Ask Me Anything - Just Retired from Beacon Lighting as a Senior Store Manager after 12 Years

I had a few odd jobs and career jumps throughout my life. Beacon was my last stop. Like many say within the company, I didn’t wake up one day and decide I want to sell lights for a living; it just happened. I got freaking good at it after a few years.

I have designed lights for 750+ residential homes across Victoria during my time and countless commercial spaces.

I have been honest with my suggestions and have given the best managers discretionary prices when being customers are nice and people who couldn’t afford products but hesitant to ask.

Ask me anything about lights, electrical, working in retail or beacon lighting. :)

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Beacon Lighting
Beacon Lighting

Comments

  • +7

    What was your pay?

    • +60

      Meh. It’s around $65,000 per year plus 10% superannuation.
      Commissions are okay but as a manager, we get 2% of the store’s net profit which is where we get paid the most and occasional quarterly incentives.

      We also do get free company car which we can use for both office and personal use and fully paid fuel which is a gold mine nowadays.

      • Did you get equity? Especially before listing?

        • +3

          No, not really. I did however invest in a few stocks along the way including beacon and they have gone up a bit. Not a huge stock person myself but “invest when we can and in companies we know and it’s only gonna go up in a few years” mindset.

      • +29

        Senior Store Manager on 65k with a car, wow that's pittance

        • Very sad

        • +23

          Titles mean nothing when they call Subway workers sandwich artists.

          • +3

            @askbargain: Didn't they used to call the Apple store staff "geniuses"?
            My mate went into one of the stores around 2009 asking for an IDE cable.
            They had no idea what he meant.

        • +18

          2% of store profit, no idea what a store makes but looks like a standard base and then potentially high reward for driving sales

        • +21

          Firstly; Yes, it is. Welcome to retail, it pays low.

          Secondly; Also commission + 2% of the store's profit + Quarterly incentives. As an end figure I'd wager it's closer to 100k.

          • +8

            @Sleeqb7: Depends on the store but true.

        • +4

          The nature of retail… hard work, low pay.

          Just goes to show it's not about your skills / merit as it is the industry you're working in.

          I'm now working in IT, earning twice as much as i did in retail, and the work load is 1/2 and much less stressful.

          • +1

            @[Deactivated]: how did you switch from retail to IT? genuinely interested to know…

            • +1

              @CharityCase: Threw together a resume outlining my skills and landed a 3 month contract which was extended. This was around april in Melb when there was a lot of work (Maybe still is). I ran my own computer support business for 5 years whilst working casual in a retail gig, but moved, work dried up and ended up moving to full time retail (very similar industry to OP) to get by. That ended up lasting four years, and sucked. A recruiter picked up my resume, i redesigned it to revolve around IT, and had transferrable skills.

              • +1

                @[Deactivated]: As long as you have transferable skills and can portray that to the hiring team and show your willingness to the learn and grow, anyone would be more than happy to hire you.

                Not everyone knows everything but being humble and honest goes a long way.

                • +2

                  @1 Sec: Absolutely! I had a good skill set for this current position, a few gaps thou. I explained the gaps, was totally honest and it worked out well. Never did any formal education for IT, all self taught. It's worth a try. Now i've got my foot in the door i'm in a much better position for the future. Government role too… cruisy as..

                  • +3

                    @[Deactivated]: Great to hear. Depends on the hiring team; most of them are nice and listen to you proactively and find the link to best suit the role.

                    All the best for the future and enjoy the little things in life :)

                    • @1 Sec: Cheers Mr Bear!

              • @[Deactivated]:

                Maybe still is

                Still is if you're good. There's a shortage of experienced developers here.

          • @[Deactivated]: I presume you’re doing SysAdmin/Devops/SWE and not a support gig and especially not at an MSP.

            Shit is the most stress inducing thing I’ve experienced. Being on-call every 4th week, working an hour or 2 after work every day. Not being allowed to WFH even though 98.2% of our user base is remote all for a measly 90K/Yr as LVL 1 Support.

            • @Darude Sandstorm: Device rollout / data migration / software installation / after support / Random shit that pops up at the office daily (Printer jams, stupid shit) etc.

