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Best Buy Bankrupt?  
User currently offlineboeingfever777 From United States of America, joined Jul 2009, 409 posts, RR: 53
Posted (2 years 7 months 4 weeks 23 hours ago) and read 2088 times:

http://www.usatoday.com/money/compan...ory/2012-03-29/best-buy/53852802/1

Makes sense to me... They closed all China stores (including their flagship in Shanghai) all their stores in the UK and Turkey. Makes sense they will be gone in 3-4 yrs due to the internet pricing they are up against.

"I worked there 9yrs as a corp training manager"

My thoughts... gone in 5 yrs.


Faire du ciel le plus bel endroit de la terre.
37 replies: All unread, showing first 25:
 
User currently offlinemmedford From United States of America, joined Nov 2007, 561 posts, RR: 8
Reply 1, posted (2 years 7 months 4 weeks 23 hours ago) and read 2074 times:

With all the money I spent there last christmas!?

shucks; another one bites the dust.



ILS = It'll Land Somewhere
User currently offlineSmittyOne From , joined Dec 1969, posts, RR:
Reply 2, posted (2 years 7 months 4 weeks 23 hours ago) and read 2062 times:

Quoting mmedford (Reply 1):
With all the money I spent there last christmas!?

Same here...2009-2010 should have been banner years just from my inputs alone LOL


User currently offlineBraniff747SP From United States of America, joined Oct 2008, 3004 posts, RR: 1
Reply 3, posted (2 years 7 months 4 weeks 23 hours ago) and read 2051 times:

They have not filed for bankruptcy, so no. The problem is that the market is changing; one can buy things online, cheaper, no tax, and quick shipping. That must have killed big part of their buissness. But I don't expect to see them dissapeare anytime soon...

[Edited 2012-03-29 15:48:32]


The 747 will always be the TRUE queen of the skies!
User currently offlineDesertJets From United States of America, joined Feb 2000, 7801 posts, RR: 16
Reply 4, posted (2 years 7 months 4 weeks 22 hours ago) and read 2031 times:

Best Buy is in trouble for sure. It is a problem when BB is the in-person showroom for Amazon, Newegg, eBay, etc....


There are just a lot of places that they are getting pinched.

For appliances the big box home improvement stores, plus Sears and local appliance joints. Plus with the housing market in the crapper that must be impacting sales.

Music and movies has been slowing and shifting online for ages now. Plus they compete with the big box discount stores like Walmart and Target on that front.

Computers was never a high margin business -- tons of competition from online.

Car audio faces competition from the web and there are still decent local and regional chains out there. But the biggest issue is probably as more and more cars move away from the standard single and double DIN sized stereos to more integrated infotainment systems nobody is going to want some tacky looking aftermarket car stereo.

Would almost seem like TV and home audio might be the last front, but even then there is pretty good competition on the web. Or again I go to Best Buy to check out the TVs in person, then buy it elsewhere on the web.



Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
User currently offlinesrbmod From , joined Dec 1969, posts, RR:
Reply 5, posted (2 years 7 months 4 weeks 22 hours ago) and read 2017 times:

I'd hardly call the closing of 50 US big box locations a sign that Best Buy is bankrupt, as 50 stores is nothing when you factor in the company has 1450 stores nationally. Now if they had a few hundred stores and were closing 50, then one could start to worry. More than likely the 50 big box stores that will be closed will see branches of Best Buy Mobile open in those areas. Best Buy really ought to get out of selling appliances, as there are plenty of places to buy such items (sometimes multiple places within the same shopping center). They ought to stick to selling stuff like TVs, computers, home theater stuff, movies, games, music, cameras, and cell phones. You could probably cut the size of the stores by at least a third by eliminating the appliances and other home goods from the stores (If I need a computer chair, I'm more likely to go to Office Depot or Staples to buy one, not Best Buy.)

One problem that brick and mortal retailers are having these days is that people are more and more going into their stores to window shop before buying that item from an online retailer since these online retailers can typically trump the local pricing due to lower operating costs.

I think that unless they make the necessary changes to improve their revenues, they could be like Blockbuster and see a large number of locations shuttered and be more of an online and kiosk-based retailer.


User currently offlinePSA53 From United States of America, joined Aug 2003, 3089 posts, RR: 4
Reply 6, posted (2 years 7 months 4 weeks 22 hours ago) and read 2007 times:

Quoting boeingfever777 (Thread starter):
hey closed all China stores (including their flagship in Shanghai)

Actually,BB is re-marketing China.Under the BB name and merchandising was in fact a failure, but have changed strategies and name.

In the USA,BB closing big stores are a smart move.Retail warehouses are always big losers with so much inventory spent and with the electronic industry changing so fast,especially cellular,go discontinued after only a short time and have to be discounted to blow out.

BB intends to open smaller RadioShack type stores,mostly cellular stores,to better control inventory.

All of this news is not new news.About six months,CNBC had a program on BB which signal challenging changing times for BB.

What was presented on this program was "new" customer that could zap the scan label and compare with other retailers almost on the spot.



