Paper Is Paper, Right?

Paper is Paper, Right?

Once you decide on a printer the object of the salesperson is to get ink, paper and an extended warranty in your basket.  Our discussion of ink may continue but this time let's focus on paper.  

The quality and kind of paper is important.  An ink-jet printer uses wet ink and needs inkjet or multipurpose paper.  Laser paper will not absorb the ink and may smudge or smear the print.

A laser printer uses dry toner and needs laser or multipurpose paper because the high heat transfers the image onto the paper.  Glossy inkjet paper will melt and may damage the inner workings of a laser printer.

Do not let the salesperson talk you into getting copy paper.  He or she may not care what paper you put in your shopping basket. Overtime, cheap paper will leave a residue on the grab wheels and your paper may come out by two's or crooked.  If you rarely use your printer then copy paper is okay.

The reason you can't rely on the clerk or salesperson is because the clerk may not know and the salesperson just needs credit for the attachment and any paper will do.

Also, it is a common practice for the salesperson to sell out of his or her pocket and think you may not buy paper if the price is too high.  So recommending the cheap paper increases the odds you will buy it with the printer and the other attachments.

Salespeople are under pressure to load you up with as many attachments as possible.  Sometimes the risk of you saying ‘no’ outweighs the act of doing what is right.

Unfortunately, retail is a game where the consumer can come out the loser.

Now you know.

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The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

To Get What You Want, Give Them a Choice

Hon, leftovers or Pizza tonight?

We sell ourselves everyday!  To help someone make choices in your favor avoid yes or no questions.  Ask a question with a favorable result.  In other words, ask an open-ended question that sets up a favorable response.

Here is an example: After living with me for so long, my wife now knows how to ask a question and get what ‘we both’ want.

"Honey, when we go out tonight do you want Mexican or Italian food?"  Instead of "do you want to go out tonight," my wife plants a couple of seeds, giving me a visual and possibly excites my taste buds.    We both get what we want.  The key is to choose two cuisines that are pleasing to you with the emphasis on the one you want the most.  In this case my wife likes both of these foods but prefers Italian on this night.

This can work on anything!  "Honey, would you prefer a drive to the mountains or does the beach sound better today?" In this case my wife just wants to get out of the house. “Which looks better on me the green or  the red one?”  My wife gets a sweater.   Here’s a good one.  “Do you want those leftovers in the fridge or go out for Pizza tonight?”  Guess what I choose!

This is just a softer, more persuasive way of getting what you want.  As a couple you can have some fun with this.

This is how I use this ploy on the sales floor:

“Do you want regular ink or the better value extra large?”

"Can I get you a bundle of paper or do you want to save money getting a case?”

“Is the two year plan good enough or do you prefer the better value three year plan?" 

On the sales floor when you respond to these kinds of questions you are the follower.  I don’t mind when my wife is leading the charge but not a salesperson.

On the sales floor be leery of this sales ploy to avoid feeling like a chump!”

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

How You Can Get Taken With a Question

Good, better or best?

A good salesperson never asks a closed-ended question when closing a sale.  What is a close-ended question?  A question answered with a yes or a no.  Be aware a good salesperson is always closing and uses both types of questions to get you to say yes.  I will continue to discuss how this works in future posts but for now let's look at the little closes.

For example, you choose a printer and now it is time for the attachments.  It is the job of your salesperson to get ink, paper and an extended warranty plan in your basket. Here is where open-ended questions continue.  What is an open-ended question?  A question that gets a full answer.

Here's an example:  "Ms. Consumer, some people buy the combo pack of ink while a few people get just the black but most people get the dual pack!  Which pack can I get you today?"  You see, a yes or a no is not a choice here.  Also a customer unaware of what is going on will probably say the dual pack.  Why?

Well, according to the salesperson the dual pack is what 'most' people get.  When a salesperson confronts a consumer with a question they’re not sure of people gravitate toward what most people do.  Here, the salesperson has not only got an attachment but has upgraded this consumer to a dual pack.

