Best Buy Cuts 650 Geek Squad Techies

tripleevenfall writes "Best Buy has cut approximately 650 jobs from its Geek Squad division, according to the Minneapolis Star-Tribune. The cut represents about 4% of Geek Squad's total workforce. The consumer electronics giant said the workers primarily service televisions and appliances in consumers' homes. Best Buy's performance has struggled to keep up with changes in consumer electronics, as the weight of its big-box format inhibits it from fending off competitive pressure of online retailers."

Comments

Beginning of the End

[ackthpt]

When you cut support you begin to cut your own throat.

Re:Beginning of the End

[Glothar]

Good thing they only cut Geek Squad people, then.

Re:Beginning of the End

[Samantha Wright]

I bring you an image with a relevant sentiment attached.

Re:Beginning of the End

[Jeng]

I thought charging for support accounted for around 90% of their profit?

If they are losing money on support they are totally fucked.

Re:Beginning of the End

[night_flyer]

I wouldn't call Geek Squad "support"

Re:Beginning of the End

[Jah-Wren Ryel]

When you cut support you begin to cut your own throat.

The beginning of Best Buy's end started with the end of Circuit City. Best Buy thought that they were now free of competition, so they reduced the variety of the products they stocked and focused only on high-margin stuff (for example, Monster Cable and in-house brands). They thought that their customers no longer had a choice and so they tried to stick it to us.

Now you hear them whine about being "the internet's showroom" - they think people come in to look and then go buy online instead. That's almost a complete fallacy because almost all of their products are commodities, you gain basically nothing from a hands-on experience with just about everything they sell. Even things like TV's, AVR's and speakers don't really give up much useful information from the show-room experience because performance in your own home is always different from in the show-room. You are almost always better off reading a variety of reviews than trying to make subjective judgements yourself in the store.

Re:Beginning of the End

[drinkypoo]

It's more like their throat is being cut for them, so they got rid of some throat.

The Geek Squad isn't about support, it's about selling you services you don't need that slow down your computer to produce additional business.

It's been said before that consumers of today are actually savvy and well-educated. Well, I think that's a load of horseshit; some of us are, but most people are as ignorant as ever about things that matter. Most people are merely better educated than ever before on what celebrities are doing and on what corporations want them to purchase. I would like to think that the Geek Squad is failing because consumers are wising up, but I suspect it has more to do with people having less computer problems because they're abandoning antiquated systems that can't reasonably be maintained or secured.

Re:Beginning of the End

[b4dc0d3r]

You sound like an informed consumer, not their target market. People do walk around and then buy online, or at least comparison shop. Some people do it by sending teams to different stores, and the lowest price feature compatible item gets bought.

People don't want a hands-on experience - they do want to window shop, though. And it helps to stay organized if you have a limited selection, and maybe tiered pricing in several physically separate locations. Once you narrow it down, you find something similar online and buy it. Not that item, just something like it.

It started with people checking out specials on their website while in the store, and noticing price mismatches. Now word has gotten around that you don't buy without checking the price first - and while you're at it, why not check someone else's store too?

They did cut inventory and act like they were the only choice, and people started window shopping there and buying online, and it was entirely their own fault.

Re:Beginning of the End

[pavon]

Now you hear them whine about being "the internet's showroom" - they think people come in to look and then go buy online instead.

Not to mention that they hardly showroom any real hardware anymore. When I bought my mp3 player 7 years ago I bought it in a retail store because I wanted to interact with it first to see how I liked the interface, and if the hardware felt flimsy. Now I walk into a retail store, and the "display units" all have cardboard screens.

Re:Beginning of the End

[PRMan]

Exactly this. It's now pointless to try out some gadgets at Best Buy. I couldn't even try a phone the last time I was there. I knew it ran Android and I liked the physical keyboard, but the screen was a plastic image.

Re:Beginning of the End

[drinkypoo]

Can you name one service that Geek Squad performs that "slows down" its clients' computers?

Loading crapware in the name of security. If you had google'd for "geek squad slows down computer" the top hit would probably have been this article on the geek squad optimization service slowing down computers and then you wouldn't have had to ask this question.

Re:Beginning of the End

[pLnCrZy]

Now you hear them whine about being "the internet's showroom" - they think people come in to look and then go buy online instead. That's almost a complete fallacy because almost all of their products are commodities, you gain basically nothing from a hands-on experience with just about everything they sell. Even things like TV's, AVR's and speakers don't really give up much useful information from the show-room experience because performance in your own home is always different from in the show-room. You are almost always better off reading a variety of reviews than trying to make subjective judgements yourself in the store.

