Sears Automotive Test-Drives Incentives
Sears, Roebuck & Co., as part of a 49-store test, is bringing back incentive pay for some auto center employees by offering bonuses linked to customer service.
The company says the new incentives avoid the pitfalls of a program that was scrapped amid charges two years ago that Sears sold Californians unneeded auto parts and service. Investigators at the time blamed the abuse on sales quotas and pay incentives that rewarded employees for selling specific parts and service, such as installation of brake calipers.
Under the new plan, auto center employees at test stores are being paid bonuses based on customer satisfaction. Upon leaving the auto centers, customers are asked to fill out and mail postcards rating the service they received. The results are tabulated at headquarters, and bonuses are distributed accordingly.
At other Sears stores, mechanics are on salary and salespeople receive commissions of 2% to 3% on sales of batteries, tires and other parts. Salespeople no longer write repair orders, for which they received commissions before the costly 1992 auto repair scandal. Bad publicity cost Sears $700,000 a day in lost sales.
Paul Baffico, president of Sears Automotive Group, said that to safeguard against possible abuse, the company is sending undercover employees to test stores to pose as customers seeking auto repairs.
“We want to make sure there is not any difference in selling than at a normal Sears store,” Baffico said.
Officials at the Bureau of Automotive Repair, the state agency that uncovered sales abuses at Sears two years ago, said the retailer informed them in October of the test, which includes five of the 72 auto centers in California. Jim Schonig, chief of the bureau, said Sears has significantly reformed its repair operations in California and that he has no objections to the incentive program.
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Ask a question, get 47 options: The Internal Revenue Service came under fire in Congress this week for apparent shortcomings in how it assists taxpayers with their returns.
A General Accounting Office study found that last year only 24% of calls to the IRS toll-free assistance line went through during the Jan. 2-April 24 tax filing season. In 1989, 58% of the calls went though. The GAO said people either received busy signals or hung up before an agent came on the line.
The IRS told the House Government Operations subcommittee on commerce, consumer and monetary affairs that despite a tight budget, it has installed additional phone equipment and extended office hours this tax season to improve its performance. Curious, we called the IRS’ help line ((800) TAX-1040) to check out the service.
We got a busy signal on three out of four tries. When we did get through, we entered a labyrinth of voice mail, spending 10 minutes listening to recorded messages and selecting options before we got help.
At first, a recorded greeting asked us to choose from among seven options. We punched 4 on a touch-tone phone for help with individual tax filings. A second recorded message asked us to choose from among nine options. We punched 1 to hear a prerecorded tape on a tax topic. A third recording then offered us 18 options. We punched 300 for general information. A fourth recorded message gave us 13 more options. We had reached the end.
That answered our question.
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Credit growth: In yet another sign that the national economy is improving, credit card receivables grew 15.8% in 1993, the biggest spurt in three years, a report out this week says.
Receivables are what consumers owe credit card issuers. A growth in receivables reflects a willingness on the part of consumers to take on debt.
The growth wasn’t spread evenly across the country. The report said that receivables fell 7% at both Bank of America and Wells Fargo Bank, indicating that Californians remained reluctant about credit card spending.
The report from Frederick, Md.-based RAM Research also indicated that some of the nation’s largest banks have lost market share to aggressive non-bank card issuers, such as AT&T; Universal Services, GM Card issuer Household Credit Services, and MBNA, a big issuer of affinity cards to members of specific groups such as unions or professional organizations. Citibank and Discover Card, a non-bank card, remained the two largest credit card issuers in 1993, while MBNA moved up to third place, shoving aside Chase Manhattan. Bank of America, Wells Fargo and NationsBank also slid in the rankings.
RAM Research President Robert B. McKinley said non-banks are gaining because they spend aggressively to promote their cards and are more innovative than many of their banking competitors. Household Credit, with its GM Card, was the first to allow consumers to earn rebates on a new car. AT&T; was the first to entice customers by offering no-fee-for-life to people who transferred balances from competing cards. “The banks haven’t lost the game, but they need to get more aggressive,” McKinley said.
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Odds and ends: No bats with burgers: The trade publication Brandweek reports that McDonald’s plans no tie-in with the upcoming “Batman 3” movie. The fast-food chain was criticized for distributing toys based on the violent PG-13-rated film “Batman Returns.” . . . Mixed message: The Calvin Klein fragrances, known for their steamy advertising images, will soon include a unisex perfume, according to Women’s Wear Daily.
