Best Buy Going Under? A Business Lesson

39 replies
Why Best Buy is Going out of Business...Gradually - Forbes

I have to agree with most of the points made by the author.

Best Buy is simply not doing what customers want...and in the end it's going to kill them.

Example: I ordered a netbook for my wife at BestBuy.com, and went to pick it up in store. Now, of course they wouldn't ring up the purchase for me until they offered me several different options of anti-virus, warranties, etc... and even had a SECOND person come talk to me about the warranty. By this time I was getting very agitated (I think my last car purchase was easier!), and just wanted to purchase the item, and leave.

From that day forward I made a promise to myself to not purchase from them again, if at all possible. Now Best Buy is my "Amazon showroom", and the only reason I go in is to check out items that I'm interested in purchasing online.
#business #buy #lesson
  • Profile picture of the author mrinternational
    I got an email the other day about a class action law suit for false advertising during the period of time when I purchased my laptop. I remember telling them I only want my computer no warranty no antivirus I have my own etc. and they said well its already pre installed so I said uninstall it and they wouldnt and ended costing me about 100 dlls more im not a cheapo its just that if it says certain price plus tax plus recycling fee I expect it to be that and not force feed me a warranty or virus protection or whatever.

    The sad part is all the young people that work there and are forced by their managers to do the endless upsells. its not them its corporate.

    Sorry for the rant its just that they used to be a good electronics store now as the OP mentioned just an Amazon showroom.

    oh well.

    Atleast now I know Im not the only one that has a problem with best buy.
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    • Profile picture of the author LegitIncomes
      Originally Posted by mrinternational View Post

      I got an email the other day about a class action law suit for false advertising during the period of time when I purchased my laptop. I remember telling them I only want my computer no warranty no antivirus I have my own etc. and they said well its already pre installed so I said uninstall it and they wouldnt and ended costing me about 100 dlls more im not a cheapo its just that if it says certain price plus tax plus recycling fee I expect it to be that and not force feed me a warranty or virus protection or whatever.

      The sad part is all the young people that work there and are forced by their managers to do the endless upsells. its not them its corporate.

      Sorry for the rant its just that they used to be a good electronics store now as the OP mentioned just an Amazon showroom.

      oh well.

      Atleast now I know Im not the only one that has a problem with best buy.
      That reminds me...a few days ago I got a check in the mail from a class action eBay lawsuit. Something about the listing fees.

      Anyway, the check was for 20 cents! LOL, it cost them more to mail it to me, than the check was worth! Now I've just got to decide how to spend it.
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      • Profile picture of the author mrinternational
        Originally Posted by LegitIncomes View Post

        That reminds me...a few days ago I got a check in the mail from a class action eBay lawsuit. Something about the listing fees.

        Anyway, the check was for 20 cents! LOL, it cost them more to mail it to me, than the check was worth! Now I've just got to decide how to spend it.
        Don't spend it all in one place.
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  • Profile picture of the author quiescen
    Best Buy blows. Everyone knows the real best buy is on Amazon most of the time.
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    • Profile picture of the author teatree
      Originally Posted by quiescen View Post

      Best Buy blows. Everyone knows the real best buy is on Amazon most of the time.
      This. When the ipad came out in 2010, I tried to become an affiliate of Bestbuy on commission junction, till I discovered that they weren't selling the ipad online. So instead I sent people to amazon (who priced it higher, but I made money and so did amazon).

      A lot of these retailers are short-sighted. They don't understand the power of the net. They don't understand the power of affiliates. Amazon is happy to pay affiliates whatever they can sell in a 24 hour period because they know that affiliates made the company - over 10 years affiliates have persuaded millions of people to sign up to an amazon account. The lifetime value to amazon is HUGE. Once people have an account it's easier to sell to them again and then they start coming to you directly. So for the cost of a 24 hour cookie, Amazon sells hundreds of thousands over the lifetime of the customer signed up.

      You would think the goal of other online retailers would be to get their affiliates to persuade as many people as possible to sign up an account with them, given the value of repeat business, but most are too short-sighted - they won't offer the good products online (e.g. bestbuy and the ipad) or they try to pay as little as possible. And then wonder why Amazon is eating their market share.
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  • Profile picture of the author Jeff Bronson
    Another one soon to bite the dust.
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    • Profile picture of the author LegitIncomes
      Originally Posted by Jeff Bronson View Post

      Another one soon to bite the dust.
      The sooner the better, imo.
      And they have no one to blame except themselves.

      IRRITATING is the first word to come to mind when I think about
      walking into a Best Buy.

      And, Sherlock Holmes here: That's not the first word you want to come
      to mind for your customers. LOL
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  • Profile picture of the author LegitIncomes
    Originally Posted by ry4884 View Post

    over the next 10 years we will see a major shift in terms of "Big Box" retail
    Very true.
    Heck, just look back 10-years ago and look at the shift.

