Best Buy wants your holiday business - maybe
Michael M. Bates
Not many children have visions of sugar-plums dancing in their heads as Christmas approaches this year. They’re more likely to be thinking along the lines of MP3 players, video games, cell phones and other high-tech electronics.
With more than $24 billion in sales last year, Best Buy is a leader in marketing consumer electronics. Now the company has a new strategy: Getting rid of undesirable customers.
The company’s chief executive officer described to the Wall Street Journal the consumers he can do without. These include folks who buy items and apply for any available rebates, then return the items to the store, and go back a final time to get the same stuff at a returned-merchandise discount.
Also not needed are the patrons who buy quantities of the store’s loss leaders — merchandise sold at big discounts to bring people into the store — and then sell the items for a profit on eBay.
Another customer Best Buy wants to lose, says the CEO, are those who bring in prices from Web sites and demand his company match the quote with its lowest-price promise.
According to the Journal, Best Buy estimates up to 100 million of its 500 million annual customer visits are from unwanted shoppers. Can you imagine how much more than $24 billion a year the company could peddle by ridding itself of these pests?
Make that perceived pests. I’d agree with Best Buy that people who purchase stuff with the intent of returning it after applying for rebates and then buying it again at a substantially reduced cost are unethical if not criminal. They increase the cost of doing business, a cost that, like others, is inevitably passed on to all customers.
Still, that should be a negligible problem at Best Buy. Getting most rebates requires the original UPC from the packaging. Company policy is, as stated on its Web site: "Any merchandise missing the original Universal Product Code (UPC) cannot be returned; it may only be exchanged for the same product by returning the item to a Best Buy store within the United States."
The second group the CEO cited, those purchasing loss leaders and selling them at a profit, isn’t engaged in unethical behavior in my opinion. Best Buy determines pricing. There’s no point in whining about shrewd customers taking advantage of exceptional deals, no matter their reason.
I wonder if the CEO is getting accurate information about the last category of undesirables, those demanding Best Buy match prices offered on the Internet. In my experience, getting his company to honor the price match pledge even when circumstances warrant isn’t simple.
The company’s store price guarantee applies only if you can identify "a local competitor (excluding Internet competitors) offering a lower price on an available product of the same brand and model." You have to provide either an ad or other verifiable written proof.
A couple of years ago I bought an item at a suburban Best Buy and the next day tried for a price match. I brought in a copy of another company’s ad listing a significantly lower cost. First I was told that it didn’t apply because the store marketed on the Internet, thus making it ineligible. When I argued that the retailer had a brick and mortar store offering the same discount, the smiling young man told me it didn’t qualify because it was in Chicago and thus not local.
This grumpy old man isn’t easily dissuaded. I asked to speak to his supervisor. Two people later I was talking with the store’s assistant manager. I remained pleasant but persistent, speaking calmly and patiently except for an occasional outburst about my post traumatic stress kicking in and being short on meds.
The guy finally gave in, telling me he was doing it as a "special favor" and not to expect such munificent treatment in the future and, by the way, don’t ever tell anyone he did this.
This customer thinks Best Buy could do more to encourage patronage from what it deems desirable customers. Honoring its price guarantee without forcing consumers to climb up the organization chart is one small step.
Reducing prices by means other than rebates is another. Retailers know that many, if not most, customers never even bother applying for rebates. It’s a laborious process requiring meticulous attention to detail. If a mistake is made, such as enclosing a copy rather than the original, companies reject the form with the alacritous glee of Mr. Potter evicting a family from their home on Christmas Eve.
I applied for a computer software rebate at the beginning of September. I mailed it in originally and have subsequently faxed it and e-mailed it multiple times. Today I received an e-mail telling me to wait for another six to eight weeks for a response. My guess is many people just give up in exasperation.
Yet another thing Best Buy could do to make itself an attractive business is lessen the pressure to buy product warranties. Many of them are overpriced and unnecessary. Yet employees keep hounding you to buy a warranty. Give it a rest.
"Undesirability" cuts both ways, Best Buy. Oh, and am I still on your mailing list?
(This appears in the November 25, 2004 Oak Lawn (IL) Reporter. Mike Bates is the author of Right Angles and Other Obstinate Truths, which is available at Barnesandnoble.com, Booksamillion.com, Amazon.com or iUniverse.com and can be ordered through most bookstores.)
