Many claim that more productive workers will get paid more. That may be true of sales representatives who work on commission, but what about other workers who have several constraints on their "productivity".
I thought of this as I was driving on a weekday on the dirt road in Brimson on the way to our cabin. In front of me was a trash hauler. He stopped to pick up one neighbor's trash, and while he did so I passed him. He continued behind me and I knew his next stop was not for another mile.
When I drove back to Duluth a couple of hours later, the same driver, or at least the same firm, was in front of me on the main highway. I thought he has over an hour's drive to get to the landfill.
It would take him a lot longer to fill his truck than it would for a driver with a city route. Should this first driver be paid for his "productivity"? Or for his time?
Possibly his lower "productivity" is partly compensated by a higher pickup rate for rural customers.
The same holds for UPS and FedEx drivers, and as far as I know the rate for the senders of packages are the same for a given large area. The sender pays for the terminal-to-terminal distance, but not the local distance. Should these drivers be paid for packages per hour or be paid for hours worked?
I had the same situation when I drove for a school and transit bus company. I was paid by the hour no matter what I did. And I got a premium for seniority. Many was the charter on which I read, slept, played chess, ate, or went to the same event as the customer. I had one charter for a theater company where not only did I not drive for the two-to-three hours of the production, the production manager gave me and wife very good tickets for the last performance.
So, what was my "productivity" on this charter. Showing up on time, getting the passengers to their destination on time, driving safely, and being friendly.
I can't end this without mentioning another "productive" kind of employee who is often overlooked - the schmoozer. This is the employee (or even owner) who takes time to know customers and make them feel welcome. During this time they provide no goods or services. But they certainly increase return business. Think of places where the sales staff is on commission and you can hardly stand doing business with them. They are know-it-all fast talkers who want to close a sale as fast as possible. You may wind up buying from them, but only because of the salaried or hourly support staff who act like you are the only customer they have.
I had a vehicle for 13 years and for the last six I kept going to a certain dealer because the service department was good and the front guy was a schmoozer who always acted glad to see me. They had a really good salesman who kept kidding me about buying a new vehicle from him, another schmoozer. Well, by the time I decided to trade-in that vehicle he had retired. A friend told me she bought a truck from him because all the other salesmen were jerks. I found out she was right. And so, I went to the guy who sold me the truck in the first place, also a schmoozer. He was now selling another make of vehicle. He schmoozed, listened to us, and had a selection of vehicles ready for us to test-drive. We bought one of those vehicles.
For those not completely familiar with colloquial English, a schmoozer is someone who makes other people feel at ease with friendly, non-intrusive, conversation.
Showing posts with label sales. Show all posts
Showing posts with label sales. Show all posts
Tuesday, June 19, 2012
Monday, December 19, 2011
Shoplifters hamper free markets
Or is it companies save pennies and lose dollars?
I was pondering this problem mentioning what I might like for Christmas - a pair of decent earbuds or headphones for my iPod. When I'm at the fitness center, the earbuds I have do not stay in my ears. The previous headphones would not stay on my ears and they eventually fell apart. The original earbuds fell out of my ears.
I said to forget buying something like this as a present. One can't try them on, but one must buy them all sealed in a dangerous-to-open plastic box. Why are they in a plastic box? To deter shoplifters.
So, is the loss of merchandise to shoplifters greater or less than the loss of potential sales? Probably the shoplifting loss is less than the lost sales. Enough people put up with the packaging to buy the sealed up stuff.
This shopper will buy tools and standard products like batteries in these god-awful packages, but if it is a more personal product, like earphones, I will have to be desperate.
I was pondering this problem mentioning what I might like for Christmas - a pair of decent earbuds or headphones for my iPod. When I'm at the fitness center, the earbuds I have do not stay in my ears. The previous headphones would not stay on my ears and they eventually fell apart. The original earbuds fell out of my ears.
I said to forget buying something like this as a present. One can't try them on, but one must buy them all sealed in a dangerous-to-open plastic box. Why are they in a plastic box? To deter shoplifters.
So, is the loss of merchandise to shoplifters greater or less than the loss of potential sales? Probably the shoplifting loss is less than the lost sales. Enough people put up with the packaging to buy the sealed up stuff.
This shopper will buy tools and standard products like batteries in these god-awful packages, but if it is a more personal product, like earphones, I will have to be desperate.
Tuesday, July 06, 2010
A tip for Tom Emmer on wait staff pay
Tom Emmer, Republican candidate for Minnesota Governor, wants the minimum wage lowered for service workers who get lots of tips. See "Emmer: Lower wages for tipped workers", Jackie Crosby, Star Tribune, 2010-07-06. He says that the extra wages are taking money from customers. Is he also calling for CEOs with large bonuses to get a lower base pay? After all, these CEOs are also taking money from customers.
His arguments are also weak on other points.
He uses as an example the Eagle Street Grill in downtown St. Paul where "three servers take home over $100,000 a year, including tips."
