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iPhone Shortages Not Helping RadioShack as Consumer Sales Plummet
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I will always have fond memories of going to Radio Shack with my father as a child 25 years ago. Radio Shack is going the way of Blockbuster before it. Radio Shack should've shifted to an online-only operation several years ago, I think. There are still parts and pieces that I need every now and again and the first place I think about going for those specific things is Radio Shack.
Apple and Obama are the cause of all the world's problems. Don't you know anything?
I remember when Radio Shack asked for your home address and phone number every time you went in for a pack of AA batteries, and I mean every time.
R.I.P. Radio Shack. You'll be missed.
the part I hated the most about that was not that radio shack was getting my info, but that strangers in line behind me will hear me say out loud my phone number and address. i thought that was rude way of doing business
re: Radio Shack's imminent demise
Yeah.... What I don't get, though, is why Radio Shack can't just sell off rights to independent stores to keep using the brand name, but free them to stock whatever inventory they wish as miscellaneous electronics shops?
The small town I live in, for example, has a local Radio Shack in our strip mall. I'm pretty sure the owner will just change the signage and keep running some kind of electronics/toy/hobby shop if Radio Shack goes belly up. But there has to be at least some value in paying a fee to buy rights to keep using the Radio Shack name on the store?
IMO, the times have changed enough to obsolete Radio Shack's current business model. But that's really only because corporate insists on the stores trying to sell their particular selection of goods, pitting them up against big box retailers like Best Buy who will win every time with sheer size and volume.
If Radio Shack became a catch-all branding for small, independent electronics stores -- you might find that they'd make a killing selling inexpensive cabling, for example. (Carry competitively priced ethernet cables of various lengths, plus spools of cable, ends and tools to make your own cables. Carry a good selection of HDMI, Displayport/Mini Displayport, USB 3, and other common cables people need and price them competitively with online vendors like Monoprice.) Go back to the "old days" where R/S stores actually stocked a really good selection of components. If you go in for a specific capacitor or resistor or transistor? Make sure it's actually there, in a bin, and priced fairly. This is the kind of stuff that real electronics techs/repair people need all the time, but never even try to buy locally anymore because nobody stocks the stuff. They'd love to have a one-stop local source to "get it NOW" though.
Heck, I think Radio Shack might even do well testing and reselling used electronics goods on a consignment basis. There's a lot of old stereo, HAM radio, and other gear out there people will still pay good money for.
Yeah.... What I don't get, though, is why Radio Shack can't just sell off rights to independent stores to keep using the brand name, but free them to stock whatever inventory they wish as miscellaneous electronics shops?
The small town I live in, for example, has a local Radio Shack in our strip mall. I'm pretty sure the owner will just change the signage and keep running some kind of electronics/toy/hobby shop if Radio Shack goes belly up. But there has to be at least some value in paying a fee to buy rights to keep using the Radio Shack name on the store?
IMO, the times have changed enough to obsolete Radio Shack's current business model. But that's really only because corporate insists on the stores trying to sell their particular selection of goods, pitting them up against big box retailers like Best Buy who will win every time with sheer size and volume.
If Radio Shack became a catch-all branding for small, independent electronics stores -- you might find that they'd make a killing selling inexpensive cabling, for example. (Carry competitively priced ethernet cables of various lengths, plus spools of cable, ends and tools to make your own cables. Carry a good selection of HDMI, Displayport/Mini Displayport, USB 3, and other common cables people need and price them competitively with online vendors like Monoprice.) Go back to the "old days" where R/S stores actually stocked a really good selection of components. If you go in for a specific capacitor or resistor or transistor? Make sure it's actually there, in a bin, and priced fairly. This is the kind of stuff that real electronics techs/repair people need all the time, but never even try to buy locally anymore because nobody stocks the stuff. They'd love to have a one-stop local source to "get it NOW" though.
Heck, I think Radio Shack might even do well testing and reselling used electronics goods on a consignment basis. There's a lot of old stereo, HAM radio, and other gear out there people will still pay good money for.
The End
In the end, all the stores will close and someone will buy the rights to the name and sell products exclusively online. so don't worry you'll still be able to say "I buy all my electronics at Radio shack"
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RS isn't the only relic that is broke. 70's icon burt reynolds is broke too http://www.foxnews.com/entertainment/2014/12/02/is-burt-reynolds-broke/
In the end, all the stores will close and someone will buy the rights to the name and sell products exclusively online. so don't worry you'll still be able to say "I buy all my electronics at Radio shack"
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RS isn't the only relic that is broke. 70's icon burt reynolds is broke too http://www.foxnews.com/entertainment/2014/12/02/is-burt-reynolds-broke/
Ditto. There is a RadioShack in the mall closest to me but even it's placement in said mall was likely done to save money. It's down at the very corner of the mall right next to the other 80's relic, a video arcade (Aladdin's Castle). That's one business I cannot believe still exists when home video games blow arcade games out of the water in every way. Used to go to the arcade because the games had better graphics. Now there is absolutely no reason to go there.
