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Circuit City shows us the business model for success


TimC
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Fire the 3,400 people that have been around long enough to know what they're doing and replace them with cheaper labor.

 

As it struggles to boost profitability, Circuit City Stores Inc. has fired 3,400 salespeople it said were being paid too much for their jobs.

 

By Christmas, the Fortune 500 company plans to have filled all positions with people willing to do the job at a lower wage.

 

This company is headquartered down the road and they will go the way of CompUSA in a bit. Might wanna hold off on that extended warranty.

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Fire the 3,400 people that have been around long enough to know what they're doing and replace them with cheaper labor.

This company is headquartered down the road and they will go the way of CompUSA in a bit. Might wanna hold off on that extended warranty.

 

As I have been to BB & CC several times recently, I find that BB salespeople, though in some cases can't answer all your questions, they ask if you need help within seconds, whereas CC you can wait forever. This move will exacerbate the lack of knowledge and won't improve the wait time. But I'm sure the exec that had this thouht will get a hugh bonus. CC will go the way of Pacific Stereo and the rest.

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As I have been to BB & CC several times recently, I find that BB salespeople, though in some cases can't answer all your questions, they ask if you need help within seconds, whereas CC you can wait forever. This move will exacerbate the lack of knowledge and won't improve the wait time. But I'm sure the exec that had this thouht will get a hugh bonus. CC will go the way of Pacific Stereo and the rest.

Circuit City salesmen don't get commission like Best Buy salesmen do...thats why at BB they are on you like flies on garbage...

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Circuit City salesmen don't get commission like Best Buy salesmen do...thats why at BB they are on you like flies on garbage...

 

 

At least locally, the exact opposite is true. Its CC that gets commission, and BB that has the local high school hourly-wage boobs. I find both to be equally annoying in their own way.

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At least locally, the exact opposite is true. Its CC that gets commission, and BB that has the local high school hourly-wage boobs. I find both to be equally annoying in their own way.

 

Wierd...when I went looking for TV's last year the CC guys were nice and not at all pushy whereas the BB clowns were trying to get me to buy over my limit...

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Fire the 3,400 people that have been around long enough to know what they're doing and replace them with cheaper labor.

This company is headquartered down the road and they will go the way of CompUSA in a bit. Might wanna hold off on that extended warranty.

 

My wife told me about this last evening but I couldn't find the report, or I would have posted it (can't miss an opportunity to bash a corporation).

 

This is effectively saying to the work force - F you and your loyalty, F off.

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Wierd...when I went looking for TV's last year the CC guys were nice and not at all pushy whereas the BB clowns were trying to get me to buy over my limit...

 

 

Best Buy does not pay their sales people commisions. I cannot speak as to what CC does.

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I will never buy anything from Best Buy again. Too many reasons to list.

 

I tried Circuit City last year for the first time in a while and was VERY happy. They had by far the best price and the salesman was great. Not pushy, but answered all my questions.

 

Hopefully, BestBuy goes away and Circuit City stay around.

 

I believe canning high paid sales people is common place in that industry. Part of the gig. I know a lot of people who got canned simply because they made too much during tough retail times.

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In February 2003, the company ended a decades-old tradition of paying salespeople commissions, and afterward McGranahan noted there was a negative impact on sales. He said that could happen again.

 

 

 

Read the article, huddlers. You're all talking out of your arse before even clicking the link.

 

This is a business decision, albeit not an easy one, but the quickest way for them to try to survive, IMO. I would imagine cashiers and warehouse employees are not "overpaid" so they have to cut somewhere. It's not a perfect world. Wal-mart and BB are pushing them to react. I'd do the same thing in their position.

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CC used to pay commissions, but they stopped it a few years ago. At the same time they did that, they also fired a bunch of the best and longest serving (and also highest paid) employees. So it seems that CC has been down this road before.