Yes, but not entirely. I still wander through Magnolia when I'm shopping for something. If they have it for me to demo (speakers, TVs, etc.) then I will give them an audition.

Where they are really shooting themselves in the foot is that they won't price match. I gave them numerous opportunities to make a sale, but they wouldn't price match online prices from Frys.com, Amazon, or other online stores. They claim it's because those prices can't be verified or validated. In one case (an Onkyo receiver that BB wanted 899.99 for and I found it on Amazon for 549.99 with free shipping and no tax) they claimed that selling it to me for that price would actually be less than they paid for it, and would violate their contract with Onkyo -- which I doubt in both cases. But they were arrogant, and the manager thought he was going to bully me around and I would do what he said, and he was wrong. He told me I was a fool to trust online markets. So I went and bought the receiver from Amazon, and the next weekend I needed to go to another store in the same center as the BB, so I brought my receipt with me. I asked to speak to the GM of the store, explained what had transpired the week before with the Home Theater dept. manager, and showed him my receipt, and told him that I was glad to be a fool who saved $400. He was fairly irritated with his manager.

THIS is why Best Buy has failed. Not "is failing" -- "has failed." Being the Internet's showroom would be fine if they would price match and keep the people IN THEIR STORE -- that's when the added opportunity for impulse purchases kicks in. If I buy a Blu-ray player in the BB store because they price matched it and I didn't have to wait for shipping, as I'm walking toward the check-out line I'll pass by the Blu-rays and maybe I'll let my judgement lapse for a short time and pick up a couple overpriced titles for the sheer convenience of "I can go watch this RIGHT NOW." Hell, they could even con the masses into upgrading their HDMI cables while they're at it. No, the informed consumer won't bite, but they don't need EVERY ONE to bite, they only need a few of the dumber ones to bite, and that's who their target is anyway.

Re:Beginning of the End

[The Snowman]

Best Buy will not match the price of an online store, but I have noticed that the lowest brick-and-mortar store price is not really that much higher than the cheapest *legitimate* online price.

I think we need to place a line between accessories and everything else. When I need an HDMI cable, I buy online. The vast majority all just work, and two seconds looking at comments and reviews reveal the one or two subpar cables that don't. I can buy a cable for a couple dollars online, or $100 at retail. That's a no-brainer. FYI: I did buy a 15 foot HDMI cable for $9 that was $125 at retail. This is not exaggeration.

When I wanted to buy a point-and-shoot camera, the difference was much less. Sure, I could save $5 off a $125 purchase online. Factor shipping and taxes, and retail still loses. But the opportunity cost of walking out of the store and not waiting a week is priceless when I need pictures that day and my previous camera was smashed on accident. How many minutes does it take me to earn $5? Many fewer than the minutes it takes to arrive at my house.

However, retailers don't make money on low-margin big-ticket items such as HDTVs, cameras, and other stuff. They make their money on high-margin small-ticket items such as cables, music, and movies. That business model needs to shift if they are going to survive. I think "big box" needs to become "small box" as they stock less and less, and offer competitive prices on the items that matter. Focus on the online presence, and the ability to ship to store to free on any item (Wal-Mart has this one nailed).

First Post

[CompMD]

Brought to you by Monster Cable.

Re:First Post

[Jeng]

Can I get a one year replacement warranty on that for more than the product is worth?

Very Shortsighted

[Anonymous Coward]

You know, the customers' porn isn't gonna watch itself.

Which technicians were cut?

[Rone]

Which technicians were cut?

The ones with the lowest technical aptitude, or the ones who pushed the least amount of unnecessary service on their customers?

Re:Which technicians were cut?

[afidel]

The ones that had been there the longest and thus cost the most for the company. Just like Circuit City when they were circling the drain, cut your best people because they are "expensive".

Re:Which technicians were cut?

[tripleevenfall]

Correction: most job cut decisions are geographical, either on the earth or on an org chart.

Re:Which technicians were cut?

[Jeng]

Which technicians were cut?

The ones with low agility, the others moved out of the way fast enough.

Re:Which technicians were cut?

[Billly Gates]

Then GeekSquad is like the rest of the IT field.

