The Gradual Death of the Brick and Mortar Tech Store
Cutting_Crew writes "As we all know brick and mortar stores have been closing left and right recently. We had CompUSA, Borders and Circuit City all close their doors within the last 4 years. According to an article on Forbes.com, it is spelled out pretty clearly why Best Buy is next in line to shut its doors for good. Some of the reasons highlighted include a 40% drop is Best Buy stock in 2011, lack of vision regarding their online services, management too concerned with store sales instead of margins and blatant disregard for quality customer service."
Thank god we still have Radio Shack. I went in recently and found they were even selling arduinos. I've bought a bunch of components there for my electronics projects. It's not Fry's, but at least there's one 10 minutes away from my home in Nowhereville Vermont.
-73, de n1ywb
www.n1ywb.com
Yet Apple can't seem to open stores up fast enough. Go figure.
Tequila: It's not just for breakfast anymore!
Older stores in the 1990's like Computer City that was active in the USA and even Canada for awhile. I had worked at Computer City in Coquitlam, British Columbia from 1997 to 1998 and it was a very sad day to see the store close down and this was even before the internet and online sales really took off.
You must master your joystick like a fisherman masters bait! - Gimpy
i miss living in texas with a frys a mile away, pittsburgh might be the city of champions but finding any decent computer components Today is nearly impossible.
I thought this looked familiar...this article was published on the Forbes web site on January 2nd. It's also a bit ranty rather than well-researched, though there's no doubt that Best Buy is not doing well.
Cutting_Crew...because Best Buy is doing poorly, its stock is down 40%. Its stock price is not one of "the reasons highlighted" for why it's doing poorly. Stock price is an effect, not a cause.
On a related note...is Fry's having problems?
Advice: on VPS providers
They have no concept of the competition that Amazon represents. They think in store purchases will keep them alive. They need to:
1. Fire half the staff, and only hire professional sales people (Not 30 seventeen year olds)
2. Reduce the store size by half or more.
3. Reduce prices by having less selection but enjoy the bulk purchase price point.
4. Stop high pressure pushing of accessories and service plans on people.
5. Work with vendors to have exclusive items made for them not found online (like a white or pink dyson)
Still doomed by their horrible reputation.
I have my doubts about the long-term viability of Radio Shack; they're too small to carry much, they compete with with dedicated cellular carrier stores on phones and plans, and tend to be full retail pricing on everything. So that leaves Fry's or nobody.
Dog is my co-pilot.
"A few days ago, I visited a Best Buy store in Pinole, CA with a friend. He’s a devoted consumer electronics and media shopper, "
oh yes, i forgot, the 'devoted consumer electronics shopper'.
Brick & Mortar will still serve a purpose for a while yet. There will always be times when you need some widget that day, and no amount of money will solve that problem through Amazon. It might not be Best Buy, but it certainly won't be WalMart either; we will have a large nationwide chain carrying electronics for people who need something now and don't mind paying a little more for it than they would online.
That said the complaints listed in the (over 1 month old) article are very similar to what was happening at CompUSA when they were in their death spiral; young kids were being hired with no knowledge of anything, and corporate suits with decision making power were being promoted who knew even less.
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
When there's Newegg? I mean, honestly: $25 USB cables and re-boxed returns vs easy return, no tax and better prices (even including shipping).
Since when did CompUSA close? I was just in a CompUSA YESTERDAY. Granted the sign on the road changed to Tigerdirect.com, but the building is still CompUSA. I honestly didnt know they had ever closed anything.
They sell TV's, car stereos, washing machines and video games.
I thought that in Canada, Futureshop stores were being gradually phased out in favor of Best Buy, who now owns the former chain.
File under 'M' for 'Manic ranting'
With consistently higher prices and terrible customer service policies, I can't imagine how Best Buy has stayed in business as long as they have. There's a reason I've always called them "Worst Buy". They usually are.
To give you an idea of their customer service, I priced a product online with Google, and it told me that Best Buy had it for a great price. I went there, and found that they had just raised their price by nearly a hundred bucks. I knew this because they had a recently returned unit available for less than their previous price. I bought the returned unit.
Unfortunately, it was defective (flaky HDMI output). At most stores, when a product is DOA, you can go in and they'll swap it out with a working one. Not at Best Buy. Because they didn't have any more customer-returned products from when the price was lower, my only option (at their store) was to pay an extra $120 to get a working product.
I pointed out that their new, higher price was about thirty or forty dollars higher than Fry's, just two blocks away, and over a hundred dollars higher than Amazon. Needless to say, I opted for a refund.
I then drove to Fry's. They matched Amazon's price, so I ended up getting it for almost exactly what Best Buy had been charging two weeks earlier.
Why anyone ever darkens the door of Best Buy is beyond me. I could see buying stuff like DVDs from Best Buy online (where you can price compare easily), but just walking into the store, your odds of getting even an acceptable deal are right up there with winning the lottery.
Check out my sci-fi/humor trilogy at PatriotsBooks.
