Jump to content



Photo

Best Buy profit tanks 91%, stock tumbles to 9-year low

crash and burn!

  • Please log in to reply
25 replies to this topic

#16 +LogicalApex

LogicalApex

    Software Engineer

  • 6,321 posts
  • Joined: 14-August 02
  • Location: Philadelphia, PA
  • OS: Windows 7 Ultimate x64
  • Phone: Nexus 5

Posted 21 August 2012 - 17:33

Best Buy, like many retailers don't get it, they need to match the pricing seen online and leverage the convenience they can offer that the online retailer can't (instant availability)...

They need to put smaller stores in urban areas and abandon the crappy big box format. They then need to make purchasing online or in-store seamless with perks like free ship to store and expedited shipping and checkout when buying in-store.

This. I dont have any allegiance to one paticular retailer. I go to whoever is going to give me the best price, on a rare occasion Best Buy has the best offer for a bluray I am looking for but that's about it. Every other item I look to purchase can be mailed to my house tax free from Amazon with usually a 20% (min.) cheaper price. I understand they have way more overhead than an e-tailer but they need to adapt to the business model or there is no way they can survive. I hate whenever I go there and see people bringing in their desktop to the Geeksquad to get repaired because I know they are going to get raked over the coals with the prices they charge.


They need to learn this lesson at Best Buy...

If they were to look smartly at Amazon they can see its vulnerability very well. Amazon is renting space to put shipping lockers for people to conveniently pick up their packages due to the ugly side of online ordering (needing to be home to get your package) and UPS is charging consumers for "convenient" delivery. The obvious way to press against Amazon is to drop the Big Box format and focus on a smaller store format that can stock the items that roll out the store quickly while giving customers who buy online a convenient place to pick up their packages and do returns.

Amazon is vulnerable, but the brick and mortar guys are too stupid to attack correctly.


#17 LaP

LaP

    Forget about it

  • 5,926 posts
  • Joined: 10-July 06
  • Location: Quebec City, Canada
  • OS: Windows 8.1 Pro Update 1

Posted 21 August 2012 - 17:39

Best Buy, like many retailers don't get it, they need to match the pricing seen online and leverage the convenience they can offer that the online retailer can't (instant availability)...


And easier return of the product when things get ugly.

#18 +LogicalApex

LogicalApex

    Software Engineer

  • 6,321 posts
  • Joined: 14-August 02
  • Location: Philadelphia, PA
  • OS: Windows 7 Ultimate x64
  • Phone: Nexus 5

Posted 21 August 2012 - 17:45

And easier return of the product when things get ugly.


Exactly, by leveraging a smaller, more convenient, stores they could offer users the ability to return any item without having to deal with shipping costs or hassles. Basically, they need to leverage the best aspects of the Brick and Mortar world (instant gratification, ease of returns, etc.) with the best aspects of the online world (lower costs due to economies of scale).

Sadly, they just don't get it...

They will get it when Amazon starts building stores, but at that point it will be too late.

#19 aviator189

aviator189

    Neowinian

  • 886 posts
  • Joined: 22-June 12

Posted 21 August 2012 - 17:52

it's just not a cheap place to go to. if it was, i'd go in a heart beat as it's very close to where i live.

#20 +jamesyfx

jamesyfx

    Neowinian Senior

  • 8,383 posts
  • Joined: 04-February 06
  • Location: Manchester, UK
  • OS: OS X 10.9 / Windows 8.1
  • Phone: Nexus 5

Posted 21 August 2012 - 17:57

If Best Buy focused more on good customer service and less focus on insurance (which I can probably guess they don't call it insurance, even though it is). The fact that they're more expensive than the internet is not their biggest problem.

You are never going to see a high street store to be as cheap as the internet, for obvious reasons. But the fact that you get good service from staff and a simple returns and exchanges policy should make that extra cost justifiable.. which at the moment, isn't.

#21 Azies

Azies

    Neowinian Senior

  • 1,870 posts
  • Joined: 19-January 10

Posted 21 August 2012 - 19:07

Crash and burn indeed... Bye there Best Buy, time to join Circuit City. :)

#22 EricMM

EricMM

    Neowinian

  • 8 posts
  • Joined: 29-March 12

Posted 21 August 2012 - 19:12

I go to Best Buy a lot.

It's the best place to get some hands-on with a gadget before actually buying it on Amazon :)

#23 ILikeTobacco

ILikeTobacco

    Neowinian Senior

  • 4,789 posts
  • Joined: 08-July 10

Posted 21 August 2012 - 19:36

I window shop for tv's at best buy. I like to see what the image looks like before I buy a tv

#24 shockz

shockz

    Neowinian Senior

  • 19,628 posts
  • Joined: 09-November 01
  • Location: USA
  • OS: Windows 8
  • Phone: iPhone 5

Posted 21 August 2012 - 19:39

Items never in stock, demo models usually malfunctioning, associates that won't leave you alone and constantly ask you for help. Performance Service Protection Plan uttered from their mouths every other sentence. Not knowledgeable in the product their demoing. It's a horrible, frustrating experience. Taking 6 hours to buy a car is a more enjoyable experience. It wasn't always like this, I would know, I worked there for a few years, but service and quality has gone considerably down.

I'll stick to online sites where all the relevant info is presented to you immediately, free shipping, typically cheaper and when you do actually need help, live chat solves most problems.

#25 Growled

Growled

    Neowinian Senior

  • 41,508 posts
  • Joined: 17-December 08
  • Location: USA

Posted 21 August 2012 - 23:35

I can't say I'm surprised. With Amazon, Newegg, Microcenter, etc etc, Best Buy just doesn't have competitive prices.


That and poor customer service is doing them in.

#26 Boz

Boz

    Neowinian Senior

  • 7,454 posts
  • Joined: 21-October 03

Posted 22 August 2012 - 18:28

Best Buy got a new logo btw

Posted Image