    Circuit City
    KB Toys
    FAO Schwarz
    Borders
    Blockbuster
    Hollywood Video
    etc . . .

    Here's a good read:

    Is Borders' Bankruptcy the End of Brick and Mortar Stores?
    http://www.dailyfinance.com/2011/03/...mortar-stores/
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  • Profile picture of the author MikeTucker
    I am sad for all of those people who need jobs and are about to lose them.

    That being said, I have never met anyone in a Best Buy that acted like they cared about their job at all... I haven't been there for years, but the few times I went it was never even a "Mediocre" Buy... It was always a less-than-acceptable experience.
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    • Profile picture of the author Aussie_Al
      I remember in the mid 90s having a meeting with an Asian gentleman living and running a chain of record stores in Spain

      He said "the day of the mega store will soon be over - the micro store is the only way brick and mortar stores will survive"
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  • Profile picture of the author Teravel
    I saw this coming back in 2005, when I went to Best Buy to buy a new power supply for my Windows based Desktop computer, only to find that they do not carry them. How can Best Buy claim to be a computer and electronics store if they don't carry simple items such as Power Supplies, Chassis Fans, Heatskins for RAM, or anything that isn't a pre-built POS computer with 10,000,000 extras installed to kill the system?

    Glad to know I'm not the only one though! The article was a great read, and gave many laughs. I just can't believe they have lasted this long.
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  • Profile picture of the author dvduval
    Part of the reason that best buy is not performing Is stores like walmart are Beating them in price. Our whole economy is based on the lowest price. That also brings about lower wages.
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    • No, Best Buy is failing because management is incompetent from the top down.

      I worked as a merchandiser for a while during summers and I had five BB stores. Part of my job was to take a basket, select X number of CDs and check the label price against the price in inventory (using a Symbol gun). Price errors averaged about 40%. I was supposed to take the scanned media and give it to the store manager so the CDs could be retagged but the managers would just toss the basket in a corner and forget about it.

      So imagine you're a customer and you pick up a Radiohead CD. You stand in the long, long checkout line only to find out the real price is $2 more than the tag. Not a great buying experience.

      If BB had scanners positioned throughout the store like Target and some department stores do, shoppers could verify the price before starting the arduous checkout process.

      (By the bye, for anyone interested in physical products, working as a merchandiser is an invaluable education. I wasn't in it for the money.)

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  • Profile picture of the author Brad Spencer
    Here's another good article that builds on Best Buy's mistakes. Also on Forbes...

    The Seven Habits of Spectacularly Unsuccessful Executives - Forbes

    These habits also make businesses falter.

    This Best Buy article over at Forbes had 611,000 views...talk about SUPER negative publicity.

    Cheers,

    Brad
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  • Profile picture of the author tjcreation
    Best Buy actually tried to do things right when they expanded their online presence. However, they never really got it right. Now they have taken away discounts from employees and are so corporate heavy that they can no longer respond to market shifts. It's a pity, because at one time they had a lot of promise as a company.
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  • Profile picture of the author Ryan David
    I don't think best buy is going anywhere. They still have a lot of products/services that most people don't want to buy at Amazon. If you notice, they pretty much devote no shelf space to DVDs or CDs anymore. And higher margin products are available for people that want the add-ons.

    Amazon is ideal for stuff that takes up a small amount of shelf space (warehouse space) and that has high margins. I don't know if they are really knocking the socks off Best Buy anywhere else.

    I just bought a laptop from them and didn't have that experience at all. I just flat out turned it down and they didn't say another word.
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    • Profile picture of the author Dash Evra
      Wow - That blows. I go to best buy on a weekly basis. I hope things turn around for them
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  • Profile picture of the author mimi k
    One thing I always loved about Best Buy was their customer service, but I agree that their upsells have definitely gotten more aggressive. I recently bought a new laptop and android from them and experienced this from them..
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  • Profile picture of the author Rich Struck
    One time I wanted to buy a floor model computer they had on sale. It was *really* cheap and a fantastic deal. It literally took 2 days to buy it because 5 or 6 obnoxious sales people and one snotty tech guy ganged up on me to try to force me to buy a bunch of crap I didn't want or need. They even wanted to charge me $35 to do a Windows update. Finally at the end I was told that I was "required" to sign up for AOL. I said no and they gave up. On the way out with my computer a tech guy said, "When it breaks just call HP." And that is why I'll never buy a computer at Best Buy again.
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  • Profile picture of the author jpsilver
    In the UK Best Buy will cease trading on the 01.15.12. It's not surprising when they lost £46.7 million before tax in the 6 months ending September 30th and during the same period 2010 they lost £28.8 million pounds.
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  • Profile picture of the author anthony2
    Wow has time change. All of these companies
    use to be JUGGERNAUTS!!! Now there gone or on'
    life support.