The closest one to me is a good 40 min away, and when you get there its almost a circus of disorganization. Example when you walk into our location theres geek squad, and some networking on the first isle, then pens and paper and post-it notes, then printers, then celphone accessories, then laptops then camera accessories, oh then celphones, then laptop accessories and on and on until your in the back of the store looking for the power supply you went there for in the first place they are out ... even though their website says in stock in that store.
so while you are somewhat forced to check every fucking isle cause they are now interweaving departments, that way you wont miss some stupid gadget you dont want, you cant find anyone to answer a simple question cause all 3 of them are busy upselling the newest HP laptop and your wasting your time cause these people wouldn't know what they have in stock even if they were paid to.
Hm sounds just like compUSA doesnt it?
The only reason I ever go in there anymore is because once in a while you can find a openbox or floor model deal, which is why I have a stainless steel microwave that only cost 35 bucks, but its at the very bottom of my list to even consider when I am out to get something specific.
Ummm.... doesn't Microcenter count? Guess not according to Forbes, because in 2006 they had 19 stores, 20 in 2007, 21 in 2008, and in 2012 Microcenter has 23 stores. Sure that's slow growth, but still growth none-the-less, and they're much better than CompUSA, Circuit City (is Circuit City "tech"?) and Best Buy because Microcenter actually has competitive prices.
Want a new MSI Geforce GTX 580 video card? $500 from Newegg, $520 from Microcenter. Think I'd just pay that extra 4% to have the card TODAY and have a local shop to return/exchange it to if there's a problem and judging from the 13% 1-egg reviews I'd there is a good risk there could be a problem.
my karma will be here long after I'm gone
you are probably a hedge fund guy, or friends with a hedge fund guy, or some other type of person who makes money by buying and selling big chunks of other people.
you see a story about an electronics retailer.
they see a story about an opportunity to short sell or buy credit default swaps against a company's debt. imagine if you are sitting at a poker table and instead of chips you are playing with coins that each say '1 million dollars'. you can start to get an inkling of the mindset here. you dont care if the other people at the table are nurses, waiters, hairdressers, authors, poets, politicians, soldiers, etc. all you care about is what is in their hand, and which way the game is going to go, because you can get rich off of it, but more importantly, you can get the high you get from winning. thats what the "their stock price is down" thing means. it doesnt pretend to have any intelligent commentary on cause and effect. its poker information for poker players.
For what it's worth, I have never been disappointed by anything -- electronic, clothes, home goods, whatever -- that I bought from Amazon that has more than 10 reviews and 4+ stars. And when you look at TVs on Amazon, you don't have to rely on 10 reviews -- most TVs have hundreds of reviews to rely on.
Best Buy is a horrible, horrible place. Those stores are typically overpriced, asshole-filled warehouses with a stench I can only guess is dead animals hidden in the car audio department. Lump all that in with morons on the sales team and even bigger morons in management and you have the reason this place will not be missed by most people.
If you are a Best Buy idiot (read: employee), I apologize for offending you... but you deserve it. Last time I went to a Best Buy was to buy a family member a flat-screen LCD television. I asked for help from no less than 5 people before someone ACTUALLY came back "in a couple of minutes" as promised repeatedly. It was a mistake, especially since the same set was $70 cheaper online. Too bad it was too close to Christmas at the time to bother ordering it online.
Good riddance, assholes.
P.S.
I am sure this will be modded flamebait or troll or whatever... I simply do not care. Especially since those titles (flamer and troll) are used to say "I disagree with you" these days, instead of what they are really meant for. Which is to label someone who actually IS trolling.
Every time I go into a Staples they have more and more computer stuff. They seem to be doing ok.
The Apple Store should disprove this, though: At $4,032 per square foot per year, the NYC Apple Store is the most profitable retail store per square foot in the world, period.
Wonder what the public key field is for?
That's putting it politely.
Running with Linux for over 20 years!
None of Amazon, Newegg, Ebay, or even [gasp] Tiger Direct has ever annoyed the @#$%^ out of me for a useless warranty.
Let us not forget that mail-order catalogs were yesterday's equivalent of today's Amazon and Newegg, and competition between them and brick and mortar stores is nothing new.
I used to be on the mailing list for both Allied Radio and Lafayette - bought stuff from both. Lafayette even had it's store in Newark, NJ. All long gone. Allied Radio was merged into Radio Shack. (Allied Electronics - the industrial supply side of the business - apparently still exists.)
Heath (remember Heathkits?) had a store in California. Gone.
Tons of independent shops selling stereo gear, TVs. My favorite independent shop was called "Parts Unlimited" - nothing but caps, resistors, vacuum tubes, wire, solder, connectors, coax cable, hardware, etc. All gone.
The only knowledge that I have seen at a Bestbuy is how to annoy and defraud customers. I can't tell you how many times I, was or heard their sales people, pushing Monster DVI or HDMI cables.
Fight Spammers!
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The helpful staff and their urgency to sell those stupid warranties are the main things that keep me away from Best Buy unless I really have to have something today. The last time was when I was looking for the Tranformer TF101 on launch day. I knew if I didn't find it I was going to have to wait a long time. The sales guy wanted to chat me up on the tablets - and flat lied to me about the capabilities of the HP Touchpad, trying to push that product. Anyway they did have the Acer Iconia tab, and I nearly bought that instead - but being lied to really ticked me off and I drove 40 miles to Fry's instead and found the Transformer in stock.
