Best Buy employee commits fraud

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AndrewR

Lifer
Oct 9, 1999
11,157
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You know, this brings about the idea of filing a class action lawsuit against CompUSA, Best Buy and possibly other retailers over these extended warranties and the incentives for employees. Since the attitude is "sell at all cost" which includes deceit, there is assuredly a large class of people who were duped into buying them (for recalibration of a CD recorder, for instance!). Since class action lawsuits are always extremely lucrative for the attorney, I think I need to look into that. :D
 

Pretender

Banned
Mar 14, 2000
7,192
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This gave me an idea. On monday, I'm going to go to Circuit City and CompUSA, and at each, do the following:

1) Find salesman who seems to be the dumbest and looking only for commisions
2) Ask him for help to buy a computer system
3) Ask him if I can get an extended warranty, the best one they have
4) Right before checkout, ask him if I can use the computer to perform some complex task which I know would be impossible
a) if the answer is yes, get him to admit he's lying then walk out on him
b) if the answer is no, make a speech about how you thought they only sold the most top quality goods at that store, and walk out, disgusted at their product line

5) LMAO all the way home.


BTW, andrew, did you confront him about the 'recalibration' thing? Ask him how you would know it requires recalibration, what they do during this process, how often it'll require recalibration, etc? Better yet, you should've told him you were a cd burner recalibration expert and ask him some made up technical recalibration stats about the drive (e.g. how many times can the drive spin between each required recalibration). Fight stupidity with stupidity :)
 

Champo41

Senior member
May 11, 2000
456
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I know Sony had a HUGE spiff program. A friend told me if he sold one of the infra red links for camcorders (went for about 69.99) he would get around $20. No extended plans had to be sold, it was all through Sony and whether or not the retailer participated in it. He'd get spiffed on camcorders ranging from $10 to $30. WebTV's were also big, I think at one point he said he got around $35 to $40 for selling the $250 unit.

We had something similar through Sony. All you had to do was jot down information that could be retrieved from the receipt. It averaged out to be around $200 every 3 months or so.

Whether this program is still around and if Best Buy is using it (probably not), employees selling Sony stuff are raking it in.
 

Nessoldaccount

Senior member
Jun 4, 2000
483
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As far as I know the employees at Best Buy, as I am one of them, get no spiffs of any kind from manufacturers.

By the way -- this "recalibration" example...is actually featured on a Best Buy employee training video about how to sell the warranties.
 

stonerdave

Golden Member
Jul 26, 2000
1,110
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0
Hey speaking of best buy, I heard something about their "loss prevention" policy, which I thought was really cool (possibly unbelievable for a corp like best buy).

I was told each store is granted a sum of merchandise expected to be stolen for the upcoming year. If the actual sum at the end is less than the expected, the difference is split between all the employees in the store...kind of a bonus to put the smackdown on shoplifters.

If this is true, I'd wait until the bonus is handed out, then bounce.
 

Superwombat

Senior member
Mar 11, 2000
606
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Bump???


NEF...

Go ahead and explain why you thought this thread was so important to be bumped from #5 on the list to #1???
 

PCAddict

Diamond Member
Nov 19, 1999
3,804
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As far as I know the employees at Best Buy, as I am one of them, get no spiffs of any kind from manufacturers.

I am willing to bet that the manufacturers pay the spiffs, but Best Buy pockets the $$$ and the employees never see it. HP, Epson, and various other peripheral manufacturers offer these incentives. But, not all of the companies allow the money to trickle down to the employees. It is my understanding that CompUSA passes the spiffs onto their employees, but other chains do not even though the money is there from the manufacturer. This comes from an acquaintance of mine who is a vendor rep for HP. And, FWIW I have gotten a good bit of money from spiffs for selling various items at different places I have worked. Usually it's $10-$15 per item.
 

The Wildcard

Platinum Member
Oct 31, 1999
2,743
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Hmm u know you are screwed when you ask a question to a salesman and he has to look at the box of the product to find your answer, lol.
 

MrBond

Diamond Member
Feb 5, 2000
9,911
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You know, I've heard that "recalibration" pitch before at BestBuy. I went along with my older sister to purchase a car stereo for her car (actually, I purchased it, so the salesperson wouldn't jerk her around). Turns out it was a good thing I did, because the guy attempted to tell me that the vibrations in the car cause it to become misaligned. While this sounded possible, I didn't believe that after the many years of research since in car CD players became availble, that kind of thing would be a problem. He also said that JVC's warrenty required the CD Player to be cleaned annually, or the warrenty would be void. He attempted to sell us the warrenty based on the fact that "it would save us money in the long run, because cleanings were covered, and they were around $50 otherwise." I asked him to open the box and point that out to me in the warrenty. Amazingly enough, he couldn't find that particular clause :). I thanked him, and we decided against the warrenty. Never did figure out if the recalibration thing was true or not, but it's worked just fine for her since she bought it.

