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

[Dominicanyor]

Was it best buy that put circuit city out of business? And now they are crying because Walmart beat them to the punch. Lol

[thehustleman]

Looks like best buy is taking a page or of Apple's book, if you can't beat them, sue them.

[Lil Chillbil]

Originally Posted by Dominicanyor

Was it best buy that put circuit city out of business? And now they are crying because Walmart beat them to the punch. Lol

Here it was frys that put circuit city out of business

[mudtoe]

I agree, Best Buy is just a whiner. They are on the ropes financially and are grasping at any straws they can get. Heck, they don't honor their price match guarantee half the time anyway. One time I went in there and asked them to price match something that was on sale at a store called Microcenter, because the Best Buy was 20 miles closer than the other store, and they refused saying that Microcenter was a "wholesaler" store and not a "retail" store and therefore their price match guarantee didn't apply to merchandise there (probably means they won't price match Sam's Club or Costco either, but in Microcenter's case they are open the to public without a membership so that didn't apply either).

Needless to say I drove the 20 miles and got the item cheaper. After that little bit of sophistry on Best Buy's part I have no ethical qualms about showrooming at their stores. I've even bought the item from Amazon while I'm standing there looking at it in Best Buy. Serves them right IMHO.

[Morshu9001]

Originally Posted by tech4all

I like how you call Bose "junk." Great products, just overpriced. Course most here should be used to that sorta thing

Yeah, same as Beats by Dr Dre. They're good headphones, but they're waaaaay more expensive than they should be. Of course, they're labeled as Monster.

[AppleScruff1]

Originally Posted by mantan

Wow....I NEVER thought I'd see the day where MR users were running to Walmart's defense of discounting Apple products.....or maybe it's just the fun the mob has piling on whoever the target of the day is.

When the original Walmart post came out, it was filled with smarmy remarks about Walmart customers and how they were unworthy to sell your beloved Apple products.

Now some of you are championing competition....even though Apple clearly envokes strict price controls on almost everyone who sells their equipment.

The hypocrisy of this site is a trip.....

If we want competition, then truly open it up and let resellers sell Apple gear for any price they choose. Otherwise spare me the economics lessons Best Buy needs to learn about competition.

Bravo! Excellent post.

[hipnetic]

Originally Posted by mdlooker

When will people realize that we need brick and mortar stores way more than online stores. It's all extremely good for competition in stores and online but we can't forget about keeping unemployment low. While it's a joy to pay cheaper prices for stuff, it's no fun paying more in taxes to support those that would otherwise be working in those brick and mortar stores.

Replace "need brick and mortar stores" with "need to be making wagon wheels" and you'll hopefully realize that artificially keeping a dying industry alive doesn't serve in anyone's best interest.

[ReallyBigFeet]

I went from spending over $5000/year at Best Buy to 0 this past year. I've no reason to use them any longer with Amazon Prime. Even buying large-screen TV's is a more enjoyable experience via Amazon than Best Buy. The refrigerator I just bought came from Lowe's but I'd have used Amazon for that if I could have done so.

I'm anxious to see Best Buy's demise. They are a blight on retailing.

[jterp7]

Originally Posted by ReallyBigFeet

I went from spending over $5000/year at Best Buy to 0 this past year. I've no reason to use them any longer with Amazon Prime. Even buying large-screen TV's is a more enjoyable experience via Amazon than Best Buy. The refrigerator I just bought came from Lowe's but I'd have used Amazon for that if I could have done so.

I'm anxious to see Best Buy's demise. They are a blight on retailing.

to be honest most of my spending @ BB is great condition OB apple products. If it wasn't for that I'd spend less than $100 a year there. If apple had a better selection and pricing on refurb I'd be done with them forever. Their distance to my home makes BB a great showroom for amazon though lol.

[Dobbs2]

Does no one read the article? These competitors are not arguing/complaining that they are offering a lower price, but on how they are advertising.

These companies are criticizing Walmart for comparing different models and prices and saying they are offering lowers prices. That is wrong. Why should Walmart be allowed to say Model A is this Price and our Model B that is completely different is this price so we offer the lowest price. That is crap advertising and blatantly misleading.

Model A (could be a 64gb)

Model B (could be a 16gb)

[BingClawsby]

capitalists will sell themselves the rope by which they'll hang

[thewitt]

Originally Posted by BingClawsby

capitalists will sell themselves the rope by which they'll hang

Socialists will simply take the rope from someone who worked hard to earn the money to buy the rope in the first place, because no one should have rope if everyone doesn't have rope.