              No, not a MSP - wouldn't go there, only heard bad things.

              Contracted @ $400 per day, not a lot in Ozbargain terms but i'm happy with it as a starting point.

        • 2% of a store net profit can be lucrative.

        • +1

          gotta add up the package.

          $65k + Super is $71k + 20k car package is $91k + 2% of store net profit which sounds to be 10-30k which is $101 to $131k total package.

      • Commissions are okay but as a manager, we get 2% of the store’s net profit which is where we get paid the most and occasional quarterly incentives.

        How much was this typically then?

        • AMAA

        • +1

          He'd be on 200k +

          • @Korban Dallas: It’s less than $100,000 per year definitely. Even as one of the big stores, our commissions are quite thin. It’s retail after all.

            • @1 Sec: Ah I thought a store would bring in quite a bit

              • +1

                @Korban Dallas: they bring in quite a bit but expenses are also high, just think of all those lights!

            • @1 Sec: wait, you get 100k extra as your commission or the whole store only brings in 100k per year?

              if the former, that's good pay - you earn 165k per year.

              If the latter, how is that possible? Why would they even bother? Many households would earn more per year than the entire store.

  • Good time to get out now imo -

    What's your thoughts on how cutthroat the industry in general has become with the rise of direct to public/direct to sparky type operations just fighting it out to see who can get to 0% GP quicker?

    And what was your worst nightmare project?

    • +18

      Got to the age where I realised it’s time to spend valuable time with our grandkids and I have earned enough to spend the rest of our lives comfortably.

      Isn’t that approach with any industry at the moment? It’s a rat race everyone’s fighting to get to be number one.

      I had a few nightmare projects where stock isn’t available or spend days working on a project based on the brief and they change it.

      Or worst they say modern and they come in for a walk through and they choose hamptons for the living, art deco for the hallway, contemporary for the bedrooms.

      That cringe moment where you know it’s not gonna suit well but the customer insists on choosing what they like and you have to supply and not put your name to the project.

      • +4

        Or worst they say modern and they come in for a walk through and they choose hamptons for the living, art deco for the hallway, contemporary for the bedrooms.

        as i always say now - 'the customer is always right' haha

        • +2

          Yeah. Being in the management role, we learn that very quickly. Most of our day goes in putting out fires and handling customer complaints. Just say sorry regardless of what happened and fix it. It’s much easier than having back and forth conversations.

      • You should check out McMansion Hell, plenty of houses where every single light fitting is a different design.

      • We both work for the same company and might have kids in the next year or two.

        So what is it ?

    • +5

      It’s sales. Some staff get greedy and take sales from others without knowing. That’s why a good team culture comes in play. It’s competitive but should not be within the team.

  • +33

    What was your high-light?

    • +56

      To see staff you hired as casuals years ago, now come a long way to become store manager’s at different store’s and leading a great team with good culture. Now they have built such good relationship with the local community and trade to bring massive repeat sales.

      • +19

        Wholesome.

        Must have been a light-bulb moment!

        • +3

          Definitely not a light-hearted one!

        • +6

          His workers all have bright futures

        • +4

          Such Beacons of hope they are…

      • Re repeat sales? Is this typically many years? Or do people treat lights like fast fashion. I can understand if they recommend to family etc. or they do other rooms, etc.

        • +18

          Trade is now the biggest focus for everyone within the company. You build good relationships with sparkies, builders and interior designers and they buy everything for every single project.

          We frequently get builders calling and ordering 500 of $300 fans for a project that they are doing. You can never get such sales from everyday customer walking in.

  • +20

    Does someone go round and indivuidually turn off each light at close time or do you have a 300 plug power board affixed to the wall?

    • +17

      It depends on the store. Old stores have a big switchboard with 15-20 breakers to turn off. Newer store’s which are built/renovated in the last 5 years have 5 regular wall switches (based on sections) next to the breaker that turns all the lights off. Plus we turn off HVAC and music system before exit.

      Funny thing is that if we don’t turn off HVAC, it stays on all night and you get publicly criticised in a weekly newsletter that gets sent out to all 120+ stores stating you left the HVAC on and not to do it again.

