Mar 6, 2009

Billy Preston says it all. As an employee of the hardware store, I get 20% off most of my purchases from them. So, this morning before work when I tried to buy an $80 power tool, I was surprised to learn that I get no discount on most power tools. Supposedly, the margin is too low on them. This pissed me off because it is bullcrap. I actually checked and found that the store pays $62 to get the item on the shelf, so that means that there is an $18 profit on it, about 30%. Even if they gave me 20% off, they would still make $2 on the deal. They can't stay in business making a 3% gross margin on every sale, but sales to the employees are gravy to them. What difference does it make if you are only making 3% on employee purchases? Since I didn't have to be at work until noon, I went to a nearby Lowes to see what the tool cost there. It was $64. I'm sure that Lowes pays less to the manufacturer than my store, but still, that's a big difference. Later, when I got to work, I asked the boss about the deal. She gave me the low margin story, too, until she looked it up. In the end, she offered to give me the 20% off, but knowing what the store pays, I made a deal for 10% off. That struck me as fair. I don't mind paying a bit extra to support my employer, but I resent being stiffed. This is what I don't get and why the Billy Preston song sprang into my head. If you have an item and can sell it for more than you paid, you've made money on the deal. But if you are stuck on making a particular margin, to the point of letting sales walk away, you have made nothing. Noting from nothing, leaves nothing. Things in this blog represented to be fact, may or may not actually be true. The writer is frequently wrong, sometimes just full of it, but always judgmental and cranky

8 comments:

Reya Mellicker said...

Oh man, that 'fro on Billy is opulent, isn't it? Thanks for the song ... I haven't heard it in decades.

You're such a good person, Merle. If karma is a real thing, then may all your goodness return to you three times.

Enjoy your new tool!

mouse (aka kimy) said...

you're a good man merle sneed.

gosh, I hadn't thought of this great song in a looooong time. thanks!

dennis said...

Dennis says there's too much math in this post and not enough rant.

Kurt said...

You've made nothing and you've lost some good will with the employee.

In other news, I happen to know that mattresses have a huge markup, and the employee on the floor is authorize to take 50% off the price without even talking to a manager.

e said...

Wow, Billy Preston...I think I was a teen-ager then...Love the song!

I hope you enjoy the new tool, despite all the mess it took to get it...Profit over employee loyalty is a really stupid strategy. I hope industries wise up. They probably won't, though.

Steve said...

That's a great song -- haven't thought of it in ages! In fact I'm going to go add some BP to my iPod right now.

Bravo to negotiating a fair solution.

Nan Patience said...

Now that's what I call some fancy math.

bella rum said...

Glad you got 10% off.