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News: Fry's Electronics to remove commissions and pay employees hourly rates.

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      CommentAuthorflea
    • CommentTimeJan 9th 2008
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    I been hearing this by alot of employees here in California I'm hearing were goign to be getting paid $9-$11 an hour and they are going to remove our commisisions. I don't think this is a good idea but seeing how low the comissions have been lately I am not surprised.Fry's is corrupt I am here to talk about it.
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      CommentAuthorAyaHu
    • CommentTimeJan 9th 2008
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    9-11 aint bad for retail! Well, in Cali it's standard, but most states.Superhero!
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      CommentAuthorgreencard
    • CommentTimeJan 10th 2008
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    Fry's sees the impact from the bad economy, they need to cut cost to maintain profitability. They should cut the managers paychecks also! I think removing the commisions is going to happen especially since sales have been down and the stores are over staffing.
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      CommentAuthorasdf
    • CommentTimeJan 10th 2008
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    If ain't on youtube, I wont believe it.
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      CommentAuthorman
    • CommentTimeJan 11th 2008 edited
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    This is damn lies and rumors. Fry's owns a small share of the electronic retail market. They have plenty of room to eat up share from Walmart and Best Buy. For Frys to grow it will need a commission-based sales force to push it up and forward.
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      CommentAuthorAyaHu
    • CommentTimeJan 11th 2008
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    Its cheaper for companies to pay commission anyways. Of course. So if they are having hardship Id think everyone would revert back to commission.Superhero!
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      CommentAuthorSasquatch
    • CommentTimeJan 11th 2008
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    AyaHu:Its cheaper for companies to pay commission anyways. Of course. So if they are having hardship Id think everyone would revert back to commission.
    .  
     
    Not really... One guy at our store made 120K last year. Salesman- non-management.
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      CommentAuthorm_tux
    • CommentTimeJan 12th 2008
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    Sasquatch:
    AyaHu:Its cheaper for companies to pay commission anyways. Of course. So if they are having hardship Id think everyone would revert back to commission.
    .  
     
    Not really... One guy at our store made 120K last year. Salesman- non-management.
     
     
    And how much of that was from PSC's? If they cut out commissions, how much do you think they will be pushed? and you can count on those top end salespeople to be leaving.. expect a lot of guys switching jobs..I'm crushing your head... You flathead!
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      CommentAuthorworm
    • CommentTimeJan 12th 2008
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    They should go back to the days when they paid minimum wage plus commission. Or if they don't pay commissions they should pay it out on warranties.i am a worm.
  11.  permalink
    Rumor...and even if it was true, I'd just go find a new job...or do even less at the one I'm at.
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      CommentAuthorman
    • CommentTimeJan 13th 2008
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    Climb the corporate ladder. I hear that supervisors got pay increases.
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      CommentAuthorblackstyx
    • CommentTimeJan 13th 2008 edited
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    it's $8-13 here at the one in Chicago. They were passing out flyer's for it trying to get people to apply last Friday when I went. I don't know if it's new or not though, or if they still will include commission. I can ask tomorrow, since I have an interview.
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      CommentAuthordash
    • CommentTimeJan 14th 2008
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    So they can pay us the same way they pay the people at customer service?
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      CommentAuthorAyaHu
    • CommentTimeJan 14th 2008 edited
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    Sasquatch:
    AyaHu:Its cheaper for companies to pay commission anyways. Of course. So if they are having hardship Id think everyone would revert back to commission.
    .  
     
    Not really... One guy at our store made 120K last year. Salesman- non-management.
     
     
    Let's take a look at retail science.  
     
    You can pay someone 13$ per hour, lets use that figure since even the walmart over here pays that much. If that employee does not make any sales, you are loosing $13 per hour.  
    It is very apparent in small stores. Once, a store I worked for closed with $95.00.  
    That's not even enough to pay me for that day, let alone overhead!  
    Had I been on minimum wage + commission I would have taken only a small percentage of $95.00.  
    Most companies calculate 10% commission. They then add this to the sales price. If a salesman is really desperate (like cars) they will knock off money knowing it will come out of their percentage of commission. So now they end up with only 5% commission. But at least they went home with something. The dealership still made their portion. (Usually retail stores take 40-50% but clothing stores mark up double so they get 200% of their wholesale price back which is why clothing is usually found on sale for 75% off, they are still making 25%.)  
    This way, if you make no sales, you arent being paid for it anyways, they arent loosing money. If you do make sales you get a cut. Its is far more cost effective. Dont know if that made sense. My thoughts dont translate well to paper.Superhero!
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      CommentAuthorAyaHu
    • CommentTimeJan 14th 2008
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    If a guy made 120k at 10% commission that company made off of him 1million dollars in sales.Superhero!
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      CommentAuthorSevenup
    • CommentTimeJan 17th 2008
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    Very well stated Ayahu..  
     
