Sears, Roebuck, and Co. the Auto Center Scandal Essay

2629 Words Nov 2nd, 2010 11 Pages
SEARS, ROEBUCK, AND CO.
THE AUTO CENTER SCANDAL

History and Introduction of Sear, Roebuck, and Co.

Sears, Roebuck and Co began in the 19th century and sold farm supplies and consumer items as a small mail order company. The first Sears retail store opened up in Chicago on the 2nd February 1925 in the building named the Merchandise. This store had included a soda fountain and an optical shop. The first detached and separate retail store opened up on the 5th October 1925 in a city called Evansville in Indiana. During the summer season in 1928 3 more Chicago department stores opened newly, one on the 63rd and Western a second on the south side at Kenwood and 77th, and the third at north side at Lawrence and Winchester Street. In 1929
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Substitute commissions based on customers satisfaction 3. Eliminate sales quotas for specific parts and repairs 4. Substitute sales volume quotas Regardless the warning of unethical behavior from the public, Sears, Roebuck, and Co’s mechanics were still on commission compensation carried out the job in a very unethical manner. Since it is a mechanic who looks at the vehicles to examine the problem, they have the perfect opportunity to oversell and recommend more repair to the customers than necessary so that they’d be able to meet their quotas and receive more profit. As this compensation plan continued for mechanics, Chuck Fabbri, a mechanic from Sear’s sent a letter to the U.S Senator Richard Bryan to explain the satiation behind the counter. His letter included that he had been well appreciated and received positive response to his effort and amount of work before the new commission based payment and the threat to getting his job at Sears terminated if he did not meet the minimum quotas. With Chuck Fabbri’s letter, the curtain was drawn and revealed the unethical way the auto center were making profit. They were using their customers’ loyalty and trust to make more profit as possible and not concerned about their relationship with them. Sears had to settle with the state of California and other states that had similar charges against its auto centers by selling off its securities firm, credit card, real estate, 20% of their

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