FORBES: Why Best Buy Is Going Out Of Business...Gradually

[M0oG0oGaiPan]

I like their ship to store option. Great way to get things during work .

 

[PingSpike]

Best Buy is not going out of business anytime soon.

I hope not. Where else would I get a hands on demo of monitors and laptops before I buy them from amazon?

 

[Texashiker]

I like their ship to store option. Great way to get things during work .

A guy I work with checked the best buy website for a camera. The website said the store nearest our location was out of stock, so he did the site to store option.

About 30 minutes after placing the site to store order, the guy I work with got an email saying the camera was ready to be picked up.

The only way the camera got to the store in 30 minutes, was for the store to have the camera in stock. But if they had it in stock, why didn't the in stock items show up on the website?

10 years ago I walked into an Academy sports and outdoors store looking for a shotgun. The store was out of stock in the make and model I was looking for. The sales rep pulled the inventory of every academy store in the nation. He then told me the Academy 20 miles away had one of the make and model I wanted in stock. I then drove 20 miles to the store and bought the shotgun I wanted.

If Academy sports and outdoors could do that 10 years ago, BB has no excuse for not having a similar system in place today.

 

[steppinthrax]

I never understood best buy. I don't even understand the people who buy stuff from there. The prices they have are generally 20 to 30% more then ebay or amazon (same thing new). I only walk into best buy to look at the item I want to buy, I then leave and buy the same thing on amazon or ebay.

Don't even get me started on the HDMI cables.

 

[roguerower]

I dislike BB for a lot of the reasons listed here. Their sales reps are usually incompetent, everything is overpriced (not just a little, but a shitload) and some very basic components are insanely priced. A 6" SATA cable costs $20.

I give BB a wide berth. I don't think they'll die soon, but eventually they'll go the way of the dodo.

 

[Fingolfin269]

I have no doubt BB will go down eventually. I just wonder if we're heading to a point where the online business model forces all of the mega electronics b&m stores to close and then we realize just how much we actually like to touch/experience certain products before purchasing them.

I'll buy dvds/brd/games/pc parts/computers/etc. all day long online without ever seeing them in person beforehand. But for some reason I still haven't taken the plunge to do the same with a washer/dryer, television, fridge, other major appliance.

 

[Genx87]

BB is a relic of the 1990s mentality of shopping. They only survived as long as they have because the competition was even worse than them. When they started charging restocking fee's and hiding behind everything is software we can't return it policy. It was only a matter of time before they pissed off the customers they turned into the enemy. I hadnt heard about BB utterly failing to deliver on website purchases for this holiday season. But telling people 3 days before christmas is the ultimate eff you to the customer. They did it on purpose to keep people from spending money at other retailers for the same products. They knew in November they couldnt fill those orders. If they didnt, their inventory system is more screwed up that anybody can imagine. Anyways it is the mentality of that crappy organization to treat their customers this way. They have basically turned us into the enemy and wonder why they are flailing about when we flee for other outlets for our purchases. Why wouldnt I purchase something at amazon or another electronics outlet?

 

[alent1234]

There are no Frys or even a Walmart here in NYC but you have PC Richard and Son as an alternative to Best Buy. Can't think of any other major electronic outfit here in the city. There is a Microcenter in Yonkers and Long Island but I haven't been to either store yet.

PC Richard is the absolute worst electronics store you can find. I'll go to BB before PC Richard any day. Their models are always slightly different and worse specs for the same price. They even try to scam you into applying for a credit card. J&R is OK and i've shopped there since the 1980's but not lately.

best buy is not that bad and i go there if i need something like an ipad 2 case now. won't buy RAM or graphics cards there but things like blu rays and some accessories i can take a quick trip to the upper west side during lunch and buy it there. game consoles, games and a lot of other things are the same price as amazon or newegg

 

[Fritzo]

I never understood best buy. I don't even understand the people who buy stuff from there. The prices they have are generally 20 to 30% more then ebay or amazon (same thing new). I only walk into best buy to look at the item I want to buy, I then leave and buy the same thing on amazon or ebay.

Don't even get me started on the HDMI cables.

They have good deals at times. When a new game or movie comes out, it's almost always $10-$20 off the first week. They're also pretty competitive on high ticket items (TV's and entertainment systems). When you buy those, you get to cash in on their Reward Zone cash and buy the little stuff.

I just hate feeling like I always have to be on the defensive the minute I walk in there. I don't feel like that when I go into any other store.

 

[Fritzo]

I have no doubt BB will go down eventually. I just wonder if we're heading to a point where the online business model forces all of the mega electronics b&m stores to close and then we realize just how much we actually like to touch/experience certain products before purchasing them.

I'll buy dvds/brd/games/pc parts/computers/etc. all day long online without ever seeing them in person beforehand. But for some reason I still haven't taken the plunge to do the same with a washer/dryer, television, fridge, other major appliance.