Tuesday's Off! Do not disturb.
User currently offlinewagz From United States of America, joined Mar 2003, 516 posts, RR: 15
Reply 7, posted (2 years 7 months 4 weeks 21 hours ago) and read 1962 times:
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I agree with pretty much said here. Recently Best Buy lost my business to Amazon, and not for lack of trying. It seems that lately their inventory and price point is uncompetitive to Amazon. I was looking to buy the complete Battlestar Galactica series on Bluray (new one, not that 1970s version). I remembered seeing it available in my local BB stores in the past. Checking BB's website they wanted more for it than Amazon, but I had some BB gift cards lying around from Christmas and the convenience of "having it right now" made it worthwhile over waiting for Amazon to ship it to me. So I check store inventory on the BB website and find none around me have it (and being in the PHL area there are a dozen or more to choose from). Chalking that up to inaccurate website info (which I've come across frequently) I head to my local BB and not only find they don't have the box set I'm looking for, but their Bluray department overall is pitiful. It consisted of mostly new releases and not much else - definitely much smaller than it used to be. To confound me even more, the very same box set is sitting on the shelf in DVD, but when you have a Bluray player who wants to bother with DVDs. So off to Amazon it was and wait 4 days or so to get it via UPS.

I don't know about most consumers, but I like buying things at BB because I can have an item now. Maybe I'm impatient but if I decide I want something, I want to go drive 5 minutes to the store and get it. Even if means paying slightly more at the brick and mortar store I can justify it by getting my item immediately. With Amazon or any other online retailer (even BB's online ordering) I can probably get UPS ground shipping for free, but I have to wait several days. Overnight shipping can at least reduce my wait to 24 hours but there goes the price advantage of Amazon. Maybe the market for some things is small so they don't stock them, but when your inventory sucks you lose that one edge you have over Amazon with people like me and I've got to imagine there's quite a few people that are as impatient as I am.

I really don't know why BB is selling appliances any more. I look at their rows of refrigerators and washers and see no one even browsing the department. I looked at the car audio department with a friend recently just to see if anything was different now (we both had BB install head units and speakers over 10 years ago). It was still the same tacky flashing over-the-top LCD screen head units that can't compare to anything built standard in to a car within the last 5 or more years.



I think Big Foot is blurry, Its not the photographers fault. Theres a large out of focus monster roaming the countryside
User currently offlineltbewr From United States of America, joined Jan 2004, 13169 posts, RR: 15
Reply 8, posted (2 years 7 months 4 weeks 20 hours ago) and read 1914 times:

Most likely, the 50 stores they are closing are in areas where other branches are close by, in areas where the economy will not recover in the foreseeable future, where the lease rates are too high, are not negotiable or where they can get out of them easily. This is a smart move but they will have to do more to stay competitive. Already they have reduced opening hours at some stores, reducing some items on display but they need to do more:

Ditch car sound systems lines, Music CD's and DVD's - all dying businesses.

Get out of small appliances and 'white goods' home appliances. People who want small appliances will usually go to Walmart/Target/online and for home appliances at Sears, Home Depot, etc.

Reduce the numbers of brands and different products they carry within major lines like computers and TV's.

Reduce the size of the stores as lines are ditched or narrowed. That would reduce costs.

Lower the prices on accessories and extended service contracts. Sure that TV for $399 is a good deal, but an HDMI cable for 2-3 times more than Walmart does is not a good deal.

Open up smaller 'express' stores of maybe 5000 sq ft or less to carry the most popular items in stock, or where can order online or at these stores for pick up at them in a 1-3 days. The items would be shipped from regional warehouses to stores at no added costs. For some customers that means delivery to a secure place instead to your home when not home from an online retailer.

Don't sell what you don't have or advertise. BB lost a lot of customers last Christmas by badly overselling certain products at cheap prices then couldn't deliver.

Put in some non-sales information SERVICE staff in-store centers. Think of the 'genius bar' at Apple stores, or 'knowledge bar' like at the Micro Center computer stores where people can get decent info promptly. That will also help you get the non-geek customers that stores tend to attract.

Get out of the 'door-buster' price selling model, especially on 'Black Friday' or just to get suckers into your store with a tiny amounts of items at that price (ie: 'only 5 per store" and 100's on line expecting to be among those 5).

Make sure you can find the price on a product on the shelf, put in some bar code readers for shelf products.


User currently offlineFlytravel From United States of America, joined Dec 2009, 873 posts, RR: 0
Reply 9, posted (2 years 7 months 4 weeks 19 hours ago) and read 1862 times:

In my area, we lost Circuit City but gained hhgregg and pc richard and son. While these two dont have the size of Best Buy, they can be more competitive to Best Buy than Circuit City was in areas like new tv sales. Anyways I agree with what others have said. I also think Best Buy should look at Staples that has a more hassle free environment, more knowledgeable sales people,and is more friendly to small business and office customers who need tech products. Staples stores open at 8 whereas Best Buy is 10 which for many is late after when a typical work day begins.

User currently offlineboeingfever777 From United States of America, joined Jul 2009, 409 posts, RR: 53
Reply 10, posted (2 years 7 months 4 weeks 17 hours ago) and read 1803 times:

Quoting DesertJets (Reply 4):
Best Buy is in trouble for sure. It is a problem when BB is the in-person showroom for Amazon, Newegg, eBay, etc....

