You know +Best Buy has been hurting financially. And here is a little comparison I put together to illustrate the root of the problem.

This Sanus mount is for the Sharp 80" TV I purchased. At Best Buy it's $279.99. At +Amazon.com, not only is the price $152.49 - a whopping $127.50 cheaper - but even the SUGGESTED RETAIL PRICE is only $229!

I know, some of you are thinking... that must be a typo or something. NO! Head over to Sanus' website and you'll see that even they will sell it to you for $249. Direct!!!

That sums up the whole problem with Best Buy. I used to spend $10k+ per year with them, now they are my absolute last resort and only when I'm desperate.

- Their prices aren't even close to living up to the company name.
- They hassle you to buy extended warranties like crazy.
- Their employees are no more knowledgable than the general public.

It seems to me that the Best Buy tactic nowadays is to get people in the door with a coupon, sell them a major product at roughly the same price as they'd get anywhere else (or maybe a little more), and then tag you with vastly overpriced accessories and warranties.

Anyone disagree? ANYONE?!? +Best Buy???
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61 comments
 
Ever read my post I made about them not able to provide things I paid for. And the drama that happened trying to get a refund?
 
They have completely failed to adapt as their primary market went online. Now they're laggards selling early adopter technology in a retail space where very few early adopters shop any more.
 
now compare that to a monoprice solution
 
Yea I like the idea of the re-brand, Perhaps they should call them selfs, Amazon/NewEgg Show room
 
I disagr... { I couldn't do it with a straight face. Sorry, I tried. )
 
I've found the same thing John. The only stuff I purchase there anymore is DVDs & Blue Rays, release week they have pretty good prices & with Reward Zone, I get free stuff now & then. Otherwise, it’s Amazon & other on-line stores all the way...
 
But sometimes we need stuff in a pinch so we take the plunge...
 
No arguments from me. I haven't set foot in a Best Buy store in years. I mean, why would you ? It'd be faster and easier to just pull that extra money out of your wallet and light it with your Zippo....
 
+Best Buy atleast exists to provide us with laughs at how badly they can run a business in an information economy. It stops being funny once you remember that people who don't know better suffer for it though...
 
I used to refer to Best Buy as the Holy Land. Now they never even cross my mind. I have Amazon Prime and have shopped monoprice and newegg for years.
 
I actually encountered some pretty knowledgeable people one night last week looking at a new TV. Of course, I went online and discovered the exact same tv was $400 cheaper on Amazon, so guess who got my money?
 
My Misadventure of +Bestbuy.

My work gave me an amazing gift of an Ipod Touch 32 gigs, and it could not have come at a better time. I was going to use the credit to buy a few parts for a new desktop I was building. I was able to purchase 3 things and used Ship to store feature on the site. I was able to get a Graphics Card, Keyboard and Mouse, and a 21.5 Inch Monitor. I got an email the same day to pick up the keyboard and mouse. and was told that I would get the screen on the first of the new year (ordered on Dec 23) I wait until the first and go to pick it up not getting an email saying its ready and was told that it was not "Picked" from some warehouse And there for never sent. HOWEVER they some how had my screen in stock it was just not in the computer system. SO GREAT! I can just pick it up and leave right? WRONG! Because the order online was in some kind of Special status It could not be canceled so I ended up having to pay cash for the screen AGAIN... And with the promises of a refund I did that. I get an email the next day saying my order can not be processed. I go back into the store to get my refund because at this point I figured its out of the "special" status. They and they where able to. I asked them if I had not picked up the screen yesterday would I have gotten that same Email. They said yes. So Quick Recap at this point.

Ordered, Wait 10 Days and told never mind.
 
well circuit city was awesome when they were in close-out mode. The prices were through the floor awesome.

I don't ever go into best buy anymore, I just use Amazon like everyone else.
 
