Haggling in Powercity

marknine

Hi guys, just want to see what you all think of this? Back in April or May of this year 2011, I went to Powercity on the Fonthill road in Dublin, with the express intention of buying a new laptop. I picked out a Samsung laptop that was €449.95 and decided this was the one for me. I tried to haggle for a discount as I was paying in cash and also as I wanted to buy from an Irish company. At this time I could have bought a better laptop, cheaper from Argus or PC world, so I thought I had good grounds to haggle. Well, to cut a long story short, they would only give me a discount of less than 5% even though I could buy better and cheaper else were. Considering 90% of all my electrical goods were bought from Powercity, I felt really insulted so I bought one in Argus instead.
The very next week, the Samsung laptop I was going to buy, was on sale in Powercity for €339.95. Even at that price, Powercity would be making a good working profit, but they have lost me as a customer forever. How crazy is that? Even though this was months ago, I still feel peed off with them for not wanting my business. Just wonder now, if this is the norm with Irish companies.
I have the the advert as a jpeg but dont know how to add this as a photo, However, you can see it on http://www.flickr.com/photos/rockydog/6447677211/in/photostream

Corruptedmorals

Power City is not a one-off shop. It's part of a chain that is going to be strictly regulated from a central head office. Retailers that have the discretion to say 'okay I'll give it to you for €380' are going to be few and far between- for the simple reason being that they don't have the power to do something like that, and if they did to get a sale, they would lose their job. The smaller a company is, the better, because they have way more say in decisions like that but they'd be run into the ground if they gave discounts willy-nilly. The fact the laptop went on sale is really not connected. Chances are, that particular rediction was not known about until it was imminent.

I work for a huge Irish-owned department store who will not give anyone a discount of more than 10% for goods that are faulty or shopsoiled. Haggling would not be entertained in the least. All of these discounts are recorded, sent to Head Office, and generate a load of paperwork. Any store having more than the average would be told to stand firm and not give any discount. Any manager authorising more than 10% would get a serious warning. This is a company not doing brilliantly last few years, but a lot better than most.

marknine

Corruptedmorals wrote: »

Power City is not a one-off shop. It's part of a chain that is going to be strictly regulated from a central head office. Retailers that have the discretion to say 'okay I'll give it to you for €380' are going to be few and far between- for the simple reason being that they don't have the power to do something like that, and if they did to get a sale, they would lose their job. The smaller a company is, the better, because they have way more say in decisions like that but they'd be run into the ground if they gave discounts willy-nilly. The fact the laptop went on sale is really not connected. Chances are, that particular rediction was not known about until it was imminent.

I work for a huge Irish-owned department store who will not give anyone a discount of more than 10% for goods that are faulty or shopsoiled. Haggling would not be entertained in the least. All of these discounts are recorded, sent to Head Office, and generate a load of paperwork. Any store having more than the average would be told to stand firm and not give any discount. Any manager authorising more than 10% would get a serious warning. This is a company not doing brilliantly last few years, but a lot better than most.

Not sure if that cuts the mustard for me as PC world and Argus were giving better deals at the time. Also, my uncle always gets between 15 to 20% discount everytime he buys from Powercity. In fareness he buys alot and is a regular customer as he owns lots of property. But never the less, hardley 5% discount on a cash sale, with access to other UK shops within 3 minutes, not to mention laptops.ie Totaly madness to turn a sale down like that. A profit is a profit no matter how you look at it. I used to be a cabinetmaker and if I ever bought tools. the minimum discount would be 10%

marknine

Please don’t get me wrong, as I don’t want to give Powercity a bad name. I have been buying from them for over twenty years and indeed from when they first opened up in around 1987 or so. I just feel let down as I wanted to give them (as an Irish owned company) my business. I have no issue with PC World or Argus, but would always try and keep whatever money I spend, in the Irish economy. I am also aware that most of the products are made abroad, but at least I can try and keep the profit her.

skinny90

giving discount is good and well if both parties are happy,ie the customer is happy about the price and the retailer is still making a healthy profit.the idea that small business give bigger discounts is true but their prices are generally alot dearer than bigger companies so in a way its a false economy.in fairness laptop margin isnt generally healthy regardless of the price in most places.ie they sell u a latop and then attach a bag,mouse for 20-30 quid etc to generate a higher margin price.so its very difficult to haggle on prices in bigger firms.the sale of the laptop is either down to a few reasons.the supplier gives them a cheaper price hence why they can reduce it or they need to get rid of older stock and clear it out.moral of the story they dont just discount the laptop down because there making soo much on it.

skinny90

also just to add i have worked in places(mainly clothes shops)where mark up was up on 500% on certain items!!!so people ask for discount or a student discount of say 10-15%they get it there happy and so is the shop

whippet

when you say PC World and Argos were doing a better deal ... was it the exact same notebook? if not you can't compare.