Do each of the servers take home $100,000 a year or do three servers take home $100,000 a year among them. In the latter case, $33,000 may be a good income for many servers, but many others would like to get that much. If a server receives lots of tips, doesn't that mean they are providing good service to their customers. If they are providing good service to their customers, aren't many of these repeat customers and probably even buying a lot of food and drink. If the customers are buying a lot, the restaurant owners should be very happy to have highly-paid servers.
How many times have you gone into a restaurant where the server has not asked if you want drinks before dinner, has not asked if you want wine with dinner, and has given you a bill without even asking if you want coffee or dessert? Even if the answer will be no, a good server always asks these questions. The server who does will generate more revenue for the restaurant and will get a bigger tip. Oh, but that is taking money from the customers.
If you want to see more realistic figures, see "Tom Emmer goes after food server wages", Rachel Hutton, City Pages, 2010-07-06. She blows lots of the "facts" that Emmer states out of the water. An even better analysis is "Servers, wait staff unlikely to make $100,000", Annie Baxter, Minnesota Public Radio, 2010-07-06, 2010-07-06.
I could go on and on picking apart the arguments of the likes of Tom Emmer, but I'll end with just two.
One was mentioned in Baxter's argument comparing wait staff during slow times to that of sales persons. Many sales persons still get a base pay for getting out there and trying. Do CEOs get a lower base salary when sales are low?
Remember Circuit City. It laid off its highest paid sales staff and went downhill from there. It was the highest paid sales staff that people went to for answers. If they got good answers, they bought. The lower paid staff didn't always have the answers and so fewer people bought stuff from Circuit City. The high-paid servers are generating a lot of sales for their restaurants. Don't knock them!
Other references:
"Circuit City cost cutting madness", Andrew Weir
"How the Mighty Fall", Jim Collins. It is ironic that he mentioned Circuit City in his previous book, "Good to Great". Is there a lesson for Minnesota here?
His arguments are also weak on other points.
He uses as an example the Eagle Street Grill in downtown St. Paul where "three servers take home over $100,000 a year, including tips."
Do each of the servers take home $100,000 a year or do three servers take home $100,000 a year among them. In the latter case, $33,000 may be a good income for many servers, but many others would like to get that much. If a server receives lots of tips, doesn't that mean they are providing good service to their customers. If they are providing good service to their customers, aren't many of these repeat customers and probably even buying a lot of food and drink. If the customers are buying a lot, the restaurant owners should be very happy to have highly-paid servers.
How many times have you gone into a restaurant where the server has not asked if you want drinks before dinner, has not asked if you want wine with dinner, and has given you a bill without even asking if you want coffee or dessert? Even if the answer will be no, a good server always asks these questions. The server who does will generate more revenue for the restaurant and will get a bigger tip. Oh, but that is taking money from the customers.
If you want to see more realistic figures, see "Tom Emmer goes after food server wages", Rachel Hutton, City Pages, 2010-07-06. She blows lots of the "facts" that Emmer states out of the water. An even better analysis is "Servers, wait staff unlikely to make $100,000", Annie Baxter, Minnesota Public Radio, 2010-07-06, 2010-07-06.
I could go on and on picking apart the arguments of the likes of Tom Emmer, but I'll end with just two.
One was mentioned in Baxter's argument comparing wait staff during slow times to that of sales persons. Many sales persons still get a base pay for getting out there and trying. Do CEOs get a lower base salary when sales are low?
Remember Circuit City. It laid off its highest paid sales staff and went downhill from there. It was the highest paid sales staff that people went to for answers. If they got good answers, they bought. The lower paid staff didn't always have the answers and so fewer people bought stuff from Circuit City. The high-paid servers are generating a lot of sales for their restaurants. Don't knock them!
Other references:
"Circuit City cost cutting madness", Andrew Weir
"How the Mighty Fall", Jim Collins. It is ironic that he mentioned Circuit City in his previous book, "Good to Great". Is there a lesson for Minnesota here?
Thursday, March 25, 2010
Small changes lead to a nice piece of change
The day before the series of little events of yesterday, I had a small series of little events that led to an unexpected bit of cash.
On Tuesday we received a flyer in the mail from Northstar Ford about a drawing they were having for a new car, some cash, an ATV, or a lottery ticket. Since I no longer own a Ford I would have normally thrown the flyer away.
However, I was going out to Northern Tools to by a trailer dolly to pull our chipper around at the cabin. I could stop by NorthStar Ford on the way back home. Well, I missed Northern Tools on the way out of town. When I got to Midway Rd. I knew I had gone too far. I did see it on the way back. I missed the humongous sign because I was looking for a smaller sign, plus they had put a wall on the "near" side. It had been a while since I had been there, and so it was unrecognizable to me.
