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

Discussion in ' News Discussion' started by MacRumors, Jan 4, 2013.

  1. MacRumors macrumors bot


    Apr 12, 2001

    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.
    Walmart claims that it did have sufficient stock of the iPhone 5, quoting 98% availability at its stores carrying the device. Walmart had noted as the sale launched that it was working closely with Apple on the promotion and was securing significant numbers of iPhones, but that the sale was first-come, first-served with no rain checks offered at stores where the device was out of stock.

    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
  2. AFDoc macrumors 68030

    Jun 29, 2012
    Colorado Springs USA for now
  3. ouimetnick macrumors 68020


    Aug 28, 2008
    Beverly, Massachusetts
    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.
  4. cgc macrumors 6502a

    May 30, 2003
    That could be an interesting way to attack a competing store.
  5. ECUpirate44 macrumors 603


    Mar 22, 2010
    Wish amazon would put BB out of business already.
  6. Avatarshark macrumors regular

    Sep 22, 2012
    The Digital Frontier
    We are suppose to care because...

    Besides 68,000 is a drop in a bucket of multi-billion dollar gouging sales during the year
  7. samcraig macrumors P6

    Jun 22, 2009
    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.
  8. Porco macrumors 68030


    Mar 28, 2005
    um... Best Buy, you are apparently allowed to be called BEST BUY. As your name. All the time.
    Suck it up!
  9. nfl46 macrumors 603

    Oct 5, 2008
  10. bbeagle macrumors 68040


    Oct 19, 2010
    Buffalo, NY
    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.
  11. Tubebaum macrumors newbie

    Feb 12, 2012
    None of the Walmarts anywhere near my school had the iPhone 5 in stock when I found out about their deal. Just saying.
  12. rdowns macrumors Penryn


    Jul 11, 2003
    Best Buy needs to concentrate on remaking their business or they won't be around to see 2014.
  13. Jaasen Jones macrumors member

    Oct 6, 2009
    My thoughts exactly!
  14. thepowerofnone macrumors member

    Apr 10, 2011
    You are allowed to complain to the government about someone else selling a product at a lower price than yours? Huh... news to me. I thought it was just called economics.
  15. ugahairydawgs macrumors 68020


    Jun 10, 2010
    I thought Best Buy only price matched when a local store had available stock. They've ALWAYS called the other store when doing a price match for me.
  16. aliensporebomb macrumors 68000


    Jun 19, 2005
    Minneapolis, MN, USA, Urth

    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.
  17. haydn! macrumors 6502a

    Nov 10, 2008
    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.
  18. samcraig macrumors P6

    Jun 22, 2009
    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.
  19. ArchAndroid macrumors regular


    Aug 26, 2012
    London, England
    American companies doing to each other what they have been doing to American customers for ages.
  20. GoCubsGo macrumors Nehalem


    Feb 19, 2005
    What a wonderful use of the Attorney General's resources.
  21. Wicked1 macrumors 68040


    Apr 13, 2009
    New Jersey
    They won't have to, BB is bleeding cash and losing customers every month now.

    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.
  22. PeopleTheseDays macrumors regular

    Sep 5, 2010
    I don't understand what is happening becausing checking stock of other stores seems to be the proper way to do it. If the other stores don't have stock then you couldn't get it at that price anyway, and you're just taking advantage of best buy's inventory and/or convenience of location to obtain your item. Doesn't anyone else feel this makes sense?
  23. GermanyChris macrumors 601


    Jul 3, 2011
    There is no such thing as friendly competition with Wallmart, but this doesn't make my Give-a-***** meter move.
  24. ECUpirate44 macrumors 603


    Mar 22, 2010

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