Posted on 11/20/2014 7:46:16 AM PST by BenLurkin
Best Buy's results are particularly poignant for a company that has fallen victim in recent years to the so-called "showroom effect," in which customers visit stores to check out products in-person, and then go home and buy online somewhere else like Amazon.
Shares of Best Buy jumped 8% in morning trading. The stock took a beating early in the year as investors soured on its turnaround plans, but its since clawed back dramatically, and is now only a few percentage points away from breaking even.
Compare that to Amazon's stock, which has fallen almost 20% this year as quarterly losses mount and investors grow increasingly anxious that the company's big investments in such things as its Fire Phone aren't paying off.
(Excerpt) Read more at money.cnn.com ...
I think people sometimes ignore the fact that brick and mortar stores also benefit from the “online effect”. I often browse on Amazon and other sites looking for product reviews and specifications and then buy the product at a local store to avoid shipping costs and having to wait for it.
I'm sure if I was more technologically literate, I would have been able to figure out how to get them to take my credit card #, but I'm not particularly technologically literate.
So, I gave up, and went to Ebay.
IMO, I am probably a very typical Amazon customer. If I quit, many other people probably did as well.
I had a stroke last year and cannot drive. Amazon is great. With Prime, most items are delivered to my door in two days.
For me personally, Best Buy sucks, the stores near me when I do go in are poorly stocked and only with the brands they push. I have found the stores not kept clean and noisy and have never been a fan of their difficult return policies, however since they have not induced me to make a purchase in years maybe that has changed.
I’ve noticed Best Buy prices have come down quite a bit this year..at least on some items.
They can survive, and even thrive, if they make the adjustments to compete.
Amazon, never an issue with the returns.
Pest Puy needs to turn down the overwhelming obnoxious throbbing of hippity-hop “music” that assaults you as you walk into their store.
Oops, that should be “Pest Pie”.
“It also has a price matching guarantee where Best Buy will equal prices of major online retailers.”
They wouldn’t price match a big plasma tv I bought from amazon last year. After much reluctance and arm-twisting and whining, they sort of matched the price, but bottom line, when delivery, sales tax & extended warranty were added up, they wouldn’t price match. I gave ‘em every chance to make a local sale and they refused.
You might be in the minority. The last time I was in Best Buy (to get something right away and not wait for it) I saw two different couples who would find a TV they liked, then use an app on their phone that takes a picture of the bar code then comes up with a dozen or more websites offering the same thing and their prices.
The management of Circuit City decided to try and increase profits by lowering their salespeople's salary and training. They lost their edge and went out of business.
I've noticed that in the wake of Circuit City's demise that Best Buy now seems to have better trained employees that give good information rather than trying to steer me toward a particular purchase.
Your results may vary.
Years ago I used to go to a Best Buy in Smyrna, GA. As area demographics changed, the store employees and clientele became more increasingly black.
It was around this time they started positing and employee by the exit door who gave everyone a virtual rectal exam before they could leave. The last time I went I said that it is because of what you just did is why I will never set foot in this store again. I kept my promise.
Although what you refer to certainly does occur, I believe that the converse occurs far more frequently. That is, a prospective buyer goes into a brick and mortar store, picks the brains of the salespeople, and then goes online and looks for a better price for the desired item. Amazon has cleverly handled the shipping cost issue by offering its Prime membership. It had been about 79 bucks a year, and was recently raised to $99, but it offers free 2-day shipping on anything Amazon sells directly. There are also some other benefits like their Netflix-like movie/tv site, free music, etc. The clever part is the brand loyalty. Once you've absorbed the sunken cost of the annual membership, the "free" (from further charge) shipping usually makes the total package cheaper from Amazon.
Something that seems to seldom be mentioned in these discussions about Amazon is that most all major retailers also offer online sales. So, it’s not just a competition between Amazon online and all the brick and mortar retailers.
Amazon competitiors need to compete more effectively for online sales.
By coincidence, I am heading over to my urologist today for my annual rectal exam. Maybe I’ll just go to Best Buy and save the co-pay.
Best Buy needs to do the same with allowing shoppers to see the back side of equipment and to read the manual. I swear they bolt down the televisions or set the theft alarms too sensitively to keep you from twisting the TVs too see the back. I had to bring a mirror once... and good thing I did because the description didn't match the reality.
I’ve never paid a restocking fee at Best Buy, is this a new policy.
I order from Amazon all the time. My orders get here in 2 days even on Sundays. I can shop at midnight if I want. Really like the convenience.
Well, that’s an option for sure. Only......he/she won’t use a glove I’d bet. :0)
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