Office Depot Employees Claim They're Told To Lie About Stock If You're Not Buying Extras
According to LAPTOP mag, Office Depot has implemented such a stringent sales quota program that the company has essentially broken the in-store laptop buying experience. If you don't buy accessories and extended service plans, many associates will tell you the laptop is out of stock. Of course, this doesn't happen at every Office Depot, but LAPTOP writes that they were surprised by the number of similar reports they received of it happening at multiple locations.
They spoke with Rich, a current Office Depot associate, who said it happens all the time at his store:
Rich said that he was always honest with customers but had been instructed to lie about notebook stock both by one of his four store managers and by a district manager.
"I have witnessed lying about the availability of a notebook, and have been told to do so myself," Rich told us. "Once I was talking to the customer and, while I am actually speaking, my manager comes on the radio and tells me to say it is out of stock if they aren't getting anything with it.
The company also determines commission based on overall store performance, not individual sales, providing further pressure to game the system as necessary. "One [Product Protection Plan, or PPP] could make or break how the entire store gets paid for commission that week," says Rich.
According to Rich, the district manager once visited his store and told all the associates to lie.
"We did get told by the district manager one time to talk to the customer, figure out what they want, do your normal sales routine, and figure out what they're going to get," he said. "Offer them the PPP. Offer them the TDS and then, if they're going to get it, go check to see if we have it in stock and, if we do, bring it out to them. If they're not going to get anything with it, just go check to see if we have it and then come back and say ‘oh, we're out of stock on it.'"
LAPTOP makes a few suggestions on how you should go about buying a laptop from Office Depot now that you know about the inventory trick, but we think the best approach is a combination of two of them: first use the in-store kiosk to determine for yourself whether or not the laptop you want is in stock, then lie to the associate and say you want a PPP, and change your mind once the laptop is where you can see it. Or just buy your laptop somewhere else.
Read the full article, which has lots more dirt on Office Depot sales practices, along with a "we take this very seriously" non-comment from Office Depot, at LAPTOP magazine.
"Source: Office Depot Associates Routinely Lie about Notebook Stock" [LAPTOP Magazine]
(Photo: ??)
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It will never be a smart business practice to sell computers at 1% margin then assume you can make a profit by selling useless crap along with it. Same goes with TV sales. Im looking at you, circuit city and best buy.
This is a fine example of how depending on upsells and add-on sales can ruin a business.
I've worked for several companies where the Store Managers and District Managers live and die by their add-on/upsell numbers.
I've noticed lately at the store where I work that customers are more resistant to upsells lately, could this be because the economy is in the tank and folks don't have a lot of money to be spending? Hmmm...
This policy/practice maybe unethical and perhaps illegal, but personally if I were buying a computer, Office Depot would be way at the bottom of my list and I felt this way before ever seeing this post.
"Or just buy your laptop somewhere else."
This should be the only recommendation...
Yes, lie to them so they don't screw you by lying to you. It's like we're shopping at street markets all of a sudden.
"lie to the associate and say you want a PPP, and change your mind once the laptop is where you can see it."
Love it :D but the better option is "Or just buy your laptop somewhere else."
Say you're going to buy their extra crap. Then change your mind at the register.
Simply tell them you want the extras then when they bring the actual laptop change your mind.
feel free to waste as much of their time as possible getting them to explain the addons to great levels of detail.
I say shop for what you want in store, then LEAVE and buy it from an online vendor.
I've purchased notebook PCs from Fry's, Newegg (twice) J&R and Amazon with no regrets.
Compusa use to do this too, Im pretty sure this is common practice at many retailers. There is so much pressure put on to make "numbers" that it comes to BS like this.
One way to get around this, yank the shabby salespersons chain and make them salivate telling them you will buy everything they suggest, including the $29.00 moist towelettes to clean the LCD screen.
When they bring everything out, say you changed your mind but you will just take the laptop.