Joel M. Eichen
<mike...@prodigy.net> wrote:
>Not many children have visions of sugar-plums dancing in their heads as Christmas approaches this year. They're more likely to be thinking along the lines of MP3 players, video games, cell phones and other high-tech electronics.
>
>With more than $24 billion in sales last year, Best Buy is a leader in marketing consumer electronics. Now the company has a new strategy: Getting rid of undesirable customers.
>
>The company's chief executive officer described to the Wall Street Journal the consumers he can do without. These include folks who buy items and apply for any available rebates, then return the items to the store, and go back a final time to get the same stuff at a returned-merchandise discount.
>
>Also not needed are the patrons who buy quantities of the store's loss leaders - merchandise sold at big discounts to bring people into the store - and then sell the items for a profit on eBay.
>
>Another customer Best Buy wants to lose, says the CEO, are those who bring in prices from Web sites and demand his company match the quote with its lowest-price promise.
>
>According to the Journal, Best Buy estimates up to 100 million of its 500 million annual customer visits are from unwanted shoppers. Can you imagine how much more than $24 billion a year the company could peddle by ridding itself of these pests?
>
>Make that perceived pests. I'd agree with Best Buy that people who purchase stuff with the intent of returning it after applying for rebates and then buying it again at a substantially reduced cost are unethical if not criminal. They increase the cost of doing business, a cost that, like others, is inevitably passed on to all customers.
>
>Still, that should be a negligible problem at Best Buy. Getting most rebates requires the original UPC from the packaging. Company policy is, as stated on its Web site: "Any merchandise missing the original Universal Product Code (UPC) cannot be returned; it may only be exchanged for the same product by returning the item to a Best Buy store within the United States."
>
>The second group the CEO cited, those purchasing loss leaders and selling them at a profit, isn't engaged in unethical behavior in my opinion.
We agree. It is okay for them to STEAL from customers, but when smart
customers figure it out they holler!
Joel
Cory Bhreckan
>
> Not many children have visions of sugar-plums dancing in their heads
> along the lines of MP3 players, video games, cell phones and other
> high-tech electronics.
>
> With more than $24 billion in sales last year, Best Buy is a leader in
> marketing consumer electronics. Now the company has a new strategy:
> Getting rid of undesirable customers.
>
> Journal the consumers he can do without. These include folks who buy
> items and apply for any available rebates, then return the items to
> the store, and go back a final time to get the same stuff at a
> returned-merchandise discount.
>
> leaders - merchandise sold at big discounts to bring people into the
> store - and then sell the items for a profit on eBay.
Wow, buying something at a low price and selling it at a profit, what an
original business plan. Someone should patent it. I'm sure that Best Buy
never buys anything at a low price and sells it for a profit.
<Snippety doo-dah>
Rox
I have 2 comments...
1) They sell those warrantees because the profit on them is astronomical
compared to the margin on a regular item. My aunt once went to buy a TV at
a store like Best Buy and the salesman would not shut up about the service
contract he wanted to sell her. She declined repeatedly and he stated if
she didn't buy it he'd have to get his manager to approve the purchase since
he wasn't allowed to sell her anything unless she took the service contract.
She ripped him a new one, and then ripped his manager a new one, then ripped
the store manager a new one. I don't know if it was worth it but it seemed
to make her feel a little better.
2) Later in life I did work in retail for several years and I can tell you
if a customer complains to enough people the management will cave in 99% of
the time and give you the price match, or take a return they know they
shouldn't.
So yeah I understand that they have written policy's about things but local
management will almost always roll over just to get the angry customer out
of the store. That is a self-inflicted problem, but it does cost retailers
money and they pass that cost onto non-complaining customers.
Bill
Cory Bhreckan wrote:
>
> > "Michael M. Bates" wrote:
> >
> > Also not needed are the patrons who buy quantities of the store?s loss
> > leaders - merchandise sold at big discounts to bring people into the
> > store - and then sell the items for a profit on eBay.
>
> Wow, buying something at a low price and selling it at a profit, what an
> original business plan. Someone should patent it. I'm sure that Best Buy
> never buys anything at a low price and sells it for a profit.
