2013 Lowe's Store Staffing Changes

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LOC2013

Kent, OH

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#162
Dec 19, 2012
 

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captain_morgan02 wrote:
<quoted text>
How? That just sounds like a big number for ASM cut backs only. Not saying I doubt the idea overall, just the number.
Do the math, average of 2 asm's x the total number of stores x average annual asm income. To clarify, asm position not being eliminated. Simply reducing the number per store which is why dept managers continue to be given additional responsibilities. This is not a negative, will make the company more financially efficient.
partofthesolutio n

United States

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#163
Dec 19, 2012
 
LOC2013 wrote:
<quoted text>
Do the math, average of 2 asm's x the total number of stores x average annual asm income. To clarify, asm position not being eliminated. Simply reducing the number per store which is why dept managers continue to be given additional responsibilities. This is not a negative, will make the company more financially efficient.
The number does sound a lil inflated only because a lot of stores only have 4 asm's. Remove 2 per those stores and it only leaves 2. The math would put avg salary at 50k, which I guess is right, but probably only half the stores have 5 asms. And if there is basically another cut, what will this one be based on?
zal front load

Derby, NY

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#164
Dec 19, 2012
 

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never quite understood the rationale behind stealing the vendor spiffs. Not only is it shaky on ethical grounds..(like principles even matter anymore) but seems a tad stupid from a business plan. If i ran a business i would love to have a 3rd party supplement my sales staffs productivity with additional income. There is no denying that ones performance improves when they have stake in the game. We have a real world effect on the bottom line and yet they are oblivious to this fact. Case in point...i know a sales associate who has always had very good numbers including EPP's. Despite losing a good portion of income they remained productive,.....maybe 98% of what they did last year. After getting passed up for a specialist position (even with their DM and ASM goint to bat for them ) they now have taken a stand and are selling less, especially EPPs. Encouraging customers to download 10% coupons and even did a price match that while was legitimate could have been overcome with a little extra salesmanship. Some on here will call it sour grapes and say that associate is in the wrong....i say regardless if its right or wrong its to be expected when people are taken for granted. Even us CSA's are being asked to do more. Its insane to ask someone paid $10-12/hr to perform the same level as someone making 35% more. When people see that working your butt off gets you nowhere at Lowes it unfortunately makes it unrealistic to give 110% when you are paid the same giving much less.
nedm

Pembroke, MA

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#165
Dec 19, 2012
 
"If i ran a business i would love to have a 3rd party supplement my sales staffs productivity with additional income."

Yeah the chain liked it but if higher sales happened with home depot which has never had commissions then why pay them to lowes?

Commissions might have made sense if it was an exclusive product line and brand. But now it's hardly anything anymore due to the massive amounts of competition.

If someone wants to sell and make commissions by all means check out selling cars or get into real estate. It is more money and is more viable in the long term.
Business 101

Mooresville, NC

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#166
Dec 19, 2012
 

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nedm wrote:
Brad again it would not make sense for any retailer to add commissions in the market today.
I would argue maybe the only one that could get away with this might be Menards and I say that only because they are private and the family that runs it is weirder than charles manson and his "family"
Absolutely. No retailer would want to add an incentive to drive and increase sales. It's just bad business to look for professional sales people who can increase the bottom line. Just ask any car dealer.

Since: Nov 12

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#167
Dec 19, 2012
 

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Business 101 wrote:
<quoted text>
Absolutely. No retailer would want to add an incentive to drive and increase sales. It's just bad business to look for professional sales people who can increase the bottom line. Just ask any car dealer.
Couldn't have said it better myself! Keep in mind that you're responding to a black hole though that sucks in other people's opinions and sees them as an opening to rinse and repeat the same tired comments. Someone who has never worked on an incentive basis or owned a business. I used to reward my kids when they were small for chores. The faster and higher quality job they did earned higher rewards. Worked like a charm and instilled incentive.
Whickerbill

