Office Depot Employees Blowing The Whistle On Outright Scams
from the reputation-is-a-scarce-good dept
For many years, there have been stories of various shady online electronics (especially camera) retailers (many of whom are based in the same neighborhood in Brooklyn). The main scam is to offer super cheap prices on cameras to get you "in the door" (either online or in person), and then focus on trying to sell you all sorts of massively over-priced add-ons and warranties. If you turn them down, they suddenly "discover" that the original product you ordered is out-of-stock. At times, over the years, various authorities have cracked down on such resellers, though they often pop right back up under a different name.Still, folks who know the business were well aware of such shady companies and often knew to avoid them... but it's a bit different to find out that some large brand name retailers appear to be doing the same. Laptop Magazine is reporting on a series of whistle-blowing employees at Office Depot, detailing how they pulled off similar scams. The typical "oh, that's out of stock" trick is apparently quite common, but it even gets more advanced, with some employees creating photoshopped price signs, in order to "hide" the price of an expensive warranty add-on in the "list price" for a computer. These practices are quite illegal, and it looks like the report might trigger some FTC interest, especially given the multiple reports, suggesting that this isn't just a few rogue employees.
It does make you wonder what Office Depot was thinking. The obvious answer is: "anything for a sale," but that doesn't tell the whole story. Sooner or later, companies that do this sort of thing are going to get caught -- and when that happens (beyond the fines), the damage to a company's reputation can be massive and debilitating. It just seems like the cost of being outed is so high, it's ridiculous that any company would encourage such behavior.
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Filed Under: pricing, scams, warranty
Companies: office depot
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Sounds like
And they've been getting away with it for years.....
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His Prices are INSANE!
Just so you know, "B&H Photo Video" is in Manhattan, not Brooklyn. (enter NY Bronx Accent): Got a problem with that? You think your a smarty? Well, think aboutit, wouldja. Oh yeah, that's also where the professionals shop.
B&H Photo Video. Tell 'em Mikey Sent 'cha
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>:( >:( >:(
It sounds so... damn... familiar!
I hope fraud is found.
I also hope class action lawsuits are filed.
If guilty, I hope OD's business forces them to close their doors.
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Re: >:( >:( >:(
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Ever notice how worst buy™ only carries a select brand of Linksys router that is about 8 years old, otherwise you have to pay like $150? Or how about a 4 port USB hub for $40 that you can buy online for $5.
Of course, even the online sites are only sometimes better. Bensbargains.net has deals sometimes but they sell out and people leave comments showing that some of the deals aren't deals.
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Best Buy is the Worst
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Re: Best Buy is the Worst
I was shopping A/V receivers there the other day, for example. They had one with the "regular price" of $900, but on-sale for "only" $650. $250 off! The only problem is, the MSRP for it is $700 and no retailer charges that. The $650 is the same price almost everyone else is charging for the same item. They just want you to FEEL like you got a good deal.
The cheapest HDMI cable they have is still $40 too. What a rip-off. Of course- they tried to sell me on $100+ Monster cables. Bah!
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Re: Lovesong for an Indian National
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Both of us being lawyers we should have sued their asses. But we're lazy lawyers and went to lunch instead. Has anyone here at the chili at Famous Dave's? It's fricken awesome!
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Prison
Remember folks, vote with your dollars!
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@Matt, I wish I could find an 8 year old Linksys router! The new ones (the round ugly ones) in all the stores around here are not compatible with DD-WRT.
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Re: Linksys Router
http://www.newegg.com/Product/ProductList.aspx?Submit=ENE&DEPA=0&Order=BESTMATCH &Description=wrt-54gl&x=0&y=0
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BB or OD
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FD or W
I'm going to Wendy's for my rat meat chili from now on. At least theirs tastes like tomato and despair, just how I like it....
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Office Depot as a company almost certainly does not specifically approve of these sorts of tied sales. It seems clear from the article that a certain number of "rogue employees" are playing games (including the one(s) making fake signs or changing PoS material to hide material facts).
