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360 Bundles Lead To Best Buy Housecleaning

Groo Wanderer writes "At the launch of the XBox 360, there were reports of forced and unwanted bundling by several companies, most notably Best Buy. There were things said back and forth, and the usual corporate banter. They have followed through, this time, and a good number of people lost their jobs." From the article: "We are told a manager that started the procedure is no longer employed at Best Buy. At least one senior district manager is no longer employed, and some of the nailings are rumored to have gone even higher. The big yellow inquisition did not stop there, and several other managers and assorted white collar workers were given an escorted walk to the parking lot."

26 of 115 comments (clear)

  1. Why is bundling wrong? by Fatchap · · Score: 4, Insightful

    I don't get it, what is wrong with a store saying "Sure I will sell you this thing you really want, but at the price I want to charge. I will even include some crap you don't really want, but you still have to pay the price I want to charge"

    Seems that if you don't want to pay the price you go elsewhere or you don't buy the product.

    --
    The only reason some people get lost in thought is because it's unfamiliar territory.
    1. Re:Why is bundling wrong? by voice_of_all_reason · · Score: 5, Funny

      Because Best Buy is a chain. Each store has its own boss, but they still have to answer to the Big Boss. In other words, they were already bound by a previous deal

      Best Buy's don paid for all the Xboxes, which he then sold to his capos. One of the terms of this sale was that "youse hafta agrees wit company polisees, capiche?"

    2. Re:Why is bundling wrong? by AKAImBatman · · Score: 4, Insightful

      From a consumer perspective, the store is misusing its position (being one of the few stores with a limited stock of the product) to force you to pay higher costs that you don't want to pay to get extra products you don't want just so you can have the core product that you DID want. This is different than just charging a higher price due to limited availability.

      From the store's perspective, this is bad because it probably drove a lot of customers into the arms of competitors. Which means that customers they might have counted on to come back to purchase games and accessories will now turn to online stores or other retailers for their needs.

      THAT is what's so wrong.

      Oh, and it can attract the attention of the Federal Trade Commission for anti-consumer practices.

    3. Re:Why is bundling wrong? by bVork · · Score: 4, Insightful

      The problem is that they advertised the real $399 price and didn't honour it. This is a classic bait-and-switch.

      There were also rumours that some EBs and GameStops were fiddling with the pre-order wait list based on how many games and peripherals were also pre-ordered. Does anyone have more information on that?

    4. Re:Why is bundling wrong? by Anonymous Coward · · Score: 3, Informative

      First, they advertised that they'd sell the thing you really wanted at the price they were supposed to charge. Then people got there and discovered that there were no Xboxes being sold unbundled despite the advertisements. http://www.theinquirer.net/?article=27963

      Second, this policy was not approved by the upper best buy management, thus the heads of the lower managers who told the stores to do this rolled.

      You may act all shocked that managers are getting fired, but I bet you'd do the same to any employees below you that made up pretend corporate policies.

    5. Re:Why is bundling wrong? by Anonymous Coward · · Score: 5, Informative

      I'm hiding as a coward for this one. I'm an ex-EB employee and still know a lot of the managers around my area personally. And yes, they do have a tendency to play with presell lists and call people who ordered more first instead of who ordered first. They also forced bundles on the customers. They do it because of pressure from the GM to meet the add-on numbers set for each store (which is pretty much impossible without breaking the rules.)

      This is also how the featured game of the month works, also. No matter how bad it is, each store has to sell a certain amount, and people do get fired when they're not met (even when the game was Turok and the number worked out to 20 in an hour every hour, even though the store was lucky to get 20 people in some days.)

      Managers that have stores that don't meet the numbers are first sent off to work in the crappiest stores, sometimes forced to demote themselves (with a threat of just being fired otherwise) and then promptly let go within a few months.

      EB Games has to be one of the worst companies I've ever worked for. I'm glad it was just a job I had while looking for real work instead of a career like it is for some of the managers.

    6. Re:Why is bundling wrong? by barawn · · Score: 2, Interesting

      It is bait and switch. They're told the "console-only" packages have sold out, but the bundles are available. They bait with the console-only, and attempt to switch to a higher-priced package when the consumer comes in.

      And yes, it is illegal (at least in most states... I don't know if it's federal). The FTC has guides against it, and Best Buy violated a good number of them.

      However, there are "CYA" wordings that most places use, although Best Buy might not have. Usually they'll say "stock limited to quantity on hand" or "limited quantity available". However, some of those memos specifically say "keep 3 or 4 on hand" which is definitely illegal in most states, as it clearly does not have enough to satisfy demand.