SuperWombat, it's actually a pretty relevant thread. We don't want our fellow AnandTechers getting goaded into buying an extended warrenty they probably won't need. I saw a thing on 60minutes about this very topic saying that in many times, the manufacture's original warrenty was superior to the one being offered by BestBuy

And why do I have an edit button next to everyone's post? I thought I could only edit mine? I accidently clicked on the one above my post, and for all intents and purposes, it looked like I could edit it...
 

EmperorNero

Golden Member
Jun 2, 2000
1,911
0
0
I fell for the insurance thing a few times...and I would probably still buy it if something's expensive..despite my previous experiences:

1) I bought a compaq presario 4550 @ micro center and the insurance for $200. I've called very few times but the guy seems very knowledgeable. but overall, it's a waste of money.

2) I bought an HP scanjet 5100 at best buy for $300, plus the insurance for $60. the guy said that i can just bring it in anytime for a cleaning for free and that the light in the scanner usually gets blown out after a year and it would be wise to purchase the insurance. I never did take it in for a cleaning b/c it never needed one and I've had the scanner for 2+ years and it still works fine (although I never really did scan a lot).

3) I bought a ricoh 4x4x32 burner at compusa and the lady simply stated that I can buy the insurance for $10. I looked at my dad and he nodded his head so we decided to buy it. then the lady looked at its info and said "oh wait...sorry, it's really $20." so we decided not to buy it. and she didn't try to convince us otherwise. but turns out, ricoh burners are crappy and I have mine sitting in my comp - it's able to read cds but no longer able to burn them and the manufacturer warranty has expired.

so my theory on handling extended service plans is to make up your mind on whether to buy the insurance or not. and at the VERY LAST second, change your mind.
 

Aceman

Banned
Oct 9, 1999
3,159
0
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LMAO over this one.

The recalibration thing is the poor moron's fault....It's his computer supervisor's fault that hasn't any clue at all what a computer looks like on the inside. The moron believes this becasue it's what his supv told him. I've worked in this situation at Best Buy for over two years now. I now have a Supv that thinks that coming to me for "advice and recommendations" with a doubtful customer will sell that service. (I'm a tech with the military and parttime sales and tech person with Best Buy) His only problem is, I won't BS/lie to someone to sell "his" service.

No, employees at Best Buy get NOTHING in spiffs or commission. And these Best Buy employees that cry because the selling service is pushed/pressured on them by Mgmt, cry because they haven't a clue on how to sell service with truthfulness and confidence.

And what do you expect from high school kids at minimum wage? Hell, I'm the highest paid Computer Salesman (minus the scumbag Supervisors) and I make just under $10/hr. How much time and advice do you want out of me? Now as for reading the box to find out info? Maybe that salesman doesn't want to flat out bs and lie to you about a product. Great you think you know more about ALL the computer products than the salesman? Why are you asking questions then?

And Andrew, as soon as you opened your mouth, the Mgr would check it out with a tech and then clear the confusion. And then reassure you that he would straighten out the dept on their errors. That actually happens, but only half of the morons listen.

I would say that 50% of my fellow employees are idiots or slimeballs and the other half are sharp kids/college students that also have to level the playing field and talk at the moronic customers' level to get their point across.

 

Pretender

Banned
Mar 14, 2000
7,192
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Regarding the bump comment by SuperWombat....before his post some newbie nef bumped the thread even though it was still near the top of the list. I'm guessing that nef's comment got removed from the thread. I wanted to say something but couldn't come up with anything clever.

BTW, I got the insurance on my first computer system...and it's a good thing I did...a few weeks later I put in an AOL disk (yes, I used AOL back then) and the metal protective thing which protects the physical disk when it's not being read broke off while inside my drive. The guy had to come and replace the floppy drive since no-one could seem to reach in and get the metal piece out. Back then I didn't know how to open my computer, and I'd have been fscked.
 

jimmygates

Platinum Member
Sep 4, 2000
2,134
2
81
I used to work for Best Buy and I have to say a big percentage of their computer sales are idiots. The reason for this is Best Buy doesn't look for "computer geeks" to work the department

I applied to Best Buy as a computer tech. While I was being interviewed, another guy was being interviewed for being computer sales. I overheard the questions they asked him and I was kind of surprised. 90% of the questions were about sales and not about computer knowledge. For example, one of the questions I remember the manager asking was, "Name 12 accessories you can sell along with a printer." 12 accessories?!? I can only think of maybe 4 off the top of my head. Instead of hiring a trained computer person, they hired the person who can sell the most accessories along with a product.

Everyone who works for Best Buy gets paid by the hour. Employees get no more or less money for selling more extended warranties. The warranties however, can get you promoted. Best Buy doesn't officially say that you have to sell extended warranties but it's like an unwritten rule. You can sell 0 extended warranties for the whole time your working their but don't expect much as it will become a dead end job. If you think you are hounded now to buy extended warranties, just wait til you pick up items you ordered online in stores. Best Buy doesn't sell warranties online so they loose alot of potential warranty sales when people buy online. Some people who buy items online and choose to pickup their items in store will get hounded the most. Since the products they buy are "naked" products, once you pickup the item, the sales will give you the bit on how you need a PSP/PRP for your item.