Pikeville, NC

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#168
Dec 19, 2012
 
partofthesolution wrote:
<quoted text>
The number does sound a lil inflated only because a lot of stores only have 4 asm's. Remove 2 per those stores and it only leaves 2. The math would put avg salary at 50k, which I guess is right, but probably only half the stores have 5 asms. And if there is basically another cut, what will this one be based on?
Corporate greed and propping up the bottom line for another quarter, as usual. The excuse, however, will be something else.
captain_morgan02

Matthews, NC

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#169
Dec 19, 2012
 

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LOC2013 wrote:
<quoted text>Do the math, average of 2 asm's x the total number of stores x average annual asm income. To clarify, asm position not being eliminated. Simply reducing the number per store which is why dept managers continue to be given additional responsibilities. This is not a negative, will make the company more financially efficient.
My mistake! Lol. I saw it as 178billion instead of million. That's where I got confused. Your math seems about right.
I think this surely going to happen.
DMxMD

Shawnee, KS

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#170
Dec 19, 2012
 

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captain_morgan02 wrote:
<quoted text>
My mistake! Lol. I saw it as 178billion instead of million. That's where I got confused. Your math seems about right.
I think this surely going to happen.
You guys are hilarious, jumping on the band wagon with Alvarez. No one has a shred of evidence that anything like this is true. It's literally made up. DMs are not really getting more responsability. They're being asked to actually run their departments. Yes, they gave DMs a key, but its an 8 core only, then the policies have changed to restrict what they can do with that key to almost nothing except unlock OPE. DMs are gaining more responsibility, but only because they are asking ASMs to run the whole store only. They don't want us setting bays in seasonal. The development piece is just about getting DMs to where they can think for themselves and maybe make a plan. Why in the world do you think they would just ax ASMs when DMs are not even at the level they need to be for their departments, let alone able to be MODs on top of it. It's just crazy talk. Then there's the other point I've made before. If they were going to make ASM cuts, they wouldn't be filling positions of those ASMs promoted into SMTP. They would just have those SMTP grads go back to their store and wait on the bench there. No one would ask any questions or think anything of it.

If you really think about it, absolutely nothing but rumors on this site is giving any indication of cuts to ASMs, or ANY positions for that matter.
More staffing changes

Schnecksville, PA

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#171
Dec 20, 2012
 

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DMxMD wrote:
<quoted text>
You guys are hilarious, jumping on the band wagon with Alvarez. No one has a shred of evidence that anything like this is true. It's literally made up. DMs are not really getting more responsability. They're being asked to actually run their departments. Yes, they gave DMs a key, but its an 8 core only, then the policies have changed to restrict what they can do with that key to almost nothing except unlock OPE. DMs are gaining more responsibility, but only because they are asking ASMs to run the whole store only. They don't want us setting bays in seasonal. The development piece is just about getting DMs to where they can think for themselves and maybe make a plan. Why in the world do you think they would just ax ASMs when DMs are not even at the level they need to be for their departments, let alone able to be MODs on top of it. It's just crazy talk. Then there's the other point I've made before. If they were going to make ASM cuts, they wouldn't be filling positions of those ASMs promoted into SMTP. They would just have those SMTP grads go back to their store and wait on the bench there. No one would ask any questions or think anything of it.
If you really think about it, absolutely nothing but rumors on this site is giving any indication of cuts to ASMs, or ANY positions for that matter.
This just in ...
New ASM base salary will be a maximum of 35k per year. Take it or leave it. You read it here first
End of the world