When I was a kid, Radio Shack was like a candy store to me. I even thought about working there after school (decided working for a Honda dealership was more fun). I spent many hours chatting with people there, and in a way it led me to the career I'm in now: telecom. But as others have said, times have changed. Most questions can now be answered with a few keystrokes. The internet has separated us in some ways. Even writing this post makes me wish I could chat with some of you in person. It would be far more valuable than being anonymous. I still go there from time to time for that hard to find item, but the staff there just don't have a clue.
They need to go back to their roots as an electronics parts store, not a cell phone store. And get rid of the mall locations- the rent on those type places is probably far too high for a small electronics store. Stick to busy strip mall locations, and go back to stocking electronics parts, with the occasional toy or gadget, and they will do well again. It was nice to re-do the decor in the stores, but re-doing the inventory was a bad idea. They're not a Brookstone, nor a Best Buy Mobile.
I find it laughable that the article basically says "No one knows why there is a shortage." Given what we know about Radio Shack's failing business and having been at a business in a similar situation myself, I can tell you exactly what's going on: they're on credit hold with Apple for not paying for their inventory. When they do pay the bill, it's only enough for a small amount of product.
Now sure, I don't have any proof, but what else could it be when most other retailers don't seem to have any issue with getting iPhones in?
Now sure, I don't have any proof, but what else could it be when most other retailers don't seem to have any issue with getting iPhones in?
Consumer electronics is too crowded. Never going to compete with BestBuy -- don't have the inventory or purchasing power, or even name recognition anymore.
They need to go back to parts. All parts. Finding most things nowadays can be a real challenge. They don't need to be limited to core components like transistors, etc either -- they can diversify and also sell GPUs, CPUs, cables, etc.
Coupled with their parts and technical components, they should also do repairs and "upgrades" -- ALL repairs, actually.
Remake it into a custom electronics and repair shop, and then they have a niche. Right now they're just aspiring to be Blockbuster.
They need to go back to parts. All parts. Finding most things nowadays can be a real challenge. They don't need to be limited to core components like transistors, etc either -- they can diversify and also sell GPUs, CPUs, cables, etc.
Coupled with their parts and technical components, they should also do repairs and "upgrades" -- ALL repairs, actually.
Remake it into a custom electronics and repair shop, and then they have a niche. Right now they're just aspiring to be Blockbuster.
Monoprice and Parts Express have effectively eliminated my need for Radio Shack. The last few times I went in there they didn't even have the unusual parts I needed. So, I generally find a way to wait for shipping, plan ahead if possible.
Also, there is now a local store I go to that does all sorts of electronics, more like RS was 30 years ago. Not even in the same genre, anymore.
Also, there is now a local store I go to that does all sorts of electronics, more like RS was 30 years ago. Not even in the same genre, anymore.
Their prices are ridiculous. I went in there to buy a 6ft. headphone jack extension and they wanted almost $15 for it, when I could get it at Fry's for $5.
Walking into Radio Shack is like walking into a car dealership from the 1970's. They haven't changed their business model in the 45 years I've been alive. Why? Probably because they don't know what to change it to and if they can't figure that out, it's because they are irrelevant.
Electronics hobbyists don't really exist any more, and if they do, they can get their electronic equipment cheaper online.
Additionally, I took my mom there to get a FREE iPhone 4S and they wanted to charge a $50 setup fee. I was like, why would I give you $50 to setup the service when I can go to AT&T or the Apple store to have it done for free? Never been back since.
Walking into Radio Shack is like walking into a car dealership from the 1970's. They haven't changed their business model in the 45 years I've been alive. Why? Probably because they don't know what to change it to and if they can't figure that out, it's because they are irrelevant.
Electronics hobbyists don't really exist any more, and if they do, they can get their electronic equipment cheaper online.
Additionally, I took my mom there to get a FREE iPhone 4S and they wanted to charge a $50 setup fee. I was like, why would I give you $50 to setup the service when I can go to AT&T or the Apple store to have it done for free? Never been back since.
