Griffinator Posted June 18, 2004 Share Posted June 18, 2004 Of course we all already know that shopping at BB guarantees that you will be presented with a salesman that has zero knowledge of the product he sells and that no matter what you're buying, he's going to want to sell you really expensive cables and silly service agreements with it. Most of us already know that in Audio, BB doesn't sell anything for less than retail unless they put a "sale" on, at which point they reduce prices to only extremely higher than what anyone else sells that junk for, rather than astonishingly higher. Someone over in HT was interested to hear an insider POV on some of the more insidious tactics they use to recoup the profit they lose as a media (CD's, DVD's, and video games) loss leader. So, as someone who spent two years in the Home Theater department, I thought I'd oblige... 1) Digital Subscriptions.... Ever notice how every Best Buy is absolutely littered with "free trials" of nearly everything under the sun? They're even doing Sports Illustrated and Time Magazine now, along with the usual assault of ISP's (menu expanded now to include MSN, Compuserve, AOL, NetZero, and a couple others) and Netflix. Every single one of those silly little offers they assault you with gets them between $20-100 initial "bounty" - and then they take a percentage after that on most of them - Netflix gives up $2-3 a month for every paying subscriber they get out of the free trial. Every single one of these "free trials" is an opt-out offer - you gotta give a credit card number to process it, and if you forget about it, bang. Just another fun way to extract more money from you after you've left. 2) Cables.... Sure, we all know about Monster Cable - makes perfect sense BB would carry it, right? After all, when you're already making $450 on a pair of SF-3's at full retail, why not slap another $70 in profit from the Monster XPHP-CI inwall wiring you'll definitely need (according to the sales dork) for them... Ironically, the sales dork can never explain, when pressed, exactly why it's better, only using really cheesy analogies like the old slurpee-through-the-coffee-stick gag. It gets worse. Best Buy's markup on Monster is good (100-120%) but it's actually far BETTER on the cheap stuff - and God help you if you need ANY kind of computer wiring. It's downright obscene - to the tune of 900% on stuff like Recoton A/V cables - and over 1500% on USB, Firewire, or any other peripheral cable. Trust me, Best Buy is the WORST place to buy anything made of copper. The psychology tactic here is put out the super-expensive stuff (Monster, Belden Gold) and make the salesmen hound you to buy it, then when you buy what's comparatively a bargain (Acoustic Research, Recoton) they rape you anyway, charging you $10 for something that only cost them $1.50 - and that you can usually buy online or at any discount store for $3-4. 3) More recently - and this is why so many people are so concerned about Klipsch's continued involvement with Best Buy - is the rise of "BB exclusive" products. Televisions (Mitsubishi Silver Series), speakers (Jensen, Athena, Klipsch Synergy), and a host of other products storewide are exclusive to Best Buy. Why? It's all part of the game! If you're the only one who has it, you don't have to compete, and you can then charge full retail for it, leaving your salesmen to trump it up as "what to get" over similar products available elsewhere. It's why so many people report Best Buy schleps talking about Synergy being Klipsch's "top of the line" What this also does is allow Best Buy to dictate to the manufacturer what price point to meet when they produce the product, so BB can reap even higher profit margins on products that just aren't as good as they were last year, because BB insisted that the manufacturer make it cheaper. This really is the crux of the business. What starts out as a simple, elegant ideal - sell cheap CD's and DVD's so you can make money on all the fun stuff around them - goes so much deeper into a truly predatory attitude towards the customer. Best Buy isn't interested in lifelong customers, they're interested in wringing every last cent from every person who walks through the door, expecting them to never come back - which is, ultimately, a self-fulfilling prophecy. Quote Link to comment Share on other sites More sharing options...
Parrot Posted June 18, 2004 Share Posted June 18, 2004 You sound pretty ungrateful for two years of paychecks, Griff. I like BestBuy. If you don't care for equipment after you buy it, you have 30 days to return it for full money back. When I am asked at checkout if I want a magazine subscription, I just say "No thanks." Quote Link to comment Share on other sites More sharing options...