    7. Re:Why is bundling wrong? by Majik+Sheff · · Score: 2, Informative

      A good friend of mine worked for GameStop for several years. It wasn't until after he left the company that he started to tell me the real dirt. Apparently there was one regional manager who was actually an inspiration to his entire team; a really super guy with an excellent moral compass. He did his damndest to protect his guys in the field whenever they stepped outside of the frequently evil corporate line.
      This regional manager died, and when he did the last remaining shred of soul the company had died with him. Now it was just the store managers against an army of middle-yes-men. It didn't take long after that for the corporation to do some serious housekeeping on the 'trouble spots'.
      As a result, there are few if any GameStops now that behave in a way that helps the customer under any circumstances. My advice (which you probably do anyway): DON'T SHOP AT GAMESTOP/EB GAMES.

      --
      Women are like electronics: you don't know how damaged they are until you try to turn them on.
  2. Meanwhile... by voice_of_all_reason · · Score: 3, Funny

    LAWYER: What of the reports of the Rebel fleet massing near Best Buy?

    GATES: It is of no concern. Soon the Rebellion will be crushed and young Sony will be one of us! Your work here is finished, my friend. Go out to the command ship and await my orders.

  3. Housecleaning by Presidential · · Score: 3, Funny

    About time someone cleaned up those stores a bit. Dirty bastards with all that yellow and blue...nauseating.

    --
    Whenever Mrs. Fitch breaks wind, we beat the dog.
  4. Lemme git this straight... by Golias · · Score: 4, Interesting

    They put policies in place which make retail managers feel pressured to pump up their sales figures by "forcing" excessive bundles on desperate (and foolish) pre-Christmas X-Box 360 buyers.

    Then, when they get heat for it, they respond by firing the retail managers, but keep all the largesse of the whole scam firmly in their pockets.

    And we are supposed to take this as an indicator that they are interested in doing the right thing?

    --

    Information wants to be anthropomorphized.

    1. Re:Lemme git this straight... by ThePlague · · Score: 5, Insightful

      It's the classic "bad apple" tactic. Just have very stringent policies in place, but make the goals such that it's either difficult or impossible to meet without breaking those policies. If no one notices, promotions all around. If someone calls them on it, then an easy scapegoat and much haughty pointing to the policy. Either way, the organization wins. Abu Grahib was a perfect example of that and this Best Buy ploy is another. Of course, I'm not saying they are of equal importance or ramification at all, rather the technique is identical.

    2. Re:Lemme git this straight... by Golias · · Score: 2, Insightful

      In the case of Abu Grahib, I find it hard to imagine that generic pressure from the top for better intel-gathering is what resulted in naken man-pyramids and guards snapping photos of each other mocking the prisoners.

      Occam's Razor leads me to suspect that it was just plain old immature grab-assery which lead to that particular scandal. Give a bunch a 20-something idiots that much authority without enough oversight, and that's what you get, as hidden video of a typical frat hazing will usually confirm.

      Those at the top still ought to be criticized for inadequite supervision of those involved, however, so this comment should in no way be read as a defense of anybody up the chain of command, including the Commander in Chief himself. I'm just saying that the situations don't appear to be as analogous as you seem to be implying.

      --

      Information wants to be anthropomorphized.

    3. Re:Lemme git this straight... by jedidiah · · Score: 2, Insightful

      Also keep in mind that such grab-assery was not at all tolerated under the Marines. This wasn't something that you could even attributed to the situation in general. It got out of hand only in particular conditions. Any CIA operatives mucking about would have muddied things a bit wherever they were looking about.

              The general rule of thumb in Armies is to not tolerate any sort of undisciplined shenanigans in general.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    4. Re:Lemme git this straight... by Cerium · · Score: 2, Informative

      As a former BBY employee here in the US, I can say that we were also not on commission. However, the only 'compensation' we got for selling more was keeping our jobs. If you didnt sell the arbitrary number of product type x, you were moved to a slower department in the store or some equally shit position until management could find a reason to fire you -- ie: coming in late on days where the schedule was changed without your knowledge.

    5. Re:Lemme git this straight... by Profound · · Score: 2, Insightful

      I don't think Abu Grahib was just immature ass-grabery.

      Someone told some inbred deliverance-manchild-like retard fucks like Lyddie England detailed instructions on how to humiliate moslems.

      Dogs are unclean, Men are above women => a woman holds them down on a leash like a dog.

      That's far too creative for those retards. The fact they got CAUGHT was because they are retards who took photos.

  5. I'm not so sure how to feel about this by XxtraLarGe · · Score: 2, Interesting

    Best Buy had to sell the 360 at a certain price point, and that price was seemingly far below what the demand for the 360's was. So from a certain perspective, the bundles make sense if you're trying to make supply meet demand.

    On the other hand, we told our son we'd get him an XBox for Christmas since the price should go down with the 360 coming out. I figured they would go down to $129 or maybe even $99 if we were lucky. And then what happens? They throw in a cruddy racing game and jack the price of the original XBox UP by $30 to $179! The racing game isn't too bad, but it isn't a game we would have chosen to buy if it weren't bundled with the system. I don't like what they did, so I can understand peoples' complaints, but I see very little difference between what Microsoft has done with the original XBox and what Best Buy has done with the XBox 360.

