QVC Looks to Buy HSN

QVC's parent company, Liberty Media, wants to make a play for HSN.

In case you didn't already know, here's the quick lowdown on the home shopping family tree: HSN was owned by IAC (i.e. Barry Diller); however, Liberty Media (i.e. John Malone), which owns QVC, had a 30% stake in IAC. So HSN and the Q were kinda sorta related--cousins from an inbred family, perhaps?

Anyway, then IAC spun off HSN into its own company cause Barry Diller's got better things to do now--like buying matchmaking websites in China!

On a recent conference call, Liberty CEO Gregg Maffei said that they are prohibited from making a bid on HSN until May 2010. "But we do believe we are the natural owner at some point of that company. We're the one with the most synergies." Maffei added that in the meantime, QVC has the right to increase its stake in HSN from 30% to 35%.

I don't know why Liberty wants even more of the home shopping biz--even though they are the "natural owner" with the most "synergies." Especially considering QVC's recent lackluster sales--domestic revenue fell 12% last quarter (that's the uber important holiday season too) mostly due to declines in jewelry and apparel. However, QVC President and CEO Mike (King) George swears on his brand new Mini Dell that the fall-off is not because that aren't attracting new customers or that their existing customers are leaving, but due to customers just buying less frequently.

And FYI, Liberty also just bailed out Sirius XM, so I'd be expecting a Sirius XM Radio TSV on the Q soon--only 6 easy payments, y'all!

QVC's Dubious Dell Deal

According to PCWorld.com, if you just bought one of the much hyped Dell Inspiron Mini 10 notebooks from QVC, you got a "raw deal."

QVC started selling the Mini 10 about a week ago for $559, claiming that the retail value was $688.

However, if you checkout Dell's website, the a Mini 10 with the exact same configuration (1.6GHz Intel Atom processor Z530) plus shipping is only $487--$72 less than the QVC price and a whopping $201 less than what QVC claims is the retail price.

QVC's President and CEO, Mike George (AKA King George) came from Dell and has built up what appears to be a mutually beneficial relationship between the Q and Dell--much to the dismay of loyal viewers tired of being inundated with all the hour-long Dell shows. Why wouldn't he get the best price for his customers?

Was QVC or Dell preying on naïve shoppers?

Blinded by the Light

Solar power ain't just for Andrew Lessman anymore!

QVC is operating the largest solar farm in the state of North Carolina. And true to QVC form, they aren't just using it to power their 1.5-million-square-foot regional distribution center, they are selling it!

Right now QVC's photovoltaic project (doncha love those fancy words?) generates enough electricity for about 150 homes.

QVC President and CEO Mike (King) George said, "It was critical for us to pursue ways to make our operations greener."

You know King George is working out a plan to hike up the prices and spread out those electric bills into five Easy Payments (deferred for three months if you charge it on your Q Card!) And I'm sure Dell will play into it somehow too, but I can't quite figure out that angle yet.

Seriously, I think it it's a good thing. QVC is helping the environment and saving money in the long run at the same time. Not too shabby!

Layoff Update: QCard to Blame?

More information about the recent layoffs at QVC via The Consumerist website:

A reader who would like to remain anonymous, described the layoff process in an email to Consumerist.

As I understand it, security escorted each ex-worker back to his/her desk, where they collected their keys and pocketbook, etc. They were not allowed to get anything else, and must return at a later time when the building is primarily empty to collect the rest of their belongings.

We suppose that's how it goes when you work in a huge vat of jewelry.

The layoffs are being blamed on QVC's credit card division, which is experiencing more defaults.

In late October, Liberty Media said third-quarter profits dropped at its QVC home-shopping unit as the credit crunch slowed consumer spending and more customers missed payments on QVC-issued credit cards.

Some 27 percent of QVC sales are paid for with the company-issued credit cards, George said.

"People are struggling," [Mike George, QVC's president and CEO] said. "QVC will be more careful, more conservative when opening up new Q-Card accounts."

I have to wonder if the Q is going to continue to push the QCard all the time or if they're going to lay off for a while?

And on another note entirely, is it even legal for QVC security to prevent employees from even gathering up their own property???