Bill H. Posted June 18, 2004 Share Posted June 18, 2004 Griff, My only bones of contention with Best Buy, was when I purchased my Promedia 2.1's. They (of course), tried to sell me their extented 2 year warranty. Which ran along side the 1 year Klipsch warranty.............I tried to convince the Manager, that making the extended warranty start AFTER-the Klipsch expired made more sense......but there silly policy said no............. other than that, I really don't mind them, cause they provide competion for CC and HH Gregg ...........JMHO. Quote Link to comment Share on other sites More sharing options...
Griffinator Posted June 19, 2004 Author Share Posted June 19, 2004 ---------------- On 6/18/2004 10:20:12 PM paulparrot wrote: You sound pretty ungrateful for two years of paychecks, Griff. ---------------- Like I said, Paul, someone requested that I explore some of the innards of the best buy operation. What I traded for those two years of paychecks was the inability to walk for six months. Not a fair trade IMO. It's not sour grapes, it's just a recognition of how the process works over there. I still go to BB to buy music and movies - although more and more of my listening diet consists of vinyl and obscure music that doesn't come from a big chain - so I'm always in the record bins at yard sales and at the local record shops that specialize in indie music. Quote Link to comment Share on other sites More sharing options...
Juba310 Posted June 19, 2004 Share Posted June 19, 2004 I was the one the requested him to go into further detail, and I thank you, Griff, for taking the time. I didnt have any idea they marked up the cables THAT much. I'm glad I only buy CD's from them now. Quote Link to comment Share on other sites More sharing options...
Piranha Posted June 19, 2004 Share Posted June 19, 2004 ---------------- On 6/19/2004 12:26:16 AM Griffinator wrote: ---------------- On 6/18/2004 10:20:12 PM paulparrot wrote: You sound pretty ungrateful for two years of paychecks, Griff. ---------------- Like I said, Paul, someone requested that I explore some of the innards of the best buy operation. What I traded for those two years of paychecks was the inability to walk for six months. Not a fair trade IMO. It's not sour grapes, it's just a recognition of how the process works over there. I still go to BB to buy music and movies - although more and more of my listening diet consists of vinyl and obscure music that doesn't come from a big chain - so I'm always in the record bins at yard sales and at the local record shops that specialize in indie music. ---------------- You really worked there Griff? What happened to make you immobile? Quote Link to comment Share on other sites More sharing options...
jdm56 Posted June 19, 2004 Share Posted June 19, 2004 ---------------- On 6/18/2004 9:15:11 PM Griffinator wrote: Of course we all already know that shopping at BB guarantees that you will be presented with a salesman that has zero knowledge of the product he sells... ---------------- I'm assuming that statement excludes you, during you're stint there, correct? Quote Link to comment Share on other sites More sharing options...
Dale A B Posted June 19, 2004 Share Posted June 19, 2004 BB is no different than most retailers. You should see the bargains my mate brings home. How does a jacket that had an original price of $100 finally end up selling for $20? $50 planters marked down to $7. You have to be an informed buyer on anything you buy these days. As for BB, I only buy CD/DVD there now. I almost swore them off 10 years ago after they tried to fix a CD player under warranty that took 5 months to fix. Of course, if they close something out that I need, I'll be there with the bargain hunters. Adios; now get out there and do some rummaging today ! NP - Billy Idol - Whiplash Smile Quote Link to comment Share on other sites More sharing options...
Parrot Posted June 19, 2004 Share Posted June 19, 2004 I don't believe BestBuy is out of line on prices compared to other stores. Astonishingly higher? On what? They didn't invent retail practices. It's just the way it is. Stores generally make almost nothing on printers, but make a killing on ink cartridges. Video game systems are supposedly sold at a loss by manufacturers, but they make up for it on the games. Stores aren't built just to be nice. They need to make a profit or they're out of business. If a store makes nothing on a computer special, but gains great profit by selling a service contract on it, so what? They've simply decided on that arrangement. Quote Link to comment Share on other sites More sharing options...