    --
    Taking guns away from the 99% gives the 1% 100% of the power.
    1. Re:I'm not so sure how to feel about this by Saige · · Score: 2, Informative

      The price of the Xbox dropping just wasn't going to happen. You know why? That hard drive they put in there, the one they moved externally and everyone attacked them for. Hard drives don't go down in price, just up in size. There's a minimum that they're going to cost, and that puts a higher floor on Xbox prices as compared to other hard drive-less consoles.

      And a little thing to note - Forza is not a cruddy racing game, but actually pretty darn good.

      --
      "You know your god is man-made when he hates all the same people you do."
    2. Re:I'm not so sure how to feel about this by Qzukk · · Score: 2, Funny

      Forza is not a cruddy racing game, but actually pretty darn good.

      Maybe so, but he actually wanted to get his "son" DOA volleyball and GTA.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
  6. $2 bill fiasco by sunderland56 · · Score: 2, Interesting
    Interesting that BestBuy took action against stores that forced bundle sales. They did absolutely nothing about the store who had someone arrested for using legal US currency.


    BestBuy: good concept, bad execution.

  7. Re:What is the definition of "forced"? by Kohath · · Score: 2, Insightful

    The bundling was "forced" on buyers. The buy itself wasn't forced.

    It's a "don't be an ass to your customers" issue.

    Congrats to Best Buy for at least appearing to fix the problem.

  8. They have to move those titles somehow... by the+computer+guy+nex · · Score: 2, Informative

    "They have to move those titles somehow..."

    The titles weren't the problem. Best Buy left it open which games you could buy, and there were multiple games that everyone wanted (Perfect Dark Zero, COD2, PGR3, Kameo).

    The problem was many Best Buy stores *forced* you to purchase certain accessories. One of the bundles included 2 games and a wireless adapter (waste of money) the other forced controllers and recharge packs.

  9. Bait and switch, not bundling by hellfire · · Score: 4, Informative

    You have to read all the articles, not just the attached one, but the three articles at the beginning of the referenced one. This wasn't just bundling, this was bait and switch.

    Here's an example snippet from one of those articles:

    TMCnet news reports similar events in Spokane, WA. Best Buy's Sunday ad offered the Xbox 360 for $299 dollars, but a sign was posted at the store on Tuesday as a "correction notice" to inform customers that they could only buy package deals starting at $569.93.

    If best buy advertises something for $299, and doesn't actually have that item but has a similar one that's more expensive, that's bait and switch, and it's illegal in the United States. You cannot advertise one price for one model or package then sell another model/package that has more features but at a higher price simply because you never had that model. The ad said they were selling it so they better sell it. In fact, the law states that those people had the right to demand the higher bundle for the lower price, but I infer from the article that Best Buy obfuscated this enough so that few to none of the people scammed were able to catch that when they first went in.

    And to top it all off, companies should and do go out of their way to avoid these mistakes, because the law also says that if a company does make this mistake, customers have every right to take advantage of it. This is to make sure companies don't up and use the "oops, That's a mistake in the ad we don't stock that. Gee, that's 4 mistakes in just one month, sorry, but I do have the higher end model for you if you like."

    If it were a simple stock out that's one thing but some stores never even stocked one of the nonbundled console.

    This smacks of a small time conspiracy but it's most definitely illegal. Best Buy is cleaning house to make it look like they care and showing good will so as to deflect any consumer lawsuits.

    --

    "All great wisdom is contained in .signature files"

  10. Can't resist by the-amazing-blob · · Score: 4, Funny
    The big yellow inquisition did not stop there, and several other managers and assorted white collar workers were given an escorted walk to the parking lot.
    NOBODY expects the big yellow inquisition!
  11. Re:did they really lie about the price? by beerman2k · · Score: 3, Informative

    Yes and No. The situation you describe is boderline legal at best. The fact that the car is still on the show room floor (it was just sold) is why its not illegal straight up. Laws preventing bait and switch were designed to prevent exactly what you describe from happening. In this case i suppose either no has filed a case with the FTC yet against your employer or your employer is succesfully nagivating the thin line of legality. In any case, Best Buy can't actually do that as they have no way to even pretend that they just sold out of the lower priced item. And even if they could legally skate the same line, there's no way they would want to in this case due to the PR hit they are taking right now.

  12. False Advertising by Kadin2048 · · Score: 2, Informative

    We have the same thing in the U.S., here it just falls under the large umbrella of "false advertising," which varies state by state but usually allows a person to sue for damages. However it's sometimes rather tough to prove damages and I have a feeling in this instance that the company can probably protect themselves (as they're doing) by firing all the people involved and swearing they won't do it again.

    But if you did run into blatant false advertising, the way to go would be to contact your state's Consumer Protection office, if it has one, or the Attorney General (who can file suit against the company on behalf of the state).

    Here's an overview of Consumer Protection laws in one U.S. state (New York):
    http://www.consumer.state.ny.us/clahm/clahm-falsea dvertising.htm

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