It is a clever question using some, few and most to lead the customer where they're supposed to go.  It is an art form to get the inflection in the voice just right using a little enthusiasm with the some, (some actually spend this much money) no enthusiasm with the few (most people aren't that cheap) and a lot of enthusiasm with the most.  Try it yourself!

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

A Trick to Sell

I'll take that!

When someone hands you something what is your first reaction?  You take it!  That is what a good salesperson hopes you will do.  You see, if you hold it, you own it!  Not all the time, but most of the time.  Whenever a salesperson can get you to hold an item, the sale is close to complete.

Take note the next time a salesperson is trying to talk you into buying an attachment like ink or paper with a printer.  As you know by now there is a small markup built into the printer.  It is imperative that something with markup gets to the register.  A sly trick used to get you, the customer to buy something you’re still thinking about is to put it in your hand.

When this happens to you, do not take it.  Just stare at the salesperson and knock him or her off stride.  If you do want the item, pick it up yourself, smile and say thank you.  This sends the message of whom is in control.  From that point on the salesperson will think twice about trying anymore tricks.

Thanks for sharing this post with your Facebook, Twitter or e-mail friends!

The definition of a chump:  a gullible person, a sucker; someone easily taken advantage of, the target of a scam.  

Learn how salespeople drive sales from a former salesperson and trainer and keep more of your money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

A Printer Ink Secret!

Why waste expensive ink?

When your printer says it is low or out of ink do you immediately toss it aside and install a new cartridge?  Next time reset the memory and print some more.  Most manufacturers of ink set their cartridges to register low or out when there is an average of 25% left.  HP is the only brand that allows the cartridge to run dry.

Bargain recycled cartridges are worse.  Up to 40% of the ink can remain when the ink meter says it is out.  This is the conclusion of a test done a couple years ago by PC World.  The name brand manufacturers claim the cartridge must not run dry to prevent any damage to the printer.  However 25% seems excessive.

When you spend over $800 in black ink and 25% remains each time the meter says it is empty, that’s $200 that winds up in the garbage.  That is $200 that left your hand twice.  Once as someone else’s profit and another into the garbage, either way, you lose.

So, resist buying bargain ink and try this trick the next time your printer says it is low on ink.

I have an HP printer so I haven’t had to ‘reset’ the memory on my cartridge.  If you own another brand and want to try it watch the You Tube video found on the lower right column on this blog. Like anything found on the Internet it may be a hoax.  However, if it is true you may save precious ink over the life of your printer.

If anyone has any experience with resetting ink cartridge memory please contact me at marqoe3@gmail.com.

Thanks for sharing this post with your Facebook or Twitter friends!

The definition of a chump:  a gullible person, a sucker; someone easily taken advantage of, the target of a scam.  

Learn how salespeople drive sales from a former salesperson and trainer and keep more of your money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

Okay, Here's The Ink Shocker I Promised!

$10,000  a gallon?

 A few years ago I read that printer ink cost $5,400 a gallon.  Then a couple of years back the estimate amounted to $8,000 a gallon.  Now, Kim Komando exclaims printer ink can be a shocking $10,000 a gallon!  Think about the distance between the cost to make ink and the retail price.  No wonder printers are so cheap!

HP ink cartridges used to have the milliliters printed on the box.  Now they give you page yield.  Today a typical HP cartridge is about 15ml; the XL's are around 42ml depending on the series of printer and cartridge you use.  Thirty Five Dollars for less than 3 tablespoons of ink is, well, I'll let you use your own expletive.

I have more to reveal about printer ink but right now I want to save you some money!  Scroll down the right side of this blog for a couple of YouTube videos for some printer tips to save you money on ink!

Thank you for sharing this blog with your Facebook and Twitter friends.

The definition of a chump:  a gullible person, a sucker; someone easily taken advantage of, the target of a scam.  