Help stamp out iliturcy.
I'd like to see a chart of the revenue growth of "brick and mortar" Apple stores over the last 10 years. Fry's also seems to be doing alright, and like Best Buy they also have questionable customer service.
TVs are one of the worst things you can purchase based on how it looks in the store. Display models are intentionally miscalibrated to be distorted in a way that's eye catching. Standard procedure if you want a TV that looks like the media it plays intended is adjust them to fix the worst problems. High brightness sells, but it makes everything look bright--even things that are supposed to be black.
I say good riddance to Best Buy. They are all actively offensive, blaring loud music as you walk in. They did have the best price on Wiimotes lately, so I bought them there. Needless to say, I spent the least amount of time in the store as possible.
Let's not forgot that this is the same place where if you go in citing a price on their website they will pull up an intranet site that is a clone of bestbuy.com with different prices to "prove" you wrong. Getting busted for that was the end of me shopping there.
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Spending a few hours reading user reviews on amazon or newegg, and being able to google unfamiliar terms, is more valuable than the most tech savy and personable sales rep. And because most sales reps are subpar, internet shopping wins by a landslide.
Except for the fact that 90%+ of the people who shop at Best Buy havent a clue on how to Google anything, otherwise why the hell are they paying $34.99 for a usb printer cable they can buy elsewhere locally for $4.99? (figures in Canadian $ from my Calgary Best Buy & Memory Express).
And we sell a lot of fscking printer cables at my Best Buy... it makes no sense, you can't explain that... except to accept that the vast majority of people are too ignorant to use Google pro-actively for their own education and self-interest. You cannot expect these average Best Buy buying mouth-breathers to display rationality or intelligence. They are the herd, they are easily lead, but also easily spooked. They fear things they do not understand, but lack the evolved intelligence to actively pursue education to improve their own lot. They are comfortable in their ignorant world, and when you work at Best Buy your job is to milk them with high-margin cables if they're too stupid not to know any better. Should you feel bad about this? Only your own conscience can inform...
"Amazon showroom" ?
Even the Internet is starting same day delivery .
I guess I am one of the only ones that noticed the way Best Buy did business more than 15 years ago? As a child I remember them charging an exorbitant fee for diagnosing and repairing a radio, only to have replaced the batteries. Best Buy has always been a racket. In the early 00's, Monster Cables were apparently made out of Pixie dust and Myrrh, from the way their employees talked them up. The poor employees. They are hassled and forced to mess with customers, but they get no commission for being pushy salesman. Best Buy has an opportunity now to prevent failure. If they don't change, you can bet that someone is making money on their failure.
Unlike Best Buy, Radio Shack, etc.: they have a decent inventory of stuff, and don't presume to be helpful. In other words, they cater to people who would buy online, if "online" were a fifteen minute drive. For those of us who generally know what we're looking for before going to the store, this is a godsend.
Note that this market isn't merely "techies": who wants "help" buying a particular movie or video game? Apple's iPhone 4 dock? A toaster? An electric razor? In the last two cases, I didn't know exactly what I wanted, but it's not as if Best Buy has helpful "toaster experts" on-site. And even if they did, they'd be "experts" in upselling unnecessarily fancy toasters with "performance guarantees."
(full disclosure: I ended up choosing an unnecessarily fancy toaster anyhow. I'm not at all sure why I'd ever need two simultaneous "temperature zones", but it looks nice, it's easy to clean, and it's outlasted the sum total of my previous three "cheapo" toasters, so I'm not complaining)
For a hard time buying: try CircuitCity 2 full years before they went out of business, on multiple occasions there were ZERO cashiers and we have product in hand and wallet out, and the customer service people right next to the checkouts are ignoring us even when asking for a cashier.
Happened 3-4 times.
The theory presented is that Best Buy is dying due to lower than normal sales and lower margins. This is presumed to be caused by poor customer service based on personal experience with the writer's local Best Buy store and some inventory issues for items that NO retailer had in stock during the Christmas season.
The truth is actually more boring. Best Buy sales are down because the economy has been in the toilet. Best Buy margins are down because margins are down for all electronics. In addition, the mad rush to 3D that electronics manufacturers were hoping for never happened. Very little of this has to do with customer service.
Personally, I have never had a problem with my local Best Buy. I've been able to return items without question and they have been very helpful when I am looking for a particular item. Anyone who knows me knows that I am a big proponent of Amazon. But there are many people like me who just don't feel comfortable buying appliances and expensive TVs over the Internet.
Priced a product online with Google, and it told me that Best Buy had it for a great price. I went there, and found that they had just raised their price by nearly a hundred bucks.
The thing about Best Buy is that the price their advertise online is always lower than the price at the store. I learned this a while back, and as a result I always buy at their online store and choose "pick up at the store."
