Commission at Harvey Norman

Handsome Brute · 04-02-2016 5:26pm #1

Hello! I was wondering if anybody could tell me what commission sales people get by selling warranty's at Harvey Norman. Every time I go in for an item I am hounded by the salesperson to get a warranty! They give you information and a book and it and they wont take no for an answer! I had to get a manager the last visit because I told the salesman no less then four times I didn't want his five year €80 warranty!

I am sorry for the rant but I am involved in property so I have to buy electrical items often enough! Currys don't seem to be as pushy but I just want to know what the deal is with HN!

coylemj · 04-02-2016 5:47pm

Not alone are they on commission but they are probably also on a target to achieve a certain % of sales to include a warranty and they get their asses kicked if they fall below that target. There's probably peer pressure at play as well, there's most likely a league table on a noticeboard in the staff room showing who is currently achieving the best penetration of warranties with their sales.

Extended warranties are an issue for consumers all over the world, they are terrible value for money (too many snouts in the trough) and to be avoided.

MarkAnthony · 04-02-2016 10:40pm

ilikesubway wrote: »

I am sorry for the rant but I am involved in property so I have to buy electrical items often enough! Currys don't seem to be as pushy but I just want to know what the deal is with HN!

I'd say your bigger issue is shopping at DSG or HN in the first place if you're a regular shopper. There are much better options in terms of price and service.

VincePP · 05-02-2016 9:56am

Usually commission is about 30% of these <SNIP> policies.

A coupe of years ago a Currys salesperson suggested that if anythign went wrong, I'd only be covered if I took this out.

I asked him to explain what he meant and he again said that if somethign went wrong, then without this cover I may be left with something I couldn't get repaired free.

I asked for the store manager (Naas) - who initially said similar but backtracked when i asked for it in writing.

To this day I have never purchased an item in Currys/PC World and also avoid HN for same hard sell on these policies.

tipping · 05-02-2016 10:27am

I do shop at Harvey Norman as it's just around the corner from where I work.
But in general I really dislike the place and find their prices higher than many of their competitors, but they do price match when you show them the same item available in a different store at at the lower price.

The last 2 items I bought there I got them to price match saving myself €70 on the first item (price from Currys) and €22 on the second ( the second item was a USB stick that was the 22 euro cheaper on their own website over the instore price). On at least one of those occasions they weren't very nice about it but it saves me getting into the car and I get a strange sense of satisfaction.

They do offer me the insurance thing but I think the steely tone in my voice means I've never been asked twice.

MarkAnthony · 05-02-2016 10:37am

It's no where near 30%. A retailer is not going to be giving up a 3rd of what is pure profit for them. The sales person will simply be targeted to sell them, the ones that can't eventually get fired. For a similar retailer I think I used to get about £30 on £500 worth of warranty.

draiochtanois · 05-02-2016 10:55am

This post has been deleted.

Agent_99 · 05-02-2016 11:07am

VincePP wrote: »

Usually commission is about 30% of these "scam-like" policies.

A coupe of years ago a Currys salesperson suggested that if anythign went wrong, I'd only be covered if I took this out.

I asked him to explain what he meant and he again said that if somethign went wrong, then without this cover I may be left with something I couldn't get repaired free.

I asked for the store manager (Naas) - who initially said similar but backtracked when i asked for it in writing.

To this day I have never purchased an item in Currys/PC World and also avoid HN for same hard sell on these policies.

I had the same experience in Currys, Salesman said that if it broke that we would not be covered for a repair without the extended warranty I explained that if there was a fault that I would use my statutory rights and if got damaged I would claim under my house insurance he then tried to argue that my house insurance won't cover :eek: now he is an expert in household cover and my policy in particular. He wasn't impressed that we asked him to open the box and inspect the TV before we left the shop to make sure there was no visible damage

Chancers

Agent_99 · 05-02-2016 11:11am

tipping wrote: »

The last 2 items I bought there I got them to price match saving myself €70 on the first item (price from Currys) and €22 on the second ( the second item was a USB stick that was the 22 euro cheaper on their own website over the instore price). On at least one of those occasions they weren't very nice about it but it saves me getting into the car and I get a strange sense of satisfaction.