    Circuit City
    Borders
    Barnes and Nobles
    Blockbuster
    Postal Service
    Zales
    Starbucks
    Sears
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    • Profile picture of the author LegitIncomes
      Originally Posted by anthony2 View Post

      Wow has time change. All of these companies
      use to be JUGGERNAUTS!!! Now there gone or on'
      life support.

      Circuit City
      Borders
      Barnes and Nobles
      Blockbuster
      Postal Service
      Zales
      Starbucks
      Sears
      The USPS and Sears really stick out on that list.
      A few decades ago the thought of either going under would have been absolutely absurd . . . and it still sort of boggles my mind.

      Sears just made some entirely stupid moves, couldn't keep up with the times (been in a KMart or Sears lately and you know what I'm talking about). The USPS is somewhat less surprising because everyone pays bills online now . . . still crazy to think about though.
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  • Profile picture of the author kimhopkins
    Best Buy is such a joke I'm surprised they haven't flopped sooner
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  • Profile picture of the author dduncan770
    I am new to this forum, but I've heard so many positive things about it. I have been trying to make money online for over a year with no luck at all. Not even Adsense.I have a website that gets almost 5k visitors a month and still no revenue from Adsense. I have purchased different products and am in dire need of learning the skills needed to succeed at online marketing. I would be the picture perfect success story for anyone. I'm not going to get into any of my problems but it is true. I dont have any more money to waste, but I need help really bad. I would like to find a mentor here that would take me under their wing and help me out, just tell me what to do and I will do it. I have the passion and drive just not the know how yet. I would appreciate any help at all. I've done alot of research and do all the work myself and still nothing. I know I'm missing something. Thanks again.
    Thanks for Listening,
    Darrell Duncan
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    • Profile picture of the author dduncan770
      Sorry I was trying to post in General topic.
      Thanks,
      Darrell Duncan
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  • Profile picture of the author celente
    Do not worry it is 2012...and that does not mean the end of the world. ALthough some say and think it will happen.

    2012 though, is the biggest financial clean up we have ever seen! Expect more businesses like this to go BUST in the next 12 - 24 months. I can guarentee it.

    Infact, many companies small and large are going to go BELLY UP. I think right now its plain to see the many people are not ready for what is coming. Time to get your financial house in order, there are many changes coming for people, mentally, spiritually, physically and especially financially. Time to prepare was YESTERDAY!

    While it is one of the scariest times, and the not knowing too, its also one of the most lucrative in our time. There are normally many millionaires made in economic collapses and that is what is happening. Instead of sit back in awe at this, work out how you can make money from the situation.
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  • Profile picture of the author jphilips
    Best Buy is the classic example of putting profits first and customers last. When you do that you actually chase away your profits because without customers there aren't any. How many companies have to learn this lesson? A classic example is AT&T who forgot they were in a competitive business when deregulation of the telecommunications industry hit them. These companies come to feel entitled based upon their prior success and forget what made them that way to begin with.
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  • Profile picture of the author alcymart
    Sure, BestBuy is desperate just like many other retailers. But I think the main reason is the limited amounts of new products on its shelves. There are few bigger and better CPU's and thats only 1 product out of many. We hit a roadblock as far as technology is concerned whether its an HD, A CPU, or Ram, and the list goes on and on...

    BestBuy came in at a good time, but its days are counted. But think how worst they would be if they didn't use those marketing schemes!

    They are simply trying to survive until the next technological product breakthrough is my opinion and rely on selling to the "naive" old outdated products which use to be Hot sellers just a few years ago.

    Bernard
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  • Profile picture of the author adammaxum
    I didn't read through the entire article, but I don't see Best Buy going anywhere anytime soon from a customer standpoint. Walmart & Target's selection of electronics still isn't the greatest so they aren't a real threat yet. Online retailers are causing problems for every b&m business. Best Buy has strong marketing practices, and whenever someone mentions anything electronic, it's usually associated with Best Buy. Where do you go to buy your electronics when it's not online?

    With that said, I've shopped a few times at Best Buy and my experiences were alright. They always advertise excellent customer service, but apparently they're not following through with the majority of buyers as indicated by the recent Christmas issues.
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  • Profile picture of the author royljestr
    I don't know about all of the best buys but I know that i don't even like walking into my local one because their "Security" is constantly eying you...and if you leave without buying they look at you like you are trying to steal something. That certainly isn't helping their "user experience"
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  • Profile picture of the author DrewG
    Originally Posted by NY1 View Post

    [B]
    Stand in a section for about 15 minutes before someone walks over to you because they are too busy talking about what Stacey's hair looks like and what Trent said to Billy that was like so filled with drama.

