Really interesting article. I've never had to call their customer service, but I've bought a lot of shoes from them and have always had good results.

http://discussionleader.hbsp.com/taylor/2008/05/wy_zappos_pays_new_employees_t.html

Quote :

"Why Zappos Pays New Employees to Quit—And You Should Too Posted by Bill Taylor on May 19, 2008 10:06 AM I spend a lot of time visiting with companies and figuring out what ideas they represent and what lessons we can learn from them. I usually leave these visits underwhelmed. There are plenty of companies with a hot product, a hip style, or a fast-rising stock price that are, essentially, one-trick ponies—they deliver great short-term results, but they don’t stand for anything big or important for the long-term. Every so often, though, I spend time with a company that is so original in its strategy, so determined in its execution, and so transparent in its thinking, that it makes my head spin. Zappos is one of those companies. Two weeks ago, I paid a visit to Zappos headquarters in Henderson, Nevada, just outside Las Vegas, and spent time with CEO Tony Hsieh and his colleagues. I could write a whole series of posts (and just might) about what I learned from this incredible operation. But I want to focus this post on one small practice that offers big lessons for leaders who are serious about changing the game in their field—and filling their organization with people who are just as committed as they are. First, some background. As most of you know, Zappos sells shoes—lots of them—over the Internet. The company expects to generate sales of more than $1 billion this year, up from just $70 million five years ago. Part of the reason for Zappos’s meteoric success is that it got the economics and operations right. It offers customers a huge selection—four million pairs of shoes (and other items, such as handbags and apparel) in a warehouse in Kentucky next to a UPS hub. (If Imelda Marcos visited that warehouse she'd likely have a coronary on the spot.) It also offers free delivery and free returns—if you don’t like the shoes, you box them up and send them back to Zappos for no charge. So the value proposition is a winner. But it’s the emotional connection that seals the deal. This company is fanatical about great service—not just satisfying customers, but amazing them. The company promises free, four-day delivery. That’s pretty good. But most of the time it delivers next-day service, a surprise that leaves a lasting impression on customers: “You said four days, but I got them the next morning.” Zappos has also mastered the art of telephone service—a black hole for most Internet retailers. Zappos publishes its 1-800 number on every single page of the site—and its smart and entertaining call-center employees are free to do whatever it takes to make you happy. There are no scripts, no time limits on calls, no robotic behavior, and plenty of legendary stories about Zappos and its customers. This is a company that’s bursting with personality, to the point where a huge number of its 1,600 employees are power users of Twitter so that their friends, colleagues, and customers know what they’re up to at any moment in time. But here’s what’s really interesting. It’s a hard job, answering phones and talking to customers for hours at a time. So when Zappos hires new employees, it provides a four-week training period that immerses them in the company’s strategy, culture, and obsession with customers. People get paid their full salary during this period. After a week or so in this immersive experience, though, it’s time for what Zappos calls “The Offer.” The fast-growing company, which works hard to recruit people to join, says to its newest employees: “If you quit today, we will pay you for the amount of time you’ve worked, plus we will offer you a $1,000 bonus.” Zappos actually bribes its new employees to quit! Why? Because if you’re willing to take the company up on the offer, you obviously don’t have the sense of commitment they are looking for. It’s hard to describe the level of energy in the Zappos culture—which means, by definition, it’s not for everybody. Zappos wants to learn if there’s a bad fit between what makes the organization tick and what makes individual employees tick—and it’s willing to pay to learn sooner rather than later. (About ten percent of new call-center employees take the money and run.) Indeed, CEO Tony Hsieh and his colleagues keep raising the size of the quit-now bonus. It started at $100, went to $500, and may well go higher than $1,000 as the company gets bigger (and it becomes even more difficult to maintain the all-important culture and obsession with customers.) It’s a small practice with big implications: Companies don’t engage emotionally with their customers—people do. If you want to create a memorable company, you have to fill your company with memorable people. How are you making sure that you’re filling your organization with the right people? And how much are you willing to pay to find out?"

I still don't get twitter. it just seems dumb as hell to me.

