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Posted on September 1st, 2008 by Mike Jennings

PC World reveals its retail secrets

The leaflet in its entiriry

I had the pleasure of popping into PC World on Saturday and, once there, I was handed a leaflet detailing some of the store’s current special offers. I didn’t think anything of it – I even shoved it in my pocket as I went to buy some BD-R discs – but I was in for a surprise when I had a look at the brochure after a couple of minutes.

That’s because it wasn’t actually a leaflet at all. The hapless employee had handed me an internal memo that described the ‘Weekend Top Deals’, how they’d been promoted in a variety of national media, how they’re being advertised in-store and, most intriguingly, the reasons why the chain of shops – one of the UK’s biggest, actually – is putting its marketing money behind these particular products.

They\'ve got too much stock.

Take the Sharp 46X20E 46″ digital LCD TV, for instance. Wander into the store and you may be led to believe that it’s a superb product and that it’ll provide many hours of viewing pleasure for your family.

A closer look, though, reveals that there must be a surplus in a very large warehouse somewhere. “This stock must go!” demands the brochure, following on to specify that the salespeople must “sell through all boxed stock, and your display model.” I just hope that they tell the unlucky bloke who’s bought an ex-display TV that it’s been prodded and poked by dozens of prospective buyers and offer him a suitable discount.

Even more revealing is the tale of the HP TouchSmart IQ500 – a product that’s currently sitting in the Labs and is making quite an impression at PC Pro thanks to an intuitive touchscreen interface and some stylish design. Is that why it’s on sale for such a good price?

Who knew that such a great product made so much money, too?

Not entirely, according to the leaflet. It’s available for a price that, apparently, “makes great margin!”, ensuring a healthy profit on every unit sold. I’m sure that every store emphasises its most profitable products, but it’s not often that we’re given evidence of such blatant profiteering, even if it is by accident.

The worst thing, though? It’s the fact that this particular national chain spells ‘back to school’ as ‘bak2skl’. Oh dear.

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Posted in: Rant

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15 Responses to “ PC World reveals its retail secrets ”

  1. Synaptic_Fire1 Says:
    September 1st, 2008 at 4:49 pm

    This is normal in all PC World stores. Any salesperson not concentrating on the high margin items is an idiot. The sales persons commission is now, and has been for a number of years, based on the margin the personally make. The Chavy text speak is simply inexcusable.

     
  2. jon Says:
    September 1st, 2008 at 8:36 pm

    “Blatant profiteering?”

    What do you expect, that they would concentrate on the products with low margin? They’re a business, dude, they’re there to make money and nothing more.

     
  3. Simone Says:
    September 1st, 2008 at 9:55 pm

    Oh my god !! What is happening ?
    You write “ProBlog” and you shop in PC World?
    When did DixonsGroup ever sell anything
    worthwhile buying??
    If even people the likes of you are shopping there,
    what chance do we have of ridding ourselves of
    this kind of budget/factory reject/rubbish sales outlet??
    Si

     
  4. Neil Says:
    September 1st, 2008 at 10:55 pm

    You might want to blank out the names of the other retailers in all the columns, like you did for the last one. Wouldn’t want anyone getting into trouble…

     
  5. Mike Jennings Says:
    September 2nd, 2008 at 8:39 am

    Thanks for the comment, Simone. Unfortunately, I went into several shops looking for BD-R discs and couldn’t find them anywhere. I needed them right there and then, so PC World was my only hope!

     
  6. David King Says:
    September 3rd, 2008 at 12:54 am

    How completely incompetent of the PC World staff member who gave you the wrong leaflet, if the PC World bosses read your blog I bet they give him the sack! At least we have in insight into their inner workings, although I am not impressed by their overall approach, and have always thought that most products in PC World are overpriced. Now I know they are.

     
  7. Joehn Says:
    September 4th, 2008 at 7:53 am

    So that’s why they want affiliates to sell the IQ500! Still, I can’t see anything particularly damning here except their embarrassing slip up. Can you go back and get the sales figures – perhaps ask for a “sales brochure”?