Too true.

Quoting srbmod (Reply 5):
I'd hardly call the closing of 50 US big box locations a sign that Best Buy is bankrupt, as 50 stores is nothing when you factor in the company has 1450 stores nationally.

They do not have 1,450 stores... best buy branded, maybe 900, total around 1,100.

Quoting srbmod (Reply 5):
You could probably cut the size of the stores by at least a third by eliminating the appliances and other home goods from the stores

Appliances has been downgraded so much in the last 2-3yrs it takes up hardly any floor space. Appliances yield big margin, tis why they are staying in that market.

Quoting PSA53 (Reply 6):
Actually,BB is re-marketing China.Under the BB name and merchandising was in fact a failure, but have changed strategies and name.

Best Buy brand in PRC is dead ok, it still exists under five star appliance which the company purchased backed in 2006.



In all reality Brain Dunn, has sunk the company.



Faire du ciel le plus bel endroit de la terre.
User currently offlineDocLightning From United States of America, joined Nov 2005, 20194 posts, RR: 59
Reply 11, posted (2 years 7 months 4 weeks 17 hours ago) and read 1791 times:

Quoting DesertJets (Reply 4):

Best Buy is in trouble for sure. It is a problem when BB is the in-person showroom for Amazon, Newegg, eBay, etc....

And BB.com, though... Sometimes the online price is cheaper than the in-store price. And you can pick it up at the store you're standing in.

It is a challenging time for brick-and-mortar stores, to be sure. They do have an edge on customer service, but when you are competing against customers with smartphones...


User currently offlinegeezer From United States of America, joined Aug 2010, 1479 posts, RR: 2
Reply 12, posted (2 years 7 months 4 weeks 17 hours ago) and read 1788 times:

What a coincidence this thread should come out today ! Last November, we spent several days in northern Illinois, visiting family during the Thanksgiving holiday; on the way back to west central Indiana, we travel Interstate 74 through Champaign, Illinois, (which is a big college town). As I had spilled coffee on my Mac keyboard before we left home, I decided to jump off the Interstate and see if I could find a Best Buy Store in Champaign; What luck ! Right off the exit sits the first (and only) Best Buy Hyper Store I've ever been in; to my surprise, they even sold Apple Computers; I bought a new keyboard, and also a new Kindle "Fire" and a Verizon "Hot Spot" to support it. That store was HUGE ! And stuff was flying out of there like crazy; I couldn't believe how busy the place was !

Then, maybe a week later, we were in Terre Haute one day, ( which is the only city of any size near where we live, without driving 65 miles to Indianapolis). Anyway, I knew there had been a Best Buy Store open up on the main drag in TH, so we decided to stop in, just to "look it over"; (this is within a week or two of seeing that gigantic "Hyper Store" in Champaign.)

The only similarity between the two stores was the "Best Buy" name on the front ! And it's really not that it's "dinky" (even though it's 10 times smaller than the bigger one; the "killer" was, you could have gone to any grade school and found 10 year olds who knew more about the kind of stuff Best Buy is known for; Their total inventory wasn't much bigger or better than the average Wal-Mart Super Store, and there was absolutely NO ONE who knew anything about anything ! No Apple stuff, No Kindles, no anything ! We left shaking our heads after about 10 minutes;

Then, 2 days ago, I made two trips to the Apple Store in Indianapolis, and brought home a new iMac; the first thing I need to do is transfer about 100 GB of "stuff" out of this old iMac, into the new one; I "assumed" i had USB cables "lying around".........(that was my first mistake ! ) So today, we had to visit the lab at the hospital in TH, and I thought......I'll just stop by that Best Buy Store and grab the necessary cable; ( that was mistake No. 2 ) The people at Best Buy wouldn't know the difference between a USB cable, a firewire cable, or an "extension cord" for a table lamp !

Thia all happened mere hours before I got home and read this thread ! If the Best Buy Store in Terre Haute is one of the stores that are staying open, all I can say is, Best Buy is DOOMED ! And this place just opened last fall, or late summer; it's not a brand new building, but they did a major make-over on a very nice existing building; it's in a superb location..........but their inventory was pitiful, and the 3 or 4 people I spoke with must have just "come over" from Wendy's or Taco Bell ! Absolutely NO customers in the place..........Arlene is terrible about losing her styluses for her Kindle; I thought, "surely we can find a damned stylus cheaper than the place across the hallway from the Apple Store in Indy" ( They wanted $20 for theirs ) Best Buy had exactly 1 stylus.........for $22 !