It will never be a smart business practice to sell computers at 1% margin then assume you can make a profit by selling useless crap along with it. Same goes with TV sales. Im looking at you, circuit city and best buy.
Wait... Circuit who?
Sounds like every retailer does this, so my only advice is if your in the market for a computer, buy it online! I know I wouldn't even consider buying a computer at retail, unless it was a place like Sam's club where you can just pick up a computer, take it to the register and pay for it.
I absolutely hate upsells, and I buy very little stuff where accessories and extended warranties are mandatory. I am not buying things that I don't need and wasting more of my money just to satisfy the "numbers" of some company.
Oh gosh can you imagine the head explosion if you did say you wanted all the extras, then changed your mind when you had the actual laptop? I picture Office Depot managers dissolving into a puddle like the Wicked Witch of the West, hissing, "Nooo! My commission! I'm meelltiing!"
Is there any legal difference between this practice and the online "bait and switch" scam of which we've heard so much? If not, perhaps one day we can get a class action lawsuit going on here.
@philmin: But the reason is that they get people in the store based on the low advertised price. If that low price isn't actually available, then that would be false advertising, but it did get people in the store.
Way to promote the "magical back room" myth, Office Depot. Now when a crabby old bitch barks "It's can't be out of stock! I know you have some more in your back room hidden for yourselves!" she will actually be right.
I caught onto this back in November, I went looking for a sale on 2 gateway laptops that were an incredible deal. The salesman checked the computer to make sure they had them, then tried to sell me other things. I didn't accept, so he took me to the register to ring them up (using the scan code card from the display), they tried to sell me installation services and the extended service plan. I declined the offer and said I just wanted the laptops, he told me to hold on and he woul get them (before paying), he came back and told me the computer was wrong, that they had them on order and had sold out (morning of the sale at 10:30 am, half hour after opening.) I knew by the way he was acting, what was going on... why sell me 2 laptops for a GREAT price, when they can sell them to 2 different people and get package deals.
I ended up going to 2 more office depots, told them I wanted a laptop and the extended service plan, but wanted to pay cash for the machine and would use a credit card for the plan... When they rang up the plan, I told them I forgot my wallet and would have to come back.
I've seen this on a lot of sales items, the price is to get you into the store, they aren't making any money on the computer, they want to sell you the extras and services. One old guy walked out with a cart full of software, he didn't need.. example, Microsoft office, the machine had "WORKS" installed and the guy told him he couldn't write letters without the software upgrade. They piss me off! Please don't let Elderly relatives shop for computers alone!
Have you seen their "Online Virus Scan and Repair Services?".. $200 for ONLINE software diagnosis and repair". (stuff you can do for free or a fraction of the price.) How many of those customer's end up needing the "online protection service" or "Online PC tuneup" at an extra $90?
Many major brand laptops these days don't even carry the 1% and are in fact loss leaders to get customers in the door.
Chris hit the nail on the head with the salespeople trying to game the system but this gaming of the system carries risks with it also. If the salesperson were to pull this stunt with the laptop and then suggest another (higher priced or lower feature) laptop that they did have in stock, it would be casebook bait-and-switch.
A customer could also call the salesperson's bluff by ordering online with in-store pickup (I'd do it right there in the store) and watch them dance their way out of that.
A smart Regional Manager will see through this charade anyway - the higher attach rate will come at a severe decrease in volume. Since the actual point of the ad is to get you in the door and returning as a more profitable customer, this store is negating the value of their expensive ads and exchanging short term profits for their longterm profitability and viability... a fool's move.
"Yes, lie to them so they don't screw you by lying to you. It's like we're shopping at street markets all of a sudden."
So, companies can implement and practice any type of deceptive techniques to make a sale from a consumer who is not informed or misinformed and this is okay?
The consumer is not allowed to participate by using the same type of technique on the seller to negotiate a better exchange of value for him/herself?