Best Buy makes money on 2 areas; PRP/PSP (Extended Warranty) and accessories. Best Buy sells alot of it's computer components at a lost to them. They make up for this lost for example buy ramming 12 accessories down your throat while you buy a printer or etc. Accessories like inkjet paper, printer cartidges, etc are marked up like 40% from their cost. I check a HP cartidge for $29.99 and their cost was $12.67? Best Buy loves it when people just come and buy accessories. It's their biggest money maker.

How do I feel about PSP/PRP's? I feel some PRP's (Product Replacement Plan) are actually really good deals. What's the difference between PRP and PSP? PRP's usually cover your item for 2 years where as PSP's cover from 3-5 years. The word Replacement is kind of misleading since they plan doesn't replace your item at all. What it does it if you item goes bad you call the 800 number on the place brochure and they will refund the price you paid for your item including tax. Best Buy's reasoning behind this is alot of customers don't want the same item that went bad on them so this option gives the customer the chance to a) get the same item, b) get another item for the same price or c) use the money to purchase something else in the store.
The only downside to this is the money given back to you is in the form of a money order so you have to spend it in a Best Buy store instead of getting actual cash back.

For PSP's they service your product up to 3 times and after that they replace the item with a new one. I usually don't get PSP's since I pick items that are usually covered within the PRP instead.

Alot of people go into Best Buy and buy PRP/PSP's without any real knowledge of what the plans really do. They only know what the CSR tells them. (which usually fluffed up or a big fat lie) Now hopefully you can make your decision on your own and not because your pressured by the CSR :)


-Jimbo
 

BiggieN

Banned
Apr 3, 2000
4,230
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wow...that explanation is very thourough about the warranties. next time i will ask about PRP's then. seems to be a heck of a better deal. when your product breaks down and you have a PRP, all you gotta do is call that number? do you have to bring it in to the store?
 

jimmygates

Platinum Member
Sep 4, 2000
2,134
2
81
Call the number. The last thing they want is people lined up for miles at the Customer Service desk with their defective products :)


-Jimbo
 

randomlinh

Lifer
Oct 9, 1999
20,846
2
0
linh.wordpress.com
PRP's are usually for low cost stuff, can't get it on a TV or something ... i don't think at least..

Working at best buy had to be the crappiest experience for me. I don't think my sup's likedd it when I was spending time w/ a customer to help them with something.. ie, picking out a video card... I would ask them question to try and figure out if they had PCI/AGP and something like that, and if they didn't know, I'd tell them to go home and check to manual or something... no sale, they don't like me.

And Aceman:
"And these Best Buy employees that cry because the selling service is pushed/pressured on them by Mgmt, cry because they haven't a clue on how to sell service with truthfulness and confidence."

umm... i hate selling PSP/PRP's because they are CRAP. Have you seen how a PSP will go thru? A majority will take back the comp from the customer for a week or so... longer if they guy is unlucky. I've seen comps come in and just SIT there for a few days, with the techs doing didly crap. THAT is why i "cry" about these service plans, cause I feel like i'm lying my ass off to the customer... and I hate to say it, I pretty much am (as any best buy employee is).

And Ness, the whole monitor thing I know all too well. Those KDS 19"ers were heavy.. needless to say, I usually would avoid restocking anything over 17"... but the guys who did the 19" ones would literally drop some of the monitors to the carts we'd use to move em around...

I don't know, maybe it was just my store, but some reason, i highly doubt it. The only thing that i've seen worth it is the PRP for speakers.. as it supposedly covers blow outs.... but then again, the way I've seen computers get handled... i take it lightly. I rarely shop at best buy these days.. i haven't walked in one for quite some time.

 

skywhr

Diamond Member
Oct 30, 2000
3,866
1
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I went into BB last week and someone was being helped w/ modems, they were telling him that the 20$ modem wasnt goin to work w/ W2K and that he needed a US Robotic/3com or whatever for 99.99$

a guy at circuit city was telling my friend that coax/rca/svideo/componet out were all the same quality

also I bought a warranty on my cell phone from CC after the guy said it covers everything but lose/theft/fire. afterI had the phone for 6 months i dropped it and the casing cracked, I took it back w/warranty and was told that since my phone was now broken the warranty was void WTF? So i wrote a scathing email to customer service and got the full refund on the warranty and bout a new phone suct!
 

Nessoldaccount

Senior member
Jun 4, 2000
483
0
0
Yep, my store is getting about $300 in theft bonus. I'm only hired to work there until after Christmas anyway, and I got hired 2 days before the deadline to get this money. Just another month, gotta try and hang in there...