     
  8. Andrew Says:
    September 4th, 2008 at 8:13 am

    Of course, it could also be crafty viral marketing….: “Ok, when you see that Mike Jennings, slip him this leaflet and he’ll blog about it on PCPro. We gotta shift this stuff somehow….”

     
  9. Phil S Says:
    September 4th, 2008 at 8:49 am

    “Blatant profiteering” is a gross exaggeration. A company abusing a monopoly (which PC World most certainly doesn’t have) would be guilty of that charge. Making a healthy margin on a new product is what subsidises the smaller profit (and often losses) on older stock. Why do they have stock? So that customers can go in and prod, touch, feel, experience the product at first hand – after which they will often walk out of the store and buy it online for less money.

    Personally, I wouldn’t run a retail business for all the tea in the Co-op, and if you think there’s money to be made, try it sometime. Oh, and you might ask DSG International’s (the parent company) shareholders about “profiteering,” too. They have seen the value of their shares drop from 154p to a third of that in one year, with a 52-week low of just 34.75p.

    You may dislike these vast retail sheds, but the cause isn’t furthered by inaccurate and snide remarks in response to a human error. I see nothing whatsoever reprehensible in circulating sales staff with bumph that encourages them to be enthusiastic and keen while at the same time helping to save their own jobs. You live in a capitalist country – that’s how it works, dear chap.

     
  10. Big Bad John Says:
    September 4th, 2008 at 10:13 am

    What?
    You’re shocked because a retailer asks its employees to do their job (sell) in a way that maximises its profits?
    Whatever next?
    SHOCK! HORROR! EXCLUSIVE! Secret Memo reveals PC Pro asks its contributors to write interesting articles…. that’s bound to maximise readership, subscriptions, and advertising revenue. Blatant profiteering at its worst.

     
  11. Nick Says:
    September 4th, 2008 at 9:38 pm

    This reminds me of a recent TV program (Dispatches I think) that I saw on mobile phone stores. It was ranting on about how sales staff are pressured to bump people onto contracts rather than PAYG and to sell particular phones by putting much higher commission on them etc etc etc… Their main point was that ‘poor innocent victims’ were being upsold to products they didn’t need. Personally I think anybody who just walks into a national retailer, asks which product is best and then accepts the given price (and then buys the 5 year extended warranty that probably costs as much as the product did in the first place) deserves everything they get. I wasn’t surprised by that program and I’m not surprised here, although it’s always interesting to see some of the details.

     
  12. Carbon Fibre Says:
    September 11th, 2008 at 9:13 am

    It’s business. It’s about profit and nothing else. Are you really that shocked?

    You may not like the style and it was a silly error they made issuing that document, but can you blame them for wanting to make money?

    Beautiful irony that they have an ad at the bottom of this page too ;)

     
  13. John Wilkinson Says:
    September 14th, 2008 at 7:36 pm

    John says

    My own experience is that the shopfloor staff exhibit only superficial knowledge of the products on offer and lack real insight into current developments in information technology. I have found that they have attempted to tempt me with products that have unattractive features – whether components that are disappearing as later versions have been launched or the lack of features that have become commonplace. I understand now from your article that they must be sourcing these products at a considerable discount which is not passed on to the customer but retained to enhance the profitability of the store.

    The ratings given in your tests must influence many people in their purchase decisions and cause the accummulation of surplus stocks of poorly rated items. I wonder where these items that receive poor ratings in your tests end up?

     
  14. Wo kann ich filme downloaden? - Yahoo! Clever Says:
    October 13th, 2008 at 2:14 pm

    gleich musik und filme downloaden…

    Kennt jmd. ein website wo ich die Fernsehserie wie “Stargate” downloaden kann?…

     
  15. http://www.stockpicktime.info/microsoft-ever-a-penny-stock.html Says:
    October 22nd, 2008 at 6:25 pm

    http://www.stockpicktime.info/microsoft-ever-a-penny-stock.html...

    stock market vocabulary…

     

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