jamesinclair said:
I dont get the Best Buy business plan. The big ticket items (MP3 players, Tvs) can be had for so much cheaper elsewhere. Meanwhile, their gaming,movie and music selection is good....but could easily be so much better. A CD case doesnt take that much space, why not give us more of it?
Every time someone goes to best buy and doesnt find the CD they want, theyre going to look online....and once theyre satisfied online theyre not coming back to best buy.
Ive always felt they should organize their store more like a barnes and nobles. Have a partial second floor and pack it with media. Their ceilings are high enough.
It's quite simple: Best Buy makes no margin whatsoever on CD's and DVD's. None. They want their associates to attach everything under the sun to all potential CD/DVD sales so they can make money. Otherwise, media as a department is in the red at the end of the day, and it drags the store down. If they added a whole other floor or huge section of CD's/DVD's, it would just be more money they aren't ever making back.
The company has essentially dug their own hole by driving every other major brick and mortar electronics store out of business. What they once prided themselves on to allow them to be the most successful electronics retailer is now biting them in the ass, because they're basically the only show left in town. They sold all kinds of stuff (computers, CD's, mp3 players, you name it) wayyy under cost to keep the customer in one of their many stores. That worked out for them for a while, but not anymore because there's zero competition. Customers have come to expect those prices every time they shop there (that's what keeps them coming back), so Best Buy can't really change that.
All they can hope to do now is attach their blatantly overpriced accessories and services to sales that otherwise would make them no margin, or actually cause them to LOSE margin (e.g. computers). I would have to say that their best bet now, outside of their bloated services that no one wants to pay for, is home theater (but given the state of the economy, :lol), which they CAN get away with marking up a little because it's new and interesting technology to a lot of people (unlike, say, laptops). They can also try to rely on misc. things like financing ($30 or so kickback for every credit card customers sign up for, but once again, economic woes), and car head unit installations (but that really can't carry the store). They also have their service plans, but that alone can't really keep them all too profitable, and half of them are a ripoff like every other sugar-coated thing they try to throw at you. They literally want the ideal sale to have the core product, a service plan, a geek squad service if possible, and complimentary accessories. If the customer can't afford it, you offer them financing, even if it's the most simplistic of purchases that really wouldn't justify the need to open a new account. :lol
Their view is more and more increasingly becoming "if we can't make money selling
x, we probably should bail out and try something else, even if it pisses off our customers." This is why media is shrinking. Media sales associates are not really trained to sell, but they want them to once they (eventually) transition into what I was talking about earlier in this thread.
The sad thing is, Best Buy isn't even a commission-based company, and yet they act like it. In other words, they treat their employees like shit. They want you to feel special and a part of the process, but seriously, at the end of the day they'd rather have someone dumb and consistently willing to eat the company's lies and spit them back out at the customer, rather than have someone who is truly knowledgeable in a particular area of the store. The smarter you are, the harder it is to stay afloat. Terrible, terrible company.