I just found yesterday that Circuit City Home Entertainment Specialist are now on commission in a way. They are still paid an hourly rate but have added bonuses at the end of the month. I didn’t get the exact detailed explanation on how it works exactly. From my understanding it works on how much gross profit you make for the company. What makes up most of the high gross profit items? Monster cables, Installations, Warranties, & Sony products.
Here is a little tip. If by any chance your local Circuit City store uses an old DOS like system known as DPS their is a way to see how much profit they making on you for each item. If you look closely to the screen at the end it’ll display a column for quantity if I remember correct. If you see the number 35 under that column all you need to do is flip the number to tell how much percent they make on it. So if you see 35 it means they making 53% profit on it. If you see -80 it means they are actually losing 8% on the item. You’ll never believe how much money they make on wall brackets, cables, installations, and warranties. This is why most good employee’s won’t let you leave without any attachments. Be warned any college kid who works there and wants extra cash is really going to be on your case now.
The reason that Home Entertainment is the only department that has this incentive is because this is where big companies make money. The margin on TVs isn’t as high as you think but at least they do make money on TV sales unlike PC and laptop sales. Usually the average mark up on Televisions is around 20-30% of full MRSP. Majority of laptops and PC have negative margins. Circuit City realizes this and thinks that a good employee that has extra cash as an incentive will increase productivity and service of their employee’s. I know if I still worked there I’d probably work harder than usual.
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This entry was posted on Friday, August 8th, 2008 at 12:19 pm and is filed under Home Theater, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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