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

[ProudLoz]

Originally Posted by bedifferent

Apparently, for some it is. I guess a few cents here and there in their weekly or monthly allowance means the difference between eating and starving. I find this ironic on a website that sells the most expensive devices and computers on the market. I have a sense, some are just complaining for the sake of complaining. Sell your self to Walmart, in the end, you're putting money to a corporation that is putting their competition out of business, thereby increasing their market dominance, followed by increased prices of goods in area's they only supply said goods, increased profits, and the game continues.

I'm all for saving money, but honestly, **** Wal-Mart. The only way I shop at Wal-Mart is if it's near a community known to have higher class people, because the staff obviously, no the whole store, is completely different compared to others that are established in ghetto communities.

I still gotta go there like once every two weeks or so to buy my snacks for work. Apparently Wal-Mart is the only one that carries sunchips around my area. Wish there was a Krogers or HEB closer to my neighborhood.

[CosmoCopus]

I was in Best Buy one day checking out the new iMac and one of the sales reps didn't know the difference between a Thunderbolt Display and an iMac ...she thought the Thunderbolt Display was a 27" iMac...lol

[Roessnakhan]

Originally Posted by ProudLoz

The only way I shop at Wal-Mart is if it's near a community known to have higher class people, because the staff obviously, no the whole store, is completely different compared to others that are established in ghetto communities.

You sound like a nice person.

[carlgo]

Went to WallofChinaMart once. Simply the most putrid place imaginable. Any time anyone puts it to them it is a good thing. Funny that it is the darling of the right wing for some reason, probably because it keeps labor costs low.

[STiNG Operation]

Originally Posted by samcraig

As if Best Buy never advertises items for sale they only have 1-2 of?

Best Buy decided to price match during the holidays with their new policy. No one forced them to.

Just wanted to say they wouldn't price match for me during the holidays on a DSLR camera. Wasn't really a big price difference just a bundle match I wanted. They said they weren't price matching during the holidays so I went to a local camera shop instead. They lost out on $635, they are morons and I lost any interest to shop there.

On a side note with the sales people being idiots....I agree. After looking at DSLR cameras for my girlfriend at best buy my girlfriend and I ended up going in there for some unrelated reason and while by the cameras WITH MY GIRLFRIEND NEXT TO ME the same sales guy came over and said "hey did you buy that camera?" I wanted to lay him out. I made it obvious it was a gift for my gf and he apparently couldn't figure that out...

[pnoyblazed]

This made front page news? More like Worst Buy

[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?

[Mark Booth]

Walmart's retail and corporate practices are bad for America. The dollars Walmart shoppers think they are saving aren't "free." The real cost to Americans is too high. Just read the (well documented) facts:

http://www.walmartmovie.com/facts.php

The problem is that a large percentage of Americans with limited education and, thus, limited job prospects, are desperate to save a dollar wherever they can. The lower one goes on the socioeconomic scale the higher the likelihood that they'll shop at Walmart. You only need to walk into a Walmart to see that this is VERY true. The "People of Walmart" site proves that point with great hilarity, mixed with great sadness:

http://www.peopleofwalmart.com

Mark

[jt70]

I went in to Best Buys over the holidays and asked if they would match Wal-Mart or Fry's price and they spent an hour calling the local stores eventually concluding that they wouldn't.(with some attitude as well) After the hour investment already, I decided that I would just pay the BB price, but the rep told me that I would have to wait 15 minutes for another rep because she had to go on her lunch break. I declined waiting and went into Wal-Mart the next morning and got my iPhone for the lower price and to top it off, Wal-Mart doesn't charge tax on the unsubsidized amount so I saved even more there.(not sure if BB does, but Apple and AT&T do) The rep at Wal-Mart was really helpful, fast, and courteous which was a pleasant surprise. My wife and I are not fans of the Wal-Mart shopping experience, but this changed my views of them quite a bit. We're only two people, but I would imagine that this type of experience may have happened to a few others. Customer service may be more key for Best Buys that losing $65,000.

[bbeagle]

Originally Posted by mantan

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

You do realize - there are thousands of people on the message boards, all with differing opinions. And even amongst individual people, opinions can change.

I don't see where there is any hypocracy.

[GuitarDTO]

Best Buy is a complete joke, and they will be out of business in a few years. This weekend was the last straw for me after several years of getting more and more frustrated with their overpricing, failure to price match and unwillingness to price match their website in stores. I went in for a USB extension cable for my Xbox controller, and what was $3 on Amazon costs $30 at Best Buy. It's so far beyond ridiculous now I'm just not bothering with them any more no matter what I need.

[bbeagle]

Originally Posted by charlituna

Surprised the other stores are telling their stock over the phone.

The other stores should actually say, 'No. We don't have any' so Best Buy doesn't get a sale. Because, the Best Buy Employee, at least when I've tried it, has announced to the other store that they are Best Buy calling.

[Handsome Bacon]

Originally Posted by bretm

I learned a long time ago the easiest way to get rid of anyone hocking anything is to tell them you already have it.

With DirecTV thell them you have it already and that you'd like the 40% too. Or tell them you have it but it sucks when it rains.

+1!

I sometimes will tell them I have a Roku box, and if they can sell me one channel at a time I'd buy their service right then and there.

Telling them you only watch YouTube also works...I'm sure it frustrates the hell out of them, too.

[ProudLoz]

Originally Posted by Roessnakhan

You sound like a nice person.

I actually am.

I just hate Wal-Mart.

[somethingelsefl]

This is why Richard Schulze (Best Buy founder) is now making a move to regain control of the company. Best Buy is falling FAST and he said he wants to regain control to make the store relevant again...which can only help Apple.