Everyone is talking about all the reasons Best Buy may be about to "become part of history" in the not too distant future;
I see very little happening in retailing just now that looks very "bright"; you want to know what the cleverest thing anyone has come up with in recent memory to "sell lots of stuff" ? A year ago, I thought "e readers" were just the latest "trendy gadget" for the "younger set"; and then Amazon came out with their Kindle Fire; anyone have any idea how many Kindle Fires have already been sold, just since last November ? Hey.........the Fire is a LOT more than just another gadget to read online books; it's a DIRECT pipeline to the biggest inventory of EVERYTHING on planet Earth........Amazon.com. In the next 5 to 10 years, Jeff Bezos (can't even spell his name right !) is gonna have more $$$$$$$$$ than Bill Gates, Warren Buffett, George Soros, and the IRS, all put together ! You don't even need a $1000 computer any more to buy ANYTHING from Amazon; all you need is a $100 little "gadget"....(which is also very nice for reading books in bed, on planes, in a coal mine, or anyplace else where the light is terrible.!) And it's gonna drum up more business for Amazon than all the sleazy advertising on TV put together ! (BTW........ever see an add on TV for Amazon ? )

Charley



Stupidity: Doing the same thing over and over and over again and expecting a different result; Albert Einstein
User currently offlinezippyjet From United States of America, joined Sep 2001, 5501 posts, RR: 13
Reply 13, posted (2 years 7 months 4 weeks 16 hours ago) and read 1779 times:

Sad about Best Buy. Chances are if they tank they'll come back with a different name. I understand H.R. Gregg or whatever their name is, is the remake of Circuit City. While we are at it here are some of my predictions for companies that will go belly up or at least bankrupt within the next five years. In no particular order:
  • Superfresh and Acme Markets: Both are pricey and old school and not in step with the leaders of the grocery industry.
  • Sadly, if the Angelos scoundrals (family) continue meddling in the affairs of the baseball team and not letting the pros do the job our Orioles will be a contender for a major league franchise/team kicking the bucket.
  • The United States Post Office
  • Sprint
  • AOL
  • NBC (TV Network)
  • PBS
  • Chillys
  • State of Maryland
  • Cities of Detroit, Camden, NJ, Newark, NJ. San Juan, PR
  • Amtrak


Many of the above business, government agencies, municipalities tend to be out of touch and not keeping up with the times and cut corners, some have poor mismanagement and others have corruption. Believe it or not, I feel most of the major airlines will be at least stable during the next five to 10 years. There could be continued pain and sacrifice in our industry but, hopefully we can overcome and eventually thrive once again.



I'm Zippyjet & I approve of this message!
User currently offlinestasisLAX From United States of America, joined Jul 2007, 3286 posts, RR: 6
Reply 14, posted (2 years 7 months 4 weeks 16 hours ago) and read 1767 times:

Quoting zippyjet (Reply 13):
While we are at it here are some of my predictions for companies that will go belly up or at least bankrupt within the next five years.

I would also add T-Mobile (USA) to that dead pool, along with the Smart car - and perhaps QANTAS and Air Tahiti Nui, plus god-knows-how-many brick-and-mortor retailers, probably starting with Sears and K-Mart.



"Those who would give up essential liberty to purchase temporary safety deserve neither liberty nor safety!" B.Franklin
User currently offlinetype-rated From , joined Dec 1969, posts, RR:
Reply 15, posted (2 years 7 months 4 weeks 14 hours ago) and read 1731 times:

Amtrak seems to always have lost money since 1971, but somehow they survive on government subsidies.

AOL? Does anybody except newbies still use it?

I've only been in a BB a few times, but never have bought anything there. They didn't seem to carry the stuff I wanted or if they did it was priced higher than other places I could buy it at.

I imagine with the smaller stores, they'll drop some brand names that aren't highly profitable and drop some models of the brand names they'll keep. This means less choice for the customer, driving them to other retailers.

I think they are just "right sizing" their stores.

As for appliances, we usually buy from local retailers. They carry a large number of brand names and if they don't have the model in stock you want, they'll order it for you. And I found that their prices sometimes are lower than the big box stores are.
I also find customer service to be better too. For the last three items we bought (TV, stove & refrigerator) they were the cheapest and also had 36 month interest free financing too.


User currently offlinesrbmod From , joined Dec 1969, posts, RR:
Reply 16, posted (2 years 7 months 4 weeks 11 hours ago) and read 1703 times:

Quoting boeingfever777 (Reply 10):
They do not have 1,450 stores... best buy branded, maybe 900, total around 1,100.

From the article you linked to:

Quote:
Best Buy, which has 1,450 locations nationwide and 2,900 globally, is focusing on closing some of its hulking stores to concentrate on smaller Best Buy Mobile outlets because of two emerging trends. Sales of TVs, digital cameras and videogame consoles have weakened, while sales of tablet computers, smartphones and e-readers have increased. And with the rise of competition from Internet rivals like Amazon.com, shoppers aren't flocking to big-box stores like they used to.
Quoting boeingfever777 (Reply 10):
Appliances has been downgraded so much in the last 2-3yrs it takes up hardly any floor space. Appliances yield big margin, tis why they are staying in that market.

Not the case at the Best Buy location by my house. The appliance section is still the same size it was went they moved into their current location several years ago.


User currently offlinefxramper From United States of America, joined Dec 2005, 7319 posts, RR: 85
Reply 17, posted (2 years 7 months 4 weeks 8 hours ago) and read 1652 times:
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I have $400 in BB reward zone gift certificates and haven't used them because I can't find a good reason to drive to my local BB. Sad...

Quoting srbmod (Reply 16):
From the article you linked to:

Don't believe everything you read. He did work there almost 10 years.

