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Circuit City Closes Its Doors For Good
bsharma is amongst the hordes of people wanting us to share the news that long beleaguered retailer Circuit City has finally decided to close for good, asking for court approval to close the remaining 567 US stores. "Whalin said management mistakes over the past few years combined with the recession brought down Circuit City. 'This company made massive mistakes,' he said, citing a decision to get rid of sales people and other mismanagement. What's more, given the credit market freeze, Whalin added that no manufacturer wants to sell to any retailer who doesn't have money to pay for the merchandise. At the same time, Whalin said there's still a very slim chance that one or more firms that have expressed an interest in buying Circuit City could still buy it out of bankruptcy over the next few days."
...what's to stop Best Buy from inflating their already-borderline-ridiculous prices even further?
Target, Wallmart, Sam's Club, local retailers, amazon, newegg, froogle, etc...
Agreed. I bought some memory there a while back, through their in-store pickup option. I paid for it online, drove to the store, and had to wait 30 MINUTES for them to figure out how to process my order. Without exception, every time I went in to a Circuit City, I left disgusted and vowing to avoid shopping there again.
Incidentally, now that CC is closed, that mantle is being passed on to Fry's. The reps never know anything, assuming you can actually get one to help you, and they never have to part I'm looking for. It's either not stocked anymore, or they're always sold out of it. Sure it's fun to go in there and drool at the TVs, but I'm sticking to Newegg from now on.
Raging in an online forum won't do anything for the world around you. To see change, you must take action.
The article mentions that they'll continue to operate.
Well, I have had experience with the old school way of doing things, Beast Buy, Comp Useless, and Circuit Shitty. The advantage they had over the smaller shops is a huge selection and usually steep discounts on big ticket items. The drawback was usually that you got raped on the peripherals and accessories ($20 printer cables you could buy for $2 anyone?) and their staff was usually pig ignorant and useless. Not only that but you also had to deal with scumfuck corporate tactics on returns, were treated like a thief every time you left the stores with mandatory bag searches, etc. Ultimately I both hated these stores but knew they were the only option when I needed something today and couldn't wait for a delivery. The other problem with buying online, especially electronics, is that returns become a nightmare. If I'm buying a big ticket product, I need a place I can return it to if it's broken and I don't want to eat S&H along with 15% restocking fees.
The newer model seems to be represented by the reborn Comp Useless (purchased and owned by Tiger Direct) and the Apple Stores. In the Comp store by me, they're shucked the generalist crap and are tightly focused on computers and electronics. They carry a full range of parts and you can pick out anything you need to build your computer. The tech desks are at the front of the store and there's no walls, it's just you and them. If the people on the sales floor don't have a clue, you can go up and ask a tech and get an answer. I don't know what they're paid but they don't seem as unqualified as the Geek Squad. So far, I've not yet been disappointed but am still keeping a wary eye on them.
The nice part about the Apple store is how they're heavily staffed with people to answer questions and all the toys are out there for you to play with. The traditional big box stores leave you to find your product on your own. As a geek I can muddle along but I have no idea how Joe NotGeek can find what he needs. Apple also schedules classes, has the genius bar (yes, it is a stupid name) open for people to ask whatever questions they need, and tries to demystify computing as much as possible. I won't say they're entirely successful but they are a huge improvement over what you get at the traditional box stores which is nothing.
What it really comes down to is that some business models can be run along the lines of McDonald's and some simply can't. In the restaurant field there will be people who pay $100 for a fine steak and those who will be satisfied with a crappy burger spanked together by surly wage slaves. McDonald's has been enormously successful and will remain so, even as there's a market segment for higher quality fast food stand-in's like Panera's and Quizno's.
The big box stores were the McDonaldizing of electronics and big ticket consumer products. The funny thing is that I thought they would remain as successful as McDonald's and for the same reason. Oddly enough, it looks like the cost-cutting I took for making them profitable did away with whatever vestige of quality that kept people shopping there. It will be interesting to see if there's more of a trend towards competing on service and knowledgeable staffing. Hell, even McDonald's is trying to take a stab at entering the real food market with Chipolte.
One other factor that might also come into play is America's acceptance of cheaply manufactured disposable junk. In good times, people were content to buy a big screen that might be dead in five years because it could always be chucked for the next great thing. People didn't want reliability and durability in their cars because they were trading up every three years. When income is no longer quite so disposable, will people be willing to pay more for quality with the understanding that it costs less in the long-term?