They Speak with a Forked Tongue

QVC laid off approximately 160 employees yesterday--everything from vice-presidents to producers to call center workers. Apparently, no one knew this was coming until they showed up for work (although I would bet there were lots of rumors floating around). Here's a link to coverage of the story from their local news.

And the bad news keeps coming for the small town of West Chester. QVC is planning to shut down the entire call center and eliminate 900 jobs over the next 14 months as it shifts sales and distribution to facilities in Virginia, South Carolina, Texas and Florida.

Let me translate this for you: they are getting rid of everyone at a facility that has been there for twenty-some-odd-years so that they can move their operations to locations where the wages are cheaper in general and they don't have people with seniority (i.e. higher pay and more benefits) to deal with.

I live in the South, I know how it works down here. The only reason companies move here is for the cheap labor and loosey-goosey labor laws.

On the bright side, they do plan on adding about 200 new jobs in these cheaper locations. And they believe that they will "improve customer service" by supporting a new work-from-home model.

This is where the tongue forks, my friends.

No, you do NOT improve customer service by getting rid of experienced employees that are invested in your company. And, NO, you do NOT improve customer service by getting rid of 700 employees! Who do they think they are kidding?

Here's what King George, President of the Q, had to say about this horrible turn of events: "I had hoped we could avoid layoffs as we pursued our long-term growth strategies, but after witnessing the continuing deterioration in the economy, I came to the reluctant conclusion that this was not going to be possible."

Hey, times are hard. I understand. QVC's sales have been going down. In fact, their revenue last quarter was off 3% to only $1.64 billion--that's with a "B." Sad, isn't it?

But there's some great news for those call center employees who haven't been fired just yet: they get to work through the holiday season before being handed their pink slip! Yippy! Isn't that great? QVC is going to let their experienced employees carry them through the busy holiday season before canning them.

Although I have to say that I am a bit confused since I thought getting rid of all those people was actually going to improve customer service? Strange how that works.

I'd like to advise all those employees who got the boot yesterday or whose heads are now on the chopping block to first, rent "Office Space." You need and deserve a good laugh. And, second, when you get a chance, email me your thoughts (homeshoppingqueen@gmail.com). I assure you that will keep any identifying information private.

I wish all these employees the best of luck. My heart goes out to you.

I will leave you with some words of wisdom from Milton from Office Space, "And I said, I don't care if they lay me off either, because I told, I told Bill that if they move my desk one more time, then, then I'm, I'm quitting, I'm going to quit. And, and I told Don too, because they've moved my desk four times already this year, and I used to be over by the window, and I could see the squirrels, and they were married, but then, they switched from the Swingline to the Boston stapler, but I kept my Swingline stapler because it didn't bind up as much, and I kept the staples for the Swingline stapler and it's not okay because if they take my stapler then I'll set the building on fire... "

King George Gets Personal

I have a love-hate relationship with QVC CEO "King" George that is closely tied to my general love-hate relationship with QVC. They are, hands down, the best home shopping network; however, that has never stopped them from being clueless, inept, and--at times--completely underhanded.

King George seems to have a good handle on the current problems and a good vision for the future of home shopping networks in general. It'll be interesting to see if he can weather the current economic storm while staying at the QVC helm or if he'll just bail ship.

This article from the New York Times made me kinda sorta like him a little more (not that he's completely off the hook with me!)

See what you think:

WHEN I was a teenager, I spent summers working in construction with my father, a carpenter. We lived in a suburb of Seattle. It quickly became apparent that I would need to attend college and get a desk job because I’d never earn a living with my hands. I had no natural skill in that area.

I got a job at McKinsey & Company after graduating from Northwestern University with a degree in economics. I thought I’d spend a couple of years there to round out my education, but I stayed for 16 and rose to senior partner.

One of my clients was May Department Stores, the parent company of such stores as Lord & Taylor and Filene’s. I had the good fortune to work with May’s C.E.O., David Farrell, a leader in the industry, for 15 years.