Quoting srbmod (Reply 16):
Not the case at the Best Buy location by my house. The appliance section is still the same size it was went they moved into their current location several years ago.

My BB has dumped all appliances. There is some east coast chain that rivals BB but is a lot more into appliances than computers. Good on the Mom and Pop store running the big guy into the ground.


User currently offlinethreeifbyair From United States of America, joined Aug 2007, 703 posts, RR: 1
Reply 18, posted (2 years 7 months 4 weeks 5 hours ago) and read 1590 times:

Quoting ltbewr (Reply 8):
Open up smaller 'express' stores of maybe 5000 sq ft or less to carry the most popular items in stock, or where can order online or at these stores for pick up at them in a 1-3 days. The items would be shipped from regional warehouses to stores at no added costs. For some customers that means delivery to a secure place instead to your home when not home from an online retailer.

  

I actually bought my TV from RadioShack (unbelievable, I know, but my local store had a good Super Bowl deal) because I didn't want the hassle of delivery. My dad had to return a TV he ordered online after it arrived with a crack in the plastic case. Although the return was free, it took another 2 weeks to get the replacement. I didn't want to deal with that.

For smaller/less fragile electronics, though, I always look online first. Living in WA, I've always had to pay sales tax on Amazon purchases, so the retail stores are somewhat more competitive on price.

I'm just amazed that Amazon can make money shipping lawn mowers, plasma TVs, and other huge stuff.


User currently offlinewindy95 From United States of America, joined Dec 2008, 2744 posts, RR: 8
Reply 19, posted (2 years 7 months 4 weeks ago) and read 1517 times:

Best buy is a dead man walking. Like staples and other same type stores the big box stores along with the Internet will push these types of companies out of business. They would have to drastically change their business model to compete.


OMG-Obama Must Go
User currently offlineER757 From Cayman Islands, joined May 2005, 2588 posts, RR: 7
Reply 20, posted (2 years 7 months 3 weeks 6 days 22 hours ago) and read 1487 times:

Quoting srbmod (Reply 5):
One problem that brick and mortal retailers are having these days is that people are more and more going into their stores to window shop before buying that item from an online retailer since these online retailers can typically trump the local pricing due to lower operating costs.

That's very true, it did in the big bookstore chains (Borders, Barnes and Noble) too. What's the solution I wonder? It's awfully hard to decide what brand of TV or speakers to buy unless you see and hear them in person. So when all the brick and mortar stores go belly up, what then?


User currently offlineKen777 From United States of America, joined Mar 2004, 8419 posts, RR: 9
Reply 21, posted (2 years 7 months 3 weeks 6 days 4 hours ago) and read 1402 times:

Quoting Braniff747SP (Reply 3):
The problem is that the market is changing; one can buy things online, cheaper, no tax, and quick shipping.

I can remember back in the 90s when people were talking about how important it was to protect the "infant internet companies". Sales tax avoidance was the primary focus of this support of this "infant" industry.

Today we find a situation where brick & mortar companies are getting the shaft because the internet companies like Amazon are the powerhouses. There is a need to take another look at all the special benefits given to the internet companies and bring some balance back to the market.

That means the sales tax issues need to be reviewed. The retailers need it. So do local governments who need that funding

Quoting PSA53 (Reply 6):
BB intends to open smaller RadioShack type stores,mostly cellular stores,to better control inventory.

BB started off as a smaller store - I can remember the one in Ft Collins CO many years ago that was a smaller store.

In terms of inventory control, there is far too much computer power (retail systems included) available to retailers today that there is no excuse for slack inventory control. If a product is selling well you reorder it. If it is selling well in only a few locations you order it from your other stores - transfer products before markdowns.

BB has a lot of stores, has (like other retailers) been working through the Great Recession and has also experienced some major changes in their electronics areas. I hope they do well.


User currently offlinedfwrevolution From United States of America, joined Jan 2010, 997 posts, RR: 51
Reply 22, posted (2 years 7 months 3 weeks 6 days 3 hours ago) and read 1388 times:

Quoting boeingfever777 (Thread starter):
Makes sense to me... They closed all China stores (including their flagship in Shanghai) all their stores in the UK and Turkey. Makes sense they will be gone in 3-4 yrs due to the internet pricing they are up against.

Such is the nature of commerce. Established players have been rapidly displaced by new market channels going back 100 years to the Sears Roebuck catalog. Frankly, I rarely even see the need to go "window shop" before making an online purchase. Reviews are usually very accurate and return policies are flexible enough that I can just send it back if I don't like what I bought.

Quoting Ken777 (Reply 21):
That means the sales tax issues need to be reviewed. The retailers need it. So do local governments who need that funding

Local governments shouldn't be taxing economic transactions which do not burden local resources. If I'm downloading an iTunes track that is delivered electronically over a private network, my city has no legitimate claim to tax me other than "because." Even for physical merchandise, locals are getting their take from gas and property taxes.


User currently offlineKen777 From United States of America, joined Mar 2004, 8419 posts, RR: 9
Reply 23, posted (2 years 7 months 3 weeks 5 days 23 hours ago) and read 1352 times:

Quoting dfwrevolution (Reply 22):
Local governments shouldn't be taxing economic transactions which do not burden local resources.

