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To: Calvin Locke

I worked for Radio Shack over a summer about 15 years ago. I learned a lot.

1) Most of their profits were, at the time, from "add-on" sales (Would you like batteries with that?)

2) RS pushed their credit cards (RSVP card) so that they don't have to pay the fees from Master Card, VISA, etc. My manager told us to strongly suggest another card than American Express (they charged the store 4% instead of 1.95% like everyone else). RS also had a quota that X% (I want to say 4%) of your sales had to be from RS credit cards.

Don't know if I ever sold any RSVPs. I thought that people should be able to use the cards of their choice, so why push one of ours on them?

3) RS pushed their extended warranties by a carrot and stick approach. As an employee I was given an additional 10% bonus on every TSP (service plan) that I sold, so I would make 16.75% on each one! I also had to get X% (I think 2% in this case) of my sales from TSPs. There was talk about taking the bonus away from these.

The TSPs were a joke on everything but the computers. For example on a $39.99 phone, you could buy a TSP that extended your warranty from 90 days to 3 yrs and would give you walk-up replacement with no questions (at least at my store) for $29.99! On a $1500.00 computer they would be $299.00 for the same coverage, which was still pretty stiff.

I never could sell a TSP because I thought (and still do) that they were ripoffs and I couldn't honestly recommend them.

4) RS paid their employees on strict commission each week. I made 6.75% comission on all of my sales for the week, or minimum wage for my time there, whichever was higher. So next time you go in to get batteries and the salesperson tries to sell you a TV you know why.

5) The "training" that you got in order to get "certified" for a certain type of product consisted of learning material and taking a test. The materials for computer certification were written for ignorant 19-year olds off of the street and were a joke. Didn't work there long enough to look at the other certifications.

6) We had to take phone number stuff back then too. Supposedly was to aid with returns, but was actually to fill out the mailing list.

It was a hard thing to work for RS. I was consistently ranked between 15th and 19th in sales for the Northwestern Houston area for the three months I was there but had I not lived at home, I would not have been able to support myself. I would like to hope that things are better, but I doubt it.


133 posted on 02/17/2006 2:10:36 PM PST by Warhammer (Appeasing terrorists is like throwing steaks at a tiger hoping he becomes a vegetarian.)
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To: Warhammer
It was a hard thing to work for RS. I was consistently ranked between 15th and 19th in sales for the Northwestern Houston area for the three months I was there but had I not lived at home, I would not have been able to support myself. I would like to hope that things are better, but I doubt it.

I worked there for six months two years ago, and it was exactly as you described it. Honestly, I'm surprised that Radio Shack is still in business at this point.

169 posted on 02/17/2006 4:34:20 PM PST by Hawkeye's Girl
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