Where the real issue lies is in the same place that got so many of the big banks and investment houses in trouble: Commissions. Misguided commission programs lead employees to do stupid things to meet the requirements of the commission. If the commission on the laptop is zero, but the commission on the extras is 25%, it will push employees to force the extra sales or not be interested in selling. It gets worse if there is a scarcity (example not enough laptops to meet demand). They can "afford" to be selective in who they sell to, because they need to sell those extras to make commission.
The same effect may also apply to managers or regional managers. If you commission them only on "not on sale equipmnent", then they will likely attempt to tie-sell standard price items with on sale items.
I suspect that Office Depot doesn't have a corporate policy to attempt to rip off customers, but their internal policies on compensation might be doing it for them anyway.
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Re:
That said, a company that uses commissions must have safeguards and audits in place to ensure that employees are not cheating the system. And when (not if) they find dishonest employees, they need to fire them and press charges where applicable as a deterrent to others. Hourly employees do dishonest things, too, though often of a different nature. It is not the commissions that are the problem, but dishonest people. You can't make them disappear, but a company has an obligation to ensure they aren't hurting the company or their customers and remove them from employment if they do.
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Re: Re:
Super high commissions on upsells just creates an adversarial sales atmosphere. It isn't good for the customer, it is probably not very comfortable for the salesman, and in the end, the company itself suffers.
I have walked out on retails more than once who have tried to pile crap on the sale, knowing that they are trying to make cash in their pockets with little concern for me. I would rather pay a slight bit more down the road at the place that doesn't have big sales commissions (1/4% on everything) but pays their employees well enough that they are happy to work and get the job done.
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Re:
Of course it isn't in the frackin' policy handbook, but that doesn't mean that it isn't encouraged. In fact, the apparent lack of preventative measures and QC on the sale is encouragement enough. EVERY business that operates on a commission basis should have checks in place to limit abuse. Even if you don't give two shits about your customers, you still care about employees milking extra paychecks.
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Re: Re:
In the eyes of Weird Harold and his ilk, corporations can do no wrong. Whether it's the CEO or the sales clerks, it's always the fault of someone other than the corporation.
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THEY NEVER LEARNED THEIR NURSERY RHYMES
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you seem to think it is so simple...
This can be good for the customer if kept in check. I cannot tell you the number of times I have seen someone go to buy a printer and consistantly push me off from helping them with the sale, only to find them coming back to the store 30 min later to buy a cable and ink, then for the next 6 months bitching to me about how much ink their photo printer uses in their office. Office printers are not the same as photo printers....
So while it can be good for some customers, obviously some people only want the advertised item. Well when an associate is faced with finding another job, or preventing you from buying a laptop, what would you do? Yes the job sucks but it does pay the bills. Instead of blaming the associate, how about blaming the upper management that puts pressure on the district and store managers to get those attachment rates?
Furthermore, you seem to think that box retailers make all sorts of money on these things. I can verify not. In my district we have the highest average margin on laptops. Care to guess what it is? 5%, 10%,15%? NO, we (on average) make -1% on every laptop we sell. So, if you really dont like the convienice of going to a brick and mortar retailer and want to purchase all your electronics from reviews from annonamous people over the interent instead of from people who literally test these machines constantly. Go right ahead. Mom and Pop are dead, but brick and mortar are getting weak too.
Now for those 'pesky' warranties. Sometimes they are simply not a good deal, and if I could spare asking for them on those circumstances believe me I would. It makes me feel like a fool to ask a customer to spend 1/2 the ticket price to buy a warranty. BUT unlike Best Buy, and Office Max, many OD warranties are cash back warranties. It breaks you get your money back. How much do you pay in health insurance? What is your return? Now, you buy a printer, costs $100 I can pretty much gurantee you that the rollers, or the ADF if it has one will start jamming in year 2, guess what? for $10 (10% up front) I could sell you a plan to get your original $100 back to buy anything in the store. Just relate that back to your health insurance.