Learn how salespeople drive sales from a former salesperson and trainer and keep more of your money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

It's Amazing What Retailers Will Tell You

Profit Magnet

Printer ink is big business, a big attachment and a big-time moneymaker!  The supreme goal of store personnel is to ring up extra ink with your printer. The profit squeezed into these little cartridges is extraordinary, for the manufacturer as well as the retailer.  It is important to the retailer that you walk out with at least one extra cartridge.

If you buy your printer where a salesperson helps you expect a sales pitch to buy extra ink.  The salesperson may try to convince you that you need to take home an extra cartridge of ink because the new printer only comes with a 'starter' cartridge.  The misleading statement begins when the salesperson says, "the starter cartridge will last anywhere from a few pages to a couple of hundred.  Would you like one or two extra cartridges to take home with you?"

Remember, the goal is to get you out the door with ink attached to the printer sale.  As stated in the previous post ink is one of four high-margin attachments stores track with each printer sale.  So a printer with ink is 25%, with a cable is 50%, with paper is 75% and an extended warranty plan makes it 100%.  The goal is 55%!

Each category (like a printer) has a goal that each store must achieve. A percentage report is ready each morning and store personnel are aware of what item to push.  Some retailers manually track attachment sales throughout the day so salespeople know how hard to twist your arm toward the evening.

If you easily succumb to pressure then I suggest you shop early in the day.

The point is to do your own homework.  Do not rely on false information. Better yet, have the salesperson look it up for you right there in the store. Find out which ink cartridge the printer you want to buy uses.  Then do a Google search to know how many pages each cartridge will print, the price of the cartridge and if the new printer comes with a full cartridge or not.  (By the way, most of the new inkjet printers come with a 'full' ink cartridge.)

If the store is priced right and you do a moderate amount of printing then an extra cartridge is a good idea.  If the price of ink is out of line, then get your ink somewhere else.

Tomorrow's post on 'ink' may shock you!

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

A Time I Hated Talking Customers Into Buying

How much should this be?

Retailers need to make money!  As stated before, the technology item itself has a low mark-up.  To secure a profit a salesperson must sell add-ons or attachments with these items.  Retailers watch about 12 categories so each morning every store knows their percentage standings within their District, Region and so on.

Let's look at a printer.  There are four tag-a-long products that a salesperson must persuade their customer to buy.  The four items include a cable, paper, ink and an extended warranty plan.  The worst experience I had in retail was when I had to talk customers into buying a cable.  Why?  Because I knew how much they cost!

Because there was so much pressure to sell attachments we had to be creative.  If a customer said he or she already had one we would state that their cable may be out-of-date and the printer would run slow.  If that didn't work we told them most people replace a cable every two years.  Finally, we recommended they take a new one home to compare their old one with the new one.  If there was no difference in printer performance then they could just return it.  For a wireless printer customer we had to make them think they needed a backup plan in case the wireless system went down.

All we wanted was to get that cable through the register with the printer to make our percentage look good!

But here's the problem!  The cable I had to talk each customer into buying with their printer was expensive.  At the time, a six-foot cable sold for  $24.99.  The cost was $4.50.  That's right, $4.50.  That's over five times the cost!  Unconscionable to me!

Hey, if that was the going rate everywhere, so be it.  But it wasn't.  A customer could drive a short distance and buy them for $6.99.  I hated to talk the customer into buying these overpriced cables but it was my job.  Think about that the next time a salesperson hands you 'anything.'  If you didn't do your homework make sure you keep your receipt.  You may be taking it back!

More about 'attachments' tomorrow

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

Another Product That Warrants an Extended Warranty Plan

Stop buying backpacks every school year!  Yes, most office supply chains sell plans on backpacks and it works the same way as with chairs.  If your child's backpack rips, tears, unravels, if the zipper or strap breaks, if your child stains it or damages it in any way (read the fine print on the brochure) you get your money back.