Before I was a sales manager at CC I was sales "counselor" in SoHo and believe me there was a reason why we were consistently sold out of "gold plated" parallel cables
You're definitely right on the marketing of commission, in fact towards the end of those days I think BB even used it in their commercials... And that is insane with the 3 digit number but I can see it. I worked with guys in our one location that were consistently making well over 100k per year. These guys knew what they were selling (specifically CSP) and how to sell it. Why would you ever take another job if you were making more than store and even district managers? Making 6 figures in essentially retail is unheard of.
I remember buying resistors, capacitors, and the much-coveted Sonalert transducer from Radio Shack (two words) when I was a kid. But Radio Shack tried to go big-time by selling higher-priced electronics goods and dropped their parts business. Except for drastically overpriced HDMI cables etc.
That strategy worked for a while, until the Buy.coms (remember Buy.com?) and Amazon.coms and Costcos and Best Buys of the world undercut their pricing with bigger volume for economy of scale and/or home delivery. That left Radio Shack with higher prices and smaller selection, since their stores are tiny. Yes, Radio Shack has an online store, but no, it will never beat Amazon.
Selling iPhones from such a weak position is the very definition of "not controlling your own destiny." If Apple can't keep their own stores stocked, they're certainly not going to give Radio Shack high priority. If $1,000 profit makes or breaks you in the holiday season, you're circling the drain.
As a former RS employee, I hated asking for people's names and addresses every time*. And handwriting that information on the tickets, just to go into the back room after hours and key it into a Tandy 2000 computer.I remember when Radio Shack asked for your home address and phone number every time you went in for a pack of AA batteries, and I mean every time.
*except for the time the cute cheerleader from school came into the store...
...Except that competition from online stores will ensure that such a thing will NEVER happen, because the cost of doing business online is so much lower. I'm not worried.
Not sure what they'd have to lose by going back to being an electronic parts supplier. Their sales couldn't possibly get lower, and they'd actually offer something that is not also offered by every supermarket, convenience store and electronics shop in town.
The last time I went to one was a few years ago when I needed an extension cable for headphones because I needed it sooner then later. It was good for all those little cables and parts you could not buy anywhere else locally. Now I just go to eBay and pick such items up for cheap. It's not like they would have most of what I am looking for anyway.
Trying to be a small electronics store hardly makes sense today. No idea why I would go there over anything else.
They need to do something no one else really does along with it.
Trying to be a small electronics store hardly makes sense today. No idea why I would go there over anything else.
They need to do something no one else really does along with it.
I worked at a RadioShack franchise about twelve years ago for about three years. It was a small town, but we were the only game in town, and a $1000 day was HUGE when average sales for the day rarely broke $400. So yes, for a franchise, losing out on the iPhones is significant.
The rest of your comment is spot-on, though.
I was there when they really started to push some of the consumer electronics on franchises. They wanted us carry a line of televisions, which would have been a complete waste. We kept declining, as did many other franchises, until they made complete, unbroken acceptance of their auto-replenishment system (which would send you allllll sorts of things you didn't want or need or have any chance to sell) a requirement for free shipping of any merchandise.
So now we had four TVs that quickly fell behind the times and became unsellable. Waste of showroom space, waste of money.
I remember putting up price changes every few weeks, and watching basic things like cables climb higher and higher. 6-foot coax cable... $12? Jesus. 6-foot component cables... $49? God. The RS cost of these things, which the franchise POS could display, was literally $.80 and $2, respectively. I remember one guy came in wanting a long HDMI cable rated for in-wall use. The catalog had a 25-foot one for $500. I'm not even kidding.
RS really out-priced itself competitively on the usual items that you'd want to get from there, and things got worse when they decided they wanted to really push cell phones. Stupid, stupid, stupid.
The one and only thing that RadioShack had over other stores was that generally they did staff people who at least kind of knew some stuff. You could explain what you wanted to hook up and they'd know it was an RF modulator that you'd need. You could never do this at Walmart, and probably couldn't with most staff at Best Buy, or most other places.
RIP RadioShack. Wish things turned out better but you did it to yourself.
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I do believe they already run a program to do this. Technically, outright franchisees can stock stuff from outside the line -- or at least we could when I worked at one a decade ago -- but the specific setup you're talking about also existed. You could basically have your existing store, and then kind of a "RadioShack basics/essentials" section. I don't remember the exact mandates but it did have to be some percentage of your total square footage, but I don't think it was anything too ridiculous. In exchange you could advertise as a franchisee but weren't required or otherwise pushed by contracts to carry the "full" line for your concept size like other franchisees would be.