Best Buy does not want to be in the business of selling items at
a loss so someone who is effectively a competitor can resell
them to their customers. Many stores will have "no dealers
allowed" included in their ads when they have a really good
sale. Maybe Best Buy needs to do the same thing.
Bill
bear...@cruller.invalid
"Michael M. Bates" <mike...@prodigy.net> wrote:
> I wonder if the CEO is getting accurate information
I wonder if he has pointy hair.
Cory Bhreckan
>
> Cory Bhreckan wrote:
> >
> > > "Michael M. Bates" wrote:
> > >
> > > Also not needed are the patrons who buy quantities of the store?s loss
> > > leaders - merchandise sold at big discounts to bring people into the
> > > store - and then sell the items for a profit on eBay.
> >
> > Wow, buying something at a low price and selling it at a profit, what an
> > original business plan. Someone should patent it. I'm sure that Best Buy
> > never buys anything at a low price and sells it for a profit.
>
> Best Buy does not want to be in the business of selling items at
> a loss so someone who is effectively a competitor can resell
> them to their customers.
Then perhaps they shouldn't sell stuff at a loss then should they. The
choice is there's.
> Many stores will have "no dealers
> allowed" included in their ads when they have a really good
> sale. Maybe Best Buy needs to do the same thing.
>
> Bill
How can a store tell someone what they can do with his or her own
property? Whatever happened to property rights?
John A. Weeks III
<CBhr...@maelstrom.com> wrote:
> How can a store tell someone what they can do with his or her own
> property? Whatever happened to property rights?
They can simply refused to sell the merchandise to you. A store
is not required to sell to just anyone, as long as they are not
basing the discrimination on illegal factors like race.
-john-
--
====================================================================
John A. Weeks III 952-432-2708 jo...@johnweeks.com
Newave Communications http://www.johnweeks.com
====================================================================
John A. Weeks III
Aztlán <sloth...@NOyahooSPAM.com> wrote:
> On Tue, 30 Nov 2004 02:59:00 GMT, Bill <bill...@prodigy.net> wrote:
>
> >Best Buy does not want to be in the business of selling items at
> >a loss so someone who is effectively a competitor can resell
> >them to their customers. Many stores will have "no dealers
> >allowed" included in their ads when they have a really good
> >sale. Maybe Best Buy needs to do the same thing.
>
> Naw, they're quite satisfied with their current Draconian policies
> that are designed to alienate 20% of their customers.
Only 20%? When I moved from BestBuy.com to Best Buy, I was in
a meeting that introduced a bold new concept to Best Buy...the
upper managers were all encouraged to shop in the stores, record
what was wrong, and put together projects to fix it. It was even
suggested that they were planning to interview customers to get
their opinions. That is the calibre of people you get at the top...
everyone else knew what was wrong with the stores, but it never
dawned on the upper management to ask anyone. That is the kind
of mind-set you get from folks who are used to thinking that they
know everything there is to know.
Gregory
news:iimpq05ecp0k5umh5...@4ax.com...
> Naw, they're quite satisfied with their current Draconian policies
> that are designed to alienate 20% of their customers.
Too funny. The question is: how do you alienate that 20% without alienating
the other 80%?
Best Buy is facing the same problem that every other retailer is facing, but
they are the only one publicly complaining about it. They want to make the
most profit per item sold. I don't think their current method will work,
because it requires the remaining customers to KNOW that they are being
cheated and still keep coming back.
Even the stupidest consumer would have a problem with that.
Rod Speed
Gregory <jen...@staidvtx.org> wrote in message
news:oG5rd.48$qk...@fe39.usenetserver.com...
> Scott en Aztlán <sloth...@NOyahooSPAM.com> wrote
>> Naw, they're quite satisfied with their current Draconian policies
>> that are designed to alienate 20% of their customers.
> Too funny. The question is: how do you alienate
> that 20% without alienating the other 80%?
It aint that hard. Jerk them around when they attempt to return stuff
when its clear they have just used the item for a while for free etc.
> Best Buy is facing the same problem that every other retailer is facing,
Nope, those that dont aggressively discount dont.
> but they are the only one publicly complaining about it.
Who cares ?
> They want to make the most profit per item sold.
So does almost everyone else.