Most school backpacks do not make in into the second year.  Just buy the plan, keep it in a safe place, remember where you put it and next year when it's time to shop for school supplies, make the call, and get your money!

Please make sure you corroborate this by reading the small print on the brochure. Do not rely on any information from store personnel.  It amazes me how information from on high gets jumbled and confused on its way down to the sales floor level. Sometimes you may notice a definite lack of confidence when you begin to question the facts of these plans.  Other times an associate may have to shoot from the hip.  Either way, it's wise to confirm an answer for yourself.

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

Is There Ever A Time To Buy an Extended Warranty Plan?

Get the Plan!  Get your money back!

There is a product that warrants an Extended Warranty Plan.  An office chair!  If your office supply store sells these plans on chairs it is in your best interest to grab a brochure and check out the particulars.  Things change, so what I'm about to tell you is only good for the store I managed at and relevant to this current time.

In two or three years your chair will take some minor abuse.  The plan not only covers any breakage of the wheelbase, hydraulics, arms but it also covers any minor abuse you may inflict on it which includes a stain, tear, unraveling, burn or even a scuff.  That's right, if you scuff the upholstery on your chair, especially where the top of the arm meets the bottom of your desktop or where the back slides up against the wall, you just call in a claim.

If your chair is under $300 just call the service provider, tell them what's wrong and a merchandise card (you may be able to ask for a check) for the full amount you paid is on its way to you.  No replacement parts, no replacement chair, just money!  And you keep the 'damaged' chair.  It is a no-brainer!

I don't care how much the plan is at the time... get it!  Put it in a safe place, remember you have it and before the time expires, make a phone call and get your money back.

Tomorrow, another product that warrants an EWP!

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

My Own Extended Warranty Plan Story

The cursor on the screen just blinks at you?

In 2001 my Mom bought a desktop computer to learn how to organize her genealogy research.  I lived in Southern Oregon at the time while Mom lived in the Bay Area 6 hours away.  On a visit to Oregon she sees a sale and decides to buy her computer from me.  Of course I fixed her up with everything she needed, including a scanner, to complete her genealogy project.

My Mom struggled with the mechanics of a computer and I found myself adjusting and helping her with the technology either remotely or every time I would visit.  Then it happened!  The dreaded phone call.  The computer refused to boot up.  I listened as my Mom described her actions before this all happened.  I winced when nothing I told her to do would bring it back up.

At the time, I could not physically fix my panicked Mom's needs.  In my mind, I tried to arrange the words of disappointment that would come next because .  She just kept talking about how she didn't understand why it wouldn't just turn back on!

Just when I was about to give her the bad news, I remembered something she bought with her computer system!  "Do you still have that red brochure, the one with the receipt attached?  She rooted around in a drawer and responded with a, "Yes I do!"  I told her to call the number on the back and tell them what's going on with her computer.

The next day a computer guy (as she called him) showed up and replaced her motherboard right there in her front room. By evening she was back in business.  In this case I was glad my Mom bought a 5-year Extended Warranty Plan.  It saved me an unplanned, eventual trip down to California.  Her computer was back in service without any additional cost.

So, 10 years ago, when computers were known to crash often these plans could have been worthwhile.  Also, if you're the type that needed tech support, a plan like this could have brought some peace of mind.  However, remember this was when an average computer cost over $1,000!  Today it may be more prudent just to buy a new one and catch up with the technology.

Tomorrow, I recommend you buy an Extended Warranty Plan.  What product can that be?  It's a no-brainer!

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

Another Deceptive Practice Centered Around Extended Warranty Plans!

Ouch!

Here is a deceitful practice that occurred in my district in Oregon many years ago.  In sales lingo, silence means consent.  Because the pressure is so intense to sell these plans it's only human nature to devise ways to make it happen.  As mentioned before, it means one's job if the sales goals do not exceed expectation.

