Where's Marie and King Louie?
The link below refers to Circuit Cities announced work force reduction that targets store-level associates who make more then the average entry-level clerk.
http://adelphia.net/news/read.php?id=13565811&ps=1014&lang=en&_LT=HOME_BUNWC01L1_UNEWS
As you watch the continued decimation of the auto industry and other manufacturing sectors of the 80's you might have said to yourself, well at least we have retail to keep the economy purring.
In Feb 2000 Circuit City made a similar move to "dumb down" the work force that interfaces with the public. They did so as a defensive measure to imitate the then much stronger performing Best Buy. In fact, on Feb 5th of that year each store manager met with his/her top ten percent performing sales person and handed them their final check. Circuit City wrongly believed that the best way to compete with Best Buy was to imitate them.
The reason that was a flawed approach was threefold;
1) Location, Location Location,...Best Buy had a newer fleet of stores that were targeted in better parts of the markets they served. So, assuming that Circuit was successful in completely imitating Best Buy, the customer was left with no compelling reason to drive by the brighter, newer and in most cases bigger Best Buy to go to the dingier poor cousin Circuit.
2) Further the Differentiation,...If Circuit views the competitive landscape as a race to the cellar (lowest price, lowest service level wins) they still lose the game. If the model that can deliver these ever lower priced Consumer electronics is the winner then Costco or the Internet will eventually be the winner.
3) Those top ten percent sales staff were on commission. They always paid their way and then some. If they didn't provide the customer with an added value experience, they did not make any money. When did performance oriented pay plans go out of style? I guess it was about the same time board of directors decided to pay mindless amounts of dough for piss poor performance from CEO's.
There has been and always will be a market (a significant market) of those willing to pay a bit more for a bit more. The real question is between the flood unabated of cheap labor from a bordeless nation, these almost daily cowardly approaches to lower SG and A cost in the form of layoffs (except of course for the bloated CEO, and VP raises/perks) and the manipulation of the financial and energy markets who will be left with enough to buy anything.
Downward pressure on wages, productivity demands that seem to ask for less people not more from the existing staff, and the endless and ever-brash race of the "haves" to trample have nots to climb up the trough will be our undoing. It is the cost of taking God's concsious out of our souls in the name of money. The ever growing population of "used to haves" is going to be the end of our Republic and our economy.
The final irony is that when this game reaches it's logical course to conclusion....the "let them eat cakers" will meet Dr. Guillotine's invention (a truly productive way to sever the greedy from their myopic and short-sighted appendages).
