliant" scheme.

As for annoying attachment pushing, be sure to contact corporate and let them know exactly why you no longer shop with them. A nice copy of a receipt from the competitor with the note might bring it home a bit better, too.

^-.-^

[hobbitt97]

i tried....i tried

I did try to fit the service plan and the price together in a package. When I did this the knucklehead would ask for the below cost price of the equipment. I told them I couldn't do that!

[MadMike]

I've walked out of a gamestore before because of the ask 3 times thing. I understand it's policy but that really pisses me of to no end.

I stopped going to Media Play for the same reason. It wasn't that any one person asked me three times about buying into their reward program, it was that every employee I crossed paths with, including the cashier when I checked out, bugged me about it. As you said, I didn't blame any of them for it, as they were only doing what they were told to do, but damn it got annoying.

After that, I stopped going there until they held their Going Out of Business sale. It was a shame, I used to love shopping there. They had the best selection of movies, music, and games.

[Ghengis51]

I stopped going to Media Play for the same reason. It wasn't that any one person asked me three times about buying into their reward program, it was that every employee I crossed paths with, including the cashier when I checked out, bugged me about it. As you said, I didn't blame any of them for it, as they were only doing what they were told to do, but damn it got annoying.

After that, I stopped going there until they held their Going Out of Business sale. It was a shame, I used to love shopping there. They had the best selection of movies, music, and games.

I can tell you exactly when that started to be a problem with MP. I used to work there, we didn't have nearly the issues with having to do that till Best Buy took over Musicland (MPs parent company), that's when we got a list of 7 things we were supposed to say to EVERY customer that came in the door.

That's actually why I left, I knew i would get in trouble because I thought that was bullshit and wasn't gonna do it. I knew enough to recognize a customer that new what they wanted or was truly just browsing, and i wouldn't bug them about that crap.

[mikoyan29]

I never get the extended service plans. I did finally get the Best Buy rewards because I bought a camera and computer there and got a nice chunk of change for doing so. And why oh why would some corporation have a policy that states you have to ask three times? In most cases, once should be enough.

As for Media Play, it was pretty nice but I live in Border's country (who I think is going to be going in the same direction as Media Play).

[llythe]

I can't stand all the "Extended Warranty" "Protection Plan" "Etc. etc. etc." kind of offers.. there are very few things I will buy them for, but I have been known to add them on from time to time.

The people at the game store here are really nice about the 'constantly ask the customer' thing. I had one guy ask me if I wanted the protection plan, and when I said no, he asked "What happens if as soon as you walk out the door, a team of ninjas swoops down and scratches the disc?" Made me smile, but I still said no, and then he backed off.

I heard a story from our game store people that they replaced someone's disc after they got drunk and put the disc in the microwave. Someone else's dog ate the disc, and they brought it back in little pieces covered in drool, and it was also replaced. So I guess the plan works in the end, but yea, the constant questions are annoying.

[CrazedClerkthe2nd]

I have seen a number of instances where a customer that said "No" the first time, actually did say yes the second time when the associate pushed a little harder. But two is my absolute limit. If someone says no twice, the chance it will change the third time are extremely slim.