Here’s the gist of this elaborate ruse.  In the nineties couples were buying their first computer set up. During the presentation the salesperson would quickly tell the customer that an extended warranty plan covers their 'investment' for three or five years.  This is not the time for a high-pressure close because the customer could say no. You’ll see why this cannot happen if this tactic is to work

During the salesperson's pitch of the plan, if the customer remained silent then the salesperson can assume that silence means consent!  This is important to complete the deceitful plan. Now it's time to ring up the entire sale. The monitor, scanner, printer, cable, ink, paper, and the rest of the accessories are all rung up. Then the mail-in rebates are factored in with any coupons to add to the confusion. With this total, the extended warranty plan, without the customer's 'verbal' consent, is now part of the mix.  During this time, the salesperson and the cashier, who is in on it, hope the customer loses track of what the final total should be.

 Most of the time this tactic worked!  If the customer does spot the plan without his or her consent the salesperson just says that he 'assumed' they wanted this plan to protect their investment.  A well trained salesperson can make a customer look dumb at this point so sometimes the customer just kept it.

At home, a curious customer might look at the receipt then return to the store for a refund.  Again the pressure was on to talk the customer into keeping it.  But more times than not, the customer did not even realize they had an extended warranty plan added to their purchase.  It's shameful!

Let me make it clear the company did not condone or encourage this practice. The store manager, while the District Manager looked the other way, urged it locally.  It just goes to show how much pressure there is to sell an extended warranty plan and how disrespectful of the buying public retail can be.

So, the key is to inspect your receipt and not wind up feeling like a chump!  Next time we'll look at how these plans did some good.

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

A Ruse Retailers Use to Sell You Extended Warranty Plans

The Last Line of Defense

 Okay, here's a secret that may save you some money next time you're confronted with buying an extended warranty plan.  After you have said ‘no’ to the salesperson the subject will come up again.  When?  While checking out at the register.  In the retail business this is the last line of defense.  Here is where the cashier innocently hits you up again.  Be attentive, this is a ruse!  

It's tempting to take a second look at the plan because now a second person has confirmed what the first person said. What the retailer wants you to believe is the cashier is looking out for your best interest.  'Here is your last chance to take advantage of this opportunity to protect your product.'

But it's all a forced set up!  In this case the salesperson and the cashier work in tandem to sell you on something they probably don't care about themselves.  Ask next time!  "Would you buy a warranty plan on 'this' product?"  The honest cashier (and most of them are) will relent.  The selling aspect is just part of their overall job.  Believe me, for most cashiers it's difficult to memorize a sales pitch they don't believe and then try to talk you into buying a plan they know to be useless.

The cashier and the salesperson are only responding to pressure to keep their job.  Some companies give a small commission to the seller, but all companies keep track of the individual’s progress as well as the store's progress to compare these numbers with the district and region.  It is big money and those that don't make it happen don’t keep their job.

In my last retail company a manager was fired because of her poor EWP performance.

The cashier lends credibility to the value of the plan by repeating the pitch of your salesperson.  And guess what?  After saying no to one person on the sales floor over 40% of consumers lower their defenses and buy these plans at the register.   Now you know about this ruse.  Buy a plan because you feel it as a value and avoid buying one on impulse or because of trickery.

  

That's just one deceitful practice that goes on with these plans.  And by the way, they are returnable.

More EWP insights next time!

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

Why Are Extended Warranty Plans So Crucial To the Retailer?

Profits R Us!

To the retailer, extended warranty plans are the most prized profit available because of its virtual no-cost positioning in the store. What do I mean by that?  Free money!  The need to payout on these plans is rare.

In the store, the EWP is just a brochure.  There is no corporate buyer involved, no transport cost, no warehouse cost, no inventory cost, no merchandising cost, no labor cost, no inventory tax, and so on.  And it's a service most people will ever use.  It is the ideal way to make a profit.

