|Jan 4, 2013, 08:51 AM||#1|
Best Buy Complains About Walmart's iPhone 5 Holiday Sale, Claims $65,000 Profit Loss in One Day
The Wall Street Journal notes that several retailers including Best Buy and Toys "R" Us have complained to attorneys general in a handful of states about advertising practices of Walmart. Generally, the complaints stem from comparison ads by Walmart in which competitors assert that Walmart is using inaccurate pricing or non-equivalent items to claim that it offers the lowest pricing.
But Best Buy also alleges that Walmart was deceptive with its iPhone 5 holiday sale in which it dropped pricing to $127, although the article quotes $150 pricing.
Best Buy had already been selling the iPhone 5 for $149.99 when Walmart announced its own sale, but it is unclear if Best Buy used the $73 difference from regular price or $23 difference from Best Buy's sale price in calculating its profit loss. Assuming the latter, Best Buy would have price matched on approximately 2800 iPhone 5 sales in one day.
Article Link: Best Buy Complains About Walmart's iPhone 5 Holiday Sale, Claims $65,000 Profit Loss in One Day
|Jan 4, 2013, 08:52 AM||#3|
awww Poor Best Buy
Bunch of clueless goof balls run Best Buy. Trying to sell Monster cables and Bose junk. And their extended warrantee.
The sales reps have no idea what they are actually talking about, and considering their geek squad is run by idiots, I don't like BB.
MacBook Pro 13" (Mid 2010) 2.4GHz C2D, 4GB RAM, 750GB HD; Mac Pro Mid 2007; various MacBooks; Power Mac G5; iPhone 4s; iPhone 5s
|Jan 4, 2013, 08:52 AM||#4|
That could be an interesting way to attack a competing store.
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|Jan 4, 2013, 08:54 AM||#5|
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|Jan 4, 2013, 08:56 AM||#8|
As if Best Buy never advertises items for sale they only have 1-2 of?
Oh please. And Best Buy decided to price match during the holidays with their new policy. No one forced them to.
Maybe if Best Buy provided superior customer service people would still buy there.
As for Toys R Us - they are a complete mess. They should worry more about their infrastructure, customer service and empowering their employees vs a sale on iPhones.
|Jan 4, 2013, 08:59 AM||#11|
Every time I've tried to do a price match at our local Best Buy they call local stores to see if the product is in stock.
Most times, they cannot get through to the store in question (because the other store is too busy and won't answer their phones), or they get through, and find out that the other stores are out of stock.
Best Buy then refuses to price match because of the lack of stock in competing store. This is all stated in their price matching guarantee, but I guess not enforced everywhere.
Maybe the managers at our local Best Buys are more vigilant about not losing money on price matching. This has stopped me altogether from even trying Best Buy price matches. Which is either a win or a loss for Best Buy depending on how much they buy the product for. They either didn't lose money, or lost a sale.
|Jan 4, 2013, 08:59 AM||#12|
None of the Walmarts anywhere near my school had the iPhone 5 in stock when I found out about their deal. Just saying.
iPhone 5 [64GB]
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|Jan 4, 2013, 08:59 AM||#14|
|Jan 4, 2013, 09:01 AM||#17|
Walmart is the devil but it's kind of hard to feel sorry for Best Buy because they obviously didn't either know that Walmart was going to do this nor did they have a plan in place for if a competing store did do this.
So how many phones did they sell? I bet they sold a ton. At less than they wanted but a sale is a sale.
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|Jan 4, 2013, 09:01 AM||#18|
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.
|Jan 4, 2013, 09:05 AM||#22|
The founder is trying to buy the company and go private but the board thinks BB is worth a lot more, so as BB bleeds and becomes devalued, the founder is getting the company cheaper by the month, however they can not compete with Amazon and Apple directly. I have never heard one good Geek Squad story, and I warn people not to get it.
They have become a showcase for people to look and see the products and then buy them online or somewhere else cheaper.
iPhone 5 16GB White
2012 MacBook Pro 13" 2.5/4GB/240GB SSD
|Jan 4, 2013, 09:05 AM||#23|
Macbook Pro 15" - iPhone 5S - Nexus 5 - iPad 4 - Nexus 7
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