Schnecksville, PA

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#172
Dec 20, 2012
 

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DMxMD wrote:
<quoted text>
You guys are hilarious, jumping on the band wagon with Alvarez. No one has a shred of evidence that anything like this is true. It's literally made up. DMs are not really getting more responsability. They're being asked to actually run their departments. Yes, they gave DMs a key, but its an 8 core only, then the policies have changed to restrict what they can do with that key to almost nothing except unlock OPE. DMs are gaining more responsibility, but only because they are asking ASMs to run the whole store only. They don't want us setting bays in seasonal. The development piece is just about getting DMs to where they can think for themselves and maybe make a plan. Why in the world do you think they would just ax ASMs when DMs are not even at the level they need to be for their departments, let alone able to be MODs on top of it. It's just crazy talk. Then there's the other point I've made before. If they were going to make ASM cuts, they wouldn't be filling positions of those ASMs promoted into SMTP. They would just have those SMTP grads go back to their store and wait on the bench there. No one would ask any questions or think anything of it.
If you really think about it, absolutely nothing but rumors on this site is giving any indication of cuts to ASMs, or ANY positions for that matter.
Your problem is that you think that Lowe's corporate thinks like you do. That they have the ability to think through the unintended consequences of their actions. Just look at Lowe's past history of upheaval due to rolling out changes that are obviously not well thought out and result in many calamities, example: LEF, any IT project you can think of, etc.
nedm

Pembroke, MA

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#173
Dec 20, 2012
 

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Well think about this for a moment.

IF corporate axes the 700 or so Sm's and 700 ASM's move up to SM's maybe this isn't so much laying off ASM's at all

There would be less ASM's simply because of how many will get promoted.

Just like remember when the ASM position was announced and it appeared that zm, ops, admin and sales were gone? In reality not everyone was let go, many were rehired as asm's
nedm

Pembroke, MA

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#175
Dec 20, 2012
 

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"Absolutely. No retailer would want to add an incentive to drive and increase sales. It's just bad business to look for professional sales people who can increase the bottom line. Just ask any car dealer."

Huh? But if everyone can sell then what is the point and who specifically would pay for this and why?

Think about it for a moment. Let's say GE sells a fridge

Lowes price $599

Depot price $599

If GE paid $30 to someone selling a fridge at lowes that LOWERS their profit. So why do that if you can sell it at depot for $599?

Volume? Well profit is more important to hd given that hd supply was spun off.

Besides how high is a profit margin to actually pay commissions? Some products have little margin and thus makes it much harder to cut prices. Tools for example are not high margin. Hardware is but frankly does anyone *really* need a salesman to sell them nuts and bolts?

I'm sorry but hardly any retailers are paying commission these days. There's HH Gregg but they've done so poorly since expanding like crazy that they've hit the ground.(7.50 down from over 20 a few years ago...66% decline).

Again if you want to sell things by all means sell cars, sell tires heck sell avon and mary kay. But if you think selling appliances that have 15% margin really should have commissions you need to look at the whole industry.

Maybe look at jewelry because the margin is there. Creative and customized products can have higher margins rather than a standardized slap of stuff off of an assembly plant.
Randy Travis

Schnecksville, PA

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#176
Dec 20, 2012
 
Does anybody know what time the bar opens round here?
DMxMD

United States

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#177
Dec 20, 2012
 

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nedm wrote:
"Absolutely. No retailer would want to add an incentive to drive and increase sales. It's just bad business to look for professional sales people who can increase the bottom line. Just ask any car dealer."
Huh? But if everyone can sell then what is the point and who specifically would pay for this and why?
Think about it for a moment. Let's say GE sells a fridge
Lowes price $599
Depot price $599
If GE paid $30 to someone selling a fridge at lowes that LOWERS their profit. So why do that if you can sell it at depot for $599?
Volume? Well profit is more important to hd given that hd supply was spun off.
Besides how high is a profit margin to actually pay commissions? Some products have little margin and thus makes it much harder to cut prices. Tools for example are not high margin. Hardware is but frankly does anyone *really* need a salesman to sell them nuts and bolts?
I'm sorry but hardly any retailers are paying commission these days. There's HH Gregg but they've done so poorly since expanding like crazy that they've hit the ground.(7.50 down from over 20 a few years ago...66% decline).
Again if you want to sell things by all means sell cars, sell tires heck sell avon and mary kay. But if you think selling appliances that have 15% margin really should have commissions you need to look at the whole industry.
Maybe look at jewelry because the margin is there. Creative and customized products can have higher margins rather than a standardized slap of stuff off of an assembly plant.
If anyone thinks lowes didn't indirectly pay for SPIFFS then they are not thinking it through. Lowes paid for them through higher costs, higher shipping, more restrictive policies on credit for damaged product, less wiggle room to negotiate large buys for promotions, higher prices for replacement parts, etc.

