Circuitcity hiring cheaper labor.

[Smokey]

Circuit City Stores Inc., the second-largest U.S. electronics retailer after Best Buy Co., fired 3,400 of its highest-paid hourly workers and will hire replacements willing to work for less.

Analysts and economists said the move is an uncertain experiment that could backfire for the chain. ``Firing 3,400 of arguably the most successful sales people in the company could prove terrible for morale,'' Colin McGranahan, an analyst with Sanford Bernstein & Co., wrote in a note today.

Circuit City pays about $10 to $11 an hour, on average, said Rick Weinhart, an analyst with BMO Capital Markets Corp. in New York. Entry level pay probably is close to $8 for inexperienced workers, he said.

Circuit City, along with Best Buy, was forced to slash TV prices during the 2006 holiday season after Wal-Mart Stores, Home Depot and CostCo Wholesale Corp. began selling flat panels for less. Its stock has fallen 21 percent over the past 12 months as profit from selling flat-panel televisions plummeted.

http://www.bloomberg.com/apps/news?p...YHhgc&refer=us

[Dusty Chalk]

Analysts and economists said the move is an uncertain experiment that could backfire for the chain. ``Firing 3,400 of arguably the most successful sales people in the company could prove terrible for morale,'' ...

Agreed. If they fire just their top-paid 3400, then yeah, it's stupid. They should make a concerted effort to fire their top-overpaid 3400 -- I.E. pay/sales ratio.

[PeruvianSkies]

anyone get my clever Cars in-joke for the title and it's relevance to CC commercials? Ok, hope that didn't go over everyones heads.

It usually costs about 8-10 times more money to hire and train new people than to keep current people. They think that they are saving money, but "who's gonna drive them home"? You Might Think that cutting those people will save money, but in the longterm effect it will prove fatal for that company. My Best Friends girl used to work there and made very good money through college, but she eventually quit due to what she called "politics". I guess CC is All Mixed Up. I suppose CC is simply trying to Shake It Up a bit and maybe even try to scare some of the remaining employees with this move. This is one of those situations where you don't even want to stay around with the company because even when you get promoted you never know when you days are up. It becomes difficult to Let the Good Times Roll. I noticed that the CC near me renovated recently and added about 3 times more TV's and eliminated about 1/3 of their home audio stuff, I guess they are not Moving In Stereo as much these days. Oh well, another B&M store shot to crap...sometimes you just have to Touch and Go.

I am declaring myself anti-CC from this day forth and shall never shop there.

[ericl]

grrrrrrrrrrrrrrrreat

as if the sales people weren't pimply faced and ignorant enough.. now they're firing all the successful ones?? what kind of a strategy is that? how much are they really going to save here?

[ericl]

http://www.theonion.com/content/vide...the_human_cost

ps
cute title peruvianskies

[Feanor]

Circuit City Stores Inc., the second-largest U.S. electronics retailer after Best Buy Co., fired 3,400 of its highest-paid hourly workers and will hire replacements willing to work for less.
...
Circuit City pays about $10 to $11 an hour, on average, said Rick Weinhart, an analyst with BMO Capital Markets Corp. in New York. Entry level pay probably is close to $8 for inexperienced workers, he said.

Circuit City, along with Best Buy, was forced to slash TV prices during the 2006 holiday season after Wal-Mart Stores, Home Depot and CostCo Wholesale Corp. began selling flat panels for less.
...

I guess they figure if Walmart, etc., can sell that stuff paying their staff what they do, than cheaper staff should work fine at CC. Are they right? People do their research online and don't really trust the knowledge of staff at CC or Best Buy or the like, anyway. So why not reduce wages to the shelf-stocker level and be done with it?

Unfortunately it's part of the bigger picture of the down-grading of the American workforce in general. It's part of what Lou Dobbs calls "The War on the Middle Class". Inevidably the preeminence of the U.S. as a world power will go down the pipes along with the living standard of its typical working citizen.

[PeruvianSkies]

http://www.theonion.com/content/vide...the_human_cost

ps
cute title peruvianskies

I try.

[nightflier]

I am declaring myself anti-CC from this day forth and shall never shop there.

I'll second that. I don't think BB is making money hand-over-fist either, especially on TVs, but I think what is helping them somewhat through this period is the Magnolia stores. Being able to compare the BB stuff almost right next to the Magnolia stuff really does make a difference.

