Best Buy Complains About Walmart's iPhone 5 Holiday Sale, Claims $65,000 Profit Loss in One Day

[Carlanga]

So BB & others are complaining that CS reps are not enforcing their own rules for checking up on stock at competing store for price matching.

Ridiculous, I guess Walmart should sue them back for improper price matching lol.

[Evo-L]

Originally Posted by bretm

I'd like to hear of just one person that got an iPhone 5 for $127. I'm sure there is, but other than here, I didn't hear of anyone I knew getting it. It wasn't the talk of the season, etc. Why? Because they didn't exist.

I got one.

[lshin037]

Originally Posted by samcraig

They've changed their policy - at least on some items... see below

For the above promotions, the Designated Major Online Retailers are: Amazon.com, Apple.com, Bhphotovideo.com, Buy.com, CircuitCity.com, CompUSA.com, Crutchfield.com, Dell.com, hhgregg.com, HP.com, HomeDepot.com, Lowes.com, Newegg.com, OfficeDepot.com, OfficeMax.com, Sears.com, Staples.com, Target.com, TigerDirect.com, and Walmart.com. Appliance and electronics hardware products include audio hardware, video hardware, cameras, camcorders, desktop computers, notebook computers, e-Readers, tablets, TVs, MP3 players, small appliances, major appliances, gaming handheld devices and consoles.

That's good to hear. It's a step in the right direction but Fry's will match prices from ANY online store. The above mentioned sites are pretty big and well known names.

[techwhiz]

Originally Posted by ProudLoz

I just hate Wal-Mart.

So do I....
They used to be an okay company when Sam Walton was alive.
They bought goods from American companies and you would rarely see clothing from China and India. Walmart for a while, was one of the biggest consumers of American textiles.

Then Sam died and all the bean counters and family wanted was more money.

They had $15 Billion in profit last year but the workers used $3 Billion in public aid. When people shop Walmart they allow a multi-billion dollar company to pick their pocket, twice. Once for the crappy goods and second for the public assistance the workers get.

Don't Shop Walmart!

[CaneCollegeboy]

Originally Posted by lshin037

As mentioned by another poster, Fry's matches online prices. You dont even have to print out the online ad. You just mention you saw it for x price at x.com, they'll go to that site, print the ad themselves, and submit it to the cashiers. The only disadvantage vs buying the item online is that sales tax is still added.

Best Buy will only price match local B&M stores and it needs to be in stock.

And there's Brandsmart. They price match some online stores but you can also haggle on the price. For demo units, you can haggle even more (ridiculously more), and they give you a 5-yr warranty on it.

I understand what some posters are saying about BB having to pay overhead and how it's unfair to ask them to price match online stores which have much less overhead but how are Fry's and Brandsmart managing to price match online prices and still stay in business?

lshin037 what has your experience with Brandsmart been like? Ive dealt with them for years and i go out of my way not to shop there. There warrantly service is something "special". Call one number wait an hour to get a service code then call another number wait an hour to get a person on the phone. That was the last draw for me. Best Buy has been like a saint compared to Brandsmart for me

[Bryguy78]

I can see the WalMart CEO reaching into his pants pockets in his suit and pulling out 70K. "We good?"

[samcraig]

Devil's advocate: Ultimately, it's not a stores job to educate the consumer on short or long term purchasing decisions.

Originally Posted by bedifferent

Read post #54 of how Walmart operates. They do create demand, by placing companies and competition out of business, then setting up shop in the area's that these businesses once existed. Rubbermaid is a prime example of how this "tactic" works in their favor. Middle class families making decent money are unemployed due to Walmart's tactics, then Walmart moves in, sets up, and hires these people at a fraction of what they used to earn with no benefits and more work hours. It's a business tactic widely known and used. Further, most people do not save as much as you may believe, and any savings they do earn, they spend in Walmart. It's a simple tactic yet complex in execution, and we all play a part if we allow Walmart, or any large corporation, to strong arm markets.

Personally, anything I've purchased at Walmart is usually sub-par in quality unless it's a well known brand good (such as an Apple product, etc). Most people go through their goods faster than having bought a more expensive counterpart that lasts longer. People think short term, not long term. Long term, I'm going to spend more on an expensive item as it usually is better quality (I state "usually", of course I will research the product and market before making said purchase), instead of buying the same product twice as it doesn't last as long.

Consumers need to think long term about their spending habits. This is crucial in both the quality and thus longevity of the goods they purchase, and how their dollars are supporting a system that will eventually hurt them in the long term.

[Harpoon Spoon]

Meh. I have no sympathy, Best Buy didn't follow store policy. I worked at Best Buy for a number of years and the price match policy was that you had to call the local store and verify that they had the item in stock. If they were sold out, Best Buy was not obligated to match the other stores advertised price.

[londonhogfan]

I'll never buy a product from a company that supports making products overseas just to save money...

That's why my iPhone, iPad Mini, apple TV, and iMac were all made in the US of A.

