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  • wtb41 wtb41 Mar 26, 2012 7:59 AM Flag

    Can't Even Go In Anymore

    Those unwanted pitches may be the result of the commission system that RSH uses to compensate its salesmen. I suggested on this board several months ago that RSH scrap the commission system in favor of a straight salary, thereby replacing competition among salespersons with cooperation. It also results in a customer focus instead of a salesman focus.

    A commission system forces salespersons to try and pressure customers into buying things the customer may not want. No such pressure to sell exists with a straight salary. I gave an example of a Houston company (Gallery Furniture) that has done VERY well after switching its salesmen from a commission-based compensation scheme to a straight salary. If I were RSH’s CEO, that switch is one of the first things I would do to improve the company.

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    • I wouldn't know if RSH has changed the sales policy because I can't bring myself to go in, lest I be assaulted by pressure pitches. I think the Home Depot model is correct, where the floor personnel are there to help you find solutions not pressure you to buy things you don't need.

      In any case, the high pressure tactics haven't worked, and have likely had the opposite effect from what was intended.

      • 1 Reply to sonomaca
      • I agree with you re their effectiveness and their adverse effect.

        I recently called 2 local RS stores. Both of them began the call by giving me the exact same sales pitch. The second store's employee spoke so fast that I could not understand everything he said. I just hung up. Why doesn't management realize that a greeting such as the following is far better than a sales pitch as a greeting:

        "Radio Shack. Good morning. May I help you?"

        And the RS employee should speak clearly so that the caller can hear and understand him!!

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