    Ask a couple of questions... the employee reads off of the card in front of the product because... they don't know sh*t about what they are selling.

    Wait for 20 minutes to get someone to actually get your purchase from out of the stock room.

    Finally get to the point of trying to make the purchase... upsell, upsell, upsell ( What? I can't just click away in real life?)


    How did that business model not work?

    /sarcasm for the sarcasm impaired
    LMFAO, this!

    I was getting my girlfriend a digital camera for graduation, stood there in the camera section for about 15 minutes before I even saw anyone that I could flag down to help me. Guy then had to go get a key...and when he finally checked the stock, low and behold, they were sold out. Wasted a trip to the store and about 20 minutes inside just waiting for someone to help me.

    Also, never buy a cell phone from Best Buy. I had a number of problems with my old Samsung Glide and there was never anything they could do about it. Told me to call the manufacturer and work it out with them..lol.

    Haven't always had a bad experience there, but they do need to work on it. Agree with everyone else too, they need to lighten up on the upsells.
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  • Profile picture of the author tpw
    They just opened their first store in my town less than six months ago. And we have already spent several hundred there with no problems.
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  • Profile picture of the author AlphaWarrior
    Originally Posted by LegitIncomes View Post

    Why Best Buy is Going out of Business...Gradually - Forbes

    I have to agree with most of the points made by the author.

    Best Buy is simply not doing what customers want...and in the end it's going to kill them.

    Example: I ordered a netbook for my wife at BestBuy.com, and went to pick it up in store. Now, of course they wouldn't ring up the purchase for me until they offered me several different options of anti-virus, warranties, etc... and even had a SECOND person come talk to me about the warranty. By this time I was getting very agitated (I think my last car purchase was easier!), and just wanted to purchase the item, and leave.

    From that day forward I made a promise to myself to not purchase from them again, if at all possible. Now Best Buy is my "Amazon showroom", and the only reason I go in is to check out items that I'm interested in purchasing online.
    I had the same problem except that they sent a third sales person to try to pester me into buying the options. I said no, I just want the computer. Then when I was at the register and had already written them a check, they said that before they could sell me the computer I had to sign an agreement that, if the new computer was faulty, they could fix it with used parts. In a not quiet manner, I told them they were crazy, I didn't sign anything, I wrote "void" on the check, and I left. I went to a near by store and bought the same computer for the same price, but without any hassle. I wouldn't send my worst enemy to that store.
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    • Profile picture of the author rom661
      It will be interesting. I'm in the brick and mortar retail business; high performance stereo, home theater, electronics. I'm certainly aware of what online purchasing has done to the marketplace but most of our customers like dealing with engaged, low key, knowledgable people, and many have relationships with us. It helps that the most highly regarded lines are typically not available online.

      We hear constant complaints about Best Buy. I'm hopeful that the people who have been going there because they want a hands on demo of what they're buying will seek us out. Frankly, seeing the comments about missing the "experience" provided by Best Buy is something we find amusing in a sick way. Some of what we sell has moved into the commodity territory, and that is what it is. However the combination of unique product and a sales staff that are both expert and enthusiasts may carry the day. It has for 20 years but many of the rules have changed. Hopefully the perception of added value and support hasn't.
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  • Profile picture of the author NewParadigm
    Best(Worst) Buy sucks. They go out of their way to make you feel bad in buying something from them. Harrass you about not getting warranties. I won't set foot in there ever again. Haven't for several years. I used to buy 10-20 computers a year from them for various businesses.
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    • Profile picture of the author MissTerraK
      Personally, I wrote them off a couple of years ago as they were totally not customer friendly.

      But I knew they were in big trouble when I saw their Christmas advertising campaigns!




      Why on earth would you want to be mean to Santa and toss him to the dogs?

      Santa has been the symbol of Christmas for years, depicted as a selfless, generous old man with a jolly demeanor and ruled by generosity.

      Why on earth would one want to cop an attitude and be mean to Santa?

      Bust Buy, the store that wants to destroy Santa and take his place!

      Sure, I'm going to shop there!:rolleyes:

      What were they thinking?

      Terra
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  • Profile picture of the author LegitIncomes
    I think BB has a Super Bowl ad tonight.

    I went into BB a few days ago to check out the 3D glasses...didn't really want to be in there..but it was my only option to see the glasses hands on.

    The salesman tries to tell me how "cheap" the glasses are getting at $30 a pair.
    I then tell that I think the passive 3D TVs and glasses are better, because I can get a 10-pack of glasses for $30 online...$30 or $300 which is better? He reluctantly admitted I was right. I was only using BB as my "showroom", and didn't want to waste my time with him so I thanked him and moved on, LOL.
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