Over the past ten years I have sold hundreds of extended warranty plans.  In the late ninety's a customer could buy a five-year plan on a computer desktop which started on the day of purchase.  It coincided with the 1-year manufacture's warranty covering services the manufacturer did not cover, such as shipping.  The plan included technical support (only on hardware,) wear and tear and surge protection.  However, the five year plan didn't last too long.  Three years soon became the norm and currently it is two years.  Why?  Because the company behind the plan needs to also turn a profit.  A three-year lifespan, and beyond, is normally when technology products begin to fail.

In the past, plans on technical products under $300 ran for up to three years and began after the Manufacturer Warranty expired.  Now it begins the day of purchase (covers what the manufacture won't) and you can only get them for two years.  I understand each retailer may be a little different, this is my experience, but I think you get my point.

The value of EWP's is now suspect because the duration of the covered period is decreasing while the price of each tier continues to rise.

If the value continues to decrease while the price continues to rise why do consumers continue to buy them?  Ignorance, meaning they just don’t know the history of these plans.

Much management pressure dictates the salesperson hammer this one home.  Why does the salesperson place this brochure in your hand.  This gives it tangibility and lends credibility to the pitch.

Look around the next time you're in an electronics store and see if you spot these brochures strategically placed in handy to reach places or in the back pocket of the salespeople.

Tomorrow, a secret on how retailers set up a ruse to lend credibility to these plans.

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

Are Those Extended Warranty's Really Worth It?

What about these plans?

Why are extended warranty plans so important to companies?  Why do they put so much pressure on the consumer to buy these?  What sales ploys excite the consumer to buy?  Well to answer the first question... it is profit!  You're probably saying, 'dah.'  But what you may not realize is how much and what kind of profit is it?

Remember, I believe profit is a good thing!  It keeps businesses in business and motivated to continue supplying us with the products consumers need and enjoy.  Our economy is based on buying and selling and making a profit continues that trend.  So it is my position that profit is not the bad guy, it's how they get these profits that gets my attention.

It is my intention to give you the inside information so you can make a wise buying decision and not end up feeling or looking like a chump!

The reason why these 'plans' are so important to profit-making companies is because of the amount of profit involved.  A normal retailer needs to make an average gross profit (the profit before expenses are subtracted) of around 33%.  The profit built in to these plans hovers around 65%!  When you spend $20, $100, or over $200 on these gems, more than half the amount is pure profit.  Without this profit the retail price of technology would have to be much higher. These plans help keep the prices of technology low.

 Remember, in an earlier post, I told you the gross profit of laptops, printers, TV's is about 9% or less, sometimes below cost!  These are the competitive products that consumers shop for and help's one decide where to shop.  To justify this 'give-away,' retailers must make this crucial profit up in add-ons and plans.  They have to apply the sales pressure to buy these plans or go out of business.

Here's what you need to know before you consider buying these plans.  You will pay an average of 30% of the purchase price to protect your product for two or three years.  Is this 'peace of mind' worth that to you?  If it is, then buy away.  If it does not sound like a wise investment (as some salespeople put it,) then take the slim chance of your product failing and keep your money where it belongs, in your pocket.  Instead of logic, some consumers buy into the emotional fear factor and sheepishly succumb to the pressure of the desperate salesperson.

The consumer that does not think these numbers through before the close later winds up feeling like a chump!

Tomorrow, more on extended warranty plans, an important part of retail you don't want to miss

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The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

How Do Some Salespeople Gain Confidence So Fast?

Here's an example of how one salesperson sold so many printers with the high-priced add-ons.  It's simple!  He gained the confidence of the customer in a quick, succinct fashion.  How you ask?  Well, here's how he did it.  The ink jet printer aisle boasted over twenty printers to choose from.  Our salesperson, we'll call him Luther, zeroed in on 'one' nice, reasonably priced printer and learned everything there was to learn about it.   Luther did the same thing on the laser printer aisle.

