Author Topic: Sears Loss/Wants To Sell Service Agreement Unit  (Read 5090 times)

Offline wildimaginations

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #10 on: May 28, 2013, 09:24:24 PM »
They will go either negotiate their creditors for extra time, reduced payments or balances or just straight into bankruptcy. 
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Offline LowSL2

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #11 on: May 29, 2013, 04:21:45 PM »
They will lay off all the techs and contract with independents to run calls. They'll save money. And the stockholders will love it. They're already doing it in the bay area.

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Offline andersenappliance

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #12 on: May 29, 2013, 06:11:27 PM »
Going with independent contractors...? 

That is interesting.  Just after I decided to go into appliance repair (after 2008 collapse) I heard that Sears was laying off appliance salespeople and hiring repair techs.  Matter of fact, I went to one of their hiring meets in the Bay Area.  They were interviewing quite a few people, and there were quite a few of these events scheduled around the bay.

Everyone got interviewed, but the ones that didn't pass the test got a brush-off interview by HR Drones.  There were two tests: One was personality - pretty obvious questions to see if you'd play nice with others.  "T/F? I sometimes speak without thinking when angry or irritated."  "It is ok to steal from your employer when they: A) Make you mad.  B) Have lots of stuff.  C) Change your schedule.  D) It is never ok to steal from your employer.

The electrical test had questions about using a voltmeter and which side of the socket should be the common.  I don't remember much else about it, but it was pretty basic.  They promised training.  I got a real interview, but I never got a call back because (I think) they did not like the fact that my appliance repair experience was in my own business.  She asked if I'd keep trying to get my own customers while working for them, and I said no, I was tired of getting my own customers...that's why I was talking to them now.  I don't think she bought it.  I was more interested in any training they'd offer, but I never found out what that'd be.

Anyway, it is a bit strange that they'd go on a hiring binge, then turn around an go the other way.  But I hear the company is basically owned by a hedge fund.  Those don't look much beyond the next quarter's forecasts from what I hear.  The one that owned Mervyn's loaded it up with debt, transferred the real estate assets to another entity, paid fat distributions to the stockholders and let it go into bankruptcy.  Doesn't seem that'd be legal to me, but maybe high finance is very close to three-card monte.  I some how doubt that one can get too much money by being scrupulously honest and dealing fair with everybody.

I can't see how Sears can do the contracting with independents on that scale.  They'd still need their scheduling infrastructure, and that doesn't seem to be working too well at the moment.  Would independents want their name involved with that level of service? The only cost savings I can see would be in the employee related costs for techs, and in the cutting out of the service managers.  Are independents going to fix Sears stuff for $14-17/hr?  Would they even do it for $40/hour with out the parts margin?  Seems sketchy to me. 

But then again, I'm not a hedge fund.  I am independent, though, and I am not likely to entertain offers from the big boys to jump through their hoops, play their games, get paid their prices, and worry about keeping them happy, all while paying for my own insurance, retirements, vehicles, computers, bookkeeping, and advertising.

I'd just as soon they'd go bust.

Offline niobrara

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #13 on: May 29, 2013, 07:08:47 PM »
If the sell there warranty operations I don't understand how there going to handle the service unless they let whomever buys the warranty side , contract there techs thru Sears. I have a lot of friends that work there and I'm a little worried about them. And yes they are owned by a Hedge Fund . And I think we all know why they buy company's.

Offline AJ

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #14 on: May 29, 2013, 08:34:23 PM »
I think it's just all talk. They will never sell it.
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Offline niobrara

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #15 on: May 29, 2013, 08:39:19 PM »
I would seem to be the only thing that makes them much money anymore. Hope your right AJ.

Offline andersenappliance

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #16 on: May 30, 2013, 10:34:46 AM »
The service side could be very lucrative.  They get a boatload of money from selling extended warranties, though with the drop in quality, perhaps that is not true any longer.  They also get an inside line on selling new appliances to their customers. 

But I get the impression that hedge funds don't do so well in businesses that sell predominantly services.  they don't seem to have a feel for personal interaction.

I'm sure the techs will be ok, even if they have to go through a job search.  There will still be that many appliances out there needing to be fixed, and the skills do transfer to other areas.



 

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