Usually I'll just avoid them completely, but if they do have a competitive price, or if I can't wait for the shipping from Amazon or Newegg, then at least I save myself the annoyance of going over there expecting a price only to see it 50% more expensive than the price advertised online.
Circuit City had the same problem. Years ago I needed a wireless keyboard, and they had a pretty good deal advertised online. I showed up, saw their in-store price was significantly higher. I figured, "hey, I'll just price-match it at the register," only to have the cashier tell me that they couldn't price-match online offerings, even if they were their own. So I walked to the side to make sure I wasn't blocking anyone else in line, pulled out my PDA and logged on to their website using their public wifi right in front of her (blast from the past, huh? It was before the smartphones took over), ordered the keyboard with pick it up at the store, showed her the confirmation number and asked, "can I pick it up now?"
Warning: Opinions known to be heavily biased.
reminds of something that happened a few months ago to me. i bought a new two terabyte external hard drive for school so i could move my virtual machines with me between computers (several computer labs, my home computer, and my laptop), i spent a the bit extra that for one with eSATA so it could transfer the files i needed at a reasonable rate. I bought it online because no one in town carried one with eSATA drives at the size i needed for a reasonable price. when it arrived from newegg it did not have the eSATA cable with it. so off to the stor to buy it i went. at staples the sales associate said they didn't carry them so to try radio shack and walmart,(the only other stores in town that would conceivably carry them), but the did have Martha Stewart brand home and office stationary. staples didn't carry them only SATA. i was told to try walmart and staples but that they would probably not have them so try Amazon newegg or radio-shack.com, i tried walmart grudgingly and the sales associate told me they did not carry cables for inside computers... i explained to the sales associate that that the e in eSATA was for external and still didn't know where to look. so i hunted and they didn't have any. i bemoan the loss of real electronic stores
---Saying gnome 3 is better than windows 8 not so much a compliment as it is damning with light praise.
Brick and Mortar tech stores have the possibility of being great. I for one much prefer shopping in physical stores for any sort of medium to major purchase. For example, some laptops have very comfortable keyboards, others... not so much. Similarly some displays look very good while others... not so much even though they have the same "specs" if you look online.
The problem is the service which could be their number 1 selling point is terrible. They sell you things you don't need and leave out the things you do need.
Taxation is legalized theft, no more, no less.
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I buy almost everything online now, can't stand going into stores or malls they are depressing.
"If any question why we died, Tell them because our fathers lied."
How can they be going out of business with profits that have remained steady in the just-over-$1B for the last 3 years and sales steady at $50B/year.
The profit margin is low, but what do you expect? They're a retailer.
A lot of people don't understand or are afraid of tech. Box stores give the illusion that they'll have someone to hold your hand and tell you want you need to get that home theater going. Online shopping only works for people when they are reasonably sure what they are looking for. This is why book stores are going the way of the dodo, people know the authors they like and can get the identical item online. For a computer you might have to stare for 10 minutes trying to figure out why two slightly different models are $200 difference in price. But you still don't get the goofy kid saying "oh that is a great computer it will plug right into your TV". For a lot of people not knowing and not even knowing how to properly search for the info online means they want a store.
These people will get rarer with time but I think we have 20 or so years before we've gotten rid of the generation that hasn't grown up with computers.
Exact same thing happened to me at Circuit City. I just dumped all my products on the counter and walked out of the store empty-handed.
That finally got their attention ("Sir! Sir! Come back!")...but screw 'em. That former Circuit City is now a furniture store.
Los Angeles is full of them. They don't have big signs out front but they're all over the place. Tiny places packed with stuff haphazardly all over. They're really sort of bizarre outlets. I go to them when I need a "widget"... they always have it. They know what I mean the first time. And the prices while not competitive with online retailers are no more expensive then the big box stores.
I have no idea how they stay in business... they just do. They don't sell games. They don't sell TVs. They don't sell anything but computer junk. I think their primary business is IT service or something. But they've got lots of computer stuff and they're very happy to sell it.
So if and when bestbuy implodes and I need a widget faster then the online retailers can get it to me... I'm covered.
I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
Not when I discovered that the same HDMI cable they wanted $40 could be had online for $5. Last time I tried to check their website for cheap stuff I could pick up today (specifically, a wireless dongle), the only stuff they had in price range was not kept in stores, and could not even be delivered to the stores - you had to pay $5 for shipping for a one ounce part, even though for the more expensive items they offered "ship to store" pickup for no charge at all. After a frustrating fifteen minutes I said screw it and ordered a similar from Amazon, who got it to me in two days for 99 cents.
Occasionally living proof of the Ballmer peak.
As a former employee at Best Buy, I can tell you exactly why they make it difficult to buy that stuff. The three big times in the year are Chirstmas, tax time, and back to school. The seasons around each of these events takes up around 70% of the year. In that part of the year, there is only a finite number of an item available at the store you are at any given time. Best Buy will sell out of the hot laptop that everyone wants. Frankly they don't want you buying it if you don't buy the additional warranty or accessories or whatever. If you don't buy it, someone else will. I'm convinced that corporate would just rather have you shop somewhere else. They get shipments twice a week, but there is a million different variations that the public demands so it's hard to keep all of the stock flowing to the exact right places, so it's easier to make it a difficult experience for the grab and go customer who just want to buy four of the laptop with a $5 markup and leave none for customers who might potentially want to buy other items to go with it. Contrast this with Amazon, where they can ship your item from anywhere and it makes little difference to the customer. Best Buy has a pretty decent store transfer and warehouse ordering system, but customers often refuse to wait as they have waited until the last second to buy a gift and only budgeted for the laptop that has been on sale the last six days.
