Best Buy Downsizing.

[jayn_j]

Downsizing and possibly closing some brick and morter. Beefing up web only product with more aggressive pricing.

Best Buy Beefing Up Web, Downsizing Stores - 2011-04-04 04:01:00 | TWICE

After the big boxes killed the local stereo store, it looks like they are being solidly kicked by Amazon and Tiger Direct.

I predict that BB won't get it right and will continue to slide.

 

[TheForce]

In this part of the country, it is difficult to get a demo on stereo equipment except for Best Buy. Some things you really need to look at to know if it is right for you. Speakers and monitors/panels, you just can't judge online. Places like Costco Walmart and Sears is no way to sample these especially for the higher end. Computers are competitive at Staples and Office Depot and even online one can get a good idea whether a particular style and brand is right for your needs. Appliances always seemed to be a waste of floorspace at Best Buy because the margins in appliances are so low. Consequently, I hope they maintain a B&M for demo of Home Theater equipment. The computer hardware, DVD's and CD's cameras can all go online. Same with Cellphones.

I've been following their stock seasonal roll off since December and felt it would be a good time to buy in but with a corporate philosophy change, it seems they are heading down the path of Circuit City.

 

[LostBoyinVA]

My local Best Buy no longer carries motherboards and CPUs in stock, but still carries tower cases. With inventory management like that, they deserve what they get. I know I would pay more at Best Buy for an emergency computer repair that required a new CPU and motherboard, but you can't buy what they don't have. In fact there is no one store in the local area that carries motherboards and cpus and after having been in their shop, I now know to order those items online.

However, shoud they close I will miss them as they are the best local source for electronics, especially TV and computer related items.

 

[jayn_j]

Most of the equipment I have seen lately has been disconnected and can't be auditioned. Better at Magnolias, but most BBs are not set up to audition. The exception is TVs, where they have the large wall of displays all in torch mode. At least you can ask for a remote and tone it down yourself for those.

I see audio as hopeless for demo purposes. My local BB has exactly one Pioneer receiver powered. It is connected to a switchbox that lets you cycle through a half dozen speakers. Ten years ago, that would have been in a dedicated room. Now it is in the middle of the display floor with the 30 ft ceilings. I have also watched the number of choices dwindle, especially in speakers. If it isn't Polk, Klipsch or Insignia, they won't have it, and generally the more basic models of each.

So how is downsizing from that going to help the average consumer evaluate? Frankly, I see nothing good coming out of this. Perhaps the mom and pop stereo store that BB killed will re-emerge, at least for the step up products. More likely the step up products will die, the same way CD players have been replaced with limited bandwidth iPods

 

[diogen]

Our BestBuy (and owned by them FutureShop) has a bunch of Bose speaker sets and Monster power conditioners.
Pretty much says everything about them in terms of audio expertise...

Diogen.

 

[Islandguy43]

Our BestBuy (and owned by them FutureShop) has a bunch of Bose speaker sets and Monster power conditioners.
Pretty much says everything about them in terms of audio expertise...

Diogen.

Sounds like you would be in Canada eh?

 

[diogen]

Yep...

Diogen.

 

[TheForce]

jay- we have several Best Buy's in the area and all of them have demos of laptops, desktops, camcorders and still cameras, a half dozen xbox and PS3 and Wii, including the kinect and Move displays, smart phones, headphones, and the ones with Magnolias have listening rooms with AVR/speaker switchbanks. Plus the wall of all the panels you described. One store has 8 different 3D displays to sit and watch. I have no complaints about Best Buy in the past 6 years. Before then they used to be staffed with misinformed kids but no longer.

 

[jayn_j]

I'll give you the laptops and cameras. Maybe 3 camcorders here. Only 2 desktops on display in the whole store. Lots of ipads though. The Kinect is set up in a main aisle where everyone trips over everyone else. We have three 3-d displays, all on main aisles where you can stand and watch. In two cases, you need to find someone to unlock the glasses. In the third case, the glasses are fixed to a tripod, same as in Costco.

Nearest magnolia to me is 20 miles and frankly, I am not impressed. Putting carpet and a couple of theater seats on the main floor does not make it a Magnolia in my mind. The one here really doesn't have much additional higher end stock. No separate listening room.

I guess Florida is running a better region than up here in Wisconsin and Illinois.

 

[riffjim4069]

Personally, I see Best Buy "right-sizing" their operations due to the economy and market conditions (Internet sales) and not following the poor example set by Circuit City - nobody could be that inept.

 

[Steve Mehs]

Perhaps the mom and pop stereo store that BB killed will re-emerge, at least for the step up products. More likely the step up products will die, the same way CD players have been replaced with limited bandwidth iPods

Oh God, I hope not. Last thing we need is more mom and pop shops! Seriously they should all just go under or have the owners be jailed for scamming people. A local A/V shop wanted $1200 for my receiver; I paid $800 at Best Buy. The same shop is selling my TV for $3500, Best Buy had it for $2200. My Blu Ray player, they wanted $300, I paid $250 at BB. And to boot, they didn’t even have anything in stock. Unless I wanted to buy the display item (no discount given) I would have had to put it on order. Whereas with Best Buy (one with a Magnolia) I just went in and walked out with what I wanted.