I got a printer for half the retail price 99.99 in store 49.99 online, I insisted that I got the online price and after speaking to a senior salesperson they gave in.

qvsr46ofgc792k · 05-02-2016 11:17am

MarkAnthony wrote: »

I'd say your bigger issue is shopping at DSG or HN in the first place if you're a regular shopper. There are much better options in terms of price and service.

Really, where?

zzap64 · 05-02-2016 11:49am

VincePP wrote: »

Usually commission is about 30% of these "scam-like" policies.

I seriously doubt it's anywhere near that amount for the sales staff. I used to work in a chain like this in England many years ago and the commission for a 5 year extended warranty was £5 and we got £3 for a three year one!

The management were obsessed with getting them and we had to push them very hard and they were pretty much the most important KPI (Key performance indicator).

It was the worst part of the job. You'd try to sell the customer something because it was good and then when they agreed to buy it, basically you were saying, well actually it's a bit crap so you'll need to get an extended warranty as well... it got soul destroying after a while... At least as a customer you only have to put up with it for a few minutes, the staff members have to push them every day!

VincePP · 05-02-2016 4:26pm

zzap64 wrote: »

I seriously doubt it's anywhere near that amount for the sales staff. I used to work in a chain like this in England many years ago and the commission for a 5 year extended warranty was £5 and we got £3 for a three year one!

sorry, the store gets 30% - probably give a clap on the back to the salesperson

Penny Tration · 05-02-2016 4:29pm

I know the exact commission they get (someone close to me works for then) and it's not enough to buy a cup of tea. It's a pittance, trust me.

However, they have targets they're expected to hit to keep their jobs.

As for the warranty itself - your consumer rights obviously cover faults anyway so you don't need to be buying extended warranties, <SNIP>. The only thing different with HN I'd their five year thing also covers accidental damage for the first year or two - so if you drop your laptop and it's fecked, you pay the excess fee which is around fifty quid, and get a new one.

IMO, not worth it unless you're clumsy

MarkAnthony · 05-02-2016 4:45pm

draiochtanois wrote: »

This post has been deleted.

Nicholas Clean City wrote: »

Really, where?

Amazon, shopping around in the likes of DID and Powercity, Argos at a push if you must go bricks and mortar.

As for online, there are a myriad of options with varying degrees of customer service and price.

That's putting aside the products in bricks and mortar stores are normally the crap versions they can't sell to anyone else.

cms88 · 06-02-2016 10:33pm

What exactly is the ''issue'' here?

Menas · 06-02-2016 10:48pm

cms88 wrote: »

What exactly is the ''issue'' here?

The "issue" is Harvey Norman always try to sell the warranty when you buy any electronics item. Some people allow themselves to be convinced to buy this modern snake oil.

MarkAnthony · 06-02-2016 10:54pm

Menas wrote: »

The "issue" is Harvey Norman always try to sell the warranty when you buy any electronics item. Some people allow themselves to be convinced to buy this modern snake oil.

It's just a business practice that suckers some people in. If they didn't have this then they'd have to increase their prices across the board. I thank stupid people everywhere.

It's a bit like buying from an incredibly expensive and inefficient chain of buildings with loads of employees rather than ordering it centrally and having it delivered to ones door. :pac:

cms88 · 06-02-2016 10:54pm

Menas wrote: »

The "issue" is Harvey Norman always try to sell the warranty when you buy any electronics item. Some people allow themselves to be convinced to buy this modern snake oil.

Still not seeing what the issue is? Are they being forced into buying it?

MarkAnthony · 06-02-2016 10:56pm

cms88 wrote: »

Still not seeing what the issue is? Are they being forced into buying it?

No one forces a consumer to do anything, consumer law is simply more or less protecting those in a lower bargaining position. Sometimes that bargaining position is simple ignorance.

The issue is, however, a valid one. 99% of the threads here have one of three answers and 90% of those are "Did you ask the retailer?". On the issue of force, no one is forcing you to be here are they?

cms88 · 06-02-2016 11:03pm

MarkAnthony wrote: »

No one forces a consumer to do anything, consumer law is simply more or less protecting those in a lower bargaining position. Sometimes that bargaining position is simple ignorance.

The issue is, however, a valid one. 99% of the threads here have one of three answers and 90% of those are "Did you ask the retailer?". On the issue of force, no one is forcing you to be here are they?

