A Florida man who took a job selling solar panels says he quickly realized he wasn’t really selling clean energy systems. Instead, he told personal finance personality Dave Ramsey that the real focus seemed to be financing and loans.
During an episode of “The Ramsey Show,” caller Tom from Jacksonville explained that he originally took the job to sharpen his sales skills while building his own business on the side. But after just a few weeks, he started feeling uncomfortable with how the company approached customers.
Don’t Miss:
- Explore whether your retirement strategy is optimized for income, taxes, and long-term withdrawals — take the AdviserMatch quiz today.
- Paying too much toward debt? Find out how much you could save with a quick, free check.
Feeling Out Of Alignment
“I’m not really selling solar panels as much as I’m selling the loans, the financing for them,” Tom told Ramsey and co-host Ken Coleman.
Tom explained that the company pitches solar financing by telling homeowners that the savings on their electric bills will offset the monthly payments on the loan. He said the experience made him start reevaluating whether he wanted to continue in the role.
Ramsey immediately acknowledged that this type of sales strategy is common in the industry.
“They basically sell it for the savings on the electric bill because having solar panels will pay your payments,” Ramsey said.
While Ramsey said he personally believes solar panels can make financial sense in certain situations, he also said he doesn’t support financing them.
“I would pay cash for them or I wouldn’t buy them,” Ramsey said, “but I say that about everything.”
Trending: More Than Half of Americans Aren’t Prepared for Retirement — Including 62% of Gen Y
Coleman told Tom that he didn’t believe the caller was doing anything unethical or illegal, but said the bigger issue was whether the job matched his personal values.
“This isn’t an ethical thing,” Coleman said. “This is a values thing.”
Coleman advised Tom not to make an emotional decision and quit immediately, especially because his side business isn’t yet producing enough income to cover his bills.
“Don’t make any crazy jumps,” Coleman said. “You’re a good person. You’re not doing anything illegal.”
Instead, Coleman suggested Tom look for another sales job that better matches his beliefs while continuing to work on his business.
Ramsey Says Financing Has Taken Over Retail
The conversation eventually expanded into a broader criticism of how many companies now make more money from financing and warranties than from the actual products they sell.
Ramsey pointed to retailers like Victoria’s Secret (NYSE:VSCO) and Best Buy (NYSE:BBY) as examples.
See Also: Why Traders Are Flocking to Leveraged ETFs — And What It Means for You
He recalled hearing from a Victoria’s Secret employee who allegedly said workers faced pressure to get customers to apply for store credit cards.
“There was no quota on amount of underwear sold,” Ramsey joked. “Just whether or not you got the Victoria’s Secret card.”
Ramsey also criticized electronics retailers for aggressively pushing extended warranties and financing offers.
“They got sideways when they realized they could make more money on the issuing of credit than they could on the sale of televisions,” Ramsey said.
Even so, both Ramsey and Coleman …
This post was originally published here