5/21/2008 9:55:12 AM

i hate zappos. ive only had to call them once but the customer service was bad. also, as soon as they started monopolizing the internet shoe business prices skyrocketed..obviously it could have just been a coincidence...but it would be a real fortunate coincidence for them.

that being said im forced to buy from them since sometimes i cant ever find the shoes on any other site and im forced to pay outrages prices (sometimes 3X as much for the same exact shoe as I paid in HS)

[Edited on May 21, 2008 at 10:01 AM. Reason : ]

5/21/2008 9:59:59 AM

i love zappos. i've never had a problem with customer service and they're always very helpful.

prices on everything are up compared to what you [and i] paid in high school. that shouldn't be a surprise.

[Edited on May 21, 2008 at 10:26 AM. Reason : ]

5/21/2008 10:05:34 AM

I've never even heard of the site

5/21/2008 10:06:56 AM

^^^

you know, they price match....

5/21/2008 10:09:22 AM

Quote :

"I've never even heard of the site"

me neither...that said, it's an interesting philosophy

5/21/2008 10:26:02 AM

Quote :

"that being said im forced to buy from them since sometimes i cant ever find the shoes on any other site and im forced to pay outrages prices (sometimes 3X as much for the same exact shoe as I paid in HS)"

if their prices are 3x why is it you buy from them? Just curious as to why you don't buy from the site that showed you that zappos is 3x their price.

5/21/2008 10:45:33 AM

^^^ Yeah, but if he can't find the shoes he wants on any other site, who's price are they going to match?

^ He's saying he can't find the shoes anywhere else but Zappo. He's using the "3X the price they were in High School" as a frame of reference to show how much Zappo is overcharging compared to the price he used to get the shoes for, not to complain that Zappo is charging 3X more than a competitor.



[Edited on May 21, 2008 at 10:50 AM. Reason : you people]

5/21/2008 10:46:10 AM

^ hah yea you pretty much summed up my post for me but here it is anyways...

Quote :

"if their prices are 3x why is it you buy from them? Just curious as to why you don't buy from the site that showed you that zappos is 3x their price."

their prices are 3X as much as they were in for me in *HS*(not today) as in at least 5 years ago. And I said I dont know for a fact that it was because of zappos but since they are the only place to get some of the shoes anymore and simultaneously prices of shoes has absolutely skyrocketed, I have come to hate them for their prices.

so the reason I dont buy from them from other sites now is because those sites either 1) dont exist anymore (because of zappos probably) or 2) direct me to zappos to check out now...so the sites themselves are simply shells of what they were before.

Quote :

"you know, they price match...."

there is no one to price match to anymore...thats the point of a monopoly. thats almost like apple saying, we know our macbook prices are high, but we price match!

it probably isnt zappos' fault, but All I know is that I could buy brand new chuck taylors online for 9.99-14.99 in HS and theyre like $45 now if they arent onsale. (I dont wear them anymore, just a frame of reference of one of the shoes im talking about). There are also certain puma styles that I like that used to be 29.99 avg just 6ish years ago that are pushing $100 or more now. I just dont see the justification besides people will still pay for them

[Edited on May 21, 2008 at 10:59 AM. Reason : ]

5/21/2008 10:55:10 AM

Quote :

"3X the price they were in High School"

Everything is now more expensive than it was when we were in high school.

That being said, I <3 Zappos. Endless is alright, but they're dicks about price matching and I wasn't impressed with their customer service.

5/21/2008 10:55:32 AM

^ Gas maybe 3X more, but not shoes. Not unless you went to high school in the 70s.

5/21/2008 10:56:50 AM

Quote :

"^ He's saying he can't find the shoes anywhere else but Zappo. He's using the "3X the price they were in High School" as a frame of reference to show how much Zappo is overcharging compared to the price he used to get the shoes for, not to complain that Zappo is charging 3X more than a competitor."

well I'd have to ask...did you just graduate high school yesterday? Because nothing costs the same now as it did when I was in high school. Hell, I can't even eat fast food without spending ~$10.