It's really hard to compare brick/mortar Best Buy to Amazon, Monoprice, etc. With that said, +John Pozadzides is spot on. They've really gone downhill. Now most people are unaware, but Best Buy is trying out a membership-based discount store called Warehouse B (www.warehouseb.com/deals). The Cincinnati store is the only of its kind, as a pilot, but at least they are going in some kind of new direction to be competitive in cost. A few weeks ago they had 55" LG LCD 1080p TVs for $755. Outside of DVDs, I don't buy anything at the normal Best Buy store. Also - if you've ever been in an HH Gregg, the Best Buy experience is still worlds better. HH Gregg should have a special place in hell reserved for them.
 
Yep, I won't shop at Best Buy anymore.. Since Circuit City left our town Best Buy jacked their prices up 150% on most things. Look up Windows 7 at Best Buy its $199.99 vs $99.99 on Amazon.
 
Amazon will always win for the fact that they only have 10 warehouses in the US, and Best Buy has over 850 retail stores in the US, and 1150 world-wide. They survive solely on the fact that people want things now, and most are willing to pay the premium for convenience. They're gonna have to make significant cuts to lower their prices if they want to stay competitive. I wouldn't be sad (or surprised) if they went under, though.
 
+John Pozadzides I'm with you my brother. I use to be a huge #BestBuy fanboy. But their prices are too high, their coupons never apply, and if you ask them to price match Amazon they look at you as though you are trying to steal from them.

Now I only go to Best Buy to fondle the electronics before I purchase them from Amazon.
 
Best Buy is not ever a consideration for my shopping needs. Ever. In fact, I can't remember the last time I purchased anything from a brick and mortar that wasn't groceries/household related. It's far more economical to buy from Amazon via Prime.
 
This is karma, and I dont know so much about best buy as they just arrived here (feel bad for the people behind that) but future shop has always been notoriously bad at...everything. Oh, can I scam you into anything today sir?
 
I might be sad if they went under...if I'm going to spend $1,000+ on something that I will stare at everyday, I really want to see it in person and, as +Mark Barros put it, fondle it before I go order it from Amazon.
 
TV's are all they have going for them, personally I'm itching for the closeout sales, which will probably still feature worse prices than online
 
About 2 years ago my video card blew on a Friday night. I wanted to get back to gaming right away so I looked and found something that would work. Best Buy had it for $30 more than Newegg. I was willing to eat that $30 to get it first thing Saturday morning. The instore price was about another $50 higher. I had my netbook with me, so I went to the Pancake House across the street and bought it online for instore pickup while having delicious pancakes. That was a ridiculous, gouging price difference.
 
In the era of price comparison, this is a GREAT example of greed by a big box retailer. Thank you for posting this John, I hope someone over there off of Penn Ave. sits up and takes notice.
 
It's not greed - it's a matter of the fact they they have much higher costs. It costs a shit load more to run 1100+ retail stores than it does to run 10 warehouses. They both probably pay damn near the same amount for each product, but Best Buy needs a much larger profit margin to stay in business than amazon does. Like John said - they're in financial trouble despite their much higher prices. If it was purely greed, they'd be doing just fine (or they would have fixed something long before they got into financial straits.)
 
What's really crazy is the online price can be cheaper than the store price, so you can buy online for store pickup and save money. I have done this in the past (called home and had my son buy the product then went to the counter and picked it up).
 
I think part of their problem is that they saw Circuit City as their primary competition instead of Amazon. Once Circuity City went by the wayside, Best Buy got a lot worse. Like you said +John Pozadzides I used to love Best Buy but now I only go there as a last resort.

I actually tried to buy some software from their website once and it was such a bad experience, I had to write about it (https://plus.google.com/u/0/113575528370257009088/posts/hkUbQ82A6un). Did not here anything from them- sad.
 