Okay, I just read most of the posts. There is much truth therein.
Out of my own ignorance and un-brightness I post a few thoughts.
Apart from general overhead (rent/lease/taxes, wages, utilities, whathaveyou) the single largest hassle as I see it is in inventory. This has always been a large factor in, for instance, hardware stores. With electronics all the problems of inventory are magnified - everything stocked is automatically obsolete before it even reaches the shelves, for starters. Don't even bring up things such as support, drivers, etc.
That's bad enough for old-fashioned business models. Complicating factors such as lack of awareness and understanding on the part of customers and staff only exacerbate the situation. Emphasizing 'bottom-line Friday' and 'get the sale' as distinct from establishing customer relations and developing accounts helps clinch the fail.
The owners and smart stockholders will always make out like bandits, especially if they've paid the slightest attention to the standard CYA aspects of law and tax law no matter what happens to the brick and mortar realities. The CEOs and such will do quite fine even if they technically "lose" some money due to bankruptcy/failure of the businesses they're 'in charge of.'
The only people hurt will be everyone else. [paragraph unwritten because it's obvious/transparent/redundant]
In the meantime, everyone who shows up to work has bills to pay - they all have need of income: their livelihood, and lives, depend upon it. Yet, as I've been saying for thirty years and more: if you show up for work and do not understand, janitor to CEO, that the only reason you have a job and the only reason there is a business is because you have customers. and act accordingly, you might as well turn around and go find something useful to do or kill yourself and remove a burden from the species.
One way or another, whether it be pumping septic tanks or working out of my real estate office, I spent half my working life in sales. While I was happy to have happy customers, to this day I prefer, and strove for, _satisfied_ customers; that is, people who knew I stood behind what I did or that the company for whom I worked did so. Everything else, IMHFO, is dross. YMMV.
That Best Buy is going down the tubes is simply a matter of time. Whether owners, management, and staff change their world view or no, perhaps it's just a matter of watching another species of dinosaur die. I'm young enough to be sad and old enough to simply try to make it through the next day. When the local hardware store and bookstore close, then, apart from the congenial tavern, should I be able to afford them, it'll be all she wrote apart from what's available to me on the 'Net.
Brave new world, indeed. Cheers.
Managers worried about numbers and goals over customer service....
I work as a mobile consultant for an office supply store that recently started in wireless sales. They sell electronics stuff including computers and tablets. Anyways, when im not selling phones i'll help customers with electronics and other things that i know about.
Just last week a customer comes in with a sales ad, and shows me the exact laptop they want. They dont need a sales spiel they just wanna buy. I go to a keyholder/manager to get the laptop and i get a "stern talking to" about how their tech associates have to reach goals on computer sales and warranty sales. The manager told me to send the customer to a tech associate(who has a queue of 5 or so customers because he cant multitask.)
I sure as hell dont care about their numbers and i know that the customer wasnt really willing to wait for a tech associate when i'm available to help right now. I went to someone else to get the laptop and ended up selling the customer on a 3 year warranty. Some managers can be so thick-headed
I get to checkout and 80% of the items I was remotely interested in can't ship. In store pickup only.
Sure, I'll get some games. Except that for any given store, I could have 2 non-overlapping weeks for a pickup window. That means I have to drive there 2-3 times to get all my purchased items. The other thing that happened was that the items weren't even available for in-store pickup AT THE SAME STORE. If you're going to take a week to make it available in store, can't you combine all my items and let me pick it up in 1 handy location?
I know this is beside the point, but since when was Borders a 'tech store'?
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80 grand per year works out to about $38.46 per hour (assuming a 40 hour week)
I only make $12 per hour. Of course I only subscribe to one of the above magazines (and I haven't told them how much I make)
That seems to be a common thread among failing businesses: They all have well-reasoned excuses to intentionally inconvenience their customers.
This all makes me wonder what would happen if Best Buy were to outsource their sales division to Accenture in addition to their IT. Best Buy is suppose to specialize in technical sales. If their customer service is as bad as everyone says, (I tend to not shop their and when I do I don't ask questions) then I wonder what they consider themselves experts at? Maybe they should outsource their sales and customer service instead of their IT?
There is or can be built a machine that can simulate any physical object. -Church-Turing principle
Imagine how awesome Radio Shack could be if they started supporting local efforts of Makers to build things. Why is Radio Shack not offering modern electronics courses, along with rentals of some gear too hard to afford yourself?
