Apple's Retail Store Staff Compensation Criticized

[BC2009]

So if each employee brings in an average of $500,000 a year and take home $25,000 a year then that is roughly 5% of their total sales. Ya thats a little low. However, they could just increase the percentage to like 7% which would bring in roughly $35,000 a year for the employees. That would be a dramatic jump in pay. That is if they were being paid commission.

The assumption you are making is that the product is selling because that particular retail employee did something another could not. Apple sells products primarily because:

1) Engineers designed them well (software and hardware)
2) Marketing positioned them well in the competitive landscape
3) Retail policies and training trained the retail employees to follow Apple's retail methodology
4) Support policies and customer service policies have made customers feel secure buying from Apple

Certainly there are great retail sales people, but if the retail staff was highly skilled and irreplaceable and the primary reason for those sales then they would deserve a bigger chunk of the pie. So long as the primary marketable skills of the retail employees comes from Apple's internal training program then Apple is going to know they can replace an employee with another one if given the right training. This is called basic supply and demand. If good retail employees were in short supply then their value would increase.

It seems to me that skilled jobs like teachers should be getting paid far more than retail staff and they only start at $25,000 to $35,000 per year in many states (see http://www.teacherportal.com/teacher-salaries-by-state).

As long as Apple is paying more than the average retail shop for the same kind of work then they are being more than fair.

 

[fitshaced]

There is nothing wrong with applying social pressure this way.

It's not like this is the government dictating wages- these are independent journalists speaking out freely.

Well I agree and I wouldn't begrudge these people getting a 500% pay rise. People get paid what they get paid. The only times that bothers me is football players, politicians and bank ceo's etc getting wages that no-one can justify, ever!

But, these apple workers are actually adding to their own problem (if there is one) by joining Apple and accepting the wages on offer in the first place.

 

[BasilFawlty]

Did you read the article? Where in it did the NYT propose that the government should mandate pay raises based on company success? Stop trying to make this political. If you disagree with the NYT's perspective, that's your prerogative. But turning this political is a bit silly.

Absolutely - NYT never ever has any political agenda. Wink wink, nudge nudge, say no more.

 

[adamantpradeep]

Stop listening to media

Seriously Tim, stop listening/appeasing the media. It is a one way game which will only end in tragedy for Apple. It is precisely these kind of communist propaganda papers that destroyed so many good employers in the UK and stripped this country of the creators. Now they run screaming around for jobs let alone a pay raise.

O man.. Tim you think it is a small change in policy(appeasing the communist media).. but it will have a deadly impact to Apple. It is connected.

Re: the Retailers compensation, remember it is upto the retail employees to accept the raise or leave if dissatisfied, thats the way it works.

 

[kiljoy616]

If the Apple Store don't like their salaries, they are more than welcome to go work somewhere else.

Capitalism wins here.

That not capitalism not in our new economy, not that I care who is not making money. Capitalism with Government allowing the cronies type to flourish and companies given voting rights and even the ability to circumvent laws which we seem to be on the way too is in no way Capitalism for the masses but hey I never said life was fair.

----------

Because making ~$12.00 at a retail job is terrible.

Just bring back servitude lets not kid our selves no one here cares.

 

[Small White Car]

Good for him that he gets an easy sale from people like you. How often do you think that happens? Buying a car is a much bigger decision than buying a phone.

Exactly, a car is MUCH more important which is why I put in way more research time up front. A car salesman really can't do anything to counteract the hours of research I've done. I know what I'm going to buy well before I talk to a salesman.

But an electronics salesman? Sure, maybe they'll convince me to change my mind and buy something different. As you said, it's not as big of a purchase so I'm more willing to change my mind.

I'm agreeing with the folks who say "if you quit, Apple can replace you with dozens of other people." I just find it odd that that doesn't apply to car salesmen. I feel like they have even less control over the outcome, so it's interesting that they seem to be valued more.

 

[iMikeT]

To be fair, many companies deserve this kind of criticism, it just so happens that Apple is the target here.

Capitalism, Libertarianism, Free Marketism has never really worked. Workers get the shaft while execs reap the benefits.

I read all of the "these employees should be happy to make ~$12/hour ("still better than minimum wage"), if they don't like it go work elsewhere, a job's a job" comments but really, that kind of money is not a living wage to begin with.