> I don't think their current method will work, because
> it requires the remaining customers to KNOW that
> they are being cheated and still keep coming back.
Nope.
> Even the stupidest consumer would have a problem with that.
Pity most of them realise that they arent being 'cheated'.
Bob Ward
Well, until THEY sell the property, how about THEIR property rights?
They certainly have the right to restrict sales to dealers at below
cost. It IS their merchandise, at that point.
George Grapman
put on hold time after time for 15 minutes or more.
After purchasing elsewhere I called back the store and asked for a
manager. When i told her how they had lost my business she said "oh". An
e-mail to the company never even got an auto-response.
If I have a hard time contacting a company before they have my money
I assume it will be even harder to get through after the sale.
By the way, wound up getting my system from a mom and pop place that
offered more features for less money. The one time that I had a problem
I got the owner immediately. He knew who I was and walked me through the
fox in about two minutes.
--
To reply via e-mail please delete 1 c from paccbell
Bill
>
> I gave up on Best Buy the last time I was pricing computers. I was
> put on hold time after time for 15 minutes or more.
> After purchasing elsewhere I called back the store and asked for a
> manager. When i told her how they had lost my business she said "oh". An
> e-mail to the company never even got an auto-response.
> If I have a hard time contacting a company before they have my money
> I assume it will be even harder to get through after the sale.
So you actually called the store expecting them to give you
service over the phone? That's what their website is for. Or
else go to the store in person. If you were complaining about
waiting 15 minutes for help in the store, that's a valid
complaint. But these stores are not set up to offer assistance
over the phone and I wouldn't expect to get anything beyond
simple availability information that way.
Bill
SuperTech
news:41AB7740...@maelstrom.com:
>> "Michael M. Bates" wrote:
>>
>> Not many children have visions of sugar-plums dancing in their
>> heads as Christmas approaches this year. They?re more likely to
>> be thinking along the lines of MP3 players, video games, cell
>> phones and other high-tech electronics.
>>
>> With more than $24 billion in sales last year, Best Buy is a
>> leader in marketing consumer electronics. Now the company has a
>> new strategy: Getting rid of undesirable customers.
I worked at Best Buy for 3 years and this pretty funny. For years they
offered rock bottom prices on everything and drove mom and pop shops
out of business in every neighborhood they entered. Now they have
riffraff shopping in their stores, the same riffraff they attracted for
years and they are now complaining about it.
No one, however, should be surprised at all this. I know a few former
employees that had sued Best Buy and won. If Best Buy does not treat
their employees with respect, how can we expect them to treat customers
any different?
SuperTech
George Grapman
Availability was all that I wanted as I had already been on their site.
By the way, I noticed what appeared to be decent prices fr systems at
some stores but when reading the details I noticed a minor detail was
missing-an operating system.
Anyway, I am very pleased with what I got from the mom and pop
place.Even though he advertised different systems I was able to pick and
chose from them ( he even talked me down on my hard drive capacity based
on my needs). When you call up these places after the sale you not only
get an English speaking person who understands the problem but actually
built the system.
I did by a good Caller ID box with call waiting at Best Buy for a good
price but I had to politely insist that he clerk go in the back o see if
any were left and I had to tell two different people that I did not want
the extended warranty.
swim learning
> Not many children have visions of sugar-plums dancing in their heads as
> Christmas approaches this year. They're more likely to be thinking along
> the lines of MP3 players, video games, cell phones and other high-tech
> electronics.
>
> With more than $24 billion in sales last year, Best Buy is a leader in
> marketing consumer electronics. Now the company has a new strategy:
> Getting rid of undesirable customers.
>
I believe Best Buy uses some illegal means of profiling potential
customers.
I went to Best Buy to buy two computers for my kids. The sales person
kept on helping other customers while working with me. After about 30
minutes I narrowed down to two computers and asked the guy to get them
for me. He sent for another sales guy who pitched me other systems,
kept on babbling, and ignored my requests to get the two computers.
After another 30 minutes, I got fed up and called for the manager. I
explained the situation. He coolly told me, "You are not forced to buy
any computer". I walked out and bought similar computers from Circuit
City. I will never be buying from Best Buy. There are many other
stores - the aggravation is simply not worth a potentially small
saving.