    But imagine? Saying you made $120,000 at frys? Thats great!!!
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      CommentAuthorAyaHu
    • CommentTimeJan 17th 2008
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    DarkCreep:Very well stated Ayahu..  
     
    But imagine? Saying you made $120,000 at frys? Thats great!!!
     
    Yes, now if only it was possible....  
    I doubt it.Superhero!
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      CommentAuthorSasquatch
    • CommentTimeJan 17th 2008
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    It's more than possible.
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      CommentAuthorAyaHu
    • CommentTimeJan 17th 2008
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    Sasquatch:It's more than possible.
     
    Most people have said your commission structure is only about 1-3% tops, at 3.00$ average commission per product you'd have to move 40,000 products to make that much.I guess if you sell 4,000 1,000$ items at 3% commission you would also make that, but I highly doubt they even pay 3% From what Ive heard it is pretty low. I dont know I dont work there.Superhero!
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      CommentAuthorhoward
    • CommentTimeJan 17th 2008
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    All the management got raises right? If they are getting raises its because Fry's is profitable whether you make commission or not. Plus have you noticed that Frys is hitting projections?Howard Dean for America '08
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      CommentAuthorSasquatch
    • CommentTimeJan 17th 2008
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    AyaHu:
    Sasquatch:It's more than possible.
     
    Most people have said your commission structure is only about 1-3% tops, at 3.00$ average commission per product you'd have to move 40,000 products to make that much.I guess if you sell 4,000 1,000$ items at 3% commission you would also make that, but I highly doubt they even pay 3% From what Ive heard it is pretty low. I dont know I dont work there.
     
     
    Our commission is in no way based on a percentage system. A $80 dollar router that is on sale might pay you seven bucks, even though the store is losing money on the item. A $2000 dollar computer might pay you 2 dollars. The vast majority of items at Fry's don't even have a commission. It's pretty random; sometimes home office may raise commission on a certain item or items in order to focus sales. Also it's not speculation that one salesman made 120K, I know this for a fact. Granted not every salesman makes that much, or even close to it, usually there are only a couple salesmen that pull in that kind of change. Unfortunately, I'm not one of them.
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      CommentAuthorSasquatch
    • CommentTimeJan 17th 2008
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    P.S.  
     
    We do get a set 15% commission from extended warranties we sell, however this is not substantial enough to change the overall result.
  24.  permalink
    I worked at the Fry's in Houston briefly when it opened in 2001. Not having much retail experience, they stuck me in telecom.  
     
    From the beginning, the commission system seemed shady. If a customer didn't stick around long enough to let you take his personal info, didn't want to give it to you, or he threw away his sheet before he got to the register, you didn't get any commission. Were Fry's a decent company, they'd put all that money into a fund that would be distributed to the sales people. I know this is naïve, don't worry.  
     
    Anyway, I'm new here. Hello to all. I came across the site, and thought it would be interesting to poke around. Cheers.
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      CommentAuthorSasquatch
    • CommentTimeFeb 18th 2008
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    Nice avatar.  
    Appy-polly-loggies. I had something of a pain in my gulliver so I had to sleep. I was not awakened when I gave orders for awakening.
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      CommentAuthorAyaHu
    • CommentTimeFeb 18th 2008
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    Sasquatch:Nice avatar.  
     
     
    It looks like an emo person.Superhero!
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      CommentAuthorSasquatch
    • CommentTimeFeb 18th 2008
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    Clockwork Orange.
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      CommentAuthorAyaHu
    • CommentTimeFeb 18th 2008
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    Oh yeah they dressed like emos in that there.Superhero!
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      CommentAuthorflea
    • CommentTimeNov 19th 2008
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    So its been almost a year since this topic was started and now due to the bad economy I think this is going to happen more then ever now.Fry's is corrupt I am here to talk about it.
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      CommentAuthormeinside100
    • CommentTimeNov 20th 2008 edited
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    Sasquatch: Clockwork Orange.
     
