Archived Reseller ban

[Kompa]

What attachments are you guys even selling with the iPads, Everything comes in the box

 

[commiecorvus]

What attachments are you guys even selling with the iPads, Everything comes in the box

Oh but don't you wan't this pretty protective case, the protection plan, and the car adapter so you'll be able to use it while driving?

 

[The Dude Abides]

The directive came down today from corporate. We no longer accept reseller tax exempt IDs and we are no longer to sell them to known resellers or those with lots of discounts.

The issue is, Target sells that stuff at a loss to get guests in the store to buy other stuff. Instead of a guest coming in and buying an iPad at a loss and then buying another $75 worth of clothing or whatever, we end up with a loss leader that isn't leading to any other sales.

Target isn't so concerned about the sales dollars on this stuff as they are with making a profit.

So we'll see.

Is this on workbench anywhere?

My store has been having issues with resellers for a long time and they always have a long list of shady discounts they use on low profit margin items which I am sure it costing Target a fortune since we are selling these items below cost.

 

[Retail Girl]

Is this on workbench anywhere?

My store has been having issues with resellers for a long time and they always have a long list of shady discounts they use on low profit margin items which I am sure it costing Target a fortune since we are selling these items below cost.

I will see if I can figure out where the memo came from when I go into work.

 

[Retail Girl]

How can the stores not accept the tax exempt ID.
If the state issues the ID then the store has to accept it.
Unless you have some magic way of proving it's fake, or called the state and checked, I don't see how you can legally do this.

They can legally do this because they won't be doing the purchase at all. Even if the seller were to say, "screw it, I'll just pay the sales tax," we are still to decline the transaction.

Also, my tax lawyer Google is telling me that businesses don't need to honor a reseller certificate just because they are presented and that the business requesting the tax exempt status would need to contact that state's comptroller to get the money back.

 

[Streetdate]

I am actually somewhat happy about this as resellers typically only come in on gift card promos. But my store had already basically shut the resellers in our area down when they come in. My ETL AP basically told us to call GSA or AP if presented with a reseller. Good way to go about the reasoning why for the guest is, "I haven't processed one of these in a while and so I just want them to refresh my memory." Granted resellers in my area are typically sketchy so.

 

[allaboutspeed]

The directive came down today from corporate. We no longer accept reseller tax exempt IDs and we are no longer to sell them to known resellers or those with lots of discounts.

The issue is, Target sells that stuff at a loss to get guests in the store to buy other stuff. Instead of a guest coming in and buying an iPad at a loss and then buying another $75 worth of clothing or whatever, we end up with a loss leader that isn't leading to any other sales.

Target isn't so concerned about the sales dollars on this stuff as they are with making a profit.

So we'll see.

The email I read said it went against policy with Apple when using the tax exempt forms. I don't remember exactly how but I'll have to check again on Thursday.

 

[Retail Girl]

The email I read said it went against policy with Apple when using the tax exempt forms. I don't remember exactly how but I'll have to check again on Thursday.

I do remember it saying that it is against our contract with Apple to sell the iPads to schools for distribution to students.

 

[dani346]

is anyone else's store limiting coupons? my gsa told me we're gonna start limiting coupons to 4. i think it's if a guest is buying 20 shampoos they can only use 4 coupons for them. and she said that's for the whole day, not just transaction. i don't think she meant 4 coupons total because that doesn't seem right if it's just a normal person trying to use coupons for their everyday items. i think it just applys to extreme couponers.

 

[PassinTime]

is anyone else's store limiting coupons? my gsa told me we're gonna start limiting coupons to 4. i think it's if a guest is buying 20 shampoos they can only use 4 coupons for them. and she said that's for the whole day, not just transaction. i don't think she meant 4 coupons total because that doesn't seem right if it's just a normal person trying to use coupons for their everyday items. i think it just applys to extreme couponers.

My store limits both coupons and quantities to 4. Limit 4 like coupons and limit 4 of the same item. STL figures that 4 of the same item is what the 'average' family would use, and it ensures that there is sufficient product available for all guests. No wiped out shelves so hopefully no ticked off guests.

 

[thetargetman]

I don't know... I never heard of this and it seems pretty hypocritical of corporate to say "say yes to the guest" but than we limit quantities, and tax exempt forms.

 

[Lazy]

Here's my idea: instead of banning resellers altogether, they should just be limited to Saturday nights and required to purchase multiple attachments per unit. If they can only buy the items on Saturday night, then guests have almost the entire week to buy them while they're on sale. And if the resellers get attachments, AAR is boosted and Spot doesn't lose as much money on the sales (because the profits come from accessories, not the core units; hence AAR).

thats whats done at my store. they come in on the last day and buy with attachments.

 

[Flabbergasted]

I don't know... I never heard of this and it seems pretty hypocritical of corporate to say "say yes to the guest" but than we limit quantities, and tax exempt forms.