They could really transform themselves into something powerful with a small twist.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
The main Problem is that analog electronic, discrete, and logic components get replaced by MCUs. Where you would have used a Threshold comparator, and analog trigger, a voltage regulator, and a flipflop before to make a simple resettable alarm, no you buy an ATtiny (and you can even skip the voltage regulator, if you buy the right one). The margin for sellign it is probably the same, and there is a certain minimum size of a shop to make in reasonable to have a full range of the MCU variants in stock. So Electronics shops started to put in low cost tech articles in their shops, which is something you can only compete if you are big enough, which most of them are not. I am not sure if a path of spezialization would have saved more of the shops, but i guess not. when buying electronic components for my work i am obviously using the internet.
Please tell me Geek Squad goes down with it.
"Why is Radio Shack not offering modern electronics courses, along with rentals of some gear too hard to afford yourself?" - because the profit margin is too low? Maybe the expensive stuff takes too long to repay if it's hired out, breakage rate, etc.?
management too concerned with store sales instead of margins and blatant disregard for quality customer service."
every time I see one of these stories about a business that might be struggling someone writes something similar to the above. Margin and same store sales are pretty important to retail. If management just ignored what has worked for decades because some guy on the web thinks they ougt to, do really think they'd be more successful? I don't what the secret to retailing in the new econiony is but ignoring margin is not it, remember the .comedy? They ignored margin, how did that work out?
Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
From what I've seen over the past decade, ALL specialty stores are in trouble. The ones who are succeeding are stores that offer products to a variety of consumer interests.
Book stores? Shutting down
Electronics? Shutting down
Stereos and TV? Shutting down
Computers? Shutting down
Diversity in business is the key to survival. Use your brand recognition to bring in the customers, but expand beyond your initial purview or you reach a market cap and die.
I do not fail; I succeed at finding out what does not work.
Maybe I'm off track here.
But maybe part of the flaw is using "boutique like locationing". Upscale mall branches, etc.
Most hobbyists wanting parts are men, right? Aren't we supposed to just want our parts and not overly care about the pretty cell phones?
Why not do the BJ's / Sam's Club approach to parts? Make it a little out of the way, and stock all the basics. Then if a real expert comes and stumps you, get really good at being a location for ordering parts.
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
Best Buy should buy the extended warranty against business failure. Sure it will take a couple of months after they fail to get reimbursed but they will be back in business again as long as they don't lose the warranty and they dress well when filing their claim.
/* TODO: Spawn child process, interest child in technology, have child write a new sig */
All of those stores were way overpriced, and filled with clueless employees. Microcenter, pricing the same or better than Newegg, carrying equal or better stock, and having employees who know about their products, does more business than the large regional mall's Apple store.
while(1) attack(People.Sandy);
It's sad- even "Buy More" got sold to Subway! :(
"That's the way to do it" - Punch
CompUSA is back, at least in name only. They were purchased by Tiger Direct, an "etaile" computer store with brick and mortar outlets. Tiger Direct knew how to work both sides of the street and wanted the CompUSA name for their brick and mortar outlets. Today they still have the Tiger Direct web address, but are mostly using CompUSA on line.
Circuit City is also back as an "etaile" outlet on the web. I don't know if there is any connection other than the name to the original.
why should some underpaid Cust Serv rep be responsible for the well being of practically every fortune 500 company? When a company succeeds, it's because of brilliant leadership (Apple), but when they fail, it's always the customer service reps responsibility / fault. WTF?
Maybe Barnes & Noble's leadership should have done something about declining reading rates in America, huh? The trend had been going on for decades. Maybe they should have lobbied for better education & schools to create the kind of people who WANT books. Look at Japan. Well educated populace that values reading (hell, good authors are celebrities over there, instead of just the ones that strike it rich like in the US). But nope, you're right. It's all the fault of the minimum wage gal/guy behind the counter with no stock options, no career options, and no raises. Not the multi-millionaire leadership.
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Now how do we get Fries Electronics nation wide?
Persuade McDonalds to start including smartphones and mp3 players in their Happy Meals?
Promote proofreading. Don't mod up sloppy posts.
I think eventually companies like Amazon may spell the doom of most ( not all ) brick and mortar stores, tech or not. It is much more convenient to order exactly what you want while sitting in your chair and have it delivered to your door. Probably a lot more eco-friendly too as your goods will be "car pooling" with the delivery man. Picking something up in person either means taking a chunk of your time on a weeknight or a weekend, assuming the store has what you want. The only motivator, if you are not into shopping for its own sake, is the price of gas versus the price of shipping. As gas prices change, something like an "odometer by money" could tip the balance in favor of just buying what you want online. Even supermarkets like Giant have delivery services, so they aren't immune unless someone is a gourmand who wants to inspect their food before s/he buys it.
I feel fortunate to have a really good Microcenter on my way home from work. The trip is always worth the hassle as they always have what I need and have people who can help me find it fast.
Not so with the other tech stores and the service is so uncaring that I feel like I am in a fast food restaurant.
Never go to Best Buy on Black Friday. They're well-known to be full of bait and switch offers. In fact, there's really no reason to go out on Black Friday at all. Just wake up at / stay up until 4 AM and do all your shopping online. No lines, no up-selling, and the products get shipped directly to your door, at the same crazy Black Friday prices. I prefer Walmart.com for this sort of thing; there's remarkably little BS with which to deal. So far have bought a ~$400 42" TV and a ~$130 surround sound / Blu-Ray system, both of which were surprisingly quality.