[newtype2011]

A few comments about some of the things being said in this thread:

a) People wishing Best Buy would go under is rather sad, in my opinion, as there are plenty of good people who are employed by the company. Said people have absolutely zero say in how the company's business is conducted, or which policies are enacted.

b) Best Buy does not fully train and coach 75% of their employees, especially seasonal personnel; those that are trained, are usually knowledgeable about one particular department.

c) Management (read, Supervisors and Managers) are nothing more than line-level employees that have been given more information regarding the financial health of a given store on a given day at a given time; they are then required to "drive the cattle" when sales and protection plan goals are not being met. Reading between the lines: they are still at the mercy of corporate mandated policy.

d) Price matches are, by design, a type of tool to get bodies into a store. Best Buy's profit margins are razor thin on a majority of the products (hardware) they sell, hence the heavy push of protection plans and add-on accessories. If you don't need it, don't buy it. Like the age-old argument of whether Apple Care is worth it or not, decide for yourself if the value is there.

e) The fact that Best Buy is complaining about this is comical, as they usually take a loss when selling cellular hardware. Best Buy (and other companies who sell cellular services) make the money on recurring payments to them by the major telcos (notional margin). They are making HUGE profits on everything BUT the actual sale of the phone. In fact, the Best Buy Mobile stores (within a store) are perhaps the most profitable piece of Best Buy's assets, hence the internal moves to mimic the culture of said stores.

Thanks for reading-

[krravi]

But to be fair, WalMart also advertised false prices on the iPad. I remember seeing a flurry of posts about the iPad price being reduced by $100.00. And many of you called WalMart only to know that it was for the previous generation.

WalMart is also at fault here for false advertising. BB is not entirely being disingenuous in filing the complaint.

And BB is going the Circuit City way... What goes around comes around I guess.

[bretm]

Originally Posted by shakes.holt

While I understand your opinion, there are secondary effects to these decisions. Wal Marts practices actually create barriers to entry for other buisnesses from opening up. Less competition = higher margins and higher prices to the consumer. They will lose money long enough to prevent new competition from entering the market. They maintain their margins and market share through these measures. They have also helped to drive a lot of manufacturing out of the US as part of globalization (see post #54 as 1 of many examples). When one does not have much excess money to consider the secondary effects of their decisions, it is understandable as to why they would support Wal Mart. Unfortunately the people who have the most to gain by not supporting large businesses with similar tactics are the ones who are being hurt (LONG TERM) by these business tactics, but in their minds they can't afford not to support. I am in no way a Wal-Mart basher but want people to understand that there are secondary and long term consequences to everyones purchasing decisions. Americans vote every day with their pocketbook and then complain about the effects of their decisions. Understanding the power of you $$ vote is important - Vote responsibly!!

No expert, but I feel it's all connected. How can't it be? WalMart sells stuff incredibly cheap. And it hires lots of people providing more security than a handful of small businesses would especially in a small town. But of course, they don't pay a lot of money. However, if you can buy a roasted chicken for $5 instead of $10, or a pair of pants for $10 instead of $25, do you need to make as much money? For better or worse, WalMart may stifle competition, but at the same time they're creating a stable economy, hiring many, and bringing the cost of essentials way down. They don't just drop a WalMart into the middle of an area that has no money and few residents. There has to be quite a bit of demand. So yes, they definitely change an areas economics. But it's not been my experience that dropping a walmart into a town drives the town into sudden poverty. It's an offshoot of the same capitalistic freedom that allows us to strive to create our own WalMart competitor. K-Mart used to rule until Target and Walmart did it better.

What I don't like is when they move a big box out of an area and leave that useless structure sitting there. It's an eyesore and kinda kills that area. I'm not allowed to leave my home that way and they should have to renovate their old structures in some way. Not sure what to do about those things, but there's got to be something.

[AustinIllini]

This is the same reason Sears stopped price matching during portions of the holidays. Cry me a river.

[rhett7660]

Originally Posted by 1080p

Meh.... screw both of these places...

I buy from:

Online-
Amazon, NewEgg, Apple

Retail-
Fry's Electronics (They will match online pricing!)

That's makes two of us. I love going into Fry's. those guys are so anxious for a sale they will match anything lol.

[OrangeSVTguy]

Poor best buy CEOs for loosing $65k. That's only change in their love seats.

[samcraig]

Originally Posted by lshin037

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

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.

[euvnairb]

So did Best Buy actually lose 65k or did they just not make as much as they potentially could have?

[b0fh]

Originally Posted by KindredMAC

Between Dynex, Monster and RocketFish items being severely overpriced, Best Buy can take a hit every once in a while.

A friend of mine has worked at Best Buy for a few years and would tell me about the mad deals employees would get on product before they restructured and took away the employee benefits. He told me that he could get a Monster AV cable that retailed for +$100 for $12 at employee pricing.

That's because they had a COST PRICE + PERCENTAGE policy, so if they were paying $10 for the cable, and a 20% on top, that's what the employee pays, $12.

You, the gullible customer, can pay $100.

[bedifferent]

Originally Posted by bretm

No expert, but I feel it's all connected. How can't it be? WalMart sells stuff incredibly cheap. And it hires lots of people providing more security than a handful of small businesses would especially in a small town. But of course, they don't pay a lot of money. However, if you can buy a roasted chicken for $5 instead of $10, or a pair of pants for $10 instead of $25, do you need to make as much money? For better or worse, WalMart may stifle competition, but at the same time they're creating a stable economy, hiring many, and bringing the cost of essentials way down. They don't just drop a WalMart into the middle of an area that has no money and few residents. .

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.