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June 29th, 2005

Employee Discounts for Everyone

I’ve noticed a new trend in recent weeks that auto dealers and car companies are using to lure customers in and give them a deal. I imagine everyone is so numbed to “cash back or 0% APR!” that it was difficult to come up with a way to give the same old discount in a new way. The new way is the so-called “employee discount for everyone.

The idea, of course, is that an employee at any given retail store (or, apparently, auto dealer) gets a hefty discount on merchandise from the store. The employee inevitably also uses this discount to get his friends stuff (though probably not so often at an auto dealer). It’s always felt like a special, secret little club you have to be part of, so this new marketing gimmick–though it will be short-lived–is a pretty clever way to repackage a plain ol’ discount.

I’d love to see restaurants try this same promotion. Of course, it would pretty much break them, but it would be fun while it lasted.

Posted in Cars

FROM: Paul
DATE: Wednesday June 29, 2005 -- 9:35:44 am
It's really smart, because these are substantial cuts over the MSRP - thousands of dollars in some cases - and it's easy to see that there is some sort of discount involved.

But what happens when the promotion is over? If they go up to MSRP, GM will be criticized for having priced their products too high. But if they stay at the "Employee Discount" price, it will simultaneously be seen as a good thing and an undervaluation of their cars/trucks. Tough call.

I want this for shiny plastic electronics, though. "Apple iPod: $89.00!"

FROM: jk
DATE: Wednesday June 29, 2005 -- 11:30:55 am
When I sold cars, we paid $200 over "cost".....but you know there is still much money to be made due to the hold-back as well as any money the dealer gets for financing the transaction.

I find the campaign to be annoying.

FROM: Maria
DATE: Wednesday June 29, 2005 -- 12:14:50 pm
At the company I work for, we get everything at cost and also have a lot of opportunities to order directly from our dealers for below cost, so if they extended that discount to customers, it would definitely break them as a company.

FROM: Chris [E-Mail]
DATE: Wednesday June 29, 2005 -- 12:32:51 pm
GM loses on average about $2000 per car sold in the US. (They make money selling cars overseas)

They have a serious issue in that all through the 60's and 70's they promised extravagant pensions and free health care for life to the union.

Well, all those overpaid UAW workers are now retiring and GM is short billions of dollars to cover the expected costs.

I expect them to go bankrupt and stick the taxpayers with the pension obligation.

Of course, the Pension Guaranty Corp is also way in the red....

The employee discount gimmick is an exercise in delaying the inevitable.

FROM: Joseph
DATE: Wednesday June 29, 2005 -- 2:16:41 pm
Is it really an employee discount? Or is it employee discount*? Where the asterisked fineprint explains that what you're really getting is a "promotional employee discount," which just means some sort of discount, but not as much of a discount as what the employees really get. I mean, if I were a car salesperson, this would piss me off. First, my commission gets cut back badly to NOTHING. Second, I don't even get to buy a car for a cheaper price than any bum off the street would have to pay.
It sounds like GM is really screwing their dealers with this one.

I'll probably never buy a GM product (car anyway) so I don't really care. If they made cars half as good looking as the new cheap ol' Hyundais, they might not be in such a slump. I saw a new Hyundai XG350 yesterday and, man, I thought it was sharp. Further, I'm not the only one who thinks so.

FROM: laurie
DATE: Thursday June 30, 2005 -- 4:21:36 pm
Where I work at, which is a department store, they have a promotion saying that they are being offered the employee discount. However, they really aren't being offered the true employee discount. We get 25% on the majority of the items sold in the store, 10% on others, but for the most part 25% is the percentage off. The amount that they offer is 20% on clothes, accessories, we get 26%, 15% on furniture, home textiles,etc. and 10% on fine jewelry, cosmetics. We get 26% in furniture, home items, except those items that plug in and we get 25% in jewlery, cosmetic, etc. Furthermore, it does cut into those departments that are commission sales and any coupon other times does too, as well as No Sales Tax promotions, it's their sales promotions and should be where they don't cut into commission sales departments

FROM: Aanen
DATE: Friday July 1, 2005 -- 11:06:15 am
I worked at a homedepot for about a year and they didn't give us an employee discount. we got a 5$ gift card at christmas but that was it. they suck!!!

FROM: rico [E-Mail]
DATE: Monday March 27, 2006 -- 12:48:07 am
expo design center center is sis co of home depot and they suck they fuck arounf with ur schedula all the time and those dixcounts are bogus!

FROM: heather
DATE: Friday July 14, 2006 -- 1:40:29 pm
We wonder what is wrong with this country now of days, but it is just us middle and the lower-class just keep letting these big companies and the rich work us like a dog. Why do we stand for this? Home depot always talks on television how they are there and cin help. NO! Their employees are and they can help. What about the employees working 6 days a week and up to 12 hours days in the warehouse with this crazy heat, what about helping them. we wonder why are youger generation is going to hell it is because us as parents must work these outrageous hours. Go back to 30-40 hours optional work week and quit with working holidays and all of these weekends. I believe in a little and sometimes alot of hard work but I also belive in the family should come first!! Home Depot and you other companies need to do the same; you keep getting richer your employees that have done all the work for you should be too!!!

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