It is absolutely absurd to think that all OD associates are crooks, and would you like to know the funny part? I'm classified as a 'cashier' not a tech sales. So next time someone is checking you out at the register, and you think I'm some kind of ignorant fool that doesnt know my ass from a printer, just think with 2 questions I know how quickly your printer will fail, and how much your going to pay through the nose on ink. :)
This has been long, and thank you for reading it. Hopefully this has let you see more into the eyes of retailers because it is quite obvious many of you have never done it. It is art, and it is hell. But it pays the bills.
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Re: you seem to think it is so simple...
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Probably not a corporate-level issue
More likely is that the management staff of individual stores had heard of the practices and thought they sounded like a good way to boost their store's numbers. Since the employees are not on commission, I think that management is about the only level likely to try this. OD corporate is definitely liable, but I doubt they endorsed this. In the end, I would guess they'll make a lawyer rich in a class-action suit, fire some management, and keep a sharper eye on store practices.
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what used to be a great site has turned into a pit of the worst scumbags.
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Bank Fee Scam
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Re: Bank Fee Scam
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Re: Bank Fee Scam
And by the way, on the warranties....educate yourself about a product, how it works, and who covers what. Quit showing up at the store at midnight six months later because you broke your product and you want your money back.
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Re: Re: Bank Fee Scam
As per Office Depot's requirements, you twit.
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Re: Bank Fee Scam
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Re: Re: Bank Fee Scam
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Channel 2 - Ofc Depot Warranty Scam
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Just because one does that, doesn't mean we all do
Let me tell everyone something, those of us who have to work with the public in retail...most of us deserve a MEDAL for the pyschological and social callings that are thrust upon us. Right now, it may be Office Depot's unfortunate spot in the bright lights of gossip rags, but let me ask one question. Who controls their supply chains by breaking arms from beginning to end???? LOL--it sure isn't Depot. Which companies would have the buying public only have one choice to shop at? Sorry, we're not big enough to pull that off. I just ask people to please look at the overall picture of the state of affairs before condemning everyone.
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Re: Just because one does that, doesn't mean we all do
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Re: Re: Just because one does that, doesn't mean we all do
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Suzanne
wealthyreader.com/articles/why-you-shouldnt-use-your-debit-card-for-hotel-reservations/
domainclump.com/pressrelease/why-you-should-never-own-a-debit-card/
And BTW, the it's not all of us argument is getting old and tired. I don't have the time or energy to wade through and determine which of you people are the good guys and which are the bad, so when a story comes out that SEVERAL PEOPLE IN SOME FORM OF MANAGEMENT are participating in this illegal activity, you all get written off in my book. It's why I don't bank at Chase. It's why I don't eat at Subway. And it's why I get my electronics from a couple of reputable online sources that I've had good experiences with. Fix your effing company and lay off the consumer, or the words lay off will become a much more personal directive when the company tanks.
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Re: Suzanne
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Re: Suzanne
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Re: Re: Suzanne
First, I indirectly feel your pain-- the horror stories my girlfriend tells me as Management in a retail store make me think that she, instead of a medal, should get to fire one bullet a month at a customer. Of course, I played it smart and chose to deal with robots all day instead of humans.
More to the topic, I think you're taking it too personally. No one thinks that *all* employees of *every* OD are corrupt, sneaky, preying asshats. However, because of the bad press (which another poster was right, you can't blame them-- blame the scammers) the general public can either do research on their local OD comparing prices and hunting down customer reviews, or they can just go elsewhere. Now, knowing your experience with customers, which do *you* think is more likely?
So, the end result is, and should be, that OD will suffer from this-- that's the danger of chain stores-- what one chain does will reflect on other, geographically unreleated chains. Personally, I feel that very few people will care in the long run, but if you feel so strongly against being lumped in with the bad press, then quit.
I'm actually quite impressed with your apparent passion for Office Depot-- especially after claiming to be a worker bee, but lashing out with angry words at people who say what you don't want to hear isn't the solution-- you should know that from the last time a customer tried to bring back something without a receipt.
Have a wicked decent day.
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Bait and switch schemes
My problems have always been Fry's Electronics; the "10 items only" type scams; that feature merchandise that has "been sold out" even if you are first in line on the designated day!