Griffinator Posted June 19, 2004 Author Share Posted June 19, 2004 ---------------- On 6/19/2004 2:50:43 AM jdm56 wrote: I'm assuming that statement excludes you, during you're stint there, correct? ---------------- That would be correct. There was a point in the store I worked that nearly everyone in the home theater department pretty well knew what they were talking about because the supervisor and I worked our butts off to train everyone - but that team got quickly broken up. Fact is, the store manager and I always had conflict on that issue - I took the time to educate my customers before just ramming something down their throat - he insisted that I "sell them something, put a service plan on it, and get them out the door"... Quote Link to comment Share on other sites More sharing options...
Griffinator Posted June 19, 2004 Author Share Posted June 19, 2004 ---------------- On 6/19/2004 12:38:36 AM Piranha wrote: You really worked there Griff? What happened to make you immobile? ---------------- I have a lot of back problems - and between the 8-hours on my feet with one break per shift, and the policy in our store of forcing sales reps to stock the department, my condition went from bad to worse to impossible in a hell of a hurry. It finally came to a head one morning when I came in to open the department, already in agony from the previous night's close, walked to the back of the store, and dropped to the ground at the back desk. Literally, to take a step was excruciating. They had to carry me to my car so I could get to the emergency room. Two months later I was undergoing surgery, here I am 10 months post-surgery, still only able to manage 3-4 hours on my feet at a time, as a good many of you got to see at Klipsch HQ. Quote Link to comment Share on other sites More sharing options...
Piranha Posted June 19, 2004 Share Posted June 19, 2004 ---------------- On 6/19/2004 10:57:32 AM Griffinator wrote: ---------------- On 6/19/2004 2:50:43 AM jdm56 wrote: I'm assuming that statement excludes you, during you're stint there, correct? ---------------- That would be correct. There was a point in the store I worked that nearly everyone in the home theater department pretty well knew what they were talking about because the supervisor and I worked our butts off to train everyone - but that team got quickly broken up. Fact is, the store manager and I always had conflict on that issue - I took the time to educate my customers before just ramming something down their throat - he insisted that I "sell them something, put a service plan on it, and get them out the door"... ---------------- Well, you certainly can't really blame the manager for that. His performance is probably based on overall store sales. Educating customers takes time which costs them money. Your approach would be more suited to a family run audio/video business. Quote Link to comment Share on other sites More sharing options...
Daddy Dee Posted June 19, 2004 Share Posted June 19, 2004 Griffinator, Thanks for a view from the inside. Interesting. Quote Link to comment Share on other sites More sharing options...
Griffinator Posted June 19, 2004 Author Share Posted June 19, 2004 ---------------- On 6/19/2004 11:30:22 AM Piranha wrote: Well, you certainly can't really blame the manager for that. His performance is probably based on overall store sales. Educating customers takes time which costs them money. Your approach would be more suited to a family run audio/video business. ---------------- Certainly. That's why I left - that and the fact that the equipment they sell is inferior. Quote Link to comment Share on other sites More sharing options...
Piranha Posted June 19, 2004 Share Posted June 19, 2004 ---------------- On 6/19/2004 3:31:55 PM Griffinator wrote: ---------------- On 6/19/2004 11:30:22 AM Piranha wrote: Well, you certainly can't really blame the manager for that. His performance is probably based on overall store sales. Educating customers takes time which costs them money. Your approach would be more suited to a family run audio/video business. ---------------- Certainly. That's why I left - that and the fact that the equipment they sell is inferior. ---------------- I would have to agree with you on the "inferior" comment. The only thing I would ever buy at Worst Buy are CD's. And only when they are on sale and not available elsewhere. Which is rare is ever. Luckily for me BB has a lot of competition out here. Not everyone has that luxury.] I bought (rented) a cheapo Pioneer SACD/DVD-A etc. all in one player from them. When I returned it two weeks later, I realized I had left a $25 CCR Willy & the Poor SACD inside. I went to my car and realizing I had not taken the SACD out. I walked back in and asked if I could please get it back. They said, and I quote, "We're sorry sir, the player has already been picked up for return". Yeah right, in 3 minutes or less? Someone got themselves a nice expensive SACD. That was the final straw for me and Best Buy Quote Link to comment Share on other sites More sharing options...
nicholtl Posted June 19, 2004 Share Posted June 19, 2004 Thanks for the insider info, Griff. Very enlightening for me. Aren't you a home theater installer now? And making what, like 100x what BB gave you? Quote Link to comment Share on other sites More sharing options...