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This is a business decision, albeit not an easy one, but the quickest way for them to try to survive, IMO. I would imagine cashiers and warehouse employees are not "overpaid" so they have to cut somewhere. It's not a perfect world. Wal-mart and BB are pushing them to react. I'd do the same thing in their position.

 

This from the postings below the article:

 

My friend works at CC and makes $16/hr to cashier!! I can kinda see why they might need to lower this payscale.
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i dunno....if you go into one of those box stores expecting reliable, informed advice to help guide your purchasing decisions, i'd say you've put yourself behind the 8-ball from the get-go. i go into those stores assuming the only usefullness the idiots in the blue or red shirts can provide me is to help me find which aisle something is in. with that in mind, i have to say it's probably a good idea for CC to focus on lower-paid labor. truly knowledgable (and thus more highly-paid) sales staff have a place at boutique stores, where the customers willingly pay more for knowledgeable staff help....but they're sort of out of place at one of the big box stores that is trying first and foremost to compete on price and drive volume.

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i dunno....if you go into one of those box stores expecting reliable, informed advice to help guide your purchasing decisions, i'd say you've put yourself behind the 8-ball from the get-go. i go into those stores assuming the only usefullness the idiots in the blue or red shirts can provide me is to help me find which aisle something is in. with that in mind, i have to say it's probably a good idea for CC to focus on lower-paid labor. truly knowledgable (and thus more highly-paid) sales staff have a place at boutique stores, where the customers willingly pay more for knowledgeable staff help....but they're sort of out of place at one of the big box stores that is trying first and foremost to compete on price and drive volume.

 

exactly, plus they can train a staff of monkeys to learn the basics of the equipment which is all they need to know...

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Ya CC pays commish and BB dosent from what I understand.

You understand incorrectly. CC does not pay it's sales people commision anymore.

 

As for CC vs BB generally, IMO flip a coin.

 

 

exactly, plus they can train a staff of monkeys to learn the basics of the equipment which is all they need to know...

"can?" They do, at least in VA.
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i dunno....if you go into one of those box stores expecting reliable, informed advice to help guide your purchasing decisions, i'd say you've put yourself behind the 8-ball from the get-go. i go into those stores assuming the only usefullness the idiots in the blue or red shirts can provide me is to help me find which aisle something is in.

Agree with this wholeheartedly from a personal standpoint. That said, how many people are really savvy?

with that in mind, i have to say it's probably a good idea for CC to focus on lower-paid labor. truly knowledgable (and thus more highly-paid) sales staff have a place at boutique stores, where the customers willingly pay more for knowledgeable staff help....but they're sort of out of place at one of the big box stores that is trying first and foremost to compete on price and drive volume.

 

Dunno, it's yet another in the procession of companies cutting pay while reimbursing executives to an insane degree. Yeah, yeah, I know about the market forces driving executive pay blah blah but that market is self-regulating, IMO and in dire need of correction. Take a look at Northwest Airlines as a fine example of executives slashing pay to the bone (and beyond) while retaining all their own perks and compensation.

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Anyone remember awhile ago where a group of folks got a ton of people together to wear blue shirts and just stand around in a Best Buy store and watch what happens.

 

Funny to read about. Big John, do you know what I'm talking about?

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Read the article, huddlers. You're all talking out of your arse before even clicking the link.

 

 

 

 

Perhaps it wasn't implemented 100% of the way. Maybe some sales staff were grandfathered on commission or some such. There's a TV-sales chick at my local CC that told me she was working on commissions as recently as October 2006. She went out of her way to hand me her card, hours, pamphlets etc, and mentioned she worked on commission so be sure and ask for her.

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Perhaps it wasn't implemented 100% of the way. Maybe some sales staff were grandfathered on commission or some such. There's a TV-sales chick at my local CC that told me she was working on commissions as recently as October 2006. She went out of her way to hand me her card, hours, pamphlets etc, and mentioned she worked on commission so be sure and ask for her.

 

she works on commission after hours.... not at CC :D

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