I agree about this decision being tied to the War on the Middle Class. But what is also depressing to me is the end of the B&M store model everywhere. Sure I can find a lot of stuff online, but there is value in being able to see and use the physical items one buys. I also noticed that Tweeter is following the very same path that has ruined CC. It seems like all the roadside mini-malls are filled with stores that only sell services, perishables, or food. All the stores that sell tangible, durable goods are going away.

Considering how much Polk Audio depends on CC, I wonder what their take is on this decision?

[braxus]

Sure why not fire people that will sell the most and have the most knowledge on their products giving the best service. Stupid move. And its not like Circuit City doesn't make dollars for the company. Its a typical move to rake in better profits while not sharing it with the people that make the company money. Its just making the rich richer and the poor poorer. And now we're forced to buy this disposable cr@p that isn't even worth buying these days and wont last more then a couple years without breaking down.

[eisforelectronic]

This isn't the first time CC has done this. I had several friends layed off a few years ago. At that time they got rid of their top 10% of sales people and then switched to hourly from commission. All my friends went and found jobs that same day, mostly at Sprint and Verizon, but it still kind of sucked. Most of them were making 40k-50k+. I guess they do better now though.

[Smokey]

May be they should reinvent themselves like Target stores did against Walmart and Kmart. Push the higher-end lines of what consumer electronic lines BB or Walmart carry.

It will probably cost them in the short run due to cut in labor and merchandise, but in the long run they might find a place for themselves in the retailer market. The way they are going now by cutting out most experience salespersons will be the reverse of that. It will help them in short run, but will cost them in the long run.

[PeruvianSkies]

May be they should reinvent themselves like Target stores did against Walmart and Kmart. Push the higher-end lines of what consumer electronic lines BB or Walmart carry.

It will probably cost them in the short run due to cut in labor and merchandise, but in the long run they might find a place for themselves in the retailer market. The way they are going now by cutting out most experience salespersons will be the reverse of that. It will help them in short run, but will cost them in the long run.

That the people making those decisions are not concerned about the long-term benefits...they just want to make quick money and get out.

[Smokey]

That the people making those decisions are not concerned about the long-term benefits...they just want to make quick money and get out.

Their wish of "getting out" might come sooner than later the way they are going. BestBuy is slowing pulling the rug out under them becuase CC can not compete with BB in price and selections.

Recently went shopping for a computer monitor in BB, CC, CompUSA and Walmart stores, and BB prices were about $25 cheaper than its rivals. So BB got my business.

[E-Stat]

as if the sales people weren't pimply faced and ignorant enough..

So what will be the difference? The "experienced" audio consultants I've encountered were all clueless.

rw

[ericl]

So what will be the difference? The "experienced" audio consultants I've encountered were all clueless.

rw

exactly.. if those were the good ones.. do you really want to know how bad the bad ones can be?

[E-Stat]

exactly.. if those were the good ones.. do you really want to know how bad the bad ones can be?

Is that a trick question?

Given that the *good* ones I've encountered would show speakers by cranking the bejesus out of a pair with a "U" shaped EQ curve applied, I'm not sure how much worse than useless you can get. I bought some Polks from CC long ago, but I was largely choosing in the dark.

rw

[imported101]

grrrrrrrrrrrrrrrreat

as if the sales people weren't pimply faced and ignorant enough.. now they're firing all the successful ones?? what kind of a strategy is that? how much are they really going to save here?

Hey eric, hmmmm well seeing as you think employees of cc and bb are just pimply faced and ignorant...why do you go into their stores? Why do you shop there >? I mean with as many online retailers as there is today and all the info a couple of you have quoted about reading to know more then the sales people....why are you not shopping online? O wait I get it your one of those ignorant old men who think cause they researched something online they know more then those "pimply faced, ignorant sales people" . Its your type of people that has made the sales force that way. You think you know more then the people selling the product funny, over half those "pimply faced kids" have better sounds systems and tvs then you will in your home....so my guess is ya they know a whole lot more then a ignorant online researcher. You might as well say you believe everything the news paper and government tells you to.....cause at least that way you d be that more up front about how retarded you look and sound to people who know what their talking about. Cause those "pimply faced sales people" hmmm talk to the companies of the products they sell, they actually see the and learn all the specs from those companies who come into town to hold basically classroom sessions on their products. Oh ya and wait about 90 percent of them are college educated, and have a interested out side of work in the products they sell, its just they come across as ignorant to customers like you who act like a**holes to them and treat them like dirt, and talk down to them. Lastly for the moron that said you shouldnt buy these products like flat panels that dont last a year...well do your f******research you fool, the reason those products suck is cause your to cheap to spent more money on the top line. O wait and that the american public only wants the cheapest price, so you really think the cost of making those tvs went down???? well no they didnt, not if they are keeping the same quality products in the tvs......with cheaper prices that you want means cheaper quality products hello....any one there?????? Business 101 try taking the course its held at any local high school and community college.