By the way, the reps argue with you about buying the "advertised" items in Best Buys primarily because they don't get commission / do get yelled at if those items are what are sold, rather than the designated, higher-priced snake oil switched items. And God help them if they sell something without a warranty...
It's better to vote for what you want and not get it than to vote for what you don't want and get it.
- E. Debs
You've just described several incidents where items ordered online arrived broken, incomplete, or not-at-all. How is that hassle-free?
You have to wait for the item, then go through the RMA process, return the item, and wait for refund/replacement.
Meanwhile, the merchant has your money, and you have no product.
This assumes the merchant is reliable too. Amazon may not be bad for returns, but ebay/paypal can be pretty awful for both buyers and sellers.
For pricing, I've noticed that a lot of online merchants have gotten into the habit of "sales" that are more than the regular price elsewhere. Amazon seems to be pretty bad for this with books, and Newegg was selling REFURBISHED iPad 2's around Xmas as something like $200-300 off... at a reduced price of $699, except that $699 was the REGULAR price of the things elsewhere new...
I call'em "Worst Buy" in part because they lied to me about a rebate on a washer and dryer I purchased from them. If memory serves, they got in trouble with the FTC over this practice.
I will never set foot in one of their stores, much less buy anything from them.
Circle the wagons and fire inward. Entropy increases without bounds.
Two reasons I've found
a) Looking at stuff that I plan to buy, probably elsewhere (but at least I get to see what it looks like first)
b) Immediacy: Buy it and use it, no waiting for the post
c) Floor models: I've bought a few floor-models of things, and those actually tend to come out well as one can see their condition/functionality before taking them home, and the price is reduced.
Also
d) A place to send relatives when I don't want to be their personal computer consultant/repair-person
CompUSA never did close. The company was purchased by some other company and the stores (at least the one around here) remain open to this day under the CompUSA monicker. What did happen is they lowered their prices, started selling OEM/Grey box stuff so they now compete price wise with online shops like newegg.
http://www.compusa.com/retailstores/compusaStores/index.asp
I pointed out that their new, higher price was about thirty or forty dollars higher than Fry's, just two blocks away,
There was a Fry's two blocks away and you still went to Best Buy? I hope you've learned your lesson.
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Depends on the store I guess. We had a local Circuit City and I was consistently amazed that they had a few folks in there that knew what they were selling. A couple of them even survived the purge of the high priced employees. It was heartbreaking to see them during the closing down sale - still trying to do a decent job and apologising that there wouldn't be any returns on anything.
A statistical outlier of course - I could travel 20 miles and experience the standard CC crapfest which made it stand out even more.
I would agree that BB are to be avoided at all costs. Even Frys have better customer service.
I remember their horrible store layout with a diamond-shaped center section in the middle blocking the view of half the store from the entrance. It felt like I was doing a dungeon crawl just to get to the back where they had their CDs, videos, and video games. They were opening new stores with a proper big-box layout a few years before they crashed, but at the end there were still stores with that original layout.
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I sometimes shop at a place in Sunnyvale called Weird Stuff Warehouse. They have great bins full of surplus and second-hand cards, connectors, keyboards, mice, power adapters, and components. Standard operating procedure is to buy at least two, preferably three, of everything and hope one of them works. But it's cheap enough you can afford to do that.
Agreed. I go to that same Microcenter store. The staff seems to be much better informed about what's on the shelves, they know where everything is, and the selection is great. In my mind, they beat Frys.
.. pa-ra-bo-la, pa-ra-bo-la, 2 pi R, 2 pi R, where's your latus rectum, where's your latus rectum, 2 pi R
Sometimes you get a bad salesperson, but the folks at microcenter are the best-informed and knowledgeable people about computer parts and tech stuff out of any brick & mortar store. Yes, they will try to sell you, but you're not forced to buy anything, and I've never really been pressured on anything I've been shopping for. They also know the store very well, and can save you time hunting around for stuff. You can use salespeople to your advantage, you know. What do you care if they sticker your stuff, anyway? It doesn't raise the price, and they get credit for being helpful. On the flip side, salespeople who want to get credit for a sale they had no part in are being unethical and it's okay to report that to management.
.. pa-ra-bo-la, pa-ra-bo-la, 2 pi R, 2 pi R, where's your latus rectum, where's your latus rectum, 2 pi R
I realize my anecdote is fast food, but...
Our local Burger King decided to remove their kids play area and replace it with a couple video game machines to cut insurance costs and make a little coin in its place. The result was all the stay at home moms found somewhere else to take their kids for lunch. Business drops and they remove the games leaving a totally empty play room taking up retail space. To cut costs, management hides the condiments under the order counter, followed by the napkins. Now you have to beg for ketchup. That's when I quit eating there.