[jcmeyer5]

Originally Posted by Popeye206

Yes they do! But maybe the B&M people need to have a stronger on-line presence so they can compete on both ends?

This is where Best Buy Fails.... they should recognize the purpose of their stores, the competition on-line, and play well on both ends. I wouldn't mind paying a little premium to buy in the store and take it home today, but most of the time the price difference is large (i.e. $100+) and Best Buy just is out of the ball park. Even compared to other B&M resellers down the street.

BTW.... I know this affects other industries as well. I know myself, I always look on-line (often while in a store) when shopping for any big ticket item to see if I can get it cheaper. Just did this with a crystal chandelier I wanted... $1,000 in the store, $200 on the internet. Guess who got the sale?

What he said. I was shopping for a new TV. I did my research online for the features I wanted in the brands I prefer. I went to BB to check them out, and give them the chance to close the gap on the price ( they were high by about 30% ignoring sales tax ). I didn't expect them to match Amazon completely, but they didn't move at all. In the end, I saved nearly $400 with Amazon and had it here in 2 days. I do shop BB, and try to purchase there ( as I don't usually like to ship large, hi-dollar stuff ) but I can't ignore those kinds of savings.

I typically will buy things at BB that are not subject to price competition ( Apple accessories ) or are actually cheaper ( Skylanders stuff we bought today was way cheaper even with the tax than what is on Amazon or Walmart, and the selection was way better than nearly everyone ) without price shopping online.

Sucks they can't compete better.

[mabhatter]

Originally Posted by haydn!

To make sure I'm reading this right...

Best Buy complained because a competitor sold a product at a lower price? Which they felt forced them to offer it at the same lower price, leading them to loose money?

1. It's called competition,
2. Nobody forced Best Buy to drop their price. Some customers may have still chosen them over Walmart through brand preference/convenience of location,
3. No-wonder they failed so miserably in the UK if this is their response to a bit of friendly computation.

it's not fair competition if Walmart didn't actually have iPhone 5 in their shops to sell. Given Walmart's size it's dangerously close to breaking of anti-trust laws... way back when Standard Oil was booming, they used to drive out other business by selling goods below cost to do just what this says, force other businesses to sell to their regular clients below cost or close up shop.

[Sean52391]

I went to Walmart trying to get my iPhone 5 (Verizon) when I saw it was on sale for $127. I get there at like 9:15 and was informed they can't sell me a phone because the ONE employee they have running activations leaves at 9. Plus they don't carry Verizon. I was pissed so I went to Best Buy and asked them to price match the iPhone for me, and I left the store 45 minutes later with my black 16gb Verizon iPhone 5! Walmart sucks, but I'm thankful that they have great prices.

[el-John-o]

Originally Posted by Sean52391

I went to Walmart trying to get my iPhone 5 (Verizon) when I saw it was on sale for $127. I get there at like 9:15 and was informed they can't sell me a phone because the ONE employee they have running activations leaves at 9. Plus they don't carry Verizon. I was pissed so I went to Best Buy and asked them to price match the iPhone for me, and I left the store 45 minutes later with my black 16gb Verizon iPhone 5! Walmart sucks, but I'm thankful that they have great prices.

It's like that around here too. For as long as I can remember the Wal-Mart stores around me have only had one or two employees qualified to do upgrades or activations, and they 'close' the activations around 8 or 9. One store actually told me that AT&T doesn't allow them to do activations after 8PM (Central), who knows.

Here's a killer for you, I bought an iPhone 5 today at the Apple store (wanted a 32 gig model, so discount doesn't apply anyway). I went down to the AT&T store to get my old iPhone 4 unlocked so I could sell it on eBay unlocked. They told me that nobody from AT&T has trained them on how to unlock phones, they can't do it at the retail stores. There's another store nearby, I asked if they could do it, but they guy at the counter said "No, none of the retail stores can unlock phones, they won't let us, you have to call AT&T Customer Service"

But here's the kicker...

"But they trained the Apple Store guys how to unlock AT&T phones so if you bring it there they can do it".

So apparently the Apple Store employees have more authority in regards to AT&T accounts than AT&T retail employees? LOL

[ChristIsLORD]

I'm curious why the general attitude is for Best Buy going under. Other than certain stores, where else are you going to go to buy a hard drive when you need one or a new television/receiver you can examine visually before purchase or a myriad of cables and accessories? I have two Best Buys within short distances of me and although I am fortune enough to have the excellent Microcenter near me as well it isn't exactly as convenient to get to.