Kwisatz Haderach
Sell the spice to CHOAM
This Mahdi took Shaddam's Throne
I think there was a factory in Argentina where the union kept the shop going after the owners went bust.
Actually, there were close to 200 of them. You can learn quite a lot about it here, and in a couple of months, you should be able to buy my translation of The Silent Change, which is mentioned there.
What if I do the same thing, and I do get different results?
I worked at Circuit City from 2000 to 2003, and this was not the case for us.
I cannot speak for CC nationwide, as I was in a store in the northeast, but we had a "price match plus" policy. If you found a lower price from a brick and mortar store, and you or we could verify it, we matched the price and beat it by 10% of the difference. Perhaps this was not the case before or after I was there, or in different regions.
To the best of my knowledge, prices were also identical to the competition. Every weekend a small group of us would comb through every newspaper they brought in, and would familiarize ourselves with what the competition was advertising in their flyers. We were usually the ones to announce to customers that a certain item was on a price match sale, and managers were supportive in helping us get them that lower price. We would call or go online to verify a better price if needed. Only very rarely did a customer find a lower price elsewhere and bring it to our attention.
Now, I also think this was the "best" time for customers with CC. They had come out of a DivX salesman era, which stained the companies opinions in many peoples minds. The company started to revise its checkout system, and brighten up stores, as well as introduced a completely new layout for the new stores. But it was still playing catchup to the other guys. The same poor management was running the show. Any progress here was lost with the changes to the payment structure which lost a lot of good will with loyal employees, which were later outright laid off. Then they were just slow with keeping up with the competition with Firedog, and never had the kind of HDTV showcasing that Best Buy was able to foster.
The rise of Best Buy and Walmart did the company in, with superior selection, store layout, and even colors. Seriously, Blue and White or Blue and Yellow, just flat out beat Red and Black. Our stores were dark, dated, they felt old, the store was like the weird used car salesman of electronics. While the "we don't have checkout counters" idea was an interesting experiment, it was a failed one that the company never truly fixed. A poorly run company can survive in the absence of great competition, and I think CC was floundering for the past decade. Semi-competent (at least more competent than Circuit City) competition and a recession is all it took.
Weight in this case has nothing to do with it, newegg will be charged by UPS or fedex for the dimensions of the box for a single fan, the fans are too light.
The shipping costs are also for UPS 3-day, which is not ground, and is a more expensive service. It should also be noted that your shipping cost per unit went DOWN when you ordered more than one item.
The fact that newegg can, and does, discount your shipping and handling fee on a bulk purchase does not mean they're ripping you off, or overcharging you when you've only purchased one. There are a variety of overheads involved that need to be covered, and newegg (like every company that does mail-order) tries to balance those costs over both the heavy and light items...this is not unfair, or even unusual, it's how the system works.
If you want to complain about price gouging, complain about the retail prices of cables in the world.
There is nothing abusive about a handling fee, you're not just paying some "minimum wage person" to throw one in a box, you're paying someone to verify the order, multiple someones to get the item from the warehouse, someone to prepare the item, which is the box/prills/packaging etc... there's a number of things to be covered here, not to mention cost of prills, box, tape, and labels. Also, the assumption that someone doing jobs like this deserves to be making only minimum wage is extremely foolish, insulting, and naive.
Shipping costs at newegg are calculated PER individual unit, and the price GOES DOWN with bulk purchasing. Which is why the shipping cost doesn't stay at $3.99 per unit when you order 4 of them.
You've already covered my warehouse manager and workers overhead for going and retrieving the items, and verifying the order for the most part with the purchase of the first item. Having them grab a second, third, or 10th one while they're already there doesn't cost me as much as the initial send, therefore the handling fee per unit goes down.
Shipping does the same thing, you are charged based on the general distance the item needs to be shipped, and the cost per pound goes down as the items weight grows...until you cross one or two particular thresholds.
Newegg is attempting to reward you by passing savings on to you for your bulk purchase, not ripping you off jackass.
When you work in a shipping dept. (as I have) you'll find firstly that Newegg does nothing different from anyone else regarding their shipping, with the exception of offering it *cheaper* than petty much anyone else on the market, and there's nothing unreasonable or manipulative about the process.
You will always find what appear to be outrageous shipping and handling fees on extremely small items unless they are shipped via the post office (and even then most of the time it's not any better), this is the nature of shipping companies and what resellers have adapted themselves to. There is nothing unusual about this practice, and you're going to have a difficult time finding any online company that does things differently.