PC World Extended Warranty Sales Pitch

  Gorillaz 14:32 22 Aug 03
Locked

Saw an ad for a AMD3000 Medion with TFT in PC World for £799, spec looked good product looked good. A sales guy offered to get everything ready for me and then started with the extended warranty sales pitch. I told him 3 times I was not interested and if he persisted I would leave, guess what he carried on trying to sell me the warranty. When will companies like PC World realise that not everyone wants to be hassled, it has cost them £799 + £199 for Office XP upgrade.
Now in the market for a similar spec PC?

  OldBaldy 15:13 22 Aug 03

I know exactly what you went through, cos I used to be one of the salesmen who pushed and pushed. Not through choice I hasten to add. It's a fact, in the store where I worked, that the Medions were (and still remain) excellent value for money, in fact, they are sold almost at cost, which is why they push so hard on them.
Please remember that it isn't the salesmans fault. I know this sounds like a passing of the buck, but the sales manager was, most likely, making him go back over and over. I, personally, got so sick of it, the pressure from the manager to keep the PC Performance percentage (its how they measure levels of extended warranty sales) up above 8% (8% of total store sales should be on PC Performance or else!!!) that I ended up transferring into the PC Clinic tech centre.
I would suggest that, you go back to the store, ask to speak to a manager, explain that you want to spend your £1000, but do not want the warranty, you do not want to discuss it in any way whatsoever, and does he want your £1000 or not - emphasize that you will not take the warranty under any circumstances, and that if it is mentioned, you will walk, permanently, this time. Be stubborn and awkward, if they ask why you dont want it (a usual tactic, so they can try to talk you out of your reasons) simply repeat, I don't want it, and I don't want to discuss it....
Good luck, its worth going back cos the medions really do (or did a year ago) offer the best value for money of any PC in the store.

  Gorillaz 17:36 22 Aug 03

I have to admit that the spec for the Medion appeared to be really good value. I also checked some of the threads on problems etc and was surprised to see that the Medion brand is quite highly rated, if lacking slightly on the support side. I cannot find any of the well known companies, Mesh, Evesham etc that can match it for price.
I went to another branch of PC World tried to buy and explained again I did not want any type of finance or warranty deal, would you believe it, this was accepted and I left £1000 poorer.

  rickf 18:07 22 Aug 03

Go to Toysrus, they have the latest Medion PCs in at the moment at better prices and specs than PCW but you might have to be quick with the bank hols w/end coming.

Got both my last pc from Dixons Stores group Advents,both work well and cheap finance.but you must barter,My last one took the warrenty,only after I got £150 off a display 32 Sony TV and a free X-box at a Dixons branch and 18 month intrest free credit.Took 2 days,tripping back to the shop and argueing with the wife(a good double act) that I did,nt want another PC so the salesman got worried,I think I got a good deal as my friends had thier 2 year old Advent motherboard,moniter and graphics card replaced under warrenty.

  Gorillaz 19:51 22 Aug 03

Just read again the response from oldbaldy and only now really understand the sales pitch given the reported low margin on the Medion.
The saleman tried to sell a surge protector, no thanks I have one already, credit terms no thanks, and then I got the extended warranty talk.
Obviously some branches, not all have, need to meet their target and it seems as though they would rather lose a sale and sell to someone who buys on credit or with an extended warranty.

  davidg_richmond 03:58 23 Aug 03

Some PCs give as little as 5% margin, on a £799 PC that's £40. Now pay the salesman his commission (less than a pound), and use the rest of that margin on paying the rent, support staff and leccy bills, and you're pretty much making a loss on that model if you sell a high proportion of them. And some customers even want to barter for money off!!! No wonder they are greeted with a polite 'no' or discrete chuckle.

So its fair enough that a salesman wants to add more to the sale, especially extended warranties and high margin accessories. But they should not break the British Retail Consortium's Code of Best Practice (mention that to them if needed, you can also request to read a copy, but its long and boring).

  Gorillaz 09:17 23 Aug 03

All of this I can understand but you have to look at the overall picture, I did not set the price PC World did. When I want to buy a PC I do not expect to have obstuctions put in my that prevent me from purchasing that product unless I buy "add ons" that I do not want and this I believe is what happened.

  tbh72 11:03 23 Aug 03

A Medion Computer DOES NOT cost £759 to make! You will find PC World make more than £40 per Medion sold!

  davidg_richmond 11:52 23 Aug 03

tbh72, I used the 5% as an example - not specifically the Medion. Margins vary on all models and brands. Way back when in 1999 we were selling Patriot £399 computers at a loss because we had to have a foothold in that price band.

Plus, it may not cost £759 to make, but it may cost that to buy each unit from the manufacturer as they take their slice of profit from the sale too.

Gorillaz, you are quite right - you did not set the price. Competition drove prices down to a tight level across all models and that's a great thing for the customers but in the end a company cannot survive on low margins and inevitably other products will be pushed alongside.

  kakasnarta 15:09 23 Aug 03

Best advice as stated previous ,tell them NO from the start or you will walk.....if they persist do just that ,thers plenty of bargains out there elsewhere.

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