I have had dealings with most brands of computers from a distribution and reseller level and I can tell you on a notebook retailers are working off margins of about 4-6%. Based on volume they 'may' get a kickback from the manufacture quarterly .. giving an extra 2% or thereabouts.

The reality is they don't have the margin (especially with huge retail overheads) to offer a discount like you have asked.

the fact that they then discounted the unit later in the year was probably as the model was going end of life (most notebook models get upgraded every six months or so) and Powercity were more than likely given price support from Samsung to allow them to discount and get rid of units left over before the new model shipped.

At this stage retail outlets price their big ticket goods at the lowest possible price, they then mark up accessories by about 75%. Notebook bags and sleeves costing €45 are costing them about €25-30.

skinny90

its the perception of''getting a deal'' if that laptop price was 530 and then bought down to the price that was firstly on the ticket id say 6/10 people will buy on the spot

marknine

Am I just being petty about feeling let down by the poor discount. I know that I do miss shopping in Powercity, although money is very tight to say the least. Im going to have to buy a few heaters for the winter, so I might see if its worth buying there again. I know that they compare well with all other shops. I just still feel insulted by there poor discount as I know I could get better else were.
Thinking about it more, I still feel bitter at the prices tesco and Dunnes charged for Nescafe Gold coffee 4 years ago. It was almost €9 per 200g. I went home to Donegal (I live in Dublin) and stopped off at ASDA in Stabane in Co.Tyrone and bought the same coffee for £3 a jar. I ended up buying 10 jars that lasted me for almost 3 years as I only have a cup in the morning. There was no justification for the high price in the celtic tiger republic and felt realy ripped off buy Tesco and Dunnes. Still dont shp in Tesco till this day as it wasnt the only thing that I got ripped of in that shop. Greed form the big shops as far as I can see.
Yeah I know what you are thinking and your right, I should move on.

marknine

One other thing, as a rule I dont buy from the north although I did buy my ipod classic in Strabane, which worked out at €50 cheeper than her. That was 4 or 5 years ago.

whippet

marknine wrote: »

Thinking about it more, I still feel bitter at the prices tesco and Dunnes charged for Nescafe Gold coffee 4 years ago. It was almost €9 per 200g. I went home to Donegal (I live in Dublin) and stopped off at ASDA in Stabane in Co.Tyrone and bought the same coffee for £3 a jar. .

you got a bargain on that coffee in ASDA considering a 100g jar there now is over stg£3.00

nescafe gold blend

dudara

marknine wrote: »

Am I just being petty about feeling let down by the poor discount.

Yes, as far as I'm concerned, and I think that you've taken it a bit too personally. For whatever reason, they couldn't give you a discount that day. To me, that's not an issue. I'll buy from the shop that I feel offers the best value.

skinny90

no u shouldnt feel petty or insulted,it could have been how your objective was handled by the sales guy at the end of the day,,its your money not power city's you decided if it feels right about the price and go for,if u dont,then dont buy,i was just simply highlighting why they didnt offer you a big discount...if it was me and a shop was giving a massive discount on a laptop id have to check out other places to see how competitive was there ticket price and there offer because in this day and age that just doesnt happen with such high comptitors just a click away

marknine

skinny90 wrote: »

no u shouldnt feel petty or insulted,it could have been how your objective was handled by the sales guy at the end of the day,,its your money not power city's you decided if it feels right about the price and go for,if u dont,then dont buy,i was just simply highlighting why they didnt offer you a big discount...if it was me and a shop was giving a massive discount on a laptop id have to check out other places to see how competitive was there ticket price and there offer because in this day and age that just doesnt happen with such high comptitors just a click away

Thanks skinny90. Its over 6 month so maybe I shouldnt hold a grudge. Think its just a backlash at the Celtic Tiger days. Funnny as even back then, we were told that we should shop around as prices were way out of hand. I think the best thing that happened was Lidl and Aldi coming and showing how crazy we were to pay Tesco and Dunnes prices.

skinny90

yes i also think you shouldnt hold your grudge be it power city or any other place.anymore simply research what you are looking for check competitors prices and then make a decision.power city are good and have made their name through the years but that doesnt mean they are the best value for money,look around.