As you can see, saying "yes to the guest" simply means allowing the coupon-frauding, sticker-swapping, loud-mouthed, lying and idiotic 'guests' who return items completely used a year after purchase to continue to swindle the company, while those actually helping our sales like honest guests and resellers dropping several grand at once are cast aside. Just another brilliant idea from the folks at Target, a soon-to-be bankrupt company thanks to sound business practices like this.

 

[commiecorvus]

You know the first time a store is hitting the end of the month without hitting plan and a reseller walks in willing to plunk down twenty grand the rules are going to be out the door.

 

[PassinTime]

I don't know... I never heard of this and it seems pretty hypocritical of corporate to say "say yes to the guest" but than we limit quantities, and tax exempt forms.

Actually it makes a lot if sense. Corporate's goal is to be profitable. Profitable so as to enrich the corporate leaders and stockholders pockets. That means making a profit on each item sold. Letting a reseller get 'dibs' on multiple loss leaders does not enrich their pockets. Also, a guest who can't even get their hands on one of those loss leaders may not buy anything else on that shopping trip, and may decide not to shop at Target anymore.

Also, keep in mind that Corporate's goal to have profitable sales is not the same as each store's goal of achieving the highest sales volume that it can. A store could sell 10,000 of a high end loss leader, but at the end of the day Target just lost money. Target loses too much money, Target goes out of business.

 

[Spitfire]

I haven't heard anything about this. If you have any information about this please chime in, but none of my fellow TLs, ETLs or STL received any kind of direction about this.

My policy for retailers for core items is limiting them to 2 items per category (iPads/cameras/video game consoles) and stipulating that they need 2 attachments per core item. If they're buying accessories alone (blurays, games, SD cards) then I leave it up to my team's discretion at what to limit them to ensure there are still enough for guests who'd want to buy them. Also, no reseller is allowed to use any kind of coupon (manufacturer, Cartwheel, shady 10% off everything Post Office coupon) PassinTime's post above mine hits the nail on the head; it's about profitability and our guests.

 

[Bullseyes]

one of the resellers that comes through our store routinely drops $10,000 (US). There is no store that is going to let that sale get away from them.

My store would. We limit anywhere depending on the item and how in demand it is. Anywhere from 1-4. My stl sees it as being in stock for our guests who are loyal to us. (Mostly because when we are hit when the items are on a high value promotion you'll sell them all anyways)

We have mom and pop stores come in (they can get it tax free if the stock is for their store) when we have gift card promos and the get pissed.

We also only let people buy 4 lilly p. Items a piece soooo we don't care haha

 

[Hardlinesmaster]

Of course, we have to put up proper signing for everyone to see, to say that.

 

[Retail Girl]

Go onto workbench and type in reseller.

The link that comes up says effective as of 3/15 talks about it.

"Spot does not accept resale IDs for tax exempt"
"Guests who ask about special discounts should shove it."
"Bulk purchases by resellers are not accepted in stores or online."

 

[redeye58]

"Spot does not accept resale IDs for tax exempt"
"Guests who ask about special discounts should shove it."
"Bulk purchases by resellers are not accepted in stores or online."

LOVE the second one....

 

[Retail Girl]

LOVE the second one....

Well, it might not be in those exact words. ;-)

 

[Sushi2Go]

We actually refused to accept resellers since a year and half ago. I forgot from whom exactly but I believe it was the Group TL. One thing I did notice is that our attach rates went from red/yellow to green consistently.

Also, I was told that when we sell attachments to resellers, and they decide to return it at another store. It deducts the attachment from the original store it was purchased. Has anyone heard of this or know if it's true?

 

[Spitfire]

We actually refused to accept resellers since a year and half ago. I forgot from whom exactly but I believe it was the Group TL. One thing I did notice is that our attach rates went from red/yellow to green consistently.

Also, I was told that when we sell attachments to resellers, and they decide to return it at another store. It deducts the attachment from the original store it was purchased. Has anyone heard of this or know if it's true?

Not true. Workbench (although I forget on which page specifically) specifies that returns don't affect AAR.

Go onto workbench and type in reseller.

The link that comes up says effective as of 3/15 talks about it.

I'm definitely going to look this up! My team's AAR will take a hit though :/ and even though it's not a major metric anymore, my ETL is set on having a green store in every aspect.

 

[Jeremy]

The problem ive had with resellers is they try to use a copy of pharmacy 5% off card. That is coupon fraud, and which they are counted as pmrs of several thousand dollars.

 

[The Dude Abides]

The problem ive had with resellers is they try to use a copy of pharmacy 5% off card. That is coupon fraud, and which they are counted as pmrs of several thousand dollars.

Same at our store and they also always have a new home coupon for 10% off their entire purchase.