Amazon is the shizznit! Tigerdirect has good prices but shitty customer service and the sales people just want to push antivirus software since its spiffed $5 /sale
 
I actually feel sorry for Best Buy, their main brick and mortar competition is Walmart, and lest be honest. You CAN'T compete with Walmart. If it's the same product they WILL undercut you. I've seen them sell products at a $5 loss on a $10 item just so they can get you in the store. Then once your in chances are your going to buy enough stuff to cover that sale at a loss. That's how they work their business model.

As for the online retailers, they can sell without tax in many states and sell on small margins. And to top that off they don't need people running around, making shelves neat so joe sixpack can see the item at the very front of the shelf, restocking, and pushing a sale, and pushing the extended warranty on a product that can't have it. None of that, just a warehouse that's probably 2/3rds automated.
 
In other news, the sky is blue and water is wet.
 
Last time I went to best buy all the associate could do was offer absolutely zero help with what I was looking for and try to sell me on a cable and internet plan. Best buy sucks
 
Used to shop at Service Merchandise- then it went under. Moved over to BEST, that fizzled. Off to Silo, defunct. Electric Avenue- gone. CompUSA, Circuit City- busted. The Best Buy website is great for research on item features- to buy elsewhere.
JoPa Mi
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I've hated them forever. Have been the most expensive option for as long as I can remember.
 
While I strongly prefer +Amazon.com as well, they are not with their struggles. They are still trying to figure out how to create a sustainable business.
 
Very accurate description, by the way. High prices, and unlike companies that make up for it with awesome service, we really don't benefit from it.
 
I used to work there in computers. I knew everything about computers. A friend worked in cameras. She knew everything about cameras. Another guy knew everything about car audio. Unfortunately, the way Best Buy is restructuring employees in the store, you're required to work in any department at any time. This meant I often had to sell a washer and dryer (which I know nothing about), my camera friend had to sell TV mounts, and the car audio guy would be selling a laptop because I was busy selling an oven.

Something almost every Best Buy employee will tell you is that they don't work on commission. But what they don't say is that if you don't buy a protection plan, get some sort of Geek Squad service, or sign you up for a credit card, their manager or supervisor is going to chew them out.

The best thing that Best Buy has going for them is their extremely liberal return policy. But even that gets overshadowed by Amazon. I once tried to return a cable to Amazon and they just told me to keep it and still refunded my money. How do you compete with that?
 
So true! The only good thing about Best Buy is that they occasionally have items only available there.
 
If you think that is bad cables that you can buy for $10 on Newegg go for over $50 at Best Buy. They keep the prices of the big hardware down, but totally screw you with the cost of the accessories like cables, cases, ink Cartridges etc. I don't mind a retailer taking a reasonable markup ,but 300-400% markups are ridiculous.
JoPa Mi
 
+Jenevieve DeFer Hopefully you arent an apple fan then, their markup is usually higher, on all hardware.
 
Best Buy tried to open in the UK last year with big fanfare about how cheap they were. They weren't and have now closed down business. Even their closing down sale was more expensive than Amazon for certain things
 
Best Buy bought Future Shop here in Canada and kept them open. The only difference is that the Future Shop sales people get commissions on what they sell. The coupon tactics and lousy sales people are the same. One thing I would have to point out is that returns are a lot easier with Best Buy / Future Shop.
 
I used to work for one of their competitor's and ten years ago it was not that bad with any of these retail companies. I would say it is the spreadsheet decision making in order to be competitive in the internet economy. This creates the horrible scenario you mentioned I've seen it before. Vote with your dollar. Sad as it is, this may be their time to fade away.
 
Best Buy regularly price gouges their customers. I shop them VERY carefully and only purchase there when it makes sense. I ALWAYS buy their extended warranty as well, without it, they don't want to talk to you if you have an issue. It paid off big time on a Samsung DVD player I bought and had services several times before they replaced it with a Sony under the extended warranty.
 
Nothing new here; I've noticed that with Best Buy since the day they opened their doors in my area.
 