Generally sales taxes on the internet are limited to the states where the company has an in-state physical store. Over the generations the sales taxes developed into core soured of revenues for cities, counties & states. Then the internet came along and the desire to protect their infancy was a strong argument for these infant companies. Now companies like Amazon cannot be called infants any more. If there is not a return to traditional tax flows then we will see more and more losses to our communities.

Education is a prime target, but also police, fire, roads, sewers, etc are impacted.

We don't need to be in a mad dash to be a third world country. And that appears to be one of the goals for those who don't want to pay taxes. Pity.


User currently offlineMir From United States of America, joined Jan 2004, 21795 posts, RR: 55
Reply 24, posted (2 years 7 months 3 weeks 5 days 23 hours ago) and read 1341 times:

Quoting DocLightning (Reply 11):
It is a challenging time for brick-and-mortar stores, to be sure. They do have an edge on customer service

Not at Best Buy they don't. I'd argue that that's why they're losing so much business to online retailers - they're not taking advantage of one of the two areas in which they have the potential to be better (the other being the fact that you can go to a store and have something right then and there, rather than wait for it to be delivered). The Best Buy help staff isn't very helpful - not their fault, it's the fault of the corporate policy.

-Mir



7 billion, one nation, imagination...it's a beautiful day
User currently offlineDeltAirlines From United States of America, joined May 1999, 8912 posts, RR: 12
Reply 25, posted (2 years 7 months 3 weeks 5 days 23 hours ago) and read 1373 times:

Quoting boeingfever777 (Reply 10):


In all reality Brain Dunn, has sunk the company.

Pretty much my thoughts (I worked at Best Buy Corporate for 2.5 years prior to taking a job at a major US Airline's corporate office just under a year ago).

Too much of the focus of the company has been from the retail side. I worked at inventory, and if we didn't have 8-10 weeks of stock in a store, retail would throw a huge fit about needing product. Truth is, the carrying costs for that just simply didn't make sense for a lot of items that were high-volume; you could easily handle about 2-3 weeks of stock in the store and reduce costs significantly. However, more often than not, retail would win over corporate and the senior management would side with retail (since a large number of them worked their way up from field positions).

This battle of field vs corporate is not uncommon at any major company, but at Best Buy it was very acute.

Not to mention many of the comments about media space still taking up a ton of floor space but not being overly profitable. All very true - making a buck off each DVD or CD sold (as numbers decline) isn't going to help the bottom line significantly. It was refreshing to see the line about the Magnolia Design Centers and Pac Sales expanding, as those are profitable - with the caveat of if it over-expands (which I tend to think it will), it won't be - not all markets have a need for an ultra-high end home theater/kitchen-appliance section - it works in the markets they are in right now (targeted at very high income areas), but as you move into a more middle class section, it likely will start to erode significantly. That being said, there are markets that can support these stores in limited fashions; however, a market like Boston might need only three of these stores; not ten.

I'd be shocked if more store closings didn't happen over the next few years as leases expire. With the advent of things such as Amazon Prime, big box retailers in that space are going to need to be even more nimble than they have to be today.


User currently offlinezippyjet From United States of America, joined Sep 2001, 5501 posts, RR: 13
Reply 26, posted (2 years 7 months 3 weeks 5 days 15 hours ago) and read 1308 times:

I'm dating myself but I remember when the big department stores (Macy's, Burdines, Hecht Co.) sold TV's and other electronics. My how times have changed. As mentioned it would be hard to have no brick and mortar electronics stores. Because most shoppers including myself want to have face time with the prospective goodies. (sound quality of speakers, TV picture quality etc.) If Sears and K-Mart croak this may enable Best Buy to hang on. There's still that segment of the population that wants knowledgeable sales people. That's kind of difficult in your run of the mill Wal Mart or Tarjey (Target).


I'm Zippyjet & I approve of this message!
User currently offlineKen777 From United States of America, joined Mar 2004, 8419 posts, RR: 9
Reply 27, posted (2 years 7 months 3 weeks 4 days 19 hours ago) and read 1219 times:

Quoting DeltAirlines (Reply 25):
if we didn't have 8-10 weeks of stock in a store, retail would throw a huge fit about needing product.

10 Weeks of inventory allows you to turn your stock 5 times a year - which isn't that bad as long as you stay on top of slow sellers, buy from yourself first, etc.

Being too tight on inventory can result in an appearance that you don' have decent choices - not a great impression for a consumer to have.

Quoting DeltAirlines (Reply 25):
Truth is, the carrying costs for that just simply didn't make sense for a lot of items that were high-volume;

It depends on what inventory you are carrying, and what the terms are. Traditionally a large retailer could get some pretty good deals, including getting stock on a rubber band, longer payment times. volume discounts, etc. I would find it hard to believe that BB doesn't have some of the best deals around with suppliers.

Quoting DeltAirlines (Reply 25):
you could easily handle about 2-3 weeks of stock in the store and reduce costs significantly.

Keep your presentation sufficient to meet customer expectations. When you start "looking" inventory poor you get consumers starting to worry about buying from you.