Most business transactions are "gamed" to favor the seller not the buyer. I see nothing wrong for the buyer to use the same strategies or tactics on the seller that the seller is willing to use on the buyer. If the seller established the rules, they should not be shocked or surprised or upset when the lamb being fleeced objects to the method of fleecing.
So I guess Office Depot wants to end up on the side of the road like Circuit City?
Yet another reason not to buy a laptop from Office Depot - or in fact anything from them. Shop at stores with friendly, ethical policies and do your best to push the rest into bankruptcy.
@philmin: On computers 1% would be generous in many cases. When I sold computers at Good Guys (a misnomer if every there were one) a desktop computer was running about $1500 for a mediocre one and the profit on it was less than $10. The salespersons commission was less than a dollar. However, the $200 warranty was 100% profit and got the salesperson a cool $30 or greater commission.
@fantomesq: Not to mention they may get complaints to corporate and the BBB if the customers are serious enough. Most savvy computer shoppers will do this as well (it only takes a few min of your time). Then they will go spreading bad publicity about the store, the store gets less customers, the customers walk away unsatisfied and its just a fools move all along as you say. Especially in an economy where people are looking for customer service.
The upsell simply isn't viable these days, almost every computer shopper knows about it, and will resist it to the end. I would even argue the vast majority of consumers these days are savvy to the upsell, and will resist it for many items. There have been many news stories, newspaper articles, and hundreds of articles on the internet written about avoiding the upsell and not buying the extended warranty.
What do these people do then, they go online and buy the laptop so they don't have to deal with retail stores, and then they never return back to the store because all purchases after that are then made online. I don't see how this is helping the store's business any.
Does newegg sell laptops? Buy it there. I have had excellent service from them buying monitors, hard drives, and other stuff. Great company. I figure the only way these shady operations stay alive is that not enough people have tried newegg.
Isn't this what those camera and electronics stores in NYC do so notoriously? I was visiting one time and ran up on a good deal on a camera ($600 for something that normally ran $2000). The guy went to the back, brought a box out and put it on the counter behind them. Started trying to sell me memory cards and extra batteries and such at about 500% of retail. I said no thanks and all of a sudden that camera wasn't for me, it was for another customer. I asked to see a manager and was told to get the fuck out. Since learned thats the way they do business.
This is a direct result of the middle-toupper management MBA-types implementing poorly designed metrics so they can go back to their bosses with positive results to show how much they're saving or earning for the company. Or how much add-on sales are increasing under their watch.
In reality, you get this kind of BS where employees and store-managers learn to game the system. Everyone loses in this case. The store actually ends up with less sales and unsatisfied customers.
Hahaha that's awesome, the picture for this article was taken by my friend Morgan, and I've been to that actual Office Depot several times. Never tried buying a laptop there though, so I can't speak to the topic at hand.
Margins are next to nothing. Many losing money as soon as it goes on sale. At retail, a laptop is lucky to make 3 percent. At the sale price, it is most definitely losing money. These things are sold out of a broken business model. Margin rich products like services and service plans came out of a need to survive. It comes out of competition with the actual computers, and prices dropping constantly. And the economy the way it is does not help either.
I have to say, you'd have to be (really desperate) to buy a laptop from office Depot in the first place. Sorry but I just don't expect the people who sell me paper and paperclips to be knowledgeable about computers.
Just looking at my local Office Depot shelf arrangement (or lack thereof) skills tells me that I'm not sure I even want to buy paper from them anymore.
This seems like it's probably illegal to me, because they're advertising a certain price and then refusing to honor it.
Then again, I really don't get why anyone would buy a laptop in a retail store, for the most part. Online you get better service, much wider selection, more customization, lower prices, newer models, and you don't get harassed to buy scammy "warranty upgrades" and such. If this is the business model stores are relying on for the future, they deserve to go out of business. There are only so many idiots and people who need immediate gratification for them to prey upon.
@albear: Now this is a fantastic idea. In fact, I'd only there to be an incident after pulling this one at the store, after the salesperson being burned so badly.