[el-John-o]

Originally Posted by ChristIsLORD

I'm curious why the general attitude is for Best Buy going under. Other than certain stores, where else are you going to go to buy a hard drive when you need one or a new television/receiver you can examine visually before purchase or a myriad of cables and accessories? I have two Best Buys within short distances of me and although I am fortune enough to have the excellent Microcenter near me as well it isn't exactly as convenient to get to.

I'm a big fan of competition. I don't understand the Apple fan animosity towards Android either. Android has been a driving force for Apple. Sorry, but Mac OS would be nowhere near as good without Windows, and iOS would be nowhere near as good without Android. Competition drives Apple like almost no other company in the world.

Competition in the retail sector benefits consumers as well. It's not just magical price cutting, it's companies who learn how to cut costs, provide good service, and keep prices down. Those companies will force the others to do the same. I don't want to see any of the box stores go under, because the competition is good.

I, too, LOVE Micro Center. Great prices, stellar service (though they do work on commission so sometimes they can be pushy.), and a perfect selection. However, they have fewer locations.

Most of my stuff I buy online, but there are times when I don't want to buy something sight unseen, or that I need it right now (or want it right now... hey I'll admit it, I sometimes buy things in the store so I don't have to wait for them to come in the mail!), and brick and mortar stores are great from that. With the internet, they will be forced to shrink, however I don't think they'll ever go away permanently. The shrinking may also help them 'trim the fat' and be more competitive with eTailers One of the ways MicroCenter keeps competitive IS by having less stores, having an enourmous selection of everything in a warehouse store type format, and doing ZERO advertising (other than mailing lists for existing customers). Which makes sense, because that's not at all unlike the eTailers they are competiting with. They don't compete with Wal-Mart and Best Buy, they compete with NewEgg and Amazon (mine even has a giant chalkboard where they list NewEgg's prices, updated daily, on a lot of hot items).

[mdesbiens]

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.

Williams-Sonoma offers pretty much no deals, and no sales on anything, not even on black friday, and they certainly won't price match.... and yet they seem busier than the Apple Store around Christmas. When your hands get too full to browse, employees will take your purchases to the register while you continue to browse. Sales members can ring and cashiers can sell, so that no customer feels rushed and no customers have to wait. Anyone can check inventory or price without yelling over a loud speaker. There are usually samples or demos or both going on somewhere. If you are asking a question and another customer runs in asking a question, the interrupting customer will be asked to wait his/her turn. No one is playing with an iPhone while helping you. The stores are themed, not just clean (and they are clean). For the most part, products only have two or three examples on shelves... enough to grab more stock before anything sells out, but not so much that customers return products to the wrong locations or the floor. They won't sell inferior products.... even one's by manufacturer's whose products are sold by WS (e.g.. Kitchenaid mixers are sold there, but Kichenaid toasters are not; All-clad pans are sold there, emerilware is not).

If Nordstrom could match that service, they would be doing very well.

Amazon is doing well because stores like Best Buy are known for selling rip-off products (accessories and services mostly), stores like Walmart are a nightmare (Yelling over loud speakers, carriages everywhere, pallets and miscellaneous merchandise all over the floor, understaffed registers, no sales associates at all, et cetera), and "specialty stores" that don't do well hound customers like Radioshack and make shoppers feel uncomfortable browsing (which isn't surprising if the sales members' notions are that all customers will try items there and buy on amazon). Amazon is touted for being easier, without the hassle of shopping, but it is only in the majority of brick and mortar stores where shopping is a hassle... not in all of them. People seem content paying more at Outdoor World, Lord and Taylor, The Apple Store, Stew Leonards, Michaels, Yankee Candle, most sports stores... anywhere that offers a theme, an experience, an expertise (not a know-it-all-tise)... maybe a little music. If stores like Sears, JC Penny, and Macys didn't wait for the internet and the new economy tycoon mentality to use as excuses to destroy their ancestors' hard-earned success - cashing out by hiring part-timers, pissing them off by paying them minimum wage without benefits, cutting store displays and decorations, opening new warehouse-style locations (That's you, Toys-R-Us), training no one, forcing sales goals of services and products that customers don't want... all leading to dreary employees and an awful working and shopping condition - they could have used catalog sales and tv sales in the 80s as their excuse and gone bust then. I mean, Bradleys, Caldor, and G Fox wanted less for their customers and employees back before it was cool... back before anyone ever heard of Walmart.