I could see Amazon opening up storefronts at some point where you can see products before you order them. Kind of like the old Service Merchandise (remember them?)

 

[blurredvision]

Damn, you guys crack me up. Your posts read like Best Buy personally raped your grandmother and then stole your cat. Why so serious?

I don't frequent BB because I know they are typically higher priced than online. Do I get pissed off about it? No. I'd also like to assume that many of you are like me, in that if you do go into BB, you already know what you're look at/for, so unknowledgeable staff isn't really an issue.

Some of you state the layout of a BB store is also shitty. It's not a big store and doesn't take a genius to figure out where stuff is. If you can't find it without the help of staff or a map, you're the one to blame. Then you complain because you have to say "No." to a warranty up-sell?

Some of you are much better off staying in the confines of your home, god forbid you have any human interaction whatsoever.

I don't shop BB and I don't care about them enough to hate on them like a lot of you do. They can do their thing, it doesn't affect me.

 

[Fingolfin269]

I could see Amazon opening up storefronts at some point where you can see products before you order them. Kind of like the old Service Merchandise (remember them?)

BB may be better off just throwing in the towel and offering up their store fronts for Amazon/Others.

And yes, wow I had forgotten all about Service Merchandise. Blast from the past.

 

[zinfamous]

I do have to give credit to the sales dude at my local BB. My CD player busted so I went to buy a new one.

Me: I need a CD player for my home stereo.
Him: Do you want blue ray?
Me: Nope, it just has to play CDs, I don't even care if it plays DVDs.
Him: Okay, let me show you our CD components. Here you go.

He shows me exactly what I asked for: a player that only plays CDs. In the modern era this translates to a high end Yamaha featuring a laser tuned through a fragment of the Arkenstone that Yamaha engineers stole from Thorin's breast. Price was upwards of $400.

Me: Thank you. We'll look around some more.

That sounds like one bitchin' CD player.

See, I don't think you can find that on Amazon.

 

[paperfist]

I never understood best buy. I don't even understand the people who buy stuff from there. The prices they have are generally 20 to 30% more then ebay or amazon (same thing new). I only walk into best buy to look at the item I want to buy, I then leave and buy the same thing on amazon or ebay.

Don't even get me started on the HDMI cables.

Convenience. There's a throng of people that want something instantly and are willing to rack up the extra debt to do so.

 

[Fritzo]

I don't shop BB and I don't care about them enough to hate on them like a lot of you do. They can do their thing, it doesn't affect me.

So, you're giving your 2 cents on something you've never experienced?

Thank you for your valued opinion.

 

[busydude]

Damn, you guys crack me up. Your posts read like Best Buy personally raped your grandmother and then stole your cat. Why so serious?

I don't frequent BB because I know they are typically higher priced than online. Do I get pissed off about it? No. I'd also like to assume that many of you are like me, in that if you do go into BB, you already know what you're look at/for, so unknowledgeable staff isn't really an issue.

Some of you state the layout of a BB store is also shitty. It's not a big store and doesn't take a genius to figure out where stuff is. If you can't find it without the help of staff or a map, you're the one to blame. Then you complain because you have to say "No." to a warranty up-sell?

Some of you are much better off staying in the confines of your home, god forbid you have any human interaction whatsoever.

I don't shop BB and I don't care about them enough to hate on them like a lot of you do. They can do their thing, it doesn't affect me.

I just wasted 1 minute to read your worthless post.

 

[HumblePie]

The only time I ever shop at bestbuy or even step foot in the store is when I see on slickdeals they have something on clearance for a good price of something I want. Last time it was for my HP touchpad. Otherwise, I stay the hell away from that place. Used to work there and hate the place. From crazy managers that don't want to follow their corporate policies to just a ghetto place to shop most of the time around here.

The main reason that Bestbuy is hanging around is from the stores in the south part of the USA. Same reason Circuit City and CompUSA managed to stay around long after they were really dead. Why? Because it is actually WORSE in Mexico to shop for electronics than to fly up here, buy them in a B&M store, and then transport them back to Mexico. I'm serious. Much cheaper for the few rich Mexican Nationals there are to buy electronics. They don't care about customer service or return policies. They aren't coming back in a timely manner to make up for them as they on come about 3 to 4 times a year at most to shop here.

Still, Fry's, Microcenter, and a few other retail chains could clean up if they could get the brand name recognition that Best Buy has. It's the ONLY thing keeping them around. I have worked in Bestbuy, Circuit City, CompUSA and a few other retail stores. When these Mexican Nationals come visit a store they ONLY shop the brand names. They don't care about price because whatever they buy is 10 times cheaper here than there. They want that best Sony VIAO laptop even if it is $3000 and worse than a $1000 alternative. Why? because they know the Sony brand name. They can get service from Sony in Mexico even for USA purchases. That same laptop there would be $7000 or more easily. I've seen a few bring in the advertisements from stores that would sell it. Of which there is very few. Usually just Staples and a couple of other major retail stores in the "safer" cities down there. The prices for modern electronics down there are staggering. So the save up, fly here, load up on brand names they know, and head back.