No matter the job, workers have rights. Making a living wage, one where an individual does not have to worry about where their next meal will come from, whether or not they'll be able to make this month's rent, or a disaster will leave them in the poorhouse, should be a right to any person regardless or job title.

"Necessitous men are not free men" - Franklin Delano Roosevelt


---


*Full disclosure. I make money on the side by trading stocks (capitalism). I am currently holding several positions in various companies and one of them is a long position in AAPL.

 

[kiljoy616]

I used to work at the Apple store in KOP, PA making $10/hr. The people who ran the kiosks in the middle selling Pillow Pals and knockoff sunglasses got $15/hr. Many other retailers got paid more.

You can't have a family and afford Apple products for $10/hr.

Well said but don't expect much pity from the lot here. Wrong place for human compassion.

 

[Ryth]

So if each employee brings in an average of $500,000 a year and take home $25,000 a year then that is roughly 5% of their total sales. Ya thats a little low. However, they could just increase the percentage to like 7% which would bring in roughly $35,000 a year for the employees. That would be a dramatic jump in pay. That is if they were being paid commission.

These people are not 'selling' Apple products. They are there basically to take the $$$ from the consumer.

The products SELL themselves.

There is nothing really special about the floor employees for the most part. Genius Bar...different story.

There is a HUGE difference if these employees actually were involved in getting someone to buy Apple vs some major competitor but we know that's not the case.

 

[pdjudd]

There is nothing wrong with applying social pressure this way.

It is when they just highlight one successful company and ignore other retail companies that pay much less than Apple does and is quite successful too. Just focussing on one company (that people already pay attention due thanks to it’s success allows for the worst offenders to get a pass since they don’t get mentioned.

You want to apply social pressure, you have to do it across the board or else you never will accomplish anything.

 

[MacDav]

You are on the money

Wow, yet another anti-capitalism, anti-Apple diatribe from the NYT. What a surprise. Perhaps the government should mandate pay rates based on a company's success in the marketplace. Am I right comrades?

Thanks for the laugh.

People are paid by how much they know, and in a free market, if they know a lot, and are highly qualified they can go where the money is. A booming economy is a big help also. Apple has done the right thing in giving raises to their retail staff. For the most part they do know more than someone flipping burgers at Macdonalds. (Some may disagree here ). If you think unqualified people should make the same money as highly qualified people, then I suggest you start working for your local communist party branch office, and if you work hard, study and learn a lot... well then good for you, it's not about the money...right?

 

[Ryth]

Yep.

And by similar logic, shouldn't government employees be paid -$6 per hour? You know, given the government's success?

Actually Government workers should be paid really low salaries. For what is accomplished, if it was a private sector business, the government would be a horrible company and would be broke 15 trillion times over.

 

[kiljoy616]

They are already paid according to skill level and supply.

ROFLMAO, you must still live at home with your mom. That statement does not even show your understanding of the economy we live in or how its going to get ever better for people like me and bad for people like them.

 

[fitshaced]

Exactly, a car is MUCH more important which is why I put in way more research time up front. A car salesman really can't do anything to counteract the hours of research I've done. I know what I'm going to buy well before I talk to a salesman.

But an electronics salesman? Sure, maybe they'll convince me to change my mind and buy something different. As you said, it's not as big of a purchase so I'm more willing to change my mind.

I'm agreeing with the folks who say "if you quit, Apple can replace you with dozens of other people." I just find it odd that that doesn't apply to car salesmen. I feel like they have even less control over the outcome, so it's interesting that they seem to be valued more.

There is no way I'm prepared to believe that you think selling a car is as easy as selling a phone. I accept that some people have made their mind up before they speak to a sales person. But the sales person needs to know the product far better than an apple employee needs to know an iPhone. It's far easier to lose a customer when trying to sell a car than when trying to sell a phone. There's often more time invested in each customer when selling a car than when picking up a phone, swiping a card and putting it in a bag.

 

[pdjudd]

I'm agreeing with the folks who say "if you quit, Apple can replace you with dozens of other people." I just find it odd that that doesn't apply to car salesmen. I feel like they have even less control over the outcome, so it's interesting that they seem to be valued more.

That nature of buying and selling cars is quite different than your average retail position. Thats mostly due to the economies involved and the sales process that happens. Your decisions into buying a $15K car is quite different than that of a computer. The demand for products is very different. Car buying involves a few high ticket items (where the actual money is often not obtained up front - not too many people drop 15k up front). Most other retails sales are done in larger quantities for smaller upfront amounts. The kind of customer interaction is very different too. In a normal store, you go in and you go out in a short amount of time and is a many customer to few staff. No so buying cars which is an involved process with a much smaller ratio.