No they aren't what's your point? I'm still waiting to find out what the issue is, seeing as this is called ''Consumer Issues''

MarkAnthony · 06-02-2016 11:08pm

cms88 wrote: »

No they aren't what's your point? I'm still waiting to find out what the issue is, seeing as this is called ''Consumer Issues''

Well you can lead a horse to water...

If you feel the thread shouldn't be here I suggest using the report function.

gowley · 06-02-2016 11:14pm

If you don't want the warranty don't buy it when asked. No issue .

wehuntmonsters · 06-02-2016 11:19pm

I've worked in one of the company's mentioned (not going to say which one) but I should inform anyone that is wondering that sales people don't actually get commission for selling warranties. They have SQ Strike rate that they have to achieve (this includes selling insurances, tv packages such as cables & stands, software and internet security for computers, etc) if they don't achieve said strike rate, their shifts will become less and less until they're sacked. If they do achieve the required strike rate for the week, then they will top the leaderboard if they're sales are high as well. They usually get a paid day's holiday or a 50c rise. Not what you'd expect, they're not brokers after all. They also have a sales target each month and will get a bollocking if it is not reached.

I have to say though, while some insurances are pricey they're worth it if it's instant replacement. I wouldn't normally say that because I fecking hate people who are pushy and won't take no for an answer. One lad I worked with tried telling customers porkies just so he could sell the insurance and achieve his SQ rate. It irritated the ****e out of me that he did that but they deemed it to be okay.

MarkAnthony · 07-02-2016 12:25am

gowley wrote: »

If you don't want the warranty don't buy it when asked. No issue .

You're not asked, that's the point the OP and others are making. You're 'sold' it. Many consumer issues can be lumped under the heading 'don't be thick/gullible/easily lead'. That's grand for some, other people have different personality types and react differently. I used to sell €700 warranties on computers, I had a 50% hit rate on those warranties.

Yes one might have the bravado to tell me to feck off, in actual fact very few people were rude or gruff, obviously 50% of people didn't buy, 50% did. Of that 50% not all where thick/gullible or easily lead, some just got sold to.

During my, what is now an extended period, of retraining I've taken a step back from retail sales management and work part-time for a business that does actually give a toss about it's customers. I actually spend my hours on a medium similar to this one, two things I've realised.

(i) It's easy to be the big man behind a keyboard.

(ii) People who think they 'win' the sales game by being rude generally end up being just as fleeced by salespeople as those who are gullible. It's just a case of knowing how to manipulate people. The ones who think 'I can't be manipulated' are usually by far the easiest to manipulate. It's pleases me no end if off loading a product at X price to a rude asshat when I know it's going to be cheaper next week. Conversely people who are sound and perhaps a bit more naive than they should be get treated very well and looked after. I see it as a bit of atonement for all those €700 warranties I sold, boy the commision was good but frankly looking back I'd prefered to have just mugged people.

You 'win' at the sales game by shopping around, going with where you feel you get the right price to service ratio and by being nice and polite. You'll be amazed how far that will get you.

Curb Your Enthusiasm · 07-02-2016 2:25am

I can tell you right now Currys sales staff don't get a penny for selling the extra warranties and bundles... HN staff do but even then its next to nothing. Its all targets. It annoys the staff to sell them just as much as it annoys the customer to keep getting asked to buy one. They are rubbish and should not be purchased but they do still get alot of uninformed people buying them.

Currys apparently have a habit of lying to customers to sell these.

One such incident was when I heard a staff member tell a customer if they were not to buy the €99 McAfee antivirus and install AVGs free version instead, the warranty on their PC would be voided. Absolutely abhorrent deceiving of customers.

MarkAnthony · 07-02-2016 2:36am

Jesus, times must be tough. I used to make a bloody fortune selling warranties, this was about 20 years ago mind!

Penny Tration · 07-02-2016 2:40pm

MarkAnthony wrote: »

Jesus, times must be tough. I used to make a bloody fortune selling warranties, this was about 20 years ago mind!

Most places have done away with high commission on them. HN give a very small amount for each one sold (it really is a pittance), but they're targeted, so they have to sell them. from what I've been told though, at least in the branch the person close to me works at, they don't lie, they just explain that it also covers accidental damage for a year. Me, I'd probably buy it because I frequently drop my phone, laptop, tablet and other electronics because I'm stupid, but for 99% of people, they don't need it.

I don't see the consumer issue though - "No thanks, I'm happy to just take the laptop on its own thanks," should suffice.

Commission at Harvey Norman

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