Whenever a customer came in to get a recommendation on a printer that best suited his needs, our ingenious Luther would always lead him to this 'special' printer. Mr. Customer would be so impressed with the knowledge and service Luther extended, he would become putty in Luther's hand.  So from there, no matter what Luther recommended, it was a comfortable 'yes!'  This included the high priced cable, the high priced ink and paper and most importantly the high priced Extended Warranty.

We did not call them extended warranty's because of the stigma attached to the manufacturer's warranty.  You'll hear them called something else which includes product protection, depending on which retailer you visit.  These plans are so important to the overall profit of the store that when we ran out of Luther's printer, I set up several transfers with other stores in the area to pick them up myself.

It amazed me how he gained the confidence of so many customers in so little time.  And they would buy anything he recommended!  Even the overpriced items and the questionable protection plans.  (More about these plans in a later post.)

So here's the advice I recommended to you.  Do your own homework!  Two previous posts for you to read or reread are, Why Must I Do My Own Product Research (2-1) and Product Research: So Simple Even A Baby Can Do It (2-3!)  Take advantage of the retailer for a change by resisting the appearance of a salesperson's confidence.  It may be legitimate or it may be a ploy to gain access to the deeper recesses of your pocket!

Avoid any possibility by being an informed consumer

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

Why Do Retailers Run Out of Great Deals So Fast?

To work on Sunday at a retail store that sells technology can be the pits!  Why?  Because that is usually when the weekly advertisement hits the papers and there is not enough 'super deals' to satisfy the thrifty shopper.   I've opened a many of Sunday with only 1 or 2 and sometimes 0.  Why do good companies allow this continually to happen?

Have you ever stood in line on Black Friday only to be disappointed with the news the store has sold out!  Have you ever wondered why they don't just buy a 'train' load of the deal items and have enough for everybody that show up at midnight, stands in line until the early morning hour when the doors finally open?

Remember this is technology retail I'm referring to.  Products like laptop computers, digital cameras, TV's have little or no profit margin.  To stay in business a typical company has to 'average' about 33% gross margin.  That's the money left over between the purchase and the selling.  That figure does not include expenses like payroll, rent, utilities, and so on.  A typical high profile technology item grosses about 9%.  On Black Friday it can be below cost!

The profit lies in the add-ons that consumers may not track so closely.  So, the savvy retailer trains their crew to sell you add-ons on the items they have in stock.  On Black Friday this is done while standing in line before the store opens.  When they run out, the plan is to move you over to something they do have it stock and sock it to you with the add-ons.  

The main point here is to make you aware that if you want that super-duper deal you see in your Sunday Advertisement, get on down to that retailer first thing Sunday morning and get yours before they run out.  If it's a great deal to you then it's a great deal to others and you know what they say about the early bird!

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

How the Salesperson Can Become a Chump!

How does a salesperson become a chump? Here is a story from my sales past when I was a Memorial Counselor for a cemetery property selling corporation in Southern Oregon USA.

The plaque to the right of the doorway read: Memorial Counselor.  The two story yellow house found on the same property as the mortuary and cemetery was a cover for our sales organization to train and set up appointments.  We never 'counseled' in that building, in fact we never counseled at all!  We just sold cemetery property before one needed it.

Every morning our sales group gathered around a conference table to watch or listen to motivational material.   For 45 minutes to an hour we would get motivated with Zig Ziglar, Jim Rohn, Denis Waitley, Tom Hopkins, Napoleon Hill to get riled up and go out to convince the living of their need to buy cemetery property today!  This is where I learned most of my sales skills.

Is it a good idea to buy cemetery property before one needs it?  Here is where I had to be sold on the idea.  Our sales manager had to do a convincing job for our team to achieve his sales goals.

'Hey, buying now stops inflation, a loved one will not have to take care of, it makes one feel good to take responsibility for their own affairs, and so on!'

You did notice that our sales manager had sales goals?  He did!  He had a boss to answer to just like we did.