[PeruvianSkies]

hello....any one there?????? Business 101 try taking the course its held at any local high school and community college.

Is that business 101 class down the hall from grammar 101 and spelling 102? Do they teach the difference between YOU'RE, YOUR, and YOU ARE?

...don't worry ericl ...I got your back.

[daviethek]

grrrrrrrrrrrrrrrreat

as if the sales people weren't pimply faced and ignorant enough.. now they're firing all the successful ones?? what kind of a strategy is that? how much are they really going to save here?

Hey eric, hmmmm well seeing as you think employees of cc and bb are just pimply faced and ignorant...why do you go into their stores? Why do you shop there >? I mean with as many online retailers as there is today and all the info a couple of you have quoted about reading to know more then the sales people....why are you not shopping online? O wait I get it your one of those ignorant old men who think cause they researched something online they know more then those "pimply faced, ignorant sales people" . Its your type of people that has made the sales force that way. You think you know more then the people selling the product funny, over half those "pimply faced kids" have better sounds systems and tvs then you will in your home....so my guess is ya they know a whole lot more then a ignorant online researcher. You might as well say you believe everything the news paper and government tells you to.....cause at least that way you d be that more up front about how retarded you look and sound to people who know what their talking about. Cause those "pimply faced sales people" hmmm talk to the companies of the products they sell, they actually see the and learn all the specs from those companies who come into town to hold basically classroom sessions on their products. Oh ya and wait about 90 percent of them are college educated, and have a interested out side of work in the products they sell, its just they come across as ignorant to customers like you who act like a**holes to them and treat them like dirt, and talk down to them. Lastly for the moron that said you shouldnt buy these products like flat panels that dont last a year...well do your f******research you fool, the reason those products suck is cause your to cheap to spent more money on the top line. O wait and that the american public only wants the cheapest price, so you really think the cost of making those tvs went down???? well no they didnt, not if they are keeping the same quality products in the tvs......with cheaper prices that you want means cheaper quality products hello....any one there?????? Business 101 try taking the course its held at any local high school and community college.

so what are you saying?

[imported101]

Peruvianskies, yep i mis spelled whoops. Still not as ignorant as half the people posting on this board. But hey glad you have erics back....what is your job exactly?

Daviethek-
all im saying is that people like to get on these forums and claim they know stuff and talk trash to others about employees of certain companies and generalize there comments to include all employees when of course they had one bad experience or two with one or two different associates, regardless thats less then hmmm 1% of the employees. Not aiming anything at you just sick and tired of people like peruvianskies and eric who think they are know it all s, funny i mis spelled some stuff and the only thing commented on was that....lol. I knew while writing thats what they would focus on. Personally I dont care about grammar, I care about intelligents which is measured in many different forms, maybe my grammar is not correct, but ofcourse one again I didnt major in english and dont give a S**** about it. I m tired of listening to half a** arguments which are one sided oh and viewed only by one side because they people are to stupid to look at all angles....

[PeruvianSkies]

Peruvianskies, yep i mis spelled whoops. Still not as ignorant as half the people posting on this board. But hey glad you have erics back....what is your job exactly?

Daviethek-
all im saying is that people like to get on these forums and claim they know stuff and talk trash to others about employees of certain companies and generalize there comments to include all employees when of course they had one bad experience or two with one or two different associates, regardless thats less then hmmm 1% of the employees. Not aiming anything at you just sick and tired of people like peruvianskies and eric who think they are know it all s, funny i mis spelled some stuff and the only thing commented on was that....lol. I knew while writing thats what they would focus on. Personally I dont care about grammar, I care about intelligents which is measured in many different forms, maybe my grammar is not correct, but ofcourse one again I didnt major in english and dont give a S**** about it. I m tired of listening to half a** arguments which are one sided oh and viewed only by one side because they people are to stupid to look at all angles....

