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Old 02-03-2003, 11:40 PM   #1 of 18
Jeff SN
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Circuit City


Our Local stores are having a big meeting on Wednesday. They are doing it during the stores normal operating time so something big must be going on. Anyone have a clue? Going out of business, closing stores?
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Old 02-04-2003, 12:47 AM   #2 of 18
Aaron F
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'Super Circuit City' on the horizon??

Keep us updated...


Rumor is they are going 'hourly/non comission'... make any sense?
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Old 02-04-2003, 01:14 AM   #3 of 18
Man-Fai Wong
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Well, I hope they stay in business to compete w/ Sears and Best Buy, et al, and help keep the prices down and service respectable.

They just better not come up w/ another evil spawn like Divx though!

_Man_
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Old 02-04-2003, 04:18 AM   #4 of 18
chris beck
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If you asked me a few years ago I wouldn't have cared if CC had gone out of business. Recently, though, I've seen a positive change in the attitudes of the salespeople at my local CC. Besides, I imagine CC is in better shape since they didn't sink $600 million into a black hole like BB did with Musicland.
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Old 02-06-2003, 01:23 AM   #5 of 18
Scott Tucker
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Circuit is doing away with commisions for sales people. That is what the meeting was about. I heard this from a just fired today salesperson. They told him they could not pay him 60k a year as a hourly rate, so see ya! Why would a company that is sales driven basically cut their throats by letting go any body worth keeping? Yeah, you will save on labor, but say goodbye to profit margins and repeat business. Bummer for the good salespeople they did have, Who by the way, will now go work for competitors and sell against Circuit.

Scott



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Old 02-06-2003, 02:27 AM   #6 of 18
TimTurtino
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Wella--

I can't speak for Scott's friend (and have no personal knowledge of him whatsoever). He was probably a great guy who was caught in a tough situation. (This is the only sincere and straightforward paragraph in this entire post.)

What I can say, theoretically, is that at some hypothetical stores, the people who may have been given severance packagess might possibly have been those that
A) sold a heck of a lot of stuff
B) promised customers things that couldn't possibly happen to enusre A)
C) had more returns than anyone else, while leaving many others to clean up their messes
D) insured that those customers never came back
E) all the while making life hellish for their coworkers, by stealing any customer close to buying
F) knew a great deal more about how to close a sale than about the merchandise

Some crazy folks might even believe that a person who doesn't have a vested interest in the customer buying the most expensive equipment as quickly as possible might improve repeat business substantially. Of course, those people would clearly be delusional, since they would clearly subscribe to the just-plain-silly notions that
A) Customers often figure out when they've been hoodwinked
B) Stores like Walmart, where the "sales force" is less well trained than Twinkies {tm}, do very well at repeat business and profit margins (well, total profits, anyway )
C) Some customers appreciate being given space when making a buying decision
D) Some customers would rather have unbiased advice from a cretin than listen to a shark tell them why they won't survive another minute without the latest in Bose goodness.
E) Repeat business is basically bunk anyway. 90% of consumers will switch stores in a heart beat if they think they'll get a better deal (yeah, I made that number up out of thin air). It's hard to blame those consumers, either-- given the treatment they consistently get from corporate America.

It's possible that some people (who would clearly be in need of immediate hospitalization) might feel that way, but YMMV,

Me
Disclaimer-- this late in the evening on this little sleep, I have no idea if I even speak for myself, let alone any other person, entity, or organization. If anything I say offends, please understand that it was meant as humor, even if I rarely actually manage to ascend to the point of inducing a feeble grin.

Disclaimer^2-- Folks, please don't assume you know my actual opinions from this piece of hyperbole. I'm not even sure what those are yet, other than that we live in a crazy world where people often do things that make it even crazier than it has to be.
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Old 02-06-2003, 02:57 AM   #7 of 18
Marshall W. Carter
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I don't think the problem with Circuit City has been their salespeople, or even the promises they make. If a salesperson promises that there are any problems, that the warranty covers it and that Circuit City will make it right, and then upon having problems, they choose to more or less IGNORE their own warranty (and some of the circumstances I refer to include the extended service warranties that are pushed so hard), the bad is on CC.

I don't necessarily see this as a bad thing for CC, but it's not necessarily good either. Maybe they can spend some of the money they'll save on making sure the customers are satisfied and receive the service they deserve (and pay for). Of course, that's assuming they save a dime with Best Buy-like drones wandering aimlessly.
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Old 02-06-2003, 07:21 AM   #8 of 18
Greg_Y
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Circuit City to Cut 2,000 Jobs, Eliminate Commissions
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Old 02-06-2003, 11:06 AM   #9 of 18
TimTurtino
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Interesting article. Just in passing, it mentions that the 1800 sales counselor jobs eliminated is a net figure, after including new hires.

Actual number of layoffs is a wee bit higher...

Me
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Old 02-12-2003, 02:58 PM   #10 of 18
Brian Ruth
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I actually had a fairly bad experience with Circuit City recently.

I wanted to get the Aaliyah CD/DVD a few weeks ago, when it was advertised for $11.99 in a Circuit City ad.

I went in to Circuit City to try and look for it, but it was sold out. I tried to ask a salesperson for a raincheck, but the associate told me they had no way of writing one.

I was a bit confused. I had worked at Best Buy for a while, and I had written literally hundreds of rainchecks for people. I didn't see the difficulty inherent in writing and keeping track of one.

I had a talk with a manager and a couple of associates up front, and they told me that there was no way for them to keep track of shipments they were getting and thus, no way to fill rainchecks. I found this interesting. As an employee for Best Buy, I got to muck around a lot in the inventory system. While BB's wasn't/isn't perfect (not real-time), it's a lot better than nothing.

I asked them for an ad and told them I intended to go to Best Buy, using the ad as a price-match, and told them they lost a sale.

I didn't think I was being partisan in that instance. When I go to a store with a certain product, I expect that product to be in stock. If it's not in stock, I expect an easy method of setting one aside as a raincheck.

My experience with Circuit City has driven me to the point where the only use I have for them is a price-match safety valve. I'm suprised they can stay open with the business practices they have -- poor selection, small stores, and an impotent sales force. If this is indicative of all stores, I think Circuit City will either be bankrupt or bought out within 4 or 5 years.



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Old 02-12-2003, 03:42 PM   #11 of 18
David Williams
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My local Circuit City (Tulsa) is a joke as well. They must have the world's smallest DVD area. I only ventured into CC after Best Buy sold out of Chicago (I was going to price match the CC ad) and they didn't have As Time Goes By: Series 5. The salesman was totally clueless to release dates (to be fair, so are the drones at BB, but they have the magic computer). Not to mention the confusing checkout (no centralized area, little kiosks set up in different depts like Sears or Dillards). A sign saying 'Checkout' would help.

I only use CC for their ad. If they want to get serious about competing with Best Buy on DVDs they are gonna have to either expand their stores or deep six a portion of their other departments.
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