And, as BB discovered at Christmas, you can't sell what you don't have.

Quoting DeltAirlines (Reply 25):
However, more often than not, retail would win over corporate and the senior management would side with retail

Not a bad situation IMO. During my years in retailing I found that the bean counters could hurt sales (and resulting profits) simply because they didn't spend the time on the floor, or buying offices, or customer support.

Quoting DeltAirlines (Reply 25):
All very true - making a buck off each DVD or CD sold (as numbers decline) isn't going to help the bottom line significantly.

Companies like BB use DVDs and CDs as a pull for customers. I don't know how many times I've looked at the weekly DVD "bargains" and went to the store. Not much profit in it for BB, but it did make me a BB customer so when I was looking at other higher cost products I go there. Went in last week to get a 1 Tb portable drive for backing up some files. I've also spent my money there when I have bought new digital cameras, DVD players, etc. because I'm comfortable going into BB. That is where the low dollar margin media sales work for BB.


User currently offlineCadet985 From United States of America, joined Mar 2002, 1639 posts, RR: 4
Reply 28, posted (2 years 7 months 3 weeks 4 days 16 hours ago) and read 1166 times:

Quoting zippyjet (Reply 26):
Because most shoppers including myself want to have face time with the prospective goodies.

You're exactly right. I can go online and look at prices on something like a laptop, but you can't feel it, touch it, try it out, talk to a salesperson about it. That's one thing I like about Best Buy as compared to HH Gregg or PC Richard and son...both of which have fairly recently come into the Philadelphia area. The salespeople at BB don't work on a commission, meaning that I'm getting honest information on a product and not steered towards the most expensive one. As others have mentioned, I like brick and mortar stores because I can pick something out today and take it home today. You can't do that online.

Here's another thing with online shopping. I can't speak for other countries, but here in the States, a lot of times, UPS does not require a signature upon delivery...meaning they'll just leave a package at my door - often times without even ringing the bell. So...someone can see a box at my door that says HP, Toshiba, etc., take it, and there's no proof that it was delivered, other then the tracking number. They can't prove whether or not I actually received it. Now...when I bought this laptop I'm on now...it was put on a credit card, photo ID had to be shown, and BB's assets protection requested receipt and ID before exiting the store. I'd rather look at an item online, and then go to a store and compare it to similar products.

Marc


User currently offlinestasisLAX From United States of America, joined Jul 2007, 3286 posts, RR: 6
Reply 29, posted (2 years 7 months 3 weeks 4 days 15 hours ago) and read 1159 times:

Quoting Cadet985 (Reply 28):
Here's another thing with online shopping. I can't speak for other countries, but here in the States, a lot of times, UPS does not require a signature upon delivery...meaning they'll just leave a package at my door - often times without even ringing the bell. So...someone can see a box at my door that says HP, Toshiba, etc., take it, and there's no proof that it was delivered, other then the tracking number. They can't prove whether or not I actually received it.

You can request an adult signature for delivery on some websites - and I have simply added an address line to the shipping address or in the delivery notes section "NO DR - CONSIGNEE SIGNATURE ONLY" which means no driver release (DR) of an unattented package. I've found that my UPS and FEDEX delivery drivers here in Phoenix will follow those instructions on a shipment.



"Those who would give up essential liberty to purchase temporary safety deserve neither liberty nor safety!" B.Franklin
User currently offlineCadet985 From United States of America, joined Mar 2002, 1639 posts, RR: 4
Reply 30, posted (2 years 7 months 3 weeks 4 days 14 hours ago) and read 1145 times:

Quoting stasisLAX (Reply 29):
You can request an adult signature for delivery on some websites - and I have simply added an address line to the shipping address or in the delivery notes section "NO DR - CONSIGNEE SIGNATURE ONLY" which means no driver release (DR) of an unattented package. I've found that my UPS and FEDEX delivery drivers here in Phoenix will follow those instructions on a shipment.

I've never heard of that, but I'll have to try that the next time I have a decent order with Amazon. It drives me nuts that they'll leave a Kindle (which comes in a box saying what it is) on my doorstep with no signature required. That doesn't make much business sense to me.


User currently onlinemax999 From United States of America, joined Dec 2005, 1077 posts, RR: 0
Reply 31, posted (2 years 7 months 3 weeks 3 days 5 hours ago) and read 1025 times:

Quoting Ken777 (Reply 23):
Generally sales taxes on the internet are limited to the states where the company has an in-state physical store. Over the generations the sales taxes developed into core soured of revenues for cities, counties & states. Then the internet came along and the desire to protect their infancy was a strong argument for these infant companies. Now companies like Amazon cannot be called infants any more. If there is not a return to traditional tax flows then we will see more and more losses to our communities.

Education is a prime target, but also police, fire, roads, sewers, etc are impacted.

We don't need to be in a mad dash to be a third world country. And that appears to be one of the goals for those who don't want to pay taxes. Pity.

With the promience of e-commerce nowadays, it's time for communities to start thinking about a shift away from sales tax to pay for services. I prefer income taxes and property taxes as that is more progressive than a regressive sales tax.