Indyjeep Posted June 19, 2004 Share Posted June 19, 2004 Now as a current employer of this company I am insulted that you think just because your store was like that, that every other store is like that. As far as nobody knowing jack that is wrong, the entire HT department knows just about everything that there is to know about HT. And working 8 hours straight on your feet with only one break....thats your own fault. As far as I know BB policy is that for every 4 hours you get a break and every 7 1/2 you get a lunch so if you work 8 you can get 2 breaks and a lunch. And your back killing you? Get new shoes....my mom is a nurse at a major hospital and she works 12 hour days on her feet yet her back doesnt hurt. And that high of markup on AR cables and such......haha sure I wish. Anyway it must have been your bad exp. Please dont bash something because you had a bad time there....wait a min what am I saying your human well cant do that. and with the D-Subs? Everybody has to make money somehow. Quote Link to comment Share on other sites More sharing options...
skeptic Posted June 19, 2004 Share Posted June 19, 2004 I like Best Buy. None of their practices seem out of line for any retailer in their field. I get good deals on lots of stuff, and the warranty is great. Sucks if their employees have to stand on their feet all day and stock shelves, but a job is a job. Lots of places sell cables for more than Best Buy. The markup could be lower at those places other than Best Buy even if they charge more, but I could care less as long as I am paying a lower price. Products inferor? Inferior to what? I haven't seen any products in Best Buy that are inferior to Circuit City, etc etc, and of the big chain stores. At their price point, they sell what you get for that price point. It may be a product that sucks, but you get what you pay for. Just trying to balance out some of the anti-bb with my experiences. Quote Link to comment Share on other sites More sharing options...
SteelerFan Posted June 19, 2004 Share Posted June 19, 2004 Just sounds like an axe to grind to me. I don't think BB is any worse than Tweeter, CC, Walmart or the department store I worked at for 20 years. Caveat Emptor. Quote Link to comment Share on other sites More sharing options...
schwock5 Posted June 19, 2004 Share Posted June 19, 2004 I used to work at Best Buy, and i totally agree with the comments about thier rip-ff mentality. I worked in what was ranked "the worst Best Buy in America", cambridge, MA. None of my old managers still work there, and for good reason. The store was a mess, they flat out lied to customers, and told us to, to sell service plans and accessories, the only thing they ever cared about. They only cared about beating the other departments on PSPs and Accessories, that was IT. I worked 8 hours a day, with 1 break, not 3, and then would empty a truck until 2 am, after the trains stopped running, and take a $20 cab ride home. I quit after 3 excrutiating months. I also never got the hours i wanted, the days off i wanted, or the sundays time and a half i wanted. Of course, this could probably be said about every other "retail" store. They all have the same policies, and now that Circuit City has moved to salary instead of commission, it's harder to bargain with them. In Best Buy, you can only bargain wiht the manager, who will say "if you want me to help you, you have to help me." (AKA, i will give you $100 off that 30% marked up HDTV which looks good for me, if you buy the $400 service plan, and $300 Montser power center). Screw Best Buy, and BTW, any CD with 10 songs that sells for $18 should be burned. That's extortion and ***-rape if i've seen it. Go to Ebay or online, no cds should be more than $12. Thank god i don't listen to rap or radio friendly crap and only listen to underground. And DVDs seem to be creeping higher and higher, need i only mention Band of Brothers which retials for $95, and can be had anywhere else for $60. Be smart, shop around, online is the way to go. Quote Link to comment Share on other sites More sharing options...
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