^3x more is a huge exaggeration i'm sure. new athletic shoes these days usually cost ~$100.

[Edited on May 21, 2008 at 10:58 AM. Reason : .]

5/21/2008 10:57:25 AM

3x more is not a huge exaggeration. Of the 3 main shoes I bought in HS, 2 of them are at least 3X the price they were when I bought them in HS, the other id have to check but last I saw it was 2X what i paid in HS.

And youre right, the average shoe costs around $100 now. I never paid more than $35 for any puma, asic, or converse in HS.

5/21/2008 11:01:30 AM

Quote :

"first of all apparently you cant read. their prices are 3X as much as they were in for me in HS as in at least 5 years ago."

oh i read that, i just thought it was stupid logic.

if they're the only place to get it, that's what you get for buying niche products that have limited appeal. It's very very far from a monopoly, unless you've gone and changed the definition of monopoly.

5/21/2008 11:04:27 AM

There's a whole lot of stupid in this thread.

^^^ Yeah, so I graduated high school like five years ago. Those same athletic shoes that are $100 now were $90 then. A $10 increase on a $90 pair of shoes does not equal 3X as much. Thanks for playing. And how in the hell do I know if he's exaggerating. People charge exorbitant amounts of money for simple things all the time. Especially on the internet. If a company really has a monopoly, what's to keep them from charging 3X more. How do you think Bill gates got to be a billionaire?

[Edited on May 21, 2008 at 11:05 AM. Reason : shakes head]

5/21/2008 11:05:25 AM

theyre not niche products. Its pretty much the same shoes by big brands that ive bought for years. In fact theyre more visible and more worn now than when I started wearing them (probably contributing to the higher price as well) I always avoided malls before because they were so much more expensive than the online sites. Now all the online sites are as expensive as the mall prices. So I can find them in stores (usually with a limited selection to online) as I always have been able to. I just cant find the prices online that I used to.

Im only speaking of a few specific models (since I dont just follow general shoe prices as a hobby ) but I am 100% serious that they are 3X as much now as they were about 6 years ago. So maybe overall shoe prices havent increased that much, but it is a fact that the shoes Ive always worn have skyrocketed during the time I was in college.

[Edited on May 21, 2008 at 11:12 AM. Reason : ]

5/21/2008 11:06:59 AM

Quote :

"^^^ Yeah, so I graduated high school like five years ago. Those same athletic shoes that are $100 now were $90 then. A $10 increase on a $90 pair of shoes does not equal 3X as much. Thanks for playing. And how in the hell do I know if he's exaggerating. People charge exorbitant amounts of money for simple things all the time. Especially on the internet. If a company really has a monopoly, what's to keep them from charging 3X more. How do you think Bill gates got to be a billionaire?"

we just found the stupid! Clearly you can't read. I said 3x is exaggerating and you go and point out the obvious by proving my point but at the same time disagreeing with me and playing it off as your own original idea. very interesting and retarded at the same time.


^i think the problem is that back in highschool you were buying shoes that were 1 or 2 seasons old and now you are buying shoes that are the latest fashion. This is where your increase in price has gone. Shoes have always cost ~$100 since I was in high school and that was over 8 years ago. And at the same time 'clearance shoes' were always $30-$40.

[Edited on May 21, 2008 at 11:10 AM. Reason : .]

5/21/2008 11:08:39 AM

Quote :

"i think the problem is that back in highschool you were buying shoes that were 1 or 2 seasons old and now you are buying shoes that are the latest fashion. This is where your increase in price has gone."

DING DING DING! winnar!

5/21/2008 11:16:20 AM

i never bought "clearance" shoes and I really dont care about trends that much, however in a backwards way youre probably right. Ive worn the same few models/styles by the same brands for probably 8 years now. Back when I was first wearing them they werent half as popular as they are now.

5/21/2008 11:16:33 AM

This also includes the same exact shoe design but in a different color/style. Color/style A is now $50 while Color B is $100 because its 'new'

5/21/2008 11:17:51 AM

Quote :

"^i think the problem is that back in highschool you were buying shoes that were 1 or 2 seasons old and now you are buying shoes that are the latest fashion. This is where your increase in price has gone. Shoes have always cost ~$100 since I was in high school and that was over 8 years ago. And at the same time 'clearance shoes' were always $30-$40."

