• Report: #79409

Complaint Review: Radio Shack

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  • Submitted: Thu, February 05, 2004
  • Updated: Wed, January 18, 2012

  • Reported By:Philadelphia Pennsylvania
Radio Shack
2327 Cottman Ave Phila., Pa. 19149 Philadelphia, Pennsylvania U.S.A.

Radio Shack Insurance ripoff Philadelphia Pennsylvania

*Consumer Comment: I will never again get a cell phone threw radio shack they refused to answer my attorney general complaint they made me purchase insurance if a problem with a cell phone they refused to give me a new

*General Comment: A Look Into Telecommunication Sales

*UPDATE Employee: Check with Sprint

*UPDATE EX-employee responds: That happens all the time...but let me try and help

*UPDATE EX-employee responds: They didn't sell you insurance

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Radio Shack Insurance RIPOFF

My wife and I purchased a Video Samsung cellphone for our 14 yr old daughter for Christmas, my wife and I stated several times we wanted the same type of insurance we had with ATT&T..."LOST or STOLEN" Insurance as she was only 14 yrs old.

We were with the salesman for approx 45 min, picking out the phone, and doing the paperwork, as he was trying to sell us add-on phones, accessories, airtime, etc (commission minded) my wife informed him again on the type of insurance we wanted,"LOST or STOLEN" insurance.

We left with the phone, activation, pretty happy customers. A month later her phone was stolen from school. I called Radio Shack to see how I went about getting a new phone. They told me I wasn't covered, that I had bought "their" insurance which covered repairs and batteries.

I called the home office, the district manager, the Regional Manager, and the store manager, and the Salesperson himself who didn't even recognize us. They said it would cost me $117.00 to get another phone with the insurance we were supposed to have it would have been $35.00 (Radio Shack told me $50.00) which we just found out ,which I said I would pay...BUT they want $117.00. The salesperson never mentioned radio shack insurance.

I filed a complaint with the BBB and we are awaiting word from them, So beware. They do get a commission from selling "their" RadioShack insurance on our receipt it says 1 24 In Warranty CARRY 1 $49.99 (Sprint Replacement insurance is $48.00).

Joe
Philadelphia, Pennsylvania
U.S.A.

This report was posted on Ripoff Report on 02/05/2004 08:40 PM and is a permanent record located here: http://www.ripoffreport.com/r/Radio-Shack/Philadelphia-Pennsylvania-19149/Radio-Shack-Insurance-ripoff-Philadelphia-Pennsylvania-79409. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 5Consumer 0Employee/Owner
Updates & Rebuttals
Radio shack refused to replace my phone with the insurance they made me purchase.  I will never again get another cell phone threw radio shack & they ignored my attorney general complaint.
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#2 General Comment

A Look Into Telecommunication Sales

AUTHOR: BluntTruthTeller - (USA)

The majority of sales people in this industry are not "commission-minded," they are "I want to keep my job-mind." Just like any other profession, the employer trains the employee to be the best and most ideal candidate for their intended position.

Actuaries are trained to factor in all of the details of one's medical history. Cashiers are trained to ask customers if they need ice or stamps. Bankers are trained to assure that the client has all of the accounts they desire set up (checking, savings, business, etc.). Telecommunication workers are trained to pitch any and all products and services no matter how bored and overwhelmed the customer feels.

I used to work for one of the largest cell phone companies in America and would become so frustrated with the way upper-management required us to sell. Our talk-tracks had to include all basic features as well as add-ons and if you didn't mention something, it was a write-up.

I recently lost my job because I decided that I didn't want to throw everything at my customers and lose the rapport that took so long to build up with them, because I noticed that the pushiness was greatly effecting them. No one wants to buy from a pushy sales person, whether it's cars, houses, shoes or salsa, and these big companies just don't understand that.

I would hear managers and vice presidents talk all day long about how they went into this place or that place and were bull rushed by the sales associate and never left alone for one second the whole time they were in there. Then after their lunch break was over they would come onto the sales floor and push us to stay on the customer at all times and to try and discretely place all products and services into our conversation with the customer, even if the customer was just browsing to pass the time. 

Being in sales isn't all candy and rainbows, and it is most definitely not all about getting the next big sale. The fact of the matter is: if you don't mention eight-ten products to the customer, even if that customer has made it very clear from the start that they just want what they came for and nothing else, it's your job on the line.