Dr.Silly

marknine wrote: »

The very next week, the Samsung laptop I was going to buy, was on sale in Powercity for €339.95. Even at that price, Powercity would be making a good working profit

this is wrong on so many levels?
trust me, they didn't make a good working profit on it

Sleezy

Marknine, this is typical of those big companies. They pay advertising/PR people a fortune to make them appear to be customer friendly and down to earth. Then they back off and hide behind excuses such as being such a big company and staff not having the authority to give discounts or haggle. So, why don't they have a type on online helpline for thier staff? One that the member of staff can contact with a customer request for a discount or to consult in the event of a customer haggling? Personally, I would have gone straight to Argos or PC World to begin with. Supposing I saw two pairs of motorcycle boots and one pair was Irish made and the other foreign. With the Irish made product costing more but both products being of equal quality I would have no hesitation in buying the foreign product. Say what you like about my purchase perhaps leading to the employee at the Irish company losing his/her job. In the first place the company may be Irish but is thier employee? Secondly, that same employee wouldn't give a damn if I lost my job. Thirdly, I have too many other expenses such as my mortgage etc, the extra few bucks I didn't spend on the Irish product would be better spent on paying my bills.

VeVeX

Sleezy wrote: »

Marknine, this is typical of those big companies. They pay advertising/PR people a fortune to make them appear to be customer friendly and down to earth. Then they back off and hide behind excuses such as being such a big company and staff not having the authority to give discounts or haggle. So, why don't they have a type on online helpline for thier staff? One that the member of staff can contact with a customer request for a discount or to consult in the event of a customer haggling? Personally, I would have gone straight to Argos or PC World to begin with. Supposing I saw two pairs of motorcycle boots and one pair was Irish made and the other foreign. With the Irish made product costing more but both products being of equal quality I would have no hesitation in buying the foreign product. Say what you like about my purchase perhaps leading to the employee at the Irish company losing his/her job. In the first place the company may be Irish but is thier employee? Secondly, that same employee wouldn't give a damn if I lost my job. Thirdly, I have too many other expenses such as my mortgage etc, the extra few bucks I didn't spend on the Irish product would be better spent on paying my bills.

You should buy a foreign keyboard with a return key.

dudara

VeVeX Although you have a point, please leave such comments to the moderators.

dudara

marknine

whippet wrote: »

you got a bargain on that coffee in ASDA considering a 100g jar there now is over stg£3.00

nescafe gold blend

Yeah it was a real bargain at £3 a jar. I think cofffee has gone up alot since then, although it went down in the republic. Mind you the coffee is going up in price again and now I am buying Aldi's own brand at €1.99 a jar. Its OK oce you start to get used to it. The funny thing is, I find ASDA very expensive as I will sop off the odd time when I go up home to Donegal. The only thing I ave bought from ASDA this year was trays of Coke as they were selling them for £5 for a tray of 24, and I bought 2 trays. I think on the whole, we get better value here. If only I could go back in time and buy more jars of Nescafe Gold for £3, I would still be drinking it. Now that I think about it, it was also jars of Kenco that were that price as well. I bought a few jars of that as well.

marknine

dudara wrote: »

Yes, as far as I'm concerned, and I think that you've taken it a bit too personally. For whatever reason, they couldn't give you a discount that day. To me, that's not an issue. I'll buy from the shop that I feel offers the best value.

The thing is , I could have used my credit card to purchase the laptop and they would have to pay a fee. I was giving them cash in hand. I think more than 5% would have been fair. But Yeah, its time to let it go even though i still feel I would have rather given them my money. Thank you for your feedback

Mikko Mallikas

You´re complaining about an incident that happened in a shop 8 months ago, and YOU rejected their offer of a 5% discount on a laptop, and you wish you could go back in time and buy more of the cheap coffee, it was 4 feckin years ago. Wake up and smell the coffee, you should get out more.

marknine

Mikko Mallikas wrote: »

You´re complaining about an incident that happened in a shop 8 months ago, and YOU rejected their offer of a 5% discount on a laptop, and you wish you could go back in time and buy more of the cheap coffee, it was 4 feckin years ago. Wake up and smell the coffee, you should get out more.

