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[Y] Office Depot accused of deceiving customers

2790 Views 54 Replies 33 Participants Last post by  dAnk poWered
http://tech.yahoo.com/news/pcworld/2...ivingcustomers

Quote:


- Another big box electronics store is facing accusations of lying to customers to try to reel in business. Office Depot "encouraged" its associates to deceive potential purchasers about pricing, an investigation by Laptop Magazine asserts.

This isn't the first instance of a brick-and-mortar chain coming under fire for questionable tactics. With CompUSA's partial closure and Circuit City's recent demise, it begs the question: Why don't these places start shaping up before they all earn headstones in the electronics graveyard?

Office Depot Allegations

The latest allegations, sourced to several current and former Office Depot employees, claim the company has widely told its workers to do things such as adding optional service plans onto clearance items without telling customers. One source says associates would accomplish this by altering pricetags in Photoshop to make the base price look a hundred dollars higher, thereby giving the store the credit for selling the add-on without the customer even knowing.

"My boss says, 'You have to do whatever it takes to get this price in it,'" an employee identified as Alex tells Laptop. "I go to Photoshop, do it -- he comes in and says, 'That's beautiful. I love it. Do it to all the other ones.'"

Even without the Photoshop trick, the associate claims it has been a common practice to increase "clearance item" prices so that extended warranties are quietly included in the costs. Laptop's investigation suggests the practice has extended across at least five states.

If it's all true, this is pretty disheartening -- but it shouldn't necessarily come as a total surprise.

1 - 20 of 55 Posts
Most of the time this is the customers fault for not doing any research and letting employees deceive them, but having pricetags adjusted... tsk tsk...
All I've ever bought there are college-ruled notebooks. oh lawd did I get ripped off?

Anyone who shops there deserves to be ripped off.

Snap its late, and I am feeling Darwiny
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Quote:


Originally Posted by Marin
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Most of the time this is the customers fault for not doing any research and letting employees deceive them, but having pricetags adjusted... tsk tsk...

The product is worth whatever the customer is willing to pay. In this case I would have to agree with Marin. The retailer sets the price just like auto dealerships set the car prices. Clearly some dealerships have the same product for less and have varied warranties included or excluded in the advertised prices.

Customer ignorance is great for business... always has been.
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True, it may be deceiving, but if you go out and spend that much money on something without doing any prior research - I mean... you kind of deserve it.
So customers are paying what's on the sticker?

And they get an extra warranty with that?

And this is a problem... why?
I agree with Moots, and raise a "who cares?" to the thread!
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Originally Posted by Mootsfox View Post
So customers are paying what's on the sticker?

And they get an extra warranty with that?

And this is a problem... why?
Not everyone wants to pay extra for a warranty. And certainly not done without them knowing.
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Quote:

Originally Posted by Diabolical999 View Post
Not everyone wants to pay extra for a warranty.
It's almost a bonus as included with the sticker price. It's not as if they have $399.99 for a dvd-r/w drive as the "clearance" sticker and automatically charge $449.99 because of the warranty. At least the customer is already paying what they expect to pay.

While this practice with the photoshopping is quite dishonest, unless its only the individual employees who are profiting/pocketing the money and not the company, I would say that it's not a legal matter.
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Quote:

Originally Posted by Diabolical999 View Post
Not everyone wants to pay extra for a warranty. And certainly not done without them knowing.
Well, that's the thing. If they are paying the exact price that is on the sticker... where is the harm? Sure, if a marked $100 item rings up $125 at the end, something is up. But if the employees are just changing the sticker price (say to $100 from $75) and taking that difference as a warranty, where is the harm? The customer gets a warranty and pays the price of the sticker.

This sounds like the stores were going against each other, the store (and GM of thus store) gets bonuses for selling the most service plans. This is a somewhat shady way of doing it.

I may be reading the article wrong, but if not, then there is NO problem here. The price altering is "intrastore" it doesn't effect the customers at the POS.
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sadly, as a recent office depot employee (got a legit job now
) the money does infact go to the employee in terms of commission and extra spiffs for selling add-on merchandise, and many of those employees as found by other articles will lie about stock if your not willing to buy any of the extra add-ons so if you do shop there for a computer i would suggest to check the bottom right side of the tag and type the 6 digit sku number so you dont get ripped off
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How is this NOT a problem? What if I wanted to buy an item and had no intention to buy any kind of extended warranty coverage when I walked into the store? I generally turn down such coverage after having a bad experience at my local Best Buy and would actually be upset had I found they jacked the price to include an optional warranty without my consent.