Consulting teaches you how to dissect a problem, but that’s just the beginning. You learn that change takes time and it’s not just about the elegance of the solution. It’s also about the ability to motivate people and rally them around a cause.

One day a friend of a friend suggested I talk to Michael Dell about working with him. I agreed more out of curiosity than anything else and was blown away by the company and his vision. As much as I loved McKinsey, I left in 2001 to join Dell. I wanted a new challenge. My kids thought it was funny because I rarely used a computer. For two months I worked as Michael’s executive assistant and learned about the company and the industry. Then I became chief marketing officer and later took on additional responsibility as general manager of Dell’s consumer business.

It was a difficult time in the industry, right after the dot-com crash, but it was energizing. It was also my first opportunity to run a business. The challenges of direct marketing computers were a stretch and a learning experience.

My career has been wildly unplanned. I thought I’d be at Dell a long time, but when I had been there five years I got a call from an executive search firm asking if I’d be interested in talking to the folks at QVC.

I said, “No thanks, I’m happy doing what I’m doing.” The person was persistent and said I should at least meet with the C.E.O., Doug Briggs, who was retiring. I did, and found I had a completely false image of QVC. I thought home shopping was a dated idea and not nearly as exciting or fresh as technology. I discovered it was an amazing platform, and its best days were yet to come. I joined QVC in 2005.

People stumble on us when they’re flipping the TV channels. They might see Bobbi Brown selling her line of makeup, or a remote broadcast from Texas Stadium with Roger Staubach talking about his experiences there. Typically viewers don’t buy right away; they need to come back a few times and get over their skepticism about what we do.

Writing is one of my passions. Every Monday I e-mail our staff and try to inspire them. I discuss what I’m excited about in our business, or I share what I’m worried about or what I’m struggling with personally. I talk about my family and my personal life. I found that if you can tell an engaging story and relate it to work, it may stick with people and have some impact over time. Recently I wrote about my 11-year-old son who miscommunicated with a hair stylist. The woman shaved my son’s head instead of just giving him a trim, as he had requested. He was traumatized, locked himself in his room for a few hours and wore a baseball cap until his hair grew back.

I used the anecdote to discuss our responsibility regarding customer service, whether it involves an employee packing boxes in Florence, S.C., or someone answering the phones in Chesapeake, Va. When people realize we all have similar struggles, it creates a higher level of engagement and a connection.

Tova: "It's Like Giving Up a Child."

Here's an interesting article from the New York Times about Tova:

"It’s like giving up a child,” said Tova Borgnine, the founder and chief executive of the Tova Corporation, a cosmetics and fragrance company now owned by the televised home shopping company QVC. In March 1977, Ms. Borgnine, who is married to the actor Ernest Borgnine, started a mail-order company in Los Angeles selling a perfume called Tova Signature.

By 1987, she had 65 skincare products and 80 employees. In 1990, she began selling her wares on QVC, and 12 years later QVC bought the Tova brand for a seven-figure sum. Tova Signature is QVC’s top-selling perfume.

It was, she said, an accomplishment she was proud of, but still an adjustment. “In a massive corporate structure you have bureaucracy that you must be able to get through,” said Ms. Borgnine, who divides her time between Beverly Hills and Malvern, Pa., near QVC’s headquarters. “All of the products are the same as when I created my company; I’m in on every strategy meeting, but now there’s a collective voice. That’s a luxury, but you’ve also got to be able to let go.”


Here is what QVC President/CEO/King Mike George had to say about the smelly Tova Signature controversy.

Is everyone satisfied now or are there still noses out of joint???

QVC Denies Tova Foul Play

Mike George, QVC President and CEO, (and reigning QVC King) finally addressed Tova-gate in the most recent online chat. Apparently he has heard our cries of Tova foul play and swears that the fragrance has been fixed.

In a nutshell, last year the formula was changed. No one thought the changes would affect the fragrance. It did. Customers felt hoodwinked and Tova-gate was born.

QVC went back to the original formulation and tried to make amends with the Tova loyalists by sending out a free bottle of the new stuff (with the old formula).

However, not all the Tova customers were convinced that the scent was the same as the original. So,Tova-gate continues. Is the scent really different or is this simply a case of too little, too late???