[mamaway]

Originally Posted by mantan

A very common practice which is killing the brick and mortar golf industry. Everybody loves to go play with stuff, give it a demo and see what they like...then run online to save a few bucks.

Or even worse, march into the store who has to pay all that overhead and demand they match the price of somebody who doesn't.

And like BB, they complain about the lack of knowledgable salespeople, even though they have ZERO interest in paying a penny extra to cover the cost.

Consumers all want Amazon pricing with Nordstrom service.

Well said. I think there ought to be more stigma against this practice. I'm embarrassed to admit that I tend to follow this practice, although I never take up a salesperson's time. I recently bought a soundbar at BB with the help of a sales guy, and then I found out I could get it at amazon for $30 cheaper (not including tax), but it wasn't worth my time to go back to the store and get the match, nor would it have been ethical given that I took up the salesperson's time.

Best Buy should charge a membership (like Costco) and steer their members towards certain deals while providing knowledgeable advice on all products, and have the dues offset the costs of all that. Stop trying to compete with WalMart. There are plenty of people who need help or need to try out the product before buying. Apple Stores seem to be doing OK charging a premium catering to these people, although there is a lot of cost shifting from the purchasers to the browsers in terms of the cost of the help from salespeople. Best Buy can meet everyone half-way with an annual fee, use their variety as an advantage, and flourish.

[thejadedmonkey]

Originally Posted by samcraig

Also wanted to add that Toys R Us has no right to complain because I can't remember anyone I know ever being successful at price matching at one of their stores.

I do it all the time. And the best part is, when everyone else is sold out Toys R us usually has stuff in stock still, because who the hell shops at a toy store for an iPod?

[bedifferent]

Originally Posted by samcraig

Devil's advocate: Ultimately, it's not a stores job to educate the consumer on short or long term purchasing decisions.

No, it's the consumers, and as I stated, that responsibility lies with all of us.

However, educating yourself isn't difficult. A simple scan of the comments is enough for anyone to read and further investigate some points. I hope they do.

[Ingot]

Originally Posted by mysticbluebmw

That.

and the other...

[lshin037]

Originally Posted by CaneCollegeboy

lshin037 what has your experience with Brandsmart been like? Ive dealt with them for years and i go out of my way not to shop there. There warrantly service is something "special". Call one number wait an hour to get a service code then call another number wait an hour to get a person on the phone. That was the last draw for me. Best Buy has been like a saint compared to Brandsmart for me

I never experienced going through their warranty experience although I've heard plenty of horror stories. I bought a Sony LCD that normally retailed for $2700 but got it for $1800 because it was a demo with the 5 yr warranty. I bought a brand new home theater receiver that was on sale for around $800 but got it down to $650. I had a printout from bhphoto (i think) for 620. Like I said I never had to deal with the warranty process but i see where you're coming from. Not saying Fry's or Brandsmart are perfect. All of them have more than their fair share of bad employees and policies but when it comes to price, Best Buy loses out (for me anyways).

[jimmirehman]

best buy can suck it

[AznTakumi]

Walmart = Predatory Pricing

[iphoneclassic]

Originally Posted by Jetson

I'd hate to see Best Buy go out of business.

With Circuit City fallen by the wayside, and others, there are hardly any brick and mortar electronics stores left.

Yes people go there to browse, then buy cheaper online. But with many states enforcing sales tax collection on online vendors that price advantage is slipping.

Thing is many times you want something NOW - not delivered 2-3 days from now and Best Buy is great for that.

Hundreds of big box electronic retail store model is not going work. They should have a combination of big box and small stores(RadioShack size). If you recall metro areas used to have 20-30 Best Buys/Circuit City/CompUSA along with Staples/OfficeDepot/OfficeMax.

With Amazon prime most of the goods are delivered next day (even though it is a two day free shipping option).

[Technodynamic]

My care meter for Best Buy: ZERO.ZERO

I loved Best Buy, many moons ago. I bought computer desks from them, home theater stuff and many games. All of it at good prices (mid to late 90s), then BB grew because of their competitive business practice that was GOOD for consumers. They got more and more product, but the prices started to suffer.

Fast forward a decade ad a half. Tons of product at Max retail pricing.

Amazon Prime shipping and other vendors (newegg, etc) will eventually erode the brick and mortar giant just like the books stores of yesteryear. Retail pricing is for suckers.

When Best Buy dies, I hope Amazon doesn't do what BB did and raise prices.

[mantan]

Originally Posted by bedifferent

No, it's the consumers, and as I stated, that responsibility lies with all of us.

However, educating yourself isn't difficult. A simple scan of the comments is enough for anyone to read and further investigate some points. I hope they do.

Consumers have proven time and again that they only thing they care about is the immediate bottom line price. Period. They are not interested in the long term ramifications of any purchase decision or the impact to the industry, employees or ultimately themselves.

It's just how people are wired.

