BB is cranking up the stupid. - High-Def Digest Forums
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Old 07-25-2012, 03:32 PM
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Default BB is cranking up the stupid.

http://www.huffingtonpost.com/2012/0...comm_ref=false

They seem to be going for the express route to bankruptcy. :doh2:
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Old 07-25-2012, 09:56 PM
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The best thing they could do is turn the company over to people who would be interested in keeping it alive. I have a strong feeling that the internal consensus is that the company is on the way out, and the best thing they can do is pull as much copper wiring out of the building before they get kicked out.
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Old 07-26-2012, 01:30 AM
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You can't make this stuff up. They've had a good decade to adapt to a changing market that includes places like Amazon and they haven't, at all. Like Borders they've thumbed their noses at "lower prices" and thought that people just wouldn't end up noticing.
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Old 07-26-2012, 05:13 AM
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Exactly which national chain electronics and home appliance retailers have adjusted to this market and are thriving? As far as I know, none, but several have disappeared. Only Best Buy remains and it isn't doing well but the biggest reason is profit margins on the products it sells are minimal, there is no magic solution to that problem. Selling for even lower prices sure doesn't solve that issue.

The market for CDs, once a very profitable product for Best Buy to carry, is just about dead. Free downloads, paid downloads, file sharing and used CD sales killed that market. Paid downloads is something Best Buy participates in but that market is pathetic, sales are pathetic and it apparently will never amount to anything but a small portion of Apple's profits, a small portion of the music companies' declining profits, and a tiny fraction of the market CD enjoyed. DVD sales have declined the last several years and that trend won't change, Blu-ray has offset some of the decline but not enough. Consumer electronics profits are nothing, Panasonic and Sony have posted enormous losses and carrying their products isn't going to be profitable either. There are no profits from products from the major consumer electronics companies to share with retailers.

It is easy to just say Best Buy should be doing something, whatever it is you want to claim, but proving that with a coherent logical analysis is where you will fail. I don't think Best Buy should be paying large bonuses trying to keep its managers, there is no demand for its managers elsewhere at salaries greater than they receive from Best Buy. If some leave, there are hordes of retail business managers available to take their places so I certainly disagree with Best Buy's strategy in that regard and I can't explain why it is happening other than possibly they believe Best Buy will soon be out of business and they are trying to milk it until the end.

Lower prices, trying to compete with Amazon or Buy.com or other internet retailers, only a fool would believe that will solve the issues. Announcing lower prices, trying to create goodwill but really doing nothing can't work either, people aren't stupid.

Best Buy needs two things, sales tax to be collected on internet sales and for the economy to bounce back to the peak years of the '80s and '90s. Nothing any of the people that think they know what Best Buy is screwing up will have any impact at all, maybe make things worse. Best Buy's future really isn't even in its own hands. I think the economy will get better and we will see sales tax collected on internet sales, taking away a big part of the advantage of buying online for many. I don't know if both will happen in time.
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Old 07-26-2012, 08:53 AM
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The problem I have with Best Buy is that I always every Tuesday would go into the store to purchase my media for the week. I would always walk out with a movie and usually some other product that caught my eye. Their stores are no longer stocked well and they always tell me to order from their website. That's the problem because I then price compare and notice amazon.com has it for much less, this is regardless of the tax issue. Their products on Amazon, for the most part are way way cheaper. I don't shop much at Best Buy any more. I think their lack of catalogue media makes me steer clear altogether now. It's now referred to as Amazons showroom and I can see why.
They dropped the ball.
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Old 07-26-2012, 03:21 PM
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Quote:
Originally Posted by towergrove View Post
The problem I have with Best Buy is that I always every Tuesday would go into the store to purchase my media for the week. I would always walk out with a movie and usually some other product that caught my eye. Their stores are no longer stocked well and they always tell me to order from their website. That's the problem because I then price compare and notice amazon.com has it for much less, this is regardless of the tax issue. Their products on Amazon, for the most part are way way cheaper. I don't shop much at Best Buy any more. I think their lack of catalogue media makes me steer clear altogether now. It's now referred to as Amazons showroom and I can see why.
They dropped the ball.
Sales of catalogue titles are very poor, Best Buy doesn't have a huge selection as a result. I am sure that isn't the cause of their problems, carrying a large inventory that doesn't sell will make things worse, not better, even if it is a reason you won't shop at Best Buy. Everybody is quick to choose some obscure point important to them individually as the cause of Best Buy's financial struggles, without understanding the big picture.
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Old 07-26-2012, 03:52 PM
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Quote:
Originally Posted by chris gerhard View Post
Sales of catalogue titles are very poor, Best Buy doesn't have a huge selection as a result. I am sure that isn't the cause of their problems, carrying a large inventory that doesn't sell will make things worse, not better, even if it is a reason you won't shop at Best Buy. Everybody is quick to choose some obscure point important to them individually as the cause of Best Buy's financial struggles, without understanding the big picture.
I didnt say that lack of stocking catalog is the cause of their demise but is is the reason I don't shop there anymore.
Even the smallest obscure points all add up to a big problem over time. The only big picture that I see is that I have walked with my purse. Not just me personally but also as a businesswoman my businesses purchasing as well. I have taken my business elsewhere and won't be returning.
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Old 07-26-2012, 07:17 PM
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I don't shop there because their prices suck. There is a Target across the parking lot and that's where I buy my blu's if I get them at a B&M store.

Just amazing to hire someone to tell you what to do, then do the exact opposite. This is not how you do things if you want to continue to have a business.
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Old 08-06-2012, 06:26 PM
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The opposite is happening in Australia for retail, people are sick of paying top $$$ for HDTVs and physical media, and now that half of the purchases for big name items are being bought on Amazon and from discount white label market sites like Kogan, the big electronics retailers are drastically dropping their pricing for things like TVs, laptops and Blu-rays (I remember BDs were 40 bucks each, and I could get them from Amazon US for 15).

People definitely have the money here (average wage is usually decent) but people don't want to pay almost twice the amount that the US pays and Australians are sick of it and are voting with their wallets.
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Old 08-19-2012, 08:12 PM
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Interesting article. The comments section was even better. I agree with the speaking with your wallet idea, I just happen to do it in the opposite fashion. I believe in and WANT B&M stores. I like the idea of walking into a store and walking out with the product I was looking for. As much as I like Amazon it would suck if the internet was the only place i could get product. That's why I still go to places like Best Buy. I give them every chance to get my business. If they can price match close to the cost i would get a product for online then I would rather spend with them. Paying a few dollars more for something I want won't hurt me, and it could eventually help local businesses.
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