Shopping Discussion

FS Protection Plans

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  • Feb 6th, 2007 9:11 pm
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Deal Guru
Sep 9, 2003
10594 posts
4839 upvotes
Burnaby
abu_sme wrote: COmputers have typically have a 5% margin at the most, usually as low as 2%. So when you buy that product the salesman is making almost no money, he'll make more money selling you a printer cable than selling you a computer. The warranty is the only place of the prfit.
Bingo. Esp on flyer sales, the company as a whole would prefer to lose the sale of a loss leader rather than waiting for the next guy to buy accessories/service plans.

On desktops and notebooks especially, many times the flyer price is at or slightly below cost.
Newbie
Jan 14, 2007
93 posts
I am new to this forum, but it seems like it has lots of members that are FS employees.
Deal Addict
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Sep 21, 2006
3048 posts
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Vancouver
I was fired from futureshop 2 days ago. They fired me "without cause" and gave me a weeks pay, but I know they fired me because my number were not that great for warrenty and monster cables. I dont like to push customer tell they are mad at me for warrenty but apparently I should of, cause now I dont have a job. So if you go to FS, expect to be baggered. If you were satisifed and not pushed for warrenty, go back a week later, the salesman is no longer working there.

****ing FS, screw that company. (Btw commision on warrenty is exactly 12%, no matter what)
Deal Guru
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Apr 23, 2004
14972 posts
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Montreal
Hi there,

Yeah, some staff at FS are just doing their job, but I feel sorry for them for in that situation. To be honest, they shouldn't treat customers are idiots and everyone should be treated fairly, even when purchasing a warranty or not. I want to buy something, let me buy it what I want and what I feel is the need. I don't need some person telling me want to do. FS and every other retailer can't exist without customers.

Most of us know that the PSP are nothing but crap and up here at RFD, we have tons of incidents involving FS or even BB never fullfilling their part of their PSP contract. You hear that! Heck, there is even a pending lawsuit down in the US on that.

Ju Leon...
Sr. Member
User avatar
Feb 4, 2007
931 posts
7 upvotes
Warranties are like insurance. They prey on the "just in case" scenarios and it's usually the people who are tech challenged who are talked into getting them. If you're paying top dollar for an item it's usually because of great reviews on it and its reliability. Most items have a quality control that limits duds to about 5%.

If your product is defective, you can usually tell within the manufacturer's warranty period.These PSP's only really kick in after that. So the first year or so, you're just paying FS or BB to send it back to the company for replacement or repair (ie: a few stamps). You can usually deal with the company directly through their website for warranty issues. I never buy FS or BB extended warranties because of the speed of technology. I will only buy for appliances, vehicles and big tickets that you want to keep for a long time.
Deal Fanatic
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Apr 19, 2005
7527 posts
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Pickering
007craft wrote: I was fired from futureshop 2 days ago. They fired me "without cause" and gave me a weeks pay, but I know they fired me because my number were not that great for warrenty and monster cables. I dont like to push customer tell they are mad at me for warrenty but apparently I should of, cause now I dont have a job. So if you go to FS, expect to be baggered. If you were satisifed and not pushed for warrenty, go back a week later, the salesman is no longer working there.

****ing FS, screw that company. (Btw commision on warrenty is exactly 12%, no matter what)
How long have you been working there? Why are you bitching? It's a performance based environment, you don't perform, you lose your job, it's as simple as that, welcome to the real world.....
Trooper8111 wrote: Warranties are like insurance. They prey on the "just in case" scenarios and it's usually the people who are tech challenged who are talked into getting them. If you're paying top dollar for an item it's usually because of great reviews on it and its reliability. Most items have a quality control that limits duds to about 5%.

If your product is defective, you can usually tell within the manufacturer's warranty period.These PSP's only really kick in after that. So the first year or so, you're just paying FS or BB to send it back to the company for replacement or repair (ie: a few stamps). You can usually deal with the company directly through their website for warranty issues. I never buy FS or BB extended warranties because of the speed of technology. I will only buy for appliances, vehicles and big tickets that you want to keep for a long time.
You could be the most technically inclined person in the world, but that doesn't mean you're going to have access to the parts (at a decent price) required to fix that $1400 laptop, or that $3000 plasma TV. As far as paying BB/FS to just send it back (costing them only a few stamps), you're wrong. Service plans are profitable to the company only up until you use them, but once you DO use them, it costs the company. Of course, if 1 out of every 10 service plans is used, then it's huge money for the company.
Jr. Member
Feb 22, 2004
113 posts
4 upvotes
seiko000 wrote: I am new to this forum, but it seems like it has lots of members that are FS employees.
I was thinking the same thing. :lol:
Deal Guru
Sep 9, 2003
10594 posts
4839 upvotes
Burnaby
FS Sales are ranked on a DAILY basis on Total Sales, Margin, Accessories % and Warranty % (among others, but these are the relevant ones).

Selling a desktop by itself (without accessories, or warr) increases his total sales by a bit but takes a big hit on the rest.

