[D-fendr]

I would think the way to attack Best Buy would be on service - it's lousy. But then that's not WalMart's strength either.

[There You Go Again]

Ooops, WalMart should not do this. Some of the economic imbeciles here on Free Republic (the non free traders) will complain that WalMart is being too competitive. "People at BestBuy are losing their jobs because WalMart is selling flat screen TV's for only $25...that isn't right...we need more government regulation!!!" "I thought you were against government regulation?" "Well normally I am, but I am so stupid when it comes to economics, that I am for it in these cases." AND THUS, THAT IS HOW RINOS ARE BORN....Eg. SEN. SNOWE

[TaxRelief]

If it wasn't for Walmart, I don't know how we'd stay on a budget!

[upchuck]

From the article:

Not all analysts are convinced Wal-Mart's move will cut into Best Buy's and Circuit's earnings. Colin McGranahan, of Sanford C. Bernstein & Co., notes that it's the sale of the gadgets themselves that drives warranty sales. He believes consumers will put Best Buy's and Circuit's greater choice before the price of a warranty.

But of course, most buyers still don't realize how much more expensive their warranties are than Wal-Mart's. The test comes when they find out. Eric Arnum, editor of the online trade publication Warranty Week, predicts this outcome: "[Wal-Mart] is killing the goose that lays the golden egg."

Wally kills the goose that has been laying the golden egg for Best Buy & Circuit City. Gotta love it.

Besides, I've never heard any expert I trust hype these warranties. In fact, I've heard just the opposite - that they are next to worthless.

Which is why, I'm sure, the salespeople at BB and CC push them so aggressively.

On a slightly different topic, if I was a shareholder of Circuit City I'd be damned nervous to hear 100% of the company's operating profit comes from these warranties.

Yes, I'm an unabashed Wally booster. Feel free to flame the brick wall :)

[Gabz]

Go WalMart.

[SamAdams76]

Well I'm in the electronics business and I can honestly tell you that the "extended warranties" are a consumer rip-off and nothing but a profit center for retailers. In fact, salespeople at many of these retail stores only get a significant commission if they sell an extended warranty with the product. That's why you always get the hard sell when you go into these places.

For those who think the extended warranties are "peace-of-mind", consider how many electronic devices you have purchased over the years and how many have gone bad for you. I can guarantee that the extended warranties would have costed significantly more in the long run even the cost of replacing what, if any, electronic devices failed for you over the years.

Basically if the product is a lemon, it will fail while it is still under the manufacturer's warranty. If it gets through the first 90 days, it's pretty likely it will give you years of reliable service after that.

[Porterville]

Invest in agressive WalMart

[edwin hubble]

Get the extended warranty on a laptop.

But not on any other electronics.

[papasmurf]

Walmart has gone up on prices in the last year. I can beat their deals on most items very easily.
Believe it or not, we like their grocery dept., but really don't like anything else they have.

Really do like Costco and BJ's whoesale.

[Salvation]

BTTT!

[Antoninus]

Wal-Mart thinks that Christmas is a pagan holiday. Therefore, I have no reason to spend any money at that particular store this year. They can go straight across the River Styx.

[Radix]

Hmmm, was there no mention of CompUSA?

That store sucks.

[Reaganesque]

Seriously, would anyone admit to having purchased their home theater system from Walmart?

[Central Scrutiniser]

I refuse to buy any hardware at best buy because they make their sales robots pester you endlessly about extended warranties.

I even had one tell me that the car stereo I was buying was crap and would break down immediately. I asked him if his boss knew that he was telling customers that they sold crap. Then he kept it up. I finally told him that if he so much as breaths loud enough for me to hear it, I wasn't going to buy the stereo and that he needed to piss off.

He did, then his boss got a phone call.

[AZLiberty]

It's not just electronics. They seem to have Michael's, the arts and crafts store, in their sights, too. When the new Superstore opened in Tempe, one part of it was practically a clone of the local Michael's store.