      • +3

        Not to mention the impact on the store manager's 2% come end of year!

        • +4

          We end up making the margin one way or another. If not, we don’t get any commission.

          It’s shitty in one way as how commissions work. Only if the store meets the target, everyone gets commission.
          So let’s say you make $50,000 above your budget and due to get commissions but store misses the target by $100. Since the store didn’t meet the target (as others didn’t pull theirs), no one gets the sales commissions. 😣

          • @1 Sec: Do you know what the target is? If it’s just off by $100 surely it’s worth buying something yourself to meet it?

            • +1

              @morse: We can see the GL and POS sales but not the net profit and loss until after a week accounts team works their magic which is what our commissions are based.

              • @1 Sec: Ever work the system?
                Anyone buy now to inflate numbers, and return later in OZB style?

                Not that i am condoning it. Just wondering.

      • +3

        Being named and shamed across the store network. Must be good for morale!

  • Know any good change a lightbulb jokes?

    • +1

      Many. I don’t know which one to quote. We have an internal social media and it’s filled with such light jokes and everyday fun.

    • How many Ozbargainers does it take to change a lightbulb?

      .
      .
      .
      .
      .
      .
      .
      .
      .
      100 - 1 to do it, and 99 to get into an argument over how it should have been done.

      JOKING GUYS.

  • +3

    Have you seen the light?

    • +5

      A few times. Ladder injuries are common. Luckily never had major injuries but a few slip ups that made my life flash in front of me. 😏

  • +3

    What is your favourite condiment to have on toast?

    • +3

      Peanut butter preferably or Vegemite.

      • +2

        If they sold Crunchy Vegemite do you think you would buy it?

        • +3

          What would the crunchy element be in Vegemite? Solid chunks of yeast?

          • +4

            @dust: Little flakes of weetbix. Vegemite on weetbix is a healthy snack.

            • @Clear: My dad is the only other person I know who has even tried this Saharan snack. I thought he was unique

              • +1

                @TooSerious2: Seems to be our parents generation of poor people food.

                Also cooked pasta in warm milk with sugar was a real treat.

        • I wouldn’t mind trying it.

  • +4

    Why are light shops always last days of “closing down” ?

    • +8

      Marketing gimmicks. Beacon lighting has been great with marketing and adverts in the last decade and not once I have seen closing down type sale 😂

      They do occasionally sell all the ex displays before a massive renovation of the store as it’s easier to sell the displays off and out new one’s as per the new planogram.

  • +3

    What kind of discount should a customer try and negotiate with store staff?

    • +19

      The max beacon lighting gives in terms of discounts is 25%. Trade club members (builders, sparkies, interior designers) get this discount throughout the year so they are not locked in to everyday promo.

      That’s the best price possible.

      If you know a builder or sparky and they are okay to put your order under them, that’s the best deal you are going to get.

      Ps - some volume builders buy at that price and sell you at RRP as part of the build contract.

      Twice a year, we do run 25% off all lights and fans. Get it then. Even if you can’t afford, put it on layby and pay it off.

      As staff, we get much better but we have a limit on how much we can get through staff discounts.

      • Is it usually the same time of year? Any hints as to when? Cheers

      • what do you need in terms of setting up a trade account?

        • Be a trade that is directly linked with beacon lighting, ABN, Trading name, phone number, address and email ID.

          https://www.beaconlighting.com.au/trade/customer/account/cre…

          Fill out the form and it should be activated within 5 days.

          Previously anyone with an ABN was able to sign up but nowadays they triple check every single application before approving it.

  • +3

    Who were your main competitors?

    What were the key success factors of the business - economies of scale from centralised buying combined with decentralised local customer service?

    • +2

      Local lighting shops.
      With electrician supplies, middys and AWM as they have a wide range of electrical accessories and available immediately. Beacon is getting aggrieved with trade accessories and have good potential to become one stop shop to buy all electrical needs for a home.

      • +1

        Surprised you don't list Bunnings as a major competitor.

        • Beacon doesn’t classify Bunnings as their competitor due to number of factors. Definitely AWM and Middys are the top spots followed by local family owned lighting shops that have a very loyal customer base.