And you wonder why they push this stuff so hard...
Deal Addict
Feb 16, 2003
2039 posts
4 upvotes
seiko000 wrote: It's funny to see how some people really think buying something from FS is that big of a deal. Sometimes, we would rather lose a sale than having a sale without warranty. If you want to go some where else, go ahead. It's you that is wasting time and gas. For us, we couldn't care less. There is ALWAYS someone buying the product with warranty. :razz: You'd think you are walking out the door with pride, let me tell you, we don't care.
yes you do care lol thats why you made a post. if you dont care about losing a sale then you are a pretty bad sales rep.
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Apr 19, 2005
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Pickering
Supershyguy wrote: yes you do care lol thats why you made a post. if you dont care about losing a sale then you are a pretty bad sales rep.
I don't think it's so much that certain sales people don't care, it's just that you walking away isn't as big of a deal as you think it is, because there will always be someone buying a service plan and stuff.
Newbie
May 15, 2006
57 posts
MrWizard wrote: I don't think it's so much that certain sales people don't care, it's just that you walking away isn't as big of a deal as you think it is, because there will always be someone buying a service plan and stuff.
As stated earlier in this thread, if someone does not buy accessories and/or the protection plan, the company makes practically no profit. Actually, if the customer buys a computer package, the store will most likely loose money. In those cases, it's better to loose the sale than to sell the package just by itself.

Speaking from experience, I've also let customers walk away if they weren't interested in any accessories/protection plan.
Cloned beef, it's what's for DNA'er.


Jay
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Apr 19, 2005
7527 posts
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Pickering
jrs4life wrote: As stated earlier in this thread, if someone does not buy accessories and/or the protection plan, the company makes practically no profit. Actually, if the customer buys a computer package, the store will most likely loose money. In those cases, it's better to loose the sale than to sell the package just by itself.

Speaking from experience, I've also let customers walk away if they weren't interested in any accessories/protection plan.
Oh I know, I'm well aware of that, I've worked for FutureShop, and now work for Best Buy.

Yeah I've let customers go too, especially the ones who think they can get a deal...
Deal Expert
May 30, 2005
49008 posts
10301 upvotes
Richmond Hill
jrs4life wrote: As stated earlier in this thread, if someone does not buy accessories and/or the protection plan, the company makes practically no profit. Actually, if the customer buys a computer package, the store will most likely loose money. In those cases, it's better to loose the sale than to sell the package just by itself.

Speaking from experience, I've also let customers walk away if they weren't interested in any accessories/protection plan.
Then Futureshop is paying HP/Compaq/EMachines too much money for crap computers, because in many cases, their prices aren't lower than what a pap store can offer.
Tons of things for sale!
Silver Coins and Numismatics | Heatware
Deal Addict
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Apr 4, 2002
2340 posts
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I don't work for FS/BB but I worked for a similar company. I would literally run away from computer sales. The lower guys needed to get their base numbers up. I got my commission based on my sales per hour, if I was over a certain amount my comission would go up dramatically. I am not going to post my benchmarks I needed but they were difficult for most sales people to make more than their base commission.

I would get 15% of the warranty typically. It was different based on the product though. Things that had low claim rates and higher priced warranties paid more than a laptop warranty, but those were overpriced anyways so I could make a good $20 or so on a computer if they bought a warranty. If they didn't buy the warranty but bought it in a bundle with a printer and software package (which were free after MIR) I could make maybe $10. If they buy just a tower and monitor I would make at most $1-2.

There were days when my coworkers would have $3000, $4000 $5000 days and I have $1500, but $1000 in margin and would make more than any of them because they were all computer sales with no acc.


Man I am glad to be out of the business.
Deal Expert
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Aug 18, 2005
21223 posts
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Burlington-Hamilton
abu_sme wrote: Like how Lenovo can sell Thinkpads with less than top of the line specs for 30%+ more than the competition.

Good strategy really. As Dell/Hp/Compaq have been in price wars the price range of Thinkpads has not changed at all.
Buying from Lenovo gives you a 30-day no questions asked return policy. Buying Lenovo from another dealer does not give you this.
Member
May 26, 2006
211 posts
26 upvotes
there are two many disgruntal FS workers, reason being is they know that they cant sell for jack...thats y they get fired, its a performance based environment, thats y i love working there, because there is no limit to what you can earn
but it doesnt make me a nasty person when im selling though, lots of people love me, and lots of people love the warranty (no lie) because they've had to redeem it many times, i've had a customer who had an hp laptop, that had to get repaired twice on two different occassion, and i use the warranty myself, i buy warranty on a whole bunch of things, basically because we go above and beyond on what is offered
you want to ship a laptop? or a tv? or how bout even a cordless phone...? thats going to be more then just a few stamps
when you buy items that require someone to come to your house to fix(could cost 50$ just to get to your door) its a good idea to get the PSP
i could go on and on, on why you should get a PSP, you can list every objection, but warranties are still going to be there

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