Unless they throw all the crap on in the backroom before producing the laptop, and tell you it's the last one when you try to back out. But, worst case scenario: you leave without paying anything.
Nevertheless, +1
Personally upsell tactics have never worked on me, especially after working in retail for years. To those who work for Office Depot; If you're willing to lie for a company that is treating you unfairly then it's your fault. Are you so desperate to get a variable check, unsure about your finances week by week, that you'll lie to people just to separate then from a few more dollars for a company that could care less about you, and probably fire you at the first hint of profit loss.
@philmin: CC is dead. Don't look at them anymore, except as an object lesson to others, like Office Depot.
The photo looks like the Office Depot on DI in Las Vegas.
@philmin: Yet that's pretty much how it works everywhere. The margin on consumer electronics is razor thin. It's accessories where they make their money. And quite frankly, I doubt it'll change anytime soon. Unless all the stores sort of collude to raise prices, no one's going to suddenly jack their price by 10% unless some other factor will drive people to buy from them rather than their lower cost competators.
What disgusting policy.
I suggest going to an OD or BB and getting a feel for the keyboard and screen of the laptop you're interested in, and then -- as others have suggested -- shop for your choice online at j&r, b&h, amazon, or some other reputable seller.
I simply will not do business with a company that plays games like OD. If they game me in this way, why would I trust them to be there for me when God forbid I might need support or service?
As Daffy Duck might have said, their sales practices are "dethpicable"!
@albear: Or even better, refuse to buy the BS, but "choose" a laptop you're not particularly interested in buying. When they tell you it's out of stock, ask, "well, what about that one?" Rinse and repeat until you get tired of making the salesgeek run.
I bought a laptop 4 weeks ago from Office Dept...did not have this experience at all. It was the second computer I've bought from them over the past few years (had such a great experience with the desktop I bought that when I needed a new laptop OD was the first place I thought of). I didn't have any issues, just picked up the little ticket/voucher, took it to the register and about 2 minutes later was walking out with the laptop. The only thing they offered was an extended service plan, which I declined (and they didn't even hassle me over that). I had researched the laptop before hand and knew which one I wanted (and they had it on sale for about $100 less than I could it anywhere online - not to mention in stock).
While I definitely believe others have had bad interactions, I can say that I'm a loyal OD customer for both office supplies and computers. Too bad everyone doesn't have the positive interactions I've had. And, since I'm a Consumerist reader, I'm pretty strict on how I rate my experiences with stores. Of course, I'll be vigilant on my return trips, but then again, I always am.
This is evil. Office Depot is officially on my do-not-buy-from list.
Typical post in this forum: You are wrong for buying something your way. Buy things my way or you're stupid and deserve to be swindled.
I agree with many of the posters here:
1. Say yes to the add-ons.
2. Verify they have it in stock - request to make sure you look at the box to examine "the description and technical specs," "that it wasn't tampered with" or any other convincing reason.
3. Ring up at the register, look at the total, freak out or show concern (not difficult to do in this economy), remove all the add-ons, then hand them your credit card and complete the sale.
If companies want to play dirty, let them eat dirt.
@albear: Well the problem with that is that you need to know if the person will try pulling the "not in stock" move on you beforehand. It's not really fair to waste their time if they have no intention of jacking you around and are being perfectly nice. However if they aren't being perfectly nice then hell yeah feel free to screw with them for the little guy.
My buddy went to CC to buy a laptop, and he talked the sales guy down really really low on the price by offering to buy the service plan. then at the last second after the salesman passed him off to get rung up he told the cashier that he didn't want the service plan.
@DerangedRoleModel: If they are resorting to these sorts of tactics, it seems they may be well on the way there.
@Robobot: Yep. They've just made things that much suckier for employees in stores where they don't lie about their stock.
This comes as no surprise. During my 'dark years' working for Best Buy we had sales managers who 'instructed' us with a wink and a nudge to lie about laptops in stock if a shopper didn't look like they were going to buy the add ons.