Timmothy Posey

Circuit City's Potential Buyers Offer Hope for Sirius Investors

The problem with CC is that they have a flawed business model. Don't forget about 2 years ago when they fired all of their sales employees, only to hire brand new ones at about half the wages. Of course now with no incentive to do well (including the removal of sales commissions), the new employees floundered about the store and didn't help anyone. Sales dropped. Oddly enough, they also allowed those former employees to re-apply for their new positions at a much lower hourly rate. Many of the former employees took to the airwaves and Internet (Slashdot and many other popular blogging sites) to organize a boycott against CC. Those 3,400 fired employees have pretty much brought down the entire company with a very successful boycott.

What's interesting to note is that CC usually has similar pricing to Best Buy (they even have a Price Match Guarantee), but is it any wonder why consumers flocked more to Best Buy rather than deal with turd-heads at Circuit City? Hint: It wasn't because people like the Best Buy blue colors.

Lesson of the story: You reap what you sow.

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