All the company did to the vendors was say, Look, you are done nickel and diming us to death in order to finance spiffs that in no way benefit our business, but only serve to create unnecessary incentives to sell one brand or item over another. Instead, we're keeping that money. Therefore, you can keep paying it to us for no reason, OR, we can renegotiate these contracts and take a look at what matters to US, the over all cost.

The mistake was ever allowing spiffs in the first place.
LOC2013

Kent, OH

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#178
Dec 20, 2012
 

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@DMxMD

Bottom line, the company does NOT need the number of asm's in the stores that they currently have in place. By the way, our DM's have the same key as asm's. Their duties are being consolidated, it's called streamlining. The company is not going to ignore the significant savings in labor dollars.

And they shouldn't, we need to be more profitable and invest capitol so we are positioned to be more competitive.
partofthesolutio n

United States

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#179
Dec 20, 2012
 
LOC2013 wrote:
@DMxMD
Bottom line, the company does NOT need the number of asm's in the stores that they currently have in place. By the way, our DM's have the same key as asm's. Their duties are being consolidated, it's called streamlining. The company is not going to ignore the significant savings in labor dollars.
And they shouldn't, we need to be more profitable and invest capitol so we are positioned to be more competitive.
Actually, the keys the dms have are not masters. They won't open receiving locks, oslg gates, certain offices, etc... I agree that there is payroll to be saved at the asm level, but I don't believe the dms have been trained, and in some cases, are capable of handling some of the daily issues occurring in most stores these days.
partofthesolutio n

United States

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#180
Dec 20, 2012
 
partofthesolution wrote:
<quoted text>
Actually, the keys the dms have are not masters. They won't open receiving locks, oslg gates, certain offices, etc... I agree that there is payroll to be saved at the asm level, but I don't believe the dms have been trained, and in some cases, are capable of handling some of the daily issues occurring in most stores these days.
The keys will open the main entrances/exits, but policy states you can't let yourself in, so what besides unlocking ope can the dms do that's so helpful.
DMxMD

United States

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#181
Dec 20, 2012
 

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partofthesolution wrote:
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The keys will open the main entrances/exits, but policy states you can't let yourself in, so what besides unlocking ope can the dms do that's so helpful.
Nothing.

Not to mention, for every one new thing they have added to DMs plate, they've added 5 to the ASMs. I still say there is no realistic way to cut ASMs except possibly in the lowest volume stores or the highest volume, and even then unlikely.

You idiots think management doesn't do anything because you've never done it, or maybe used to in another life, but have no idea what lowes asks of us now. You have no idea how much is on our plates.

If they really wanted to reduce salaried payroll, don't you think they would start with bonus reduction or start new ASMs at lower salaries? They could get the same hours even paying less. They know that, but they haven't done it because they obviously DO NOT plan on reducing ASMs and they keep the pay right in line with Depot.

Absolutely no evidence of this has ever been cited. Alvarez literally made it up people.
LOC2013

Kent, OH

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#182
Dec 20, 2012
 

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Obviously, this prospect is very unsettling to you (asm) DMxMD. First of all, you are making the assumption that the company always makes logical decisions, it does not. Also, you greatly underestimate the qualifications and abilities of many of the dm's!
Many were hired in as managers and possess solid experience, business degrees, and keen business acumen! You have demonstrated for everyone on this thread that you lack the professionalism to engage in dialogue without resorting to name calling and personally attacking other points of view.
You personify what happens when people are promoted to positions from within that do not possess the education, experience, professionalism, and innate leadership abilities to be in the position of an asm.
Also, you keep referring to this Alvarez, I'm not Alvarez, I have not made anything up. Continued cost cutting in 2013 is a necessary inevitability, labor is the biggest controllable expense. Finally, the number of asm's per store can be reduced, save the company millions, and the stores won't miss a beat. My final comment on this subject is, be prepared for the upcoming changes, LEF.

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