 

[rockymtnhigh]

Oh God, I hope not. Last thing we need is more mom and pop shops! Seriously they should all just go under or have the owners be jailed for scamming people. A local A/V shop wanted $1200 for my receiver; I paid $800 at Best Buy. The same shop is selling my TV for $3500, Best Buy had it for $2200. My Blu Ray player, they wanted $300, I paid $250 at BB. And to boot, they didn’t even have anything in stock. Unless I wanted to buy the display item (no discount given) I would have had to put it on order. Whereas with Best Buy (one with a Magnolia) I just went in and walked out with what I wanted.

Two themes to conment on.

First, I have very rarely found ANYTHING at BB that is priced cheaper than Amazon. Every time I go into BB I use the Amazon barcode scanner, and almost always find products for considerably less. This is usually true at Fry's as well, unless it is a sale.

Secnd, At the same time, it is true that mom and pops have to charge more, they do not buy in bulk, but you get service from them that the idiots at BB provide. Granted no pre-sales service from Amazon, but their post-sale customer service can not be beat.

Sent from my iPad using SatelliteGuys

 

[dfergie]

I'd choose Mom & Pop over snot nosed geek anytime for service...

 

[Steve Mehs]

Two themes to conment on.

First, I have very rarely found ANYTHING at BB that is priced cheaper than Amazon. Every time I go into BB I use the Amazon barcode scanner, and almost always find products for considerably less. This is usually true at Fry's as well, unless it is a sale.

Secnd, At the same time, it is true that mom and pops have to charge more, they do not buy in bulk, but you get service from them that the idiots at BB provide. Granted no pre-sales service from Amazon, but their post-sale customer service can not be beat.

Sent from my iPad using SatelliteGuys

I could careless about the service. I don't need some dip to help me hook something up, they can keep their 'service'. Amazon wants the same as Best Buy for my TV, they have my BD Player a whole $10 cheaper (they used to be $300 as well) and they don't even carry my A/V Receiver. Best Buy doesn't carry it anymore, but right before they stopped they were carrying the A/V receiver one better then mine from Sony. Best Buy had it for $1100, local A/V shop wanted $1600. Again, can't find it on Amazon as they are not an Authorized Sony ES Retailer. I can't stand mom and pop shops of anytype and do my best to avoid them.

 

[jayn_j]

Post sales support is a lot more than hooking it up. Steve is kind of proving my point in that all he has seen is the level BB provides to "hook it up"

Steve also seems to be willing to accept someone else's word on how a speaker sounds, or if a load time is excessive. If you can't put your fingers on it in a pre-sales environment, you really don't know what you are getting. After awhile, the only choice in speakers would be Bose, because they offer the best margin and have an aggressive marketing program. Yet speakers should be a very personal choice. Same with most step up electronics. The advantages are mostly in build quality and usability. Those are things that can't be put on a spec sheet. The Mom and Pop store gives that opportunity, admittedly at a price.

So Steve, nobody is twisting your arm and forcing you to go support the local dealer. However I would certainly hope that you don't begrudge me from shopping there occasionally.

 

[dfergie]

I bought my last receiver locally, because I got to listen to it & play with it before buying, I could have save $40 from Amazon but I also helped the local economy...

 

[lakebum431]

I could careless about the service. I don't need some dip to help me hook something up, they can keep their 'service'. Amazon wants the same as Best Buy for my TV, they have my BD Player a whole $10 cheaper (they used to be $300 as well) and they don't even carry my A/V Receiver. Best Buy doesn't carry it anymore, but right before they stopped they were carrying the A/V receiver one better then mine from Sony. Best Buy had it for $1100, local A/V shop wanted $1600. Again, can't find it on Amazon as they are not an Authorized Sony ES Retailer. I can't stand mom and pop shops of anytype and do my best to avoid them.

Don't forget about the impact of sales tax. On a large purchase that can save a couple hundred $ depending on your local tax rate. Amazon (or other online retailers) win everytime for me unless it is just something small.

 

[Islandguy43]

Best Buy has the best pricing on CERTAIN items, and does offer some great same as cash deals. But you have to know what you are buying. I would never buy A/V accessories (cables/wallmounts etc) from BB. Thats why we have monoprice or locally for me there a place called Audio Center that has the accessories at good prices. I have bought TVS, Computers, Phones and Other Items from BB and they usually can't be beat for price and in stock inventory.

 

[bhelms]

There are times I want to keep my $$ local, and buying my last HT audio components was one of them. The local hi-end A/V outlet earned my business that time, about $6K worth in incremental purchases. They also happened to be the only local outlet for Sony ES equipment (no local Magnolia), which became my choice at the time. I have purchased several HDTVs and appliances from another local M&P. They came close to matching the BB price and have in-store service. M&Ps have certainly struggled, but amazingly some (the 2 I mentioned) have been in business for decades, so they must be doing something right! As mentioned above, I have no intention to try to influence where you buy your equipment. Let me make my own choice. And be thankful we HAVE choices. Competition reigns supreme...!

 

[bhelms]

Best Buy ... does offer some great same as cash deals...

As my mentor Dave Ramsey proves, there is no such thing as "same as cash". One way to prove that to yourself is to walk into the M&P with cash in hand and make your best deal on the same item that's offered at BB on the SAC deal. You very well may beat that BB offer (which in all likelihood is not negotiable) when you wave real cash in front of the owner...!