CompUSA and possible hostile pricing tactics?

[Ramma2]

I picked up my copy of GTA:SA yesterday, and the events that transpired led me to come up with this theory. Please read carefully.

1. CompUSA advertises GTA:SA in their weekly flier for 29.99$. A seemingly crazy price for a new game that everyone else is selling for 50$

2. I go to CompUSA to pick up my copy, and they are sold out. I noticed something odd in that there was no spot on the shelves for the PC or Xbox version for them to even be sold out of. I checked endcaps, not their either. I then checked out the PS2 section, and it had a spot there but was also sold out.

3. I check with the service counter, none in stock, not sure when they'll get them, hesitant to issue a rain check because they don't know when. I grab a flier and head to Best Buy to see if they have them in stock for a pricematch.

4. BB does, has many in stock for 49.99$. I bring my flier and game up to the service counter for a pricematch. He does so with no trouble, then casually remarks "I wonder how they make any money". I think inside my head that heh they don't, and now you're losing some because of them.

*CUE QUICK MOVIE CLIP FLASHBACK WITH DRUM MUSIC SEQUENCE, all in my head*

Theory: CompUSA advertises game for 20$ off normal price. Order in a very few copies for release date, if any at all, as evidenced by the no spot on the shelves for them. Other store chains will of course order in a mass quantity. CompUSA now just waits during the week, being "sold out", while their customers first stop there (bringing in people to the store, good for business), knowing full well that the customer will probably take the weekly ad and hit up another chain for a price match. BAM CompUSA is responsible for making other stores taking a hit on a very popular very good selling game. CompUSA waits the week out then stocks its shelves normaly and resumes selling at the same price. Wow.

I'm tired now. Thoughts?

Cliffs:

1. Compusa advertises game for cheap, doesn't stock game in own stores
2. Customers come in, none for sale, take ad and pricematch the game at other chains
3. Other stores lose money, Compusa loses none and gets many customers into their own store.
4. CompUSA resumes selling game after sale, loses no money and then PROFITS.

 

[icejunkie]

That's a pretty cool conspiracy theory :thumbsup:

 

[shud]

Not a bad theory but that's a pretty big risk on CompUSA's part.

 

[Hammer]

but they'd be losing money from the initial sales and high margin items they bundle with it. i don't think your scenario is very likely.

 

[her209]

Consider yourself lucky! Usually the store that does the pricematching has a policy that the "other" store has to have the item in stock in order for them to pricematch.

 

[Ramma2]

Originally posted by: Hammer
but they'd be losing money from the initial sales and high margin items they bundle with it. i don't think your scenario is very likely.

Maybe, but I think they were aware of that and willing to take the risk to get people into the store. The first time I went to a CompUSA I was amazed that they just sold PC parts. Since then I have always shopped there first and they have made much money off of me and the stuff I buy for work. Before then I had never even heard of them and just shopped at BB and the internet.

 

[kranky]

In reality there are very, very few people who pricematch. Plus, the store being asked to do the pricematch can refuse to do it if the other store is out of stock - it just happened that your BB clerk didn't bother to call.

And also, if enough complaints come in, CUSA could be penalized for advertising items but not having them in stock. (That's usually a state thing.)

Bottom line, that tactic can't be used intentionally to screw another competitor.

 

[spanky]

i think ur theory is flawed becuz most chain store pm policies will only be effective if the other store has the item in stock. i guess this is where YMMV depending on the CSR u deal with.

 

[Ns1]

Originally posted by: spanky
i think ur theory is flawed becuz most chain store pm policies will only be effective if the other store has the item in stock. i guess this is where YMMV depending on the CSR u deal with.

 

[tennisflip]

Originally posted by: spanky
i think ur theory is flawed becuz most chain store pm policies will only be effective if the other store has the item in stock. i guess this is where YMMV depending on the CSR u deal with.

The thing is that I've price matched many times at BB and the only time they call to check if an item is in stock is if you don't have a flyer.