Any store that has to lure customers in with loss-leaders is a store that isn't fun to shop in. In fact... any store that has this liquor store mentality of luring in customers based on low prices is all business, and no fun. Customers know that. Not everyone wants to save a buck if they're having a good time, it's just that store managers and corporate leaders forgot something very important:
People don't just want to buy things; People want to shop.

BTW did BB and Walmart combined sell more iphones at a reduced price than Apple did at full price?

(I don't, nor have I ever, worked in retail at any of these stores)

[el-John-o]

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.

I agree.

If I play with something in the store, and am convinced to buy it, I purchase it at the store. Call me a sucker, but, you won't be able to do it if you don't support the business. It's a cost like any other. Apple products cost more than their competitors, but they provide me with a product I prefer. Better build quality, better software, better service. So I buy them, despite the higher price. Same with a brick and mortar store. If there is a product or service that I would rather have the experience of looking at it, touching it, speaking in person with a salesperson about it, then I buy it there.

My wife and I both ride motorcycles and one thing that is really hurting local dealerships, is helmet sales. There are lots of different helmets, each helmet fits differently based on brand or model, so buying online site unseen is generally ill advised. Especially a full face helmet, which can be miserable to wear for hours on end on a long ride if it doesn't fit perfectly. So even if you know 'your size', a different brand or model may not fit the same way.

So, they are forced to carry several sizes of dozens of brands and hundreds of models. All so people can come in, try it on, and leave and buy it online. The salesman at the dealer I bought my last bike from told me they would make a lot more money if they didn't carry helmets at all, because it costs them so much in time and overhead and they rarely actually sell them. (AND, they are competitively priced, half the time people are only buying online to avoid paying the taxes!). They even had that discussion, but they decided the only reason they carry them, is probably the only way they really 'technically' monetize on them; to make the sale. Sometimes they can sway a buyer by throwing in a helmet and a riding jacket or something for free. Obviously, that won't be nearly as effective if they say "And you can come pick it up in 8-10 business days!"

And it bothers me, simply because they are the last dealership to actually have a good selection. Others stock few sizes and only one or two brands, and many have just stopped stocking helmets at all. I don't want to buy a helmet sight unseen online and find out it fits miserably. I want to put it on, wear it for a few minutes, walk around with it, and see if it develops any pressure points. If it fits, I'll buy it there. If it doesn't fit, well, I only tried it on because it was the make and model I wanted and the size I thought would fit, so, I would've bought the same helmet online, only to find out it doesn't fit THEN!

I'll continue to buy software through digital download for the convenience. And I'll still buy some things online because it's cheaper. But products that I need to go play with, I'll buy there. Companies DO need to compete with eTailers, but I think the way they are going to do that is to trim themselves down to the products that people need to check out in person. However, if we don't buy them, just play with them, they'll just close up shop and go home. And, then, we'll be stuck with buying sight unseen or driving a long distance to find a store!

[jsalda]

Haha, I took advantage of BB price match. I went to WM first, not sure what their stock was because I tired of waiting for the one individual they had working. Went to BB and mentioned WM's price and she asked me if I could pull it up on my phone. I started to sweat because the WM mobile site is chaos for their wireless, the BB mobile manager overheard us and OK'd the price match, no questions asked. Went back a week later and upgraded my wife for the same price, again, painless transaction.

[Konrad9]

Originally Posted by ECUpirate44

Wish amazon would put BB out of business already.

So we can have even less competition? No thanks.

If Amazon was the only reseller, they would NOT have the great deals they have today.

Less competition is bad for consumers, and wishing it would happen is insanity.

[samcraig]

Originally Posted by 1080p

Image

This is Apple's #1 demographic at Walmart!

Newsflash. The iPhone itself isn't a luxury item since you can get a model for either free or as little as $49.

It not just Wal Mart.

[PinoyAko]

I can't help but to comment. I went to Best Buy to buy a tripod for my DSLR. The sales representative told to go to the more expensive one as it will take more better picture than the cheap one.

[jreuschl]

Originally Posted by maverick1969

So then why does Best Buy charge me tax on the full price ($750)of the iPhone 5 and not for what I actually paid for (sale price $126)? Can I complain just the same as they do?

That isn't a Best Buy issue. That's a state issue. Lots of states require tax on the full unsubsidized amount. You'd run into the same problem anywhere else in your state.