     
     
    Awesome movie. It truely shows how fascist governments are obsessed with crime and punishment.
    •  
      CommentAuthorSasquatch
    • CommentTimeNov 20th 2008
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    We gotta limit the power of the Federal Reserve!
  32.  permalink
    Yea, very unlikely, although removing commission does seem like a way to instantly increase fry's profit margins, its actually the opposite. Fry's pays commission usually based off gross profit, in other words, the more you make them, the more they make you. Sales items will usually have 0 gp or even negative gp, with that in mind, salesman try to avoid sales items and get customers an item of equal quality, that makes both the company and themselves more money. However, at places like Circuit City, the salesman gets paid the same amount an hour regardless of what he sales, so why would he bother to sell anything in particular? Commission gives a salesman motivation to sell items that make fry's much more profit in the long run, hence circuit city is going out of business and fry's is still making projection.
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      CommentAuthorasdf
    • CommentTimeJan 4th 2009
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    Guest: Yea, very unlikely, although removing commission does seem like a way to instantly increase fry's profit margins, its actually the opposite. Fry's pays commission usually based off gross profit, in other words, the more you make them, the more they make you. Sales items will usually have 0 gp or even negative gp, with that in mind, salesman try to avoid sales items and get customers an item of equal quality, that makes both the company and themselves more money. However, at places like Circuit City, the salesman gets paid the same amount an hour regardless of what he sales, so why would he bother to sell anything in particular? Commission gives a salesman motivation to sell items that make fry's much more profit in the long run, hence circuit city is going out of business and fry's is still making projection.
     
     
    Fry's employees still sell products with negative GP yet still pay huge commissions. It's always been "what is in it for me?". Fuck GP!
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      CommentAuthorGuest 5521
    • CommentTimeJun 6th 2010
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    I am a ex employee... the rumor are true.. But The thing is, They are only cutting off hourly pay and they will get the commission only on certain department.

    About 2003-2005 commission was awsome. I was making $400.00 a week one of many top sales. I was working as part time for friday saturday and sunday, it was very easy to push that amount every week.


    they are serveral people as well making 1grand a week at ease, cause many product were paying alot in comission. It wasn't hard at all to sell them, because it was in high demand and those product effect people life style.....


    yes commision has been dropping on products, Reason why consumer like you want cheap prices on high end product. That mean cutting jobs, cutting pay, cutting commission, to make consumer happy. This will effect the economy. Product are cheaper, but people can't afford to buy, they have no extra money. This also effect company that make the product, they have to move location to location or out business to make the product prices to compete with the market.
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      CommentAuthorsbr
    • CommentTimeJun 6th 2010
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    I worked at store #43, which is Fishers, IN. Ever since the employees went 100% commission, it hurt all of us. Our top sales associates Kevin Sullivan and Ralph Walls all took gigantic hits in their numbers. Kevin use to make 700-800$ regardless of the commission structure, now without hourly, he is busting his butt off even more, and is still bringing home around the same. The worst part of it all though, is that, Fry's is now FLOODING the sales floor. If you are a customer shopping at Fry's while in computers, notice how many Salesman there are on the sales floor. There are 10 sales people at minimum at most times, and the traffic flow in the Indiana is next to nothing. I can see why the company is doing this for their benefit, and I can see how higher volume stores can benefit from all hourly. But you can only do so much at slower traffic stores. People here in Indiana I would say took a 30-40% pay cut. Not because we can't sell, but you realize we sell to farmers? Not millions of people crammed into a city?  
     
    The issue for the employees is, now that the company has no overhead of paying employees hourly, they can hire as many sales people as they want, at other salesman risk, because, Fry's doesn't care how many sales people there are, they aren't getting paid unless they sell. Every time you add another sales person, that is taking money out of the other 15-20 Salesman pocket instantly. So not only did the Sales people in Indiana get screwed by no hourly, but now they hired 5-10 more sales people per department. So what went from being evenly balanced is 4-6 guys not being able to sale because of overstaffing, and not making any money at all. Is that the Associates fault? Not at all. It poor greedy judgment by upper management to " help serve every customer."  
     
    The issues about people saying that supervisors and managers are asking employees to do work is morally and ethically wrong. Matter of fact, they can't make you do it. You are a 100% COMMISSION NOW! Everything you do is based off a commission. Unless that supervisor/manager pays you a minimum rate and LEGALLY TAXED WORKED, then you are not responsible for that work. If the supervisor/manager continues to nag you to do work, you have a harassment case on your hands. Your job is to SALE, that is it!  
     
    However, I personally feel they went about this all wrong. There are stores that are suffering from this, and stores that are greatly benefiting from this move. However; I feel in the long run, this will hurt the company more than it will help it. For moral/ethic issues, and Gross Profit issues. Also, I have worked for Fry's Electronics, with this being an experienced response, the lack of experience from upper management will cause Fry's a Class Act Law Suit. It is only a matter of time, before the employees of Fry's have had enough and they band together to show how Fry's Electronics is not paying their associates adequately on Sale Items and making them do work when advertised pieces pay no commission and force the employee to do work with no commission base, and the hostile work environment the employees are put under.  
     
    Anybody have any questions? I'll be here all week.

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