BTW, just for funsies, check out Tova on The Soup’s Tales from Home Shopping here.

From the June 13th online chat transcript:

Vicki: Can you address what has happened with the Tova Signature fragrance. Many, many customers feel it is a different product than the original and are very vocal about wanting a chance to purchase the product they loved for years.

Mike: Thanks for your question Vicki. We know there are many loyal Tova fans who are very disappointed with the fragrance. Let me give you the background on what happened and what we are doing about it: Last year, the manufacturer of the Tova fragrance made a very slight change in the formulation. They did not think at the time that that change would have any impact on the scent. However, we heard from many customers that they felt the scent had changed. So we and Tova went back and took apart the formulation and concluded that, indeed, we had made a mistake and had inadvertently changed the scent.

We believe this affected her signature product starting around May 2007. We believe we completely corrected the formulation in fall 2007, and at that time notified all the affected customers that they could get a new version of the corrected product on our nickel. Since then, we have continued to receive complaints from customers who feel that the product is not back to its original standard.

We continue to monitor the Tova threads, as we do all threads. There is talk on the forums of a Tova-gate, and underhanded attempts on our part to trick our customers. All I can do is tell you the truth, which is we believe that we have been able to restore the formulation to its original version. This was never done in an attempt to lower the cost. In fact, the cost to make the product has not decreased at all.

We are at somewhat of a loss to understand why some customers feel it has changed. I believe they are totally sincere in their beliefs; we just cant find anything to indicate the product is not back to its original standard, In fact, the majority of customers are satisfied with it. I have had several discussions with Tova over the last year, and I can report to you how upset and disappointed she has been because she loves her customers and is so proud of her 25 year history with this fragrance. So please continue to give us information if you feel the product has changed. We will continue to monitor the situation. But again, all I can tell you is that we are totally committed to the original Tova fragrance and to the best abilities of Tova and the manufacturer, we believe the current fragrance is the same as the original formulation.

Dave King Rumor Mill Madness

There has been alot of interest in Dave King on the blog lately. I still, sadly, don't know exactly what happened to him, but I thought I would put together all of the gossip swirling around the Internet. Keep in mind, these are rumors, chickadees, not facts!

1) Dave was fired for insisting on day shifts after working late night/early morning shift for 13 years.

2) Dave was fired for low sales.

3) Dave was fired to scare all the other employees into submission.

4) Dave was fired, but even he has no idea why.

5) Dave was fired because of his relationship with either another host or a vendor.

6) Dave was fired because QVC is discriminatory. This particular rumor is based on a 1999 discrimination class-action lawsuit filed against QVC by former minority hosts, SAG, and ARTRA. You can read about it here.

7) Dave was fired because QVC is trying to weed out the older hosts and replace them with younger hosts. Why? The young hosts are cheaper and appeal to the younger demographic that the Q is trying so desperately to appeal to (obviously the way to do that is buy selling elastic-waist pants and old-lady sandals!).

8) Dave King is sick.

What we do know:

1) Dave gave no indication on his last shift on QVC that it was, in fact, his last shift on QVC.

2) QVC has not publicly commented on the situation (not even the generic, "he left to pursue other opportunities" line), nor did he get any kind of on-air going away party.

There is another rumor floating about that people tried to ask QVC President/CEO/King Mike George what happened to Dave on the Live Chat the other day, but that the question was never posted or answered.

When it comes to corporate America, anything can be true. I just hope that the truth comes out and I hope that Dave is doing well. I promise to let you know as soon as I know anything!

QVC King Wants You!

Make sure to be logged into QVC at 4:30 p.m. ET today for a LIVE chat with QVC King-President-CEO, Mike George. (Is it just me, or is he kinda rocking the Steve Jobs look a little?)

The message says to log in at 4 p.m. to ask him questions and "share your ideas" and then goes on to says the "live" chat starts at 4:30 p.m. What does that mean? Do they screen out anything that he doesn't want to answer??? Hmmm ... this seems a little shady.

I'm gonna try to be there, but the timing isn't good for me. Someone should ask him how Dave King is doing!