In the world of big box, those warranties are like gold in terms of profitability and that's why every time you buy anything more than a pack of DVD-R's, you'll find they really, REALLY want you to get said warranty. Margin on an iPod? Literally pennies. Margin on a dock and a nice case? Pretty good. Margin on that super platinum premium service plan? Huge!

I see this as they couldn't squeeze enough profit out of their items so they bolted on their warranty, jacked the price, and let the money roll in. Not very ethical IMO.
That's the sad thing about all retail chains nowadays. Retail stores do not make the bulk of their money from sales of items but from extended warranties and services. They want to get their "numbers" up to make it look good to their regional managers, show them that they are doing good therefore they're bonus checks are bigger.

When I used to work at Best Buy's PC dept. back in the days my supervisor instructs the employees to coerce those stupid extended warranties down customers throat through the use of fear tactics. If a customer were buy a laptop for example, I was instructed to tell the customer that the battery goes out in 6 months, and the screen on laptops are very fragile and would malfunction easily. If they did not get a extended warranty they would have to pay hundreds of dollars to get it replaced or fixed, if they got a extended warranty everything would be replaced for free and those warranties on laptops aren't cheap, they cost anywhere from $150-$300. When in fact if anything were to happen it would happen within the first week of use and would be covered by the manufacturer's warranty.

What Office Depot did was even more extreme, they added the warranty on top of the original price and makes a sticker showing that's how much the item cost without the customer knowing that they're paying for the warranty as well.
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Not sure how someone would think this isn't wrong. They are deceiving the customer to rip off Office Depot since they are paying the employee more then if that was the actual sticker price.
It is the manager who is deceiving Office Depot using the customer's money, as it looks to me.
Quote:


Originally Posted by Mootsfox
View Post

So customers are paying what's on the sticker?

And they get an extra warranty with that?

And this is a problem... why?

I agree with most people in that you should do research before buying anything over a certain price to make sure you're not getting ripped off.

Normally adding a warranty to the price wouldn't be a problem except the fact that this was not even authorized by the store itself.

Local chain stores aren't supposed to change prices at whim, they have to adhere to the prices set by the "headquarters".

Doing this in a deceptive way also makes it wrong. Adding to the price without telling customers why, for your own personal gain is more akin to a shady used car lot...not a big retail store.

This is another reason why I have stopped going to these stores all together.
I hate people trying to tell me what I need, and trying to shove products down my throat.
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Some places offer better warranty than others. It's kind of like some HD manufactures give us 5 years instead of 3. If the price is the same as listed then it's a bonus and we are not paying for it. If you find it cheaper somewhere else without the warranty then I would go there and get it.

Personally I would use this as a selling point. Not only is my item cheaper than my competitors but it also comes with extended warranty plan as well.
Quote:

Originally Posted by Mootsfox View Post
Well, that's the thing. If they are paying the exact price that is on the sticker... where is the harm? Sure, if a marked $100 item rings up $125 at the end, something is up. But if the employees are just changing the sticker price (say to $100 from $75) and taking that difference as a warranty, where is the harm? The customer gets a warranty and pays the price of the sticker.

This sounds like the stores were going against each other, the store (and GM of thus store) gets bonuses for selling the most service plans. This is a somewhat shady way of doing it.

I may be reading the article wrong, but if not, then there is NO problem here. The price altering is "intrastore" it doesn't effect the customers at the POS.
i agree
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What's wrong with this? I agree that it is shady, but if you agree to what you are buying and are happy with the price, what's the problem? This is the same as stores inflating the MSRP before a sale. it is up to the consumer to educate themselves prior to buying. This is like getting mad at BB becasue newegg sell it cheaper. At least with this scenario, the customer is getting something extra for their money and it is not simply infleated for profit.

edit: I feel this is just another case of the media perpetuating the corporate blame game. Nobody wants to take responsibilty for their actions. it is much easier to go after the store instead of expecting the consumer to do their own research.
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Originally Posted by thunder12 View Post
i agree
Until you get ripped off in the same way.

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Originally Posted by dralb View Post
What's wrong with this? I agree that it is shady, but if you agree to what you are buying and are happy with the price, what's the problem? This is the same as stores inflating the MSRP before a sale. it is up to the consumer to educate themselves prior to buying.
Re-read the OP again. Office Depot is sneaking in the service plans without customer knowledge. That means, if the product malfunctioned a year later, the customer wouldn't even know they could go back and get a replacement or repair at no cost, because they didn't even know they bought a service plan in the first place.

Quote:

Originally Posted by dralb View Post
This is like getting mad at BB becasue newegg sell it cheaper. At least with this scenario, the customer is getting something extra for their money and it is not simply infleated for profit.
BB and Newegg doesn't slip in a service plan without your knowledge. At least not yet.
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