A lot of companies use a "Six-Step Selling Process:" (1) Greet and approach; (2) Build Value; (3) Offer Solutions; (4) Gain Agreement; (5) Educate and finally (6) Thank and Depart. More recently certain companies have decided to apply to this process what they refer to as "The Five Key Behaviors:" (1) Warm and friendly greeting with handshake; (2) Use the customer's name throughout the sale; (3) Give your undivided attention; (4) Positive attitude and then (5) Walk customer to the door, thank for their business and ask for referrals. It's hard for a sales person to maintain a positive attitude and give the customer their undivided attention though when their managers are breathing over their shoulders and whispering in their ears about what they need to pitch next and what they forgot to talk about.

Every person takes pride in their jobs and the way that they are taught to do them, so the next time you walk into a retailer of any sales category, be mindful of the fact that they are just doing their job, not necessarily because they are commission-based employees but because their job depends on them being pushy with you and telling you about literally anything and everything they have to offer.

The following is a list of just a "few" things that telecommunication sales associates are forced to pitch to each and every customer, no matter what the customer's needs and desires are:

Voice plans, text messaging, data, roadside assistance, navigation, insurance, warranties, mobile tracking, mobile tv, mobile radio, technical support, long distance voice, international roaming, paperless billing, online account management, wireless sync, wireless backup microcells, tablets, aircards, mobile hotspots, smart phones, upgrades, add-a-lines, rate plan up-sells, combined billing, corporate discounts, prepaid plans, recycling old devices, donate to activate, family plan merge, cases, car chargers, bluetooth, screen protectors, desktop docks, car mounts, extended batteries, portable chargers, headphones, wireless speakers, computer adapters, memory cards, app center gift cards, speaker docks, HDMI adapters, media remotes and so very much more.
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#3 UPDATE Employee

Check with Sprint

AUTHOR: RadShackEmployee007 - (United States of America)

As an employee I would like to apologize, But I'd also like to ad we get commisioned on either warranty about the same, Cell spiffs for us are huge, so that greedy little pr*ck shouldn't have tried to get the extra dollar out of you. He'd have got almost as much by selling you the actual service you wanted.
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#4 UPDATE EX-employee responds

That happens all the time...but let me try and help

AUTHOR: Jennifer - (U.S.A.)

I am ex-employee of the Shack and I can tell you that what happened to you is a common practice in that district. It is actually encouraged by the company. When your Sprint Phone was being rung up there is a box that can be checked off to let you add the warrenty for 4.95 a month. Then if anything happens it would be 35 dollars to replace the phone. Keep in mind if you had this warrenty it would come from Sprint,not Radio Shack. You then would contact Sprint and in 3 business days they would send you a replacment phone.

Here's what I sugest. First, if you have a copy of the original paperwork look to see if the equiptment replacement plan was added. You can also look on your bill(it will show as an extra 4.95 and say Equiptment replacement). If it's on there and somehow Sprint doesn't see that then you are safe, you have proof. If it is not call the district office and ask for Anthony Bowman,he is the DM in that area. If you get no satisfaction there ask for Mark Clark, he is the RM. If that fails call customer service and demand a reply in 24hours. Trust me, the more you bitch the better they'll respond.

As far as getting anything from Sprint right now, forget it they will not budge. Your best bet is bugging the crap out of the DM and second is trying to add the warrenty later.

If I can be of any more help you can feel free to email me at jenniferconrad@msn.com
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#5 UPDATE EX-employee responds

They didn't sell you insurance

AUTHOR: James - (U.S.A.)

You have my sympathy. You asked SPECIFICALLY for one thing - Equipment Replacement Coverage. You would have paid $3.99 per month and if the phone was lost, damaged or stolen you would have been required to pay a $35-50 deductible (depends on region).

What you were sold is an ESO - an Extended Service Option. It is _NOT_ insurance. It would pay to replace your battery or to have your phone repaired AFTER the original manufacturer's warranty expired. It would have also paid to replace accessories (cigarette lighter adapter, case, etc.) recieved at time of handset purchase.

The sales associate did you a serious disservice. He sold you the ESO because he recieved a 10% commission (actually a spiff) on it. The ERC (sold through Sprint) would have netted him nothing.

Frankly, I don't see how a replacement handset would cost you $117. I KNOW that Samsung videophones are priced more around $250 or so. Might you be talking about a CAMERAphone? That price might be more in line. Either that, or they were going to sell you a refurbished handset, which is:

A. disingenuous, and,
B. To be avoided at all costs.

Good luck.
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