Remember back in the good old days when a System Administrator who had 7 years experience pulled in $120,000 a year? Now if you make over $40,000 you are eyed to be axed. After $45,000 you have to walk in water and know everything to justify to keep your job. They can find some guy with 1 year experience in help desk to always replace them for $32,000 a year to manage their mult million dollar IT infrastructure ... rolls eyes.

I guess cost centers are always treated like crap even if they generate revenue and actually hurt the company when cut

Re:Which technicians were cut?

[Billly Gates]

Most are certainly not random.

My guess is those that sold the least amount of protection plans. All BestBuy is based is upon sales metrics like 80% of the rest of retail. Credit card sales and protection plans are YOU OUT OF THERE.

Re:Which technicians were cut?

[Chas]

Which technicians were cut?

The most emo ones. They volunteered to do it themselves.

Re:Which technicians were cut?

[Billly Gates]

Uh, thanks for the offensive reply.

  I do contracting and I am not a sys admin. I have seen all too many times some young 28 year old who was help desk do sys admin for 1200 computers with outdated domain controllers with stale OUs all over the place because the senior guys who made 70k were let go due to economic times etc.

I have not seen any respectable sys admin make more than 55k in years which is shocking since having a crappy help desk costs little compared to having the network down!

Geek Squad is where what we are threatened with

[sandytaru]

My boss often joked that if we screw up too much at our office, we can always find a job with Geek Squad. (A few of the fired part timers had, in the past.) Perhaps not, any more.

Re:wait, what?

[sandytaru]

Technicians. There really isn't a better term for "lowest rung of the totem pole in a technology company that isn't a retail associate" in English.

It's not like there's any competition

[speedlaw]

Things have gotten really bad. Back in the day, I worked in a stereo store. We had products that could be demoed, Salesfolk who knew something about those products, and within the rules of salesmanship, could oft match a customer with the right gadget. Fast forward to today. Retail electronics sales is dead. When Circuit City died/fired the old timers, that was the last gasp of mass market audio sales. I now go to BB, and they have mass market crap in audio, while the Magnolia side has Meh audio for big audio prices. You either have to go to a top end audio retailer, of which there are few, or buy blind off the net. I bought a HSU subwoofer, which is lovely, but it was the first item I'd bought "UN-auditoned". BB is the last one standing. The rest of us have to read internet forums and buy based on that.....it's crowdsourcing, but for audio, everyone's ears are different. There's nowhere to go to audition mid to low high end audio anymore.

Do you suppose...

[bschorr]

...they'll be able to get their old jobs back at Foot Locker?

Sorry...that was mean. There probably are some Geeks that know what they're doing and I'm sure they're brilliant at getting Grandma on Facebook. I just get the call when one of them has screwed up somebody's server or line of business application because they had no idea what they were doing. Which happens way too often.

oh no!

[bitt3n]

great. who am I going to get to exorcise the virus from my power supply unit now?

Re:Who cares?

[DarkOx]

Right I lived in MPLS when Geek Squad was an independent entity. I never used them because I never had a need, but I know plenty of people who did.

They actually were staffing people who knew how to do things like run mem maker and configure emm386 to get your kids DOS game running properly. I know people who did have them do things like recover files of corrupt FAT floppies with hex editors. I am sure most of older slashdot'ers have been their done that and got the t-shirt but it really was a valuable service to lots people. Then Best Buy bought the company and turned it into a complete joke.

The Best Buy Conundrum

[bratwiz]

Best Buy is the only company who can lay off 650 of its technical support staff and have its IT competence remain exactly the same.

Best Buy sells nothing exclusively

[jsepeta]

So there's no reason to go to Best Buy. To get a better deal on a TV, check Amazon or Walmart. To get a better deal on an appliance, go to Lowe's or Menards or Sam's Club. Want a better selection of movies, games, or music? Amazon.

Screw Best Buy, with their overpriced products and ripoff "services". Plus, the Geek Squad is mostly known for screwing up customer's machines and stealing software.
https://www.google.com/webhp?sourceid=chrome-instant&ie=UTF-8&ion=1#hl=en&safe=off&sclient=psy-ab&q=geek%20squad%20screwed%20me&oq=&gs_l=&pbx=1&fp=54147a6c24560a3&ion=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.,cf.osb&biw=1599&bih=963
http://www.wired.com/gadgetlab/2007/05/geek_squad_caug/