Over time, this (and lousy customer service) have driven me to Radio Shack or Best Buy, etc., even when I felt I would likely be better off at Fry's. It has also caused me to be quick on the trigger with returns - where another store might see me "take a bullet" on something I wish I hadn't bought, Fry's can expect to see me with a return!
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BTW, I have a friend who worked at some of the more popular NY/NJ electronic dealers and he'd always regale me with all of the bait and switch tactics. But there were too many products being "killed", because someone would come into his store with an ad from another store and the friend would insist that there was no way he'd get the product from the other store at that price. True, but customers were rarely convinced and once they traveled to the other place planning to buy, they'd rarely walk out without something. The friend's store finally figured that they'd make more money doing volume without upselling; they are now highly rated on resellerratings.com and are making money hand over fist.
BOTTOM LINE: An educated consumer should never have anything to fear.
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Laptop
Sarah
http://laptopseries.net
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Matching price scam
The retailer says if you find the product advertised somewhere else for less, you'll get you can get the difference in price back.
The scam: For many of the larger items (e.g. laptops), retailers get their own SKU available only at that retailer. It will be a model ever-so-slightly different from the model at a different retailer. So BB will have XYZ1234-74, while another retailer might have XYZ1234-75. One may have a modem, while another will not, or an extra LED, or an extra USB port.
They are truly different models (I give them credit for that), but they are specifically created to allow this kind of valueless guarantee. It's just one of many scams involving offering something as if it has great value, while knowing the it is (nearly) valueless.
The real problem: The corporations have brought us to a culture of greed, where lying, cheating, stealing are acceptable to get the glorius dollar. Same thing that's killing the financial system. We need to root this out, in all it's forms.
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Gamesmanship
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We Do it!
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Re: We Do it!
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Re: We Do it!
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Re: We Do It!
The employees who do scam customers should be fired, and when they are caught, probably do.
In actuality, the amount of employees who do scam customers is probably infinitely low. We don't make anything on commission outside of extended warranties, and tech services, and even then, it's such a low number that it almost doesn't even matter.
Hell, I don't even think that most of my old co-workers even knew enough about their job to do any of that kind of stuff.
Anyways, I think that the customers "scammed" us more than anything through general thievery, using fake credit cards, and returning items after one-time uses.
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managment is responsible
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Re:
It is unfortunate that employees feel this need to do whatever it takes to get a customer to buy a PPP or tech service option. I do not practice this however, I am aware of it happening at my store and surrounding stores. We had an assistant manager fired for doing this. I've been at OD for over 7 years now.
If you get a chance watch the following video on YOUTUBE. It starts out slow, but it gets very funny concerning this topic. (Especially around 4:45 on the video.
http://www.youtube.com/watch?v=DXwwy67kFSU
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Re: Re:
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The Mail In Rebate Scam
Then a check comes that has expired. Send back for reissue and it disappears. Nice scam. The big boys do this Tiger Direct, Office[Max or Depot], Best Buys etc.
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Wow your stores are messed up
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Wow your stores are messed up
I would like to comment on those people who bought laptops/printers and ended up getting upset because their products weren't returned.
It is YOUR responsibility as a consumer to keep a record of the purchases you make a retail store. Not the retailer's. Often times the retailers offer services such as receipt retrieval and such in order to cater to those customers that come upon freak accidents where they lose their receipts. That's all good and well and all of us retailers do it because we want your business and we understand that accidents happen. But it's not for idiots that toss their receipts haphazardly.
Moreover, while I think that our 14 day return policy can be a bit stringent, you are crazy if you think we are going to take any responsibility for a laptop that is a year old. If it conks out on you, it's the manufacturer you need to deal with, not us. As mentioned above, we make little to no margin on those high price items, and unless you buy our warranties, we really have no reason to take stake in your purchase. We all love our customers. But we're not a charity. The price you paid is for the item itself. We can't take hits like that because if we did, we'd be out of business. We understand your position as well, but unfortunately, we're not equipped to help you sometimes. That's just the way it is.
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od employee
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Staples
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Office Depot
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