  • +3

    Warm white or Cool white?

    • +4

      Rgb is the new black

      • +2

        Smart lighting is the trend. Every new home in the last few months did smart lighting or smart switches as everyone uses smart phones and smart home assistants.

    • +17

      Warm white in places you want to relax (living room, hallway, bedrooms)
      Cool white in places you want to be productive or want colour accuracy (bathrooms, highlighting an artwork, office)
      Kitchen and dining - I prefer warm white but it’s very subjective.

      Nowadays most integrated led pendants have tri colour function for this reason so you can choose between warm white, cool white and day light depending on your preference (some have them in cool white during the day and warm white in the evening).

      Day light is a blueing white (kinda like the natural sunlight) and mostly old people like it but we tend to stay away from it as it’s too bleh.

      • +1

        I'm getting to an age where I don't want colour accuracy in the bathroom.

        • Bathrooms are cool white usually. Putting make up and some customers feel cool white is brighter. Else if you want a nice relaxing light when showering, stick with warm white.

  • +1

    is there really a quality difference between the mid price and very expensive products? or you just paying for better looks (I can understand the really cheap stuff, can be lot worse quality)

    • +3

      Surprisingly there is in most cases. They differ on the build quality, features, where it was manufactured, is it an essential range or exclusive etc.

      Some ranges it’s a hard no. You can find a fan that has same features and build quality for $300 and $800. It’s just the look’s that differs and I tend to steer my customers away from it unless they absolutely want that style.

      Keep in mind, we can only recommend but not force customers to choose what we think it’s best.

      • -1

        Keep in mind, we can only recommend but not force customers to choose what we think it’s best.

        Like hdmi cables?

  • From memory, Beacon Lighting's discounts have been pretty average. They are always buy 2 and get x% discount. Can't they just do a straight x% off?

    And has Beacon Lighting ever sold European made lights? I've never seen them.

    • We manufacture them from China. It’s cheaper. We design or buy them from bigger giants and tweak it to our needs.

      We do have some unique products designed by our team and custom made making them very unique.

      Like you said, mostly it’s buy one get the second one for 30% off under different promo names. It forces customers to buy more. For few who buy just one, they pay full rrp which is good for the margins.

      Always try and get the products through your builder or sparky to get the 25% off at all times. Trust me, you will end up saving hundreds or thousands of dollars when building a new home.

      • +1

        don't tradies just load up the prices though?
        that seems what happens generally.

        • +1

          Yeah. Lately a lot of volume builders and sparkies buy at 25% off trade prices and sell them for rrp. Even if the customer came in and asked for the same products, they would get it for a much cheaper price than what those tradies charge. At the end of the day, they are also a business and need to make money.

          If a customer is genuine and honest, I usually give them the same 25% off as a manager’s discretion because I’m allowed to give that.

      • -4

        Can't see the lighting costs being hundreds of thousands.thats the total cost of most houses.

        • +3

          Hundreds OR thousands.

          • @EmCKay: Depends on your overall total and the kinda products you choose. For a full house, you save on average 4-5k just by putting the order under the trade account.

            • +1

              @1 Sec: Sorry OP I was replying to Geoff01 (think he misread your comment)

        • What if it's a lighthouse?

  • +1

    What were the main reasons for customers coming to your store looking for?

    Beside the obvious looking for lights. Context I'm meant is, e.g. people don't buy drills, they want a hole in the wall, why do they want a hole in the wall, so they can install a hook and hang a picture :). Is there an equivalent in your ex-line of business?

    • Most putting new fans in the bedrooms, upgrading old lights and fans.
      Globes is a big thing. We sell 100s of globes a day and really good margins on them too.
      They are building and come in with the plan to choose the lights, fans, exhaust etc.

      Kitchen island bench lights are the next big sell and most customers want to spend more on kitchen island bench as it’s a feature, living room fans and master bedroom.

  • +1

    With the shift to China manufacturing have you seen many safety compromises? Sparkies have had big issues with Chinese made Infinity and Olsent branded electrical cables. Does asbestos ever sneak in to any products?

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