For example, my dad is retired and lives in Seattle. The sales tax there is an exceptionally high 9.5%, which is even more than the city with the highest cost of living in the country - NYC (where I live). I believe the Seattle sales tax is so high to make up for the lack of income tax in Washington state. For a retired person, he's penalized by the high sales tax because he makes no income (other than social security)...while someone who is working enjoys the benefits of having no income tax. Of course, this is the same for anyone in Seattle who makes no income.



All the things I really like to do are either immoral, illegal, or fattening.
User currently offlinePPVRA From Brazil, joined Nov 2004, 8971 posts, RR: 39
Reply 32, posted (2 years 7 months 3 weeks 3 days 4 hours ago) and read 1016 times:

Quoting max999 (Reply 31):
while someone who is working enjoys the benefits of having no income tax

Like saving for retirement, so he doesn't need to rely on social security.

Or, he spends it all, gets hit with a 9.5% sales tax (= to a 9.5% income tax with ZERO deductions), which helps support your "community".

This is the flip side. And while there is no clear cut obvious answer, at least this way the savers are benefitted while the spenders - those who "enjoy" their income-tax free wealth - are paying more. Far more progressive and logical, if you ask me.

[Edited 2012-04-03 09:54:07]


"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently onlinemax999 From United States of America, joined Dec 2005, 1077 posts, RR: 0
Reply 33, posted (2 years 7 months 3 weeks 3 days 4 hours ago) and read 1005 times:

Quoting PPVRA (Reply 32):
Like saving for retirement, so he doesn't need to rely on social security.

Or, he spends it all, gets hit with a 9.5% sales tax (= to a 9.5% income tax with ZERO deductions), which helps support your "community".

This is the flip side. And while there is no clear cut obvious answer, at least this way the savers are benefitted while the spenders - those who "enjoy" their income-tax free wealth - are paying more. Far more progressive and logical, if you ask me.

Unfortunately, our family was down on our luck when I was growing up so my dad has very little savings now. Spending wildly, as you suggested, is not an option.

I think the vast majority of people on fixed income or have no income would agree that they must watch their spending carefully. Having such a high sales tax makes them think doubly hard about how they spend. So I don't agree that having a high, regressive sales tax is helpful.



All the things I really like to do are either immoral, illegal, or fattening.
User currently offlinePPVRA From Brazil, joined Nov 2004, 8971 posts, RR: 39
Reply 34, posted (2 years 7 months 3 weeks 3 days 4 hours ago) and read 988 times:

Quoting max999 (Reply 33):
So I don't agree that having a high, regressive sales tax is helpful.

I am aware that it's painful, I just think it's better than the alternative. Those on low income get several breaks to assist them, like on food and drugs which makes a big portion of their spending, and they get more tax benefit than they are liable for overall (even in a sales tax only environment). Then, there are also luxury taxes that the poor don't pay. Looking at all these things together rather than isolating them yields a fairly progressive picture.



"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlineslider From United States of America, joined Feb 2004, 6912 posts, RR: 34
Reply 35, posted (2 years 7 months 3 weeks 3 days 4 hours ago) and read 987 times:

Best Buy is becoming this century's version of the big box buggy whip.

For the slew of reasons already enumerated above and others. Unless I need something right now, I wouldn't overpay for some lousy HDMI cable, most stuff is going digital/downloadable, and they NEVER have been able to capture the "early adopter" market by carrying cutting edge stuff.

Best Buy plays in the middle of the road and they're going to make tehmselves obsolete by the very strategy they thought was the best one...irony.

Throw in the fact that the economy is ass, most people have switched to flat screen HDTVs already, and that their services, warranty protection has sucked, and that they prey on the foolish uneducated with their Geek Squad crap (charging people virus screening using a FREE online site I might add), and it all adds up to them circling the drain totally.

And if that DirecTV guy approaches me again, I'm tempted to punch him in the shnozz.


User currently offlinePPVRA From Brazil, joined Nov 2004, 8971 posts, RR: 39
Reply 36, posted (2 years 7 months 3 weeks 3 days 4 hours ago) and read 986 times:

Quoting max999 (Reply 33):
So I don't agree that having a high, regressive sales tax is helpful.

I am aware that it's painful, I just think it's better than the alternative. Those on low income get several breaks to assist them, like on food and drugs which makes a big portion of their spending, and they get more tax benefit than they are liable for overall (even in a sales tax only environment). Then, there are also luxury taxes that the poor don't pay. Looking at all these things together rather than isolating them yields a fairly progressive picture.



"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlineKen777 From United States of America, joined Mar 2004, 8419 posts, RR: 9
Reply 37, posted (2 years 7 months 3 weeks 3 days ago) and read 928 times:

Quoting max999 (Reply 31):
With the promience of e-commerce nowadays, it's time for communities to start thinking about a shift away from sales tax to pay for services.

Or maybe we can include internet companies in sales tax collection. Their original excuse of being in infancy is no longer valid and it isn't that difficult for the companies to collect the appropriate amount on sales, and to pay the localities the funds due. This actually should be strongly supported by conservatives as local governments need funding if the federal government is to "shrink" - which means cutting funding to local & state levels.


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