So, I'm going to try and treat this as a legitimate point, rather than a veiled attempt to joke me about my wardrobe. I actually remember the prices 5 years ago (I know, big shocker right). The shoes I bought then were in the $50-60 range because they were usually on sale as I was using my parent's money. That doesn't mean I didn't notice the prices of the shoes that weren't on sale. They were usually around $90. $100 if the style was brand new. So you're right about this at least. I still buy shoes on sale with the exception of a good pair of running shoes. The same running shoes that were $90 5 years ago, are $100 now, and these aren't necessarily the newest style or anything, nor were they 5 years ago. So the price difference isn't attributable to me buying the latest fashion or some stupid crap like that. It's due to inflation and rising costs for labor and raw materials; however, neither inflation or rising production costs, would cause the same shoes to be 3X as much 5 years later.

As far as CalledToArms situation goes, again, how in the hell I'm I supposed to know what shoes he bought in high school? He swears up and down he's not exaggerating, so maybe his is a different situation is from yours or mine, and the shoes he likes are actually 3X more than they used to be. You were assuming he was using hyperbole to make his case. I wasn't.

Quote :

""that being said im forced to buy from them since sometimes i cant ever find the shoes on any other site and im forced to pay outrages prices (sometimes 3X as much for the same exact shoe as I paid in HS)""

Quote :

"if their prices are 3x why is it you buy from them? Just curious as to why you don't buy from the site that showed you that zappos is 3x their price. "

And did you really just accuse me of not being able to read? Talk about the pot calling the kettle black.

[Edited on May 21, 2008 at 11:33 AM. Reason : quotes]

5/21/2008 11:30:52 AM

Quote :

"Back when I was first wearing them they werent half as popular as they are now."

exactly, there's your answer. Before kids weren't wearing them, now they're cool/trendy. Hence the price goes up cause kids keep paying for them.

5/21/2008 11:35:27 AM

who the fuck is statered? I thought calledtoarms was the one that stated the whole 3x thing?

5/21/2008 11:35:44 AM

Quote :

"So, I'm going to try and treat this as a legitimate point, rather than a veiled attempt to joke me about my wardrobe. I actually remember the prices 5 years ago (I know, big shocker right). The shoes I bought then were in the $50-60 range because they were usually on sale as I was using my parent's money. That doesn't mean I didn't notice the prices of the shoes that weren't on sale. They were usually around $90. $100 if the style was brand new. So you're right about this at least. I still buy shoes on sale with the exception of a good pair of running shoes. The same running shoes that were $90 5 years ago, are $100 now, and these aren't necessarily the newest style or anything, nor were they 5 years ago. So the price difference isn't attributable to me buying the latest fashion or some stupid crap like that. It's due to inflation and rising costs for labor and raw materials; however, neither inflation or rising production costs, would cause the same shoes to be 3X as much 5 years later."

you are a fucking retard.

5/21/2008 11:40:12 AM

I'm a person who can read and can't stand people who don't bother reading and skip right to pounding out their next lame insult or "omg, you're so stupid" post.

^ Haha, right on cue. Thanks for proving my point.

[Edited on May 21, 2008 at 11:42 AM. Reason : haha]

5/21/2008 11:40:50 AM

the only 'insults' were at you because you're having a heated discussion with yourself.

5/21/2008 11:41:50 AM

^ Actually I was arguing a point with you, however inane the point may have been. Sorry. It appears I spent my time attempting to argue with someone who clearly isn't up to the challenge.

5/21/2008 11:49:25 AM

this thread prompted me to buy some shoes because i hate going to the mall

5/21/2008 12:37:22 PM

Clearly, you would argue with a tree stump if it could argue back.

My mom loves zappos, good price on shoes with lots of sales and coupons available.