I now wake up and smell the Aldi coffee at €1.99 per jar.

Corruptedmorals

Tesco and Dunnes Irish mark-up isn't all greed. It costs a lot more to run one here than in the North. Here they are open longer (in particular Sundays, the most costly day) but aren't doing as well. On top of that overheads like heat, light and rent are way more expensive. Also, someone starting in a Dunnes is paid €9.13, in Dunnes in the North they get something like £5. It makes a huge difference. Obviously now they are adding onto that, but there IS a gulf between operating North and South.

marknine

Corruptedmorals wrote: »

Tesco and Dunnes Irish mark-up isn't all greed. It costs a lot more to run one here than in the North. Here they are open longer (in particular Sundays, the most costly day) but aren't doing as well. On top of that overheads like heat, light and rent are way more expensive. Also, someone starting in a Dunnes is paid €9.13, in Dunnes in the North they get something like £5. It makes a huge difference. Obviously now they are adding onto that, but there IS a gulf between operating North and South.

When Dunnes directors can get paid €14 dividend, I think they are still making a good profit. God only knows what kind of profit Tesco is making. But in saying that, I do take your point about the cost difference between the North and us. I have seen some good changes in Dunnes over the last year or so and I do some of my shopping there from time to time. Let’s be honest, Dunnes did rip us off during the celtic tiger, although I think they were better than Tesco at the time. If I was going to change anything about Dunnes, it would be the standard of customer service training of their staff. Try shopping in the Mill in Clondalkin and you will see what I mean. In saying that however, if you are served by some of the older ladies or a Polish girl, they normally add to the shopping experience.

dudara

This thread is heading off topic. Please stick to the OT.

dudara

marknine

dudara wrote: »

This thread is heading off topic. Please stick to the OT.

dudara

Sorry LOL

CIARAN_BOYLE

marknine wrote: »

The thing is , I could have used my credit card to purchase the laptop and they would have to pay a fee. I was giving them cash in hand. I think more than 5% would have been fair. But Yeah, its time to let it go even though i still feel I would have rather given them my money. Thank you for your feedback

I doubt CC charges are more than 5%. Maybe for a small retailer like Spar or Centra who don't get much custom with credit cards. Anyway the higher volume of customers paying by CC the less average charges are.

the groutch

why should a retailer have to give any discount? there is a price there, and if you don't like it buy elsewhere.
I also don't get this whole "cash buyer" thing. Credit card payments cost them half nothing to process and any credit agreements are outsourced.
The OP really needs to take care of that chip on his shoulder.

noodler

I worked in retail part-time in college - I think people really overestimate the power granted to the people behind the counter to be fair.

Del2005

Sleezy wrote: »

They pay advertising/PR people a fortune to make them appear to be customer friendly and down to earth. Then they back off and hide behind excuses such as being such a big company and staff not having the authority to give discounts or haggle. So, why don't they have a type on online helpline for thier staff? One that the member of staff can contact with a customer request for a discount or to consult in the event of a customer haggling?

Why do they need a helpline for the staff? The OP asked for a discount, was offered a discount and refused to accept the offered discount. They went elsewhere and bought what they wanted, it's called business.

BTW OP how much discount did Argos give you?

Personally, I would have gone straight to Argos or PC World to begin with. Supposing I saw two pairs of motorcycle boots and one pair was Irish made and the other foreign. With the Irish made product costing more but both products being of equal quality I would have no hesitation in buying the foreign product. Say what you like about my purchase perhaps leading to the employee at the Irish company losing his/her job. In the first place the company may be Irish but is thier employee? Secondly, that same employee wouldn't give a damn if I lost my job. Thirdly, I have too many other expenses such as my mortgage etc, the extra few bucks I didn't spend on the Irish product would be better spent on paying my bills.

But what if the non Irish employee of the Irish owned company wanted to buy something you made but couldn't because they'd been let go as you bought your boots off someone else?