One week our team was under achieving.  Nothing was working!  The motivational meetings were not motivating, the contests were not delivering, the appointments were a bust, and the numbers were falling 6 feet under.  So what did the sales manager do?  He sold us on the need to purchase cemetery property ourselves.  It was a very convincing, conniving sales job that forced most of us to go into debt just so we could honestly use our own example to convince our perspective buyers to buy theirs.

Well, when we realized that the sales manager had used a sales ploy on us to achieve his sales goals, we definitely felt like chumps!   Did it help close some sales we would have not otherwise gotten?  Probably!

What being duped and played like a chump really did for me that day was made me a little wiser.  Now that's something of great value I can use for a lifetime!

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

How To Turn a 'No' into a 'Yes'

This customer gets a 'yes!'

"You can catch more flies with honey than with vinegar!" This idiom applies in the retail world.  It is so much easier to persuade people to see it your way when you use polite arguments and flattery.  Yes, even you have to do a sales job to get what you want or get what is right.

When I was in management in the retail world most of my confrontational issues came at the return counter.  Every company has return policies to protect their interests against employee misuse and customer fraud.  When a customer was mean and nasty I'd stick to the policy.  A nonconfrontational customer with a pleasant manner and legitimate story received a 'management' decision.  This means I could circumvent policy to 'save' a customer.  I was the type that circumvented policy to keep a customer happy.  My intent was to treat a customer like I would want to be treated.  It worked for me.

So how to get a yes! When the first person states policy and says 'no' just thank them for doing their job and ask for a manager.  Please don't waste good energy at this level.  Usually, the first person does not have the authority to alter policy (remember employee misuse) and has to take the brunt of this answer all the time (not fair.)  When a manager comes on the scene explain your problem (story) in a succinct, calm manner.  If that one says no, then ask for the Store Manager.

So what happens when you come up against a Store Manager that just doesn't get it!  I mean the type that have this enormous ego riding high on a proverbial power trip?  Have you ever had a confrontation with one of these? You know, the one that thinks Customer Service means the customer serves her?

If you don't get your legitimate issue resolved at this level allow me to clue you in on some of the secrets.

Remember, every one that works in retail has a boss.  If one of those bosses don't 'do you right,' then ask for their boss. Most Store Manager's do not want you to go to the next level.  This is a direct assault on their management skills.  They will start backpedaling fast and say something like, "I'll make an exception this one time."  Don't let this make you feel like a chump.  The manager is trying to save face.

Sometimes you may run into an egocentric Store Manager that may want to fence with you.  He or she will try to convince you that they 'are' the boss and there is no one else higher that can help you.  At this point I've seen customers give up, throw their hands in the air, and walk out without having their issue resolved.  What a shame.  If they had only known what to do next.

This is simple:  Ask for the phone number or business card of the District Manager!  This shows you intend on taking this to the next level.

In most companies the next level would be the District Manager.  Believe me, the DM does not want to be 'bothered' with customer issues the SM should be able to resolve  Most SM's do not want the DM to perceive them as an incompetent buffoon! In most cases this will get you what you want.

If that fails in 99% of all cases a call to the office of the DM will get your legitimate issue resolved!  I Guarantee It!

For the remaining 1%, a District Manager has to answer to a Regional Manager.  A Regional Manager answers to a Regional Vice President, and then it's the office of the CEO (Chief Executive Officer.)  Trust me, it's rare to ever have to get this high but it does happen.  My sister-in-law had to take her issue this far.  The office of Carly Fiorina, the then CEO of HP, chose to make right that which should have been fixed at a much lower level.  With persistence, determination and a willingness to maintain control of her emotions she got her issue resolved.

So, remember, you can catch more flies with honey than with vinegar.  So when it comes to retail, save your energy.  Most of the time you can get what you want by just being nice!

Thanks for sharing this post with your Facebook, Twitter, or e-mail friends!

The definition of a chump:

a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?