[Edited on May 21, 2008 at 12:54 PM. Reason : and yes, there is a lot of stupid in this thread with a hint of non-conformity ]

5/21/2008 12:51:36 PM

Quote :

"with a hint of non-conformity"

i didnt want it to come across like that I dont even think I brought that up until several posts in (and I wasnt planning on it). I dont think its as much non-conformity as I feel like that takes active effort as opposed to just buying the same shoes I have forever and if theyre popular theyre popular and if theyre not theyre not. And I guess Ill just have to pay the price appropriately :/

5/21/2008 12:58:53 PM

Quote :

"^ Actually I was arguing a point with you, however inane the point may have been. Sorry. It appears I spent my time attempting to argue with someone who clearly isn't up to the challenge."

I'm unable to see how you are arguing a point with me when we are on the same side of the issue. We both agree that prices haven't changed much at all and 3x the price wasn't accurate. What is your point?

5/21/2008 1:09:44 PM

This is why I bought six pairs of Chucks at 19.99 each when the last American Converse factory closed. I'm still on pair #3.

5/21/2008 1:40:02 PM

With the only drawback being that you're wearing Chucks and you still have three pairs left.

5/21/2008 1:57:17 PM

nice. I wore mine out playing pickup basketball in HS. My last pair died on my my freshman year of college. The first winter rain we got I couldnt feel my feet walking to class because of all the holes and I decided it was time to retire them And I wasnt about to shell out $40 for another pair. Since then Ive just stuck to my pumas mainly.

^hey nothing wrong with chucks. Unless im running (in which case I wear running shoes) or playing sports where I need cleats, I absolutely LOVE thin soles. Puma Speedcats are my alternative to the chucks since they have about the thinnest soles you'll find in real tennis shoes.

[Edited on May 21, 2008 at 2:00 PM. Reason : ]

5/21/2008 1:58:40 PM

as a heterosexual male, zappos has no relevance to me

5/21/2008 2:04:05 PM

Quote :

"Clearly, you would argue with a tree stump if it could argue back."

You're right.

When the mood strikes me right, I'll argue with anybody about anything (in real life or over the internet), and I'll be laughing to myself about it the whole time. Why do you think I joined TWW?

Quote :

"We both agree that prices haven't changed much at all and 3x the price wasn't accurate."

This isn't entirely correct. I never agreed that 3x the price wasn't accurate in this particular case and neither did the guy who prompted the argument.

CalledToArms:

Quote :

"Im only speaking of a few specific models (since I dont just follow general shoe prices as a hobby ) but I am 100% serious that they are 3X as much now as they were about 6 years ago. So maybe overall shoe prices havent increased that much, but it is a fact that the shoes Ive always worn have skyrocketed during the time I was in college."

5/21/2008 2:08:52 PM

and again, statered forgot to read. its "3x the price" because of popularity/new style NOT due to inflation. GG on the failboat.

The argument was that shoes got more expensive. In fact they haven't changed. They are still the same price today as they were 5 years ago. Only difference is he is no longer buying the on its way out shoe but rather the on its way in shoe.

[Edited on May 21, 2008 at 3:49 PM. Reason : asdf]

5/21/2008 3:47:48 PM

k, yeah...sooo..umm...zappos. it's a great place to shop for shoes. their customer service is wonderful. it's really interesting to hear that they offer you money to quit.

5/21/2008 3:51:52 PM

^^ but its the same 2-3 styles of shoes . they werent really on their way out just not as popular as they are now. just being technical

5/21/2008 3:58:18 PM

^^ Quit trying to interrupt our argument with the thread topic. How dare you.

And now back to RSXTypeS

Quote :

"and again, statered forgot to read. its "3x the price" because of popularity/new style NOT due to inflation. GG on the failboat. The argument was that shoes got more expensive. In fact they haven't changed. They are still the same price today as they were 5 years ago. Only difference is he is no longer buying the on its way out shoe but rather the on its way in shoe. "

Haha. Dude, if I'm on the failboat, you're at the helm steering the damn thing.