The reason I know that this is what keeps these chains afloat is because I saw the numbers back for Circuit City and CompUSA before they went out of business. Both the San Antonio locations for both stores were their highest selling stores by a LARGE margin compared to any other store in the nation. It was ONLY because of that weird sales dynamic with rich Mexicans coming up here to buy cheaper electronics.

Conns right now is also been shrinking as well as Sears is starting to feel the pinch. Big retail shopping done the old way is dying. I really wish places would go back and watch the old Miracle on 31st street. An old black and white movie that showed how one retail chain changed it's decline by switching over to practicing good customer support. Best Buy originally was suppose to be all about customer support. It is what made it grow and become popular in the first place. Now that it has changed its ways from its roots the store is in decline.

 

[Number1]

From the article:

" Best Buy does what would be most convenient for the company for consumers to want but don’t, then crosses its fingers and prays."

Could somebody explain to me what that means.

As far as I am concerned, I have had good luck with BB here in Canada. I returned stuff several times, no questions asked and they matched better prices I found on the internet.

BB=:thumbsup:

 

[BoomerD]

It's hard to disagree with most of what the writer says. Best Buy SHOULD be re-named "Worst Buy" because most of their products are sold at MSRP and their prices can be beaten very easily on-line. Around here, they have no competition. We USED to have CompUSA, Circuit City, and The Good Guys, but then CompUSA bought The Good Guys...then went out of business, soon followed by Circuit City. 10 years ago, there were "Computer City" stores scattered around as well...but IIRC, they were bought by CompUSA as well.
Customer service at The Good Guys was pretty decent for a B&M retail store.

 

[Wyndru]

Convenience. There's a throng of people that want something instantly and are willing to rack up the extra debt to do so.

Exactly, not everyone wants to hunt the internet looking for the cheapest prices, then wait around for it to be shipped. Although that is generally what I do, sometimes it's not worth the time and I would rather just go get the item and have it within 20 minutes. Especially if it's only a small price difference.

It's good for router replacements if you want to get back online quick too, although I've gotten wise and have a spare now.

 

[SamQuint]

Whatever sales metrix/goals they have are stupid and annoying. I was purchasing a AT&T mobile broadband device. They wouldn't ring me up in the cell phone department they told me I had to go over the PC department. The only thing that possibly could explain that would be if their PC department was having some sort of sales contest. They had a table set up with other broadband devices and flyers so that had to be the reason. Then the joker in the PC department couldn't figure out how to sell me the device at the advertised in store rebate price. The guy from the cell phone department had to ring it up for him anyways. What a waste of my time. (actually had to go to BB because ATT store would not sell me the device because I was not the account holder but I am an authorized user on the account. BB doesn't care who they sell to I guess)

 

[ElFenix]

As long as investors keep buying BB stock, the company will stay in business.

When sales keep declining and their stock is downgraded, then I look for the company to be in trouble.

But then again, just pay off a rating company to keep giving the company high marks.

how does the company stay in business just by investors trading its stock among each other?

 

[yllus]

As a sometime business school professor, I could just imagine the conversation with the TV department manager the day before. “Corporate says we have to work on what’s called up-selling and cross-selling,” the clerk was informed in lieu of actual training on either the products or effective sales. “Whenever you aren’t with a customer, you need to be roaming the floor pushing our deal with CinemaNow. At the end of the day, I want to know how many people you’ve approached.”

But this is hardly customer service. It’s actually getting in the way of a customer who’s trying to self-service because there’s no one around who can answer a basic question about the store’s confusing layout. It’s anti-service.

As a one-time employee of said company, that is exactly what happened. In the multiple years I worked there, I did not for one second see anyone get trained on anything other than how to sell an extended warranty or try to get a customer to buy a couple of add-on accessories. There is zero time spent in all-store meetings devoted to customer satisfaction. The two topics for discussion day in and day out are 1) preventing theft and 2) selling extended warranties.

Best Buy must be run at the top by a bunch of used car salespeople. There is absolutely zero connection in their mind between providing a positive experience and being rewarded with that customer's dollars. And perhaps they're right on that - customers do tend to dismiss a good experience for the sake of saving an extra $5. Still, this throws away a major strength of the physical store model, and I have no doubt that without a major change in management that Best Buy is headed towards bankruptcy.

Excellent article. I hope people at Best Buy read it.

 

[Kelvrick]

I fucking hate Best Buy, but I hope they don't go out of business. I hope CompUSA, Circuit City and the Good Guys come back. I hope Microcenter and Frys expands to more parts of the country because more competition is always a win for me, the guy hoping for deals.

 

[busydude]

how does the company stay in business just by investors trading its stock among each other?

Come on.. it's Texashiker. You should be worried if his posts make any sense to you.