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cassnate | Do salespeople at electronics stores get bonuses based on sales of the warranty plan? |
I know that many electronics stores, such as Circuit City and Best Buy do not pay commissions, but the salespeople always push the warranty and seem mad when you don't buy it. How does that work? |
 |
 
Feeling Mutual
 |
I used to get 10% of it when I sold computers. Selling the computer usually only paid 1%. But every store is different.
Those plans are almost pure profit, so they salespeople are required to push them. Most never have to pay off or have stupid loopholes.
Sears used to have the best. I used to buy a Packard Bell computer, and a 2 year service contract. The computer would never last more than a year. And the salesperson would not lose their comission on the computer if I brought it back after 6 months. So when it broke down after about a year, I would take it back, they could never fix it. They would replace it with a newer, faster model because the old model was no longer available. It was like getting a free upgrade!
The salesperson didn't mind, they got a 2nd commission on the replacement computer.
You never want to get them on things that can get lost easy though. |
|
Well...
|
The profit margins on these warranties are very good for the retail store and don't require carrying inventory etc, so it is often the case that the salesperson is driven to make sure you understand the value so that you will purchase it. Part of how a company drives them to do it is by measuring and providing incremental bonuses for the "attach rate" for warranties for the products they are selling. |
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sean82z2004
 |
At Best Buys the sales people do not get bonuses but they dont tell you that the cashiers do! If you are not careful the cashiers will sign you up for a lot of junk.
go to
http://www.bestbuysux.org/html/cust6-05.html
for some stories |
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Don't blame me, I voted McCa
 |
I'd say they have to get some kind of compensation for it. Don't fall for it though. You usually don't need a warranty on electronics. Just keep your receipt in case it's defective out of the box. |
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Diane
|
They are trained to push the warranty plan.
They may get promotions on sales and selling the warranties adds to their sales amounts for the year or month. |
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JBrian
|
Since many salespeople get a commission, most likely based on the final sales dollars they bring in, I would assume every extra dollar they can squeeze from a customer counts toward their paycheck.
But you're right: the floor salesmen at retail stores often are paid an hourly wage, and then I'm not sure why they are so persistent in selling the warranty.
Maybe they get bonus points towards their next raise or something? |
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bornonaplatein1988
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lunatics ill say |
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