I said the small change in price of a given pair of shoes over time is typically due to inflation and production costs, but I believed CallToArms particular case, when he said he was paying 3X as much. At which point you came back with "Oh but he's just exaggerating, the price isn't really 3X as much." Then CalledToArms himself came back and said he wasn't exaggerating.

I gave no reason as why there would be a 3-fold increase. I don't care. I was simply pointing out that there could be one whereas you were dismissing it like it was some figment of his imagination. And you tried to make it seem like I was agreeing with you on this point and I told you I wasn't.

And if you'll go back and look at my posts, nowhere did I say the price increased 3X due to inflation. Again, I never attempted to explain the increase in price that CalledToArms dealt with. But now, all of a sudden, you've changed your tune and are attributing the "3x the price" to the newly acquired popularity of the shoe. I won't argue with you there because that makes sense. But at the beginning of this debacle you were the one swearing he was exaggerating. Why are you attempting to explain something you didn't believe to be true in the first place?

Just in case you've started to ignore the content of your own posts in addition to mine and others':

you then:

Quote :

"^3x more is a huge exaggeration i'm sure. new athletic shoes these days usually cost ~$100. "

Quote :

"I said 3x is exaggerating and you go and point out the obvious by proving my point but at the same time disagreeing with me "

Quote :

"We both agree that prices haven't changed much at all and 3x the price wasn't accurate. What is your point?"

and now:

Quote :

"and again, statered forgot to read. its "3x the price" because of popularity/new style NOT due to inflation. GG on the failboat. "

Flop much?

5/21/2008 4:23:38 PM

listen kid, I'm not even going to begin to read the garbage you just wrote because you have yet to have a valid point or make any kind of sense in this thread.

5/21/2008 4:34:33 PM

Fine. I won't try to convince the unconvinceable. How about you just read the quotes attributed to you and then figure out why you're attempting to explain something you had (in 3 different posts) dismissed as someone exaggerating.

Oh, and don't ever step foot in TheSoapBox. Not until you at least acquire an 8th grade reading comprehension level.

[Edited on May 21, 2008 at 4:42 PM. Reason : ]

5/21/2008 4:40:01 PM

you win the internet argument award.

now someone post the running retard photo that is so obviously a photo of statered.

5/21/2008 4:44:28 PM

zappos is cool and all, but why do they need to charge $5 more for jack purcell converse than everyone else??

5/21/2008 4:46:49 PM

Quote :

"very interesting and retarded at the same time. "

Quote :

"you are a fucking retard."

Quote :

"now someone post the running retard photo that is so obviously a photo of statered."

They call this projecting.

And seriously is retard your insult calendar's word of the day or something? Even people who can't read know more than one insult.



[Edited on May 21, 2008 at 4:53 PM. Reason : ]

5/21/2008 4:51:21 PM

argument for the sake of argument makes you look dumb retarded.

5/21/2008 4:53:15 PM

Haha. Valid point. But who's more retarted, the retard, or the guy who tried to argue with him?

I mean, you're still responding aren't you? Do you really have so little self-control?

I was just doing this because I was bored at work. But now work's almost over, so I'll not argue with you later.



[Edited on May 21, 2008 at 4:56 PM. Reason : ]

5/21/2008 4:54:21 PM

Quote :

"There's a whole lot of stupid in this thread"

5/21/2008 6:20:17 PM

Quote :

"And youre right, the average shoe costs around $100 now. I never paid more than $35 for any puma, asic, or converse in HS."

Well, take the Asics Mexico 66s, for example, as they've become relatively trendy again.

They'll run about $35 clearance at Journeys, whereas that same style will be in the $60s from Zappos. If you wanted a new, or consistently well received style, they'd be $84 from Zappos.

The issue you're probably running into is that certain brick and mortar stores will offer "sales" at clearance prices to move out stagnant stock, whereas there's not as much necessity to do so in a warehouse, especially a store like Zappos which seems to pride itself on it's collection.

[Edited on May 21, 2008 at 6:22 PM. Reason : .]

5/21/2008 6:22:21 PM

Quote :

"I've never even heard of the site"

5/21/2008 6:37:49 PM