I’d imagine profit had something to do with it.
I’m not being mean and surely not knocking you. But, as an employee versus a manager, it might seem stupid. However, if you set in your managers year end reviews I’d imagine that knocking $25 of profit off a display item that was sold for a much larger profit, versus giving away a hat that had little profit in the pricing to begin with, wouldn’t be so confusing.
Who would have thought that the most controversial post in a thread not speaking highly of Kifaru would be about providing a discount on a pair of binos?
Profit had zero to do with it. How can one make more profit taking 25 dollars off their profit versus taking 4 dollars off their profit? Profit margin would be decreased by giving the hat but profit would be increased by giving the hat.
I know why my manager made the decision that he did. It makes zero sense from a business standpoint and one hundred percent sense from a CYA standpoint. If he gave the dude the hat, it would show as a total loss and the district manager would probably ask him why he showed a total loss on a hat. Discounting the binos wouldnt show up as a total loss and the district manager would most likely not see it.
It wasnt the best decision for the
business. It was the best decision for
him. Hence why I said that most
business decisions are not dictated by logic.
Edit to add because I am home and needed to correct a grammar mistake above.
I knew how the game was played and if we would have gone the hat route we could have manipulated it to be way more wins than losses for the manager. We would have taken the price of the hat off the binos and charged full price for the hat. This would have done three things. It would have increased profit, increased profit margin (over the profit margin of just giving the discount) and we would have had more items per ticket (they harped on us about this for years).
I was a below average student and am below average at many thing but I can’t see how the discount was the logical decision. Easiest, yes. Logical, nope.