Best Buy is very hit-and-miss on their prices. TV mounts are absolutely insane. As are their cables.
Their USB HDs are actually cheaper than Amazon (Seagate 3TB USB3 Desk)
I frequent their store here, usually for Apple accessories as they're only a few cents more than Apple and they're across the street vs a 30min one-way drive.
 
I simply print out the Amazon.com page and take it to my local Best Buy and show it to them. I've never been turned down for a Price Match. I should note, though, Since I've signed up for Amazon Prime last November, I've only stepped foot into Best Buy to either look at a specific item or to buy Blu Ray movies when they're on sale.

+Tomeka Munford that's not even a close comparison as it does nothing compared to the item in question here, save for hanging the TV. A small piece of aluminum to hang up to a 50" tv isn't the same as an adjustable tilt wall mount that holds up to an 80".

The bigger picture here is the LIST price for Amazon is still $50 cheaper than the retail price of Best Buy! Even with my annual Amazon Prime fee of $80, and the $3.99 next day shipping cost, it's still cheaper to go with Amazon!
 
Just be sure the state you called them from allows that.  Here in Missouri, both parties have to be aware and agree to you recording the call without a warrant while in Arizona, only one party has to know and agree.  Be careful.

I used to work for Best Buy and we matched prices for almost anyone other than Membership Warehouses.

What I fail to see here, David, is the trickery.  What trickery?  Are you referring to the Marketplace Vendors restriction?  That is 100% understandable as to why they will NOT price match third party vendors.

The third party vendors are those Amazon allows to sell through the Amazon site and even ship by Amazon.  The reason is, these vendors, are NOT traditional companies with traditional overhead expenses.  These are those who sell the same cable you buy at other retailers for $49.99, for $4.99.  There is no way for a big retailer to, even remotely, compete and still make money.

Understand this, Best Buy's bread and butter is accessories.  They are the highest marked up items in existence   However, they still pay a premium for premium items while third party Amazon vendors do not.  Additionally, with the third party vendor, there is a high probability the item is NOT an official product, but a Chinese knockoff.
 
They used to pay decently well and train their employees on what they were selling. Bad Management from the top and in the stores led to most of the knowledgable people leaving for other jobs. Leaving all of the people who drunk the BB coolaid and who all really knew nothing.

Their business model had always been to sell the big ticket items at or near cost and then sell you the little stuff for huge profit margins. Also selling Service plans is VERY profitable, and also helps them in the long run by giving them a way to exchange or fix stuff that is way our of Manufacture's warranty.

BB has been flailing around for the last 5-7 years to create an identity for itself, while unsuccessfully competing with online resellers like Amazon. In many states Amazon doesn't have to collect Sales tax which allows them to offer a "free" 6-10% discount over Brick and Mortar Retailers like BB. I think that BB is trying to maximize what little profit they have by understaffing their stores and not training people. This is biting them on the butt, because people go into a B&M store to not only touch product, but also to talk to someone who is expected to be more knowledgable than the customer.

I predict that BestBuy will either restructure or completely go out of business in the next 2-4 years. They can't compete with Amazon by becoming Amazon with Retail Space. People don't want that.
 
I am a former Manager of a Regional Computer chain, who after her company went out of business. Worked for Best Buy 5 years ago or so. Both in Computer Sales and then later working in Geek Squad (When Geek Squad only fixed Computers). Those are my observations of the workings of the store I worked at. Which from what I have seen on the internet was one of the Better Managed BB stores in the chain.
 
@brian thompson Best Buy marks cables up to insane amounts. I ran a computer store that allowed/ required the sales people deal on prices. So I know what we as a regional chain paid for name brand cables, and what we marked them up to. Now BB direct buys cables from their source and puts their labels on the product (ie Geek Squad, Insignia, etc). So their Cost is far less than what my little store paid for cables. Yet BB insists on charging 40 bucks for a cable that even Radio Shack charges $10 for. That's why it pays to know what things cost at other retailers, then shop your Brick and Mortar stores. I tend to favor Regional chains (not Frys) over national ones.
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