Don't you think that you might make your point more clearly if you knew A. how to spell the words that you are using them and B. use them in grammatically corrrect form? Talk about ignorance...the only thing that you seem to be good at is throwing out obscenities or making obscene comments. The majority of us here feel that what CC is doing is wrong and that is our opinion. You apparently feel different...maybe you are one of the pimply faced kids? You state that you are sick of people like myself who 'think' that we are funny....interesting since you hardly know me and have only posted how many times on this site? If you KNEW that we would be commenting on your spelling and grammatical errors than that means you did them on purpose, which means ....guess what....

IGNORANCE - ignorance is a lack of knowledge, or a willful lack of desire to improve the efficiency, merit, effectiveness or usefulness of one's actions. Ignorance is also a "state of being ignorant" or unaware (not knowing).

By the way everyone....just so you call know...I have a new quote: "Intelligents is measured in many different forms"

[E-Stat]

well seeing as you think employees of cc and bb are just pimply faced and ignorant...why do you go into their stores?

FWIW, I worked in a hi-fi shop while in college back in the 70s. For quite a few reasons, the environment today is so different from what it was back then. For some good - and some bad reasons, purchasing any number of products over the internet has changed the landscape.

For better or for worse, a company is judged today by a single contact or experience. If that is not a positive experience, then the company has not only lost that potential sale - but all that might follow. My two experiences over a five year period, isolated as they might be, have not been good. I'd really rather not explain clipping to a salesman.

rw

[imported101]

FWIW, I worked in a hi-fi shop while in college back in the 70s. For quite a few reasons, the environment today is so different from what it was back then. For some good - and some bad reasons, purchasing any number of products over the internet has changed the landscape.

For better or for worse, a company is judged today by a single contact or experience. If that is not a positive experience, then the company has not only lost that potential sale - but all that might follow. My two experiences over a five year period, isolated as they might be, have not been good. I'd really rather not explain clipping to a salesman.

rw

E stat- I agree with your comment now. How you just stated it I agree. Your right they are judged off of one single experience. Yes there are a lot of ignorant people out there. There are a lot of sales people who dont take care of the customers like they should. But back then there was commission style sales. Today your getting kids who are payed 8-11 dollars a hours. They go to school to. A lot of those same kids or young adults have a interest in what they sell. And do hear people call them pimply faced ......is just so stupid it made me laugh. I mean what does that say about you when your ripping on kids????? ( not directed at Estat)
Peruvian skies-
Im so glad you once again proved my point you have no argument at all.......Thanks for showing us all how to copy and paste from wikipedia/dictionary.com/......should I go on.....? If you have nothing to say except quote a definition that makes you look just as ignorant then keep your mouth shut.
I think what c city is doing is a disgrace, but I also dont jump on the corporate bandwagon and slander the employees like a couple of you have.

[imported101]

By the way everyone....just so you call know...I have a new quote: "Intelligents is measured in many different forms"
Peruvianskies-
for as many times as you d like to tell me I cant spell or my grammar is not correct well, maybe I was typing a little fast and mis typed a word....but for someone so insane about putting me down for it why would you make yourself a complete fool by mis spelling all and typing CALL.....

IGNORANCE - ignorance is a lack of knowledge, or a willful lack of desire to improve the efficiency, merit, effectiveness or usefulness of one's actions. Ignorance is also a "state of being ignorant" or unaware (not knowing).
yep correct......peruvianskies.....huh.......wait...ye p you dont know what your talking about, yes i typed fast and knew my grammar would be made fun of by the one fool who had no other valid point. Who could not come up with one point of their own so instead they quote dictionary . com. Then say I am obscene...or my language is...since when does that offend you?? Specially when your trying to call me a pimply faced kid. Hmmmm maybe when your saying someone is obscene and not smart you should think before typing a response that is so ridiculous, it makes you look like the moron. I didnt try to start a grammatical debate on this website, I went after people who rip on others because they think their smarter...notice at first I didnt mention you until you decided to fight back for others because obviously you have nothing better to do, then express your empty opinion.
EMPTY- without knowledge or sense; frivolous; foolish: an empty head. ( just one of the many defintions of empty on dictionary.com....but really the only one that applies to your comments).

[SlumpBuster]

You apparently feel different...maybe you are one of the pimply faced kids?

DING! DING! DING! And we have a winner, ladies and gentleman! Give that man a cigar!