Contrast that to the Chick-Fil-A across the street. They have a playground and all the moms that used to go to Burger King are now there. At lunch they have three people working outside helping the drive-thru. The line usually wraps all the way around the building, but I have never waited more than 4 or 5 minutes. On rainy days, they have an employee walking out to cars handing customers umbrellas to get in and out of the doors. The place is ALWAYS packed, but I never have trouble finding a seat and never wait more than a couple minutes to order. When someone leaves, their table is cleaned within a minute. The employees are friendly, helpful and polite. I costs me about 20% more than Burger King.
Guess where I take my kids...
For me, it's not the price difference per se, often the price can be reasonably competitive.
It's the social aspect of shopping online that seals the deal. I don't feel comfortable buying anything these days without seeing a rich set of reviews on the item, seeing where it falls within a bestseller list (i.e. Amazon), when it was released to the market, and comparison prices so that I know I'm not getting taken on price.
My God can beat up your God. Just kidding...don't take offense. I know there's no God.
That's a big trend right now. Fire your customer if they represent too small of a revenue / margin stream for you. It is even used as a business strategy to get competitors to lose margin and profitability. Lucky for Best Buy's customers, Amazon, NewEgg, and Wal*Mart don't mind.
Sounds to me like it isn't working out too well for Best Buy. They just want to bitch about Amazon taking the customers which they don't apparently want.
What if this was the decline/death of impersonal giant chain stores, and nothing to do with brick-and-mortar business models?
Hopefully chain restaurants will follow...
On the surface it appears to be the case but I think it could swing back the other way. Bricks and mortar shopping is an experience which people enjoy. What are we to look forward to? Living in isolation where everything simply arrives at our door is not a very appealing thought. The "village" atmosphere has appeal even if they are now shopping centres.
see... the 'average reader' is going to do the 'average thing', which is think that they have some insight because they read Forbes, and get in on some bandwagon trend thing. they pour their money into some account like Schwab or Scottrade. i think the gambling analogy fits here too.
now, the hedge funder watches the pumping and dumping action going on in the pages of forbes (and WSJ and etc), and tries to tell which way the 'market pscyhology' is headed. by predicting this they can get in on the various pump and dump deals. take the Dot Com bubble. the 'buzz' around it sends the masses to put their money into it, in hopes they too can get rich by riding the up and down of the market.
a good example of how hedge funds interact with the media to get rich off of bad investors is probably that screaming guy on the financial network. Jim Cramer. there is a great book about him - "Trading with the Enemy" by some kid who managed to get a job inside Cramer's fund because his dad knew a guy who knew a guy who... anyways. The 'news' is not to give out information, its also to help manipulate public opinion for the purpose of improving predictability for certain deals that certain people are working on.
Best Buy's version:
“Due to overwhelming demand of hot product offerings on BestBuy.com during the November and December time period, we have encountered a situation that has affected redemption of some of our customers’ online orders. We are very sorry for the inconvenience this has caused, and we have notified the affected customers."
The accurate version:
"Due to poor inventory management and sales forecasting of the most popular products during our key sales season, we can’t fill orders we promised to fill weeks ago in time for Christmas. Three days before Christmas, too late for the customers to make alternative arrangements, we are just now letting our would-be customers know. We have no excuse for such amateur behavior."
This is SO true. This is why retail electronics stores problems are 100% self-inflict and these ass-clowns DESERVE to go out of business!!
..but it is nice to dream.
/.ers here fail to comprehend: Technological Illiteracy. Best Buy isn't interested in selling the top of the line products or having exclusive things. All they want is to take advantage of people that are upgrading their Pre-2000 computer for a new POS9001 with the extended warranty... Which will be needed because the POS9004 will be out next month and the 9001 model will break down a week into using it. So they do what they do in order to make a fast sale to people who have no idea what they are getting into as far as quality or don't realize that 90+% of computer problems can be solved with a Google search. (or no Windows on the PC to begin with for those Apple/Linux zealots here). This also holds true to Radio Shack and any other big box store like Wal Mart.
/.er, you may fall for their trap because of how they hype it up and make it sound like you will get better quality picture/sound. Another example, and why Circuit City failed, is how Circuit City tried to charge people ~$30 to get backwards compatibility on their new XBox 360. (Yes it is a YTMND, but the advertisement is 100% legit)
The problem with your guidelines is that companies like Best Buy prey on the one thing most
A great example is how Best Buy was hoping people would be dumb enough to spend over a thousand dollars for a HDMI cable. If you knew absolute shit about electronics or were not a
While what you are saying is true, it would be very difficult for Best Buy to do this. To them: It is more cost effective to have some kid in HS to work on a PC for $60/hr or an extra $30 at point of sale than to hire a professional who may want more than minimum wage to work on junk... To which, the pro may not in good conscience sell.
There is only a few reasons for big chain stores to go under. 1. Bad customer service. I work at a staples in the growing state of ND. We get a lot of customers who went to best buy or office max (only other 2 major electronic chains in the city, but got smaller stores like The Computer Store, and CompUtech) and then came to Staples. 2. Can't adapt to change. If Radio Shack did not change what they carried (whether you like it or not) is the reason they are still open. If a store can't do that, customers and those jobs move somewhere else and make money for other people.