SPIFF's: Good Idea

or a ripoff?

Subject: SPIFFS
   Date: Mon, 8 Dec 1997 16:46:08 EST
   From: C 1972
     To: bill@macsonly.com


Hello,
        I'd like to share a short story of an experience I had with a super store
in New England. This store is located in [...]. One day I was price shopping
for a new Mac. I went to Sears, ComputerTown, and Circuit City. My experience
at Circuit City turned into a nightmare. I was looking at the discontinued
model the Performa 6400/200. Now Apple posted in store discounts for this
model. When I spoke to the sales rep. about what I wanted to buy, he began
screaming at me "What the hell do you want one of those computers! Don't you
know they are going out of business!" Then a second sales rep. came to me and
suggested to buy a NEC and to run Windows because nobody sells software for
the Mac. I was in total shock! I have one yelling at me and the other selling
a sales pitch to me that I knew was out of boundaries. That first sales man
refused to sell me a Macintosh even though I had brought cash. So I told them
I would bring my business elsewhere. As I was leaving the two were making
jokes on how I wanted a Mac. The following day I filed a complaint with the
store manager and his responce was that it never happened. So I tried calling
corporate office but they would not return my calls. So as I was saying I took
my business elsewhere but I never felt so embarrassed than I did in that
store!

Chad

P.S The worst part was I use to be a PC user in the past. Now I will never buy
a PC ever again in my entire life!



Subject: Spiffs
   Date: Mon, 08 Dec 1997 16:55:56 -0400
   From: Neal
     To: bill@macsonly.com


Bill:

I worked in the Computer City which used to be located at [...] 
as a sales engineer for 1.5 years before Tandy decided to back
out of the Washington area computer market.

You are absolutely correct about the SPIFF situation.  Each week, sales
associates were issued a flyer showing the items which has spiffs and
how much each spiff was.  Sales associates spent most of their time
trying to steer customers to systems that had spiffs.  Sometimes Apple
or Power Computing systems had spiffs on them, but not with the
regularity of Intel-based PC's.

Sales associates at this Computer City frequently steered or attempted
to steer customers trying to buy Macs over to Intel-based PC's.  I
caught them doing this many times.  Unfortunately, I was not there 7
days a week and I am sure that many customers were driven off my
highly-biased sales people.

When I worked there, I established quite a clientele, people who knew I
was a "Macintosh user" and so came to me for advice and sales.



Subject: Spiff report
   Date: Mon, 08 Dec 1997 20:29:17 +0100
   From: Ron 
     To: bill@macsonly.com


I worked at CompUSA [...] on the retail floor for over a year. I
was the MAC guy, one of two. Regarding spiffs, CompUSA pays all red
shirts base hourly pay, no commissions. Spiffs come from ESP, Extended
Service Plan sales. Ranging from $2 to $30 depending on how much of the
purchase is put under the plan. CompUSA pushes this plan because it has
the best margins in the store. Managers live and die on margins. If a
red shirt does not keep up his or her end on ESPs.., well lets just say
they are not there long. Comp will sell product below store cost, not
real cost, to get a 5 year ESP plan. Stores use different tactics to get
these sales. Sometimes managers will put a spiff on a group of products,
say $50 to move out a clearance CPU. Some Manufactures offer cash spiffs
to sales people, managers and back to Comp if they sell their products.
Cannon is famous for offering a $25 spiff to salespeople that sells and
records the printer sale. Ever wonder why a salesperson fills out a
G-ticket for you to take to the register? Most sales people will lead a
customer to what they know, not what's best for the customer. Having 90%
of the red shirts owning PCs that's where they take you. Also, that's
usually to the machine he feels he knows best so that he does not look
stupid.

If a customer walks into a retail store Comp, Computer City etc., and
they do not know what they are doing, there is a high probability that
they will get an ESP and a machine that fits their price bracket. (Price
bracket less ESP = system) Of course if they did not pay $200- $400 for
the ESP they would have gotten more machine. If you ask what's the best
deal, you most likely get to see what vendors are offering spiffs that
day. In defense, CompUSA's red shirts are not on commission as say,
Computer City, so your not going to get the price built up. Also,
remember these people are low paid, some computer savvy, most not and
the spiff is considered part of their income.

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Copyright © 1997 by Bill Fox.
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