Capatalism is good in many ways. But one thing that will always hurt it is the selfishness and greed that is inherent in human beings.

Decisions made on the micro level, by consumers and the people who run industry, will ALWAYS put their immediate benefit over what's best for the big picture. A fallacy of capatalism is the market will 'correct' or 'encourage' the optimal solution. People often use the simple theory of supply and demand and market price being naturally established.

But the real world is infinitely more complex than that. An example would be Americans complaining about jobs being shipped out of the country...yet voting with their dollars to encourage that behavior.

----------

Originally Posted by Technodynamic

My care meter for Best Buy: ZERO.ZERO

I loved Best Buy, many moons ago. I bought computer desks from them, home theater stuff and many games. All of it at good prices (mid to late 90s), then BB grew because of their competitive business practice that was GOOD for consumers. They got more and more product, but the prices started to suffer.

Fast forward a decade ad a half. Tons of product at Max retail pricing.

Amazon Prime shipping and other vendors (newegg, etc) will eventually erode the brick and mortar giant just like the books stores of yesteryear. Retail pricing is for suckers.

When Best Buy dies, I hope Amazon doesn't do what BB did and raise prices.

Of course they will. Amazon bleeds money. You better beleive once they get the market clout to do it, they are going to raise prices and get back in the black.

[saud0488]

Every single wal mart was out of stock where I live.

What people didn't realize was that Sam's club had a ton of them and for the 127 price. Got two for my parents for 268 bucks this weekend.

----------

Originally Posted by mantan

Consumers have proven time and again that they only thing they care about is the immediate bottom line price. Period. They are not interested in the long term ramifications of any purchase decision or the impact to the industry, employees or ultimately themselves.

It's just how people are wired.

Capatalism is good in many ways. But one thing that will always hurt it is the selfishness and greed that is inherit in human beings.

Decisions made on the micro level, by consumers and the people who run industry, will ALWAYS put their immediate benefit over what's best for the big picture. A fallacy of capatalism is the market will 'correct' or 'encourage' the optimal solution. People often use the simple theory of supply and demand and market price being naturally established.

But the real world is infinitely more complex than that. An example would be Americans complaining about jobs being shipped out of the country...yet voting with their dollars to encourage that behavior.

----------



Of course they will. Amazon bleeds money. You better beleive once they get the market clout to do it, they are going to raise prices and get back in the black.

That and the service will go WAYYY down.

[Kurwenal]

People still go to Best Buy? Who knew.

Last time I was there, I was met with only high schoolers who knew exactly squat about what they were selling, and spent all of their time trying to sell me multiple and various consumer loyalty products, extended warranties and unneeded add on products.

Ten years ago I loved BB. Now, they will just soon be big empty boxes.

[mantan]

Originally Posted by Harpoon Spoon

Meh. I have no sympathy, Best Buy didn't follow store policy. I worked at Best Buy for a number of years and the price match policy was that you had to call the local store and verify that they had the item in stock. If they were sold out, Best Buy was not obligated to match the other stores advertised price.

Which makes total sense. Most people can't see this from the store's point of view. Say you own an electronic shop. And everybody wants the Super Fun Box. It costs you $50 to buy. You sell it for $75 which covers your cost, overhead gives you a $5 profit.

Entitled consumer comes in waving an online ad for $52 and demands you match it. If you dare question it or call about it, they get all pissy and threaten to take their business elsewhere.

They have no interest in realizing the other company is selling it AT A LOSS to get your business..hopefully for other things. That's your problem, not theirs.

All the big boxes are guilty of it...but the biggest (Walmart) and biggest online shop (Amazon) can use it to crush the competition.

[Singin Hobo]

Jeez, I didn't make 165k that day either... you don't see me complaining.

[tgara]

Originally Posted by bedifferent

Sarcasm dually noted, and you are kidding yourself if you think you are really saving money. I recommend researching this topic and your finances before sarcastically addressing strangers online.

Understand, saving a few cents here and there while putting Walmart competition out of business only bites you in the arse in the end, as less competition for Walmart will lead to marketplace dominance. Once marketshare grows with less competition, so will Walmart pricing. As history has shown, companies such as Walmart will blame the higher price in oil, or [insert excuse here] for their price increases, the public will buy it and Walmart profits will increase. Soon, you'll have little choice for local stores and Walmart will dictate the market.

Enjoy those prices while you can.

Your economics lesson duly noted, your argument appears to be only academic. In my area, there are no shortage of alternatives to purchase staple items (toothpaste, soap, paper towels, etc.), so there is considerable competition and it continues to grow as new stores open up. People shop at Walmart because they have low prices and folks really do save money that they can use for other things like kids lunches, gas for the car, or taking care of an elderly parent. When you have competing demands for your limited amount of money, you've got to save where you can. It's really no more complicated than that for most people.

[dontwalkhand]

Best Buy could have easily made the price match Walmart, oh wait, this is the company that decides to charge $300 to remove AOL off of a computer a couple years back.