 

[Small White Car]

There is no way I'm prepared to believe that you think selling a car is as easy as selling a phone. I accept that some people have made their mind up before they speak to a sales person. But the sales person needs to know the product far better than an apple employee needs to know an iPhone. It's far easier to lose a customer when trying to sell a car than when trying to sell a phone. There's often more time invested in each customer when selling a car than when picking up a phone, swiping a card and putting it in a bag.

This is less "I think it's easy" and more, "I don't respect car salesmen in any way."

Perhaps I'm getting off topic. Basically I dislike them and you're not really going to argue me into a changed opinion on that one.

This is where my fascination on the subject of pay differences originates.

 

[chairguru22]

There is no way I'm prepared to believe that you think selling a car is as easy as selling a phone. I accept that some people have made their mind up before they speak to a sales person. But the sales person needs to know the product far better than an apple employee needs to know an iPhone. It's far easier to lose a customer when trying to sell a car than when trying to sell a phone. There's often more time invested in each customer when selling a car than when picking up a phone, swiping a card and putting it in a bag.

I went to a Honda dealer the other week to test drive CR-Vs and the salesman didn't even know if it was 4 or 6 cylinder, AWD or not... I don't know if it was a show or what, it was weird...

 

[kiljoy616]

not too many people drop 15k up front)

Most people are poor so sure not the same, but for us who are not its all the same a car or a phone its just not something that matters much just as long as the service is there, reason I don't buy American cars, service is terrible even though many European cars are been built right here its the service and how they run their outlets that makes me come back again and again. Service is paramount to me not price.

 

[mofunk]

Please lol I wonder how much Protor and Gamble pay their employees at the warehouse?

 

[barkomatic]

No one is forcing Apple to raise the wages of their retail staff. However, every company has to live with the decisions it makes in the marketplace. If the public believes that Apple is giving it's retail employees the shaft then Apple may decide to raise those wages to protect its image--which it seems to be doing.

It's hilarious to me that some posters think that the free market should be the only influence upon a company, but at the same time think that these companies shouldn't be criticized.

 

[TheNextBigThing]

I went to a Honda dealer the other week to test drive CR-Vs and the salesman didn't even know if it was 4 or 6 cylinder, AWD or not... I don't know if it was a show or what, it was weird...

lol. If you really want superb customer service, better go to luxury car dealers.

 

[TheNextBigThing]

Please lol I wonder how much Protor and Gamble pay their employees at the warehouse?

Precisely! Some people only look just at one tree. Try looking at the whole forest.

 

[leftywamumonkey]

Selling a Macbook doesn't require any special training or education that takes years to learn and master. The normal workers (non-geniuses) are earning $12-14/hour. I don't see anything horrible about it.

 

[Konrad]

America

Yes, the American "compassion" so frequently manifested, also here, is one of the reasons people in Europe would rarely consider offers coming from the US. America has been miss advertised as a melting pot, as a land of opportunity, a free democracy among many other sugar pop propaganda campaigns enthusiastically repeated by the fooled populace where most will never see a Greek island, or Kenya outside of the ever glorified American mall lifestyle.

It's the trendy disposable gadget stupid, they don't change the world, as advertised. Effectively in the race for the newest, and, as told coolest gadgets, Americans furthered categorizing one another and they forgot that all are people while yapping about capitalism, democracy, self penile enlargement, and the eagle on their belt buckle. Except in sappy advertising campaigns. Here all are equal, happy and they will see the world. (in small print: but only virtually on our product)

 

[mnemonix]

There is no reason for Apple to pay ANY of its employees, including executives, a penny more than the market will bear.

Nothing. Except compassion, the desire to see society as a whole prosper rather than a few selfish individuals who got lucky, a sense of fairness maybe? The apparent lack of these basic human feelings in this thread, or labelling of them as 'defeatism', 'communism' etc saddens me beyond belief. I don't care if it's Apple or Walmart, we all deserve better than the race to the bottom determined by such a slavish adherence to the inhuman principles of this kind of capitalism.

And to those self proclaimed stockholders here calling the retail staff undeserving monkeys, what exactly was it you did to further Apples prosperity? Oh you sat on your backside gambling. I hope you're proud of yourselves.