I had called in the morning to make sure the dolly was in stock and was told they had plenty. When I got there I couldn't find them and asked for help. A clerk pointed out where they were but the shelf was empty. He went to a register to check the inventory and found that there was one left. He asked another clerk who was more familiar without the inventory to help me. The second clerk walked to the same area and picked up the last dolly on the other side of the aisle! They had stocked them on both sides.
After all this delay, I could have gone straight home. But I decided to go to NorthStar Ford anyway. I first went to the Service Department to say hello to the service manager whom I had known for so long. I didn't see a familiar face and his office was dark. I went to the sales receptionist and asked about the drawing. She called a sales representative to help me.
It turns out one has to have a small interview with a sales person before one can get a prize. My number was good for a lottery ticket. When I got to my car I scratched the seven ways to win and found the maximum prize was three dollars. Wow!
Yesterday when I bought gas I turned in my lottery ticket. It wound up that the ticket was worth fourteen dollars!! Each of the seven spots counts.
So, my little detour of about fifteen minutes was worth $56/hour. Even if it was only a three dollar win, that would have been worth $12/hour.
Another example of nothing ventured, nothing gained.
If you still have your flyer from NorthStar Ford, the drawing continues through Friday, March 26.
On Tuesday we received a flyer in the mail from Northstar Ford about a drawing they were having for a new car, some cash, an ATV, or a lottery ticket. Since I no longer own a Ford I would have normally thrown the flyer away.
However, I was going out to Northern Tools to by a trailer dolly to pull our chipper around at the cabin. I could stop by NorthStar Ford on the way back home. Well, I missed Northern Tools on the way out of town. When I got to Midway Rd. I knew I had gone too far. I did see it on the way back. I missed the humongous sign because I was looking for a smaller sign, plus they had put a wall on the "near" side. It had been a while since I had been there, and so it was unrecognizable to me.
I had called in the morning to make sure the dolly was in stock and was told they had plenty. When I got there I couldn't find them and asked for help. A clerk pointed out where they were but the shelf was empty. He went to a register to check the inventory and found that there was one left. He asked another clerk who was more familiar without the inventory to help me. The second clerk walked to the same area and picked up the last dolly on the other side of the aisle! They had stocked them on both sides.
After all this delay, I could have gone straight home. But I decided to go to NorthStar Ford anyway. I first went to the Service Department to say hello to the service manager whom I had known for so long. I didn't see a familiar face and his office was dark. I went to the sales receptionist and asked about the drawing. She called a sales representative to help me.
It turns out one has to have a small interview with a sales person before one can get a prize. My number was good for a lottery ticket. When I got to my car I scratched the seven ways to win and found the maximum prize was three dollars. Wow!
Yesterday when I bought gas I turned in my lottery ticket. It wound up that the ticket was worth fourteen dollars!! Each of the seven spots counts.
So, my little detour of about fifteen minutes was worth $56/hour. Even if it was only a three dollar win, that would have been worth $12/hour.
Another example of nothing ventured, nothing gained.
If you still have your flyer from NorthStar Ford, the drawing continues through Friday, March 26.
Tuesday, September 08, 2009
Cash for clunkers clinked
We would like to trade our 1997 F-150 pickup for a newer cargo van. The truck is getting older and so are we. Our getting older makes it more of a strain to climb into the back of the truck to put things way up front or to pull them back out.
So, should we have taken advantage of the "Cash for Clunkers" program? The trade-in value of the truck is $1900+, depending on whether it is considered good condition or very good condition. "Cash" for it would be between that and $4000.
But, we want to trade it for a cargo van; I don't think they meet the mileage requirement. Yep, they don't. I just checked Edmunds "Cash for Clunkers" calculator.
We were also reluctant to buy a new vehicle then because we don't want to take out a loan to do it. We wanted to save up and pay cash, even if it meant selling some mutual fund shares.
We may have saved also by waiting. Some have recommended waiting to buy until October when dealer inventories will have built up and they may bargain more. Also, the "Cash for Clunkers" may have increased the value of our truck. I have no idea how many F-150s were destroyed for the Clunker program, but I imagine that enough were to raise the value of mine. Not a lot, but, hey, an extra hundred or two dollars can pay for some nice option on a new vehicle.
So, should we have taken advantage of the "Cash for Clunkers" program? The trade-in value of the truck is $1900+, depending on whether it is considered good condition or very good condition. "Cash" for it would be between that and $4000.
But, we want to trade it for a cargo van; I don't think they meet the mileage requirement. Yep, they don't. I just checked Edmunds "Cash for Clunkers" calculator.
We were also reluctant to buy a new vehicle then because we don't want to take out a loan to do it. We wanted to save up and pay cash, even if it meant selling some mutual fund shares.
We may have saved also by waiting. Some have recommended waiting to buy until October when dealer inventories will have built up and they may bargain more. Also, the "Cash for Clunkers" may have increased the value of our truck. I have no idea how many F-150s were destroyed for the Clunker program, but I imagine that enough were to raise the value of mine. Not a lot, but, hey, an extra hundred or two dollars can pay for some nice option on a new vehicle.
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