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Steven M Anthony

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Question about Best Buy
« on: September 19, 2005, 11:43:37 am »

Hi All!

My name is Steve and I work for Best Buy (corporate) in Minneapolis—in the Marketing Research area.  My role is to support store innovation.  I’ve talked with Michael and he has approved—in principle—me asking you guys some marketing-oriented questions.

I’ve viewed this board for over a year and have posted from time to time.  When I started this new job at Best Buy I suggested we tap your collective brains and experience regarding digital imaging.  

While I realize you are not likely to shop for your gear at Best Buy (and be assured I will not try to sell you anything!), your knowledge and perspective of the industry can be helpful.  It’s easy for us to get the manufacturers’ perspective on the industry—but we want to get the point-of-view of the end-user.  And while you are all probably ahead of the mass-market curve, you are also probably blazing the trail that will be the mass-market 5 years from now.

First off, I’m sure you all get questions from friends, coworkers and relatives about consumer-level camera gear.  Have you ever suggested that someone go to Best Buy for their camera needs?  Why or why not?  Please be honest and constructive!

FYI:  While I might ask you to clarify points you make in your response so I’m sure of what you mean, I won’t challenge your opinions.  The whole point here is to listen to what you have to say, and to use your opinions to help Best Buy shape their Digital Imaging offering in the future.

Thanks in advance for your help.

Steve

PS:  I'll put "Best Buy" in any topic related to the store to differentiate it from other posts I might make in my private life!
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Lisa Nikodym

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Question about Best Buy
« Reply #1 on: September 19, 2005, 12:24:21 pm »

Actually, I already think of Best Buy for camera gear, because that's where I found my last digital camera (a Nikon D70).  I wanted one at a time when my several favorite camera stores (both local and mail order) were out of stock and couldn't even say how long it would be until they got more, so I did a web search for places that had it in stock and found Best Buy.  If you can keep things in stock when other more traditional places can't, you'll find buyers.

In general, I'd go to a camera store first before BB because, if I were buying a camera, I'd probably be buying a lens or two and various other camera accessories at the same time, and a photography-only store will have a better selection of those accessories (if BB has them at all).  However, if those camera stores are out of stock on the camera, I'd not hesitate to go to BB for it and get just the accessories from the camera store.

Lisa
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Sfleming

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Question about Best Buy
« Reply #2 on: September 19, 2005, 01:27:17 pm »

nikko nailed it.

But  I got a question for ya:  Will Best Buy be carrying the 5D?  I know I'll not get it inside of 6 months after release otherwise.
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Sfleming

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Question about Best Buy
« Reply #3 on: September 19, 2005, 01:29:23 pm »

Quote
nikko nailed it.

But  I got a question for ya:  Will Best Buy be carrying the 5D?  I know I'll not get it inside of 6 months after release otherwise.
Forgot to add:  Got my 10D at Best Buy.
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jdemott

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Question about Best Buy
« Reply #4 on: September 19, 2005, 04:40:19 pm »

Steve, here is a thumbnail sketch of my camera shopping which may help.  Most of my purchases are from one of three sources:
1. B&H--huge inventory, reliable, decent prices (but usually not the best price).
2. Local pro shop--very good inventory of pro level equipment, very experienced and helpful staff, prices during sales beat just about anything (otherwise not so great on pricing).
3. Local mini-chain of camera stores--friendly local people, surprisingly often have hard to find items in stock (they have the hot new cameras when B&H is sold out), often willing to deal on price but their posted prices are usually not too great.

When I am looking for consumer electronics or camera equipment, I generally know what I want so I am very sensitive to price and availability.  I have bought from Circuit City ( I like getting web price and ordering on-line and picking up at nearby store), Fry's, Costco, Buy.com, etc.  I wouldn't be averse to purchasing at Best Buy for those items but for some reason it has never come up on my screen as the price leader.  If others report that Best Buy often has the best price, I'll have to look more closely in the future
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John DeMott

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Question about Best Buy
« Reply #5 on: September 19, 2005, 07:48:14 pm »

B&H -- I’ve used B&H for about $20k worth of photo equipment in the last 5 years. (10D, 1D Mark II, L glass lenses, 580 flash, etc.) As jdemott said: very reliable, fair prices, 3 day delivery, and I shop in my underwear. No sales tax doesn’t hurt either.
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paul b.k.
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boku

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Question about Best Buy
« Reply #6 on: September 19, 2005, 08:01:55 pm »

I never think of Best Buy for anything because I am turned off by the aggressive sales techniques of some of the associates that try to push extended warrantees. I just don't like the pushy behaviour. I often do buy an extended warrantee on some stuff (like computers from Dell), but don't like being chased all the way up to the checkout as if the warrantee is more important than the item being purchased.

Of course, from the sales associates point of view (compensation), I suspect the warrantee is indeed more important.

Right now I am researching acquisition of a high end home theater system. Obviously, I will go for an extended warrantee. Guess where I am not looking?
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Paul Sumi

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Question about Best Buy
« Reply #7 on: September 19, 2005, 08:35:15 pm »

I actually bought my first digicam (Kodak D260) and first DSLR (an Olympus E-10) from Best Buy.  Convenience (less than 2 miles from where I live) and ease of exchange (my E-10 had the manual focus problem) were two factors.  Since then, I've mostly bought camera gear on-line (B&H, 17th Street Photo, Amazon, etc).

Recently one of my cousins bought a Canon SD500 digital Elph from BB (she had a BB gift card).  We went over together to shop.  One of your salespersons had her SD500 with her and was able to talk to my cousin about her personal likes and dislikes of the camera and that made the sale.

One of the benefits of BB is that all the cameras are out on display so one can "play" with the various models.  Of course, this is true of other merchants like Frys and CompUSA.

Don't know if BB matches prices with other merchants, but that would help a lot (particularly if BB'll match Internet prices).

Paul
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nnmmaa

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Question about Best Buy
« Reply #8 on: September 19, 2005, 09:22:20 pm »

I have bought a few things in BB. I have nothing at all against BB. When I go to BB looking for anything costing more than pocket change I have already done my research and checked BB's pricing on the item. I would never go to BB in the hope that a Sales Associate could give me useful advice on my purchase. My attitude would be even more certain regarding photo equipment, stereo, TV, etc. This is the problem in shopping the big-box stores; the sales associates are generally children who have no expereince and don't know anything useful.  IMHO they are often just plain wrong.   I would not send a friend into a B-like store unless they knew the item was in stock, the price was OK and did not need help from an Associate.

This is unfortunately the state of retailing in the USA; no one can afford to offer service or to hire knowledgeable sales people.  This means to me that the only competition is on price, literally a race to the bottom. I can't fight it. Accordingly, I buy a lot on the web.
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Mark D Segal

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Question about Best Buy
« Reply #9 on: September 19, 2005, 09:25:07 pm »

There isn't a true computer super-market in the whole city of Toronto that can hold a candle to an ordinary CompUSA in most major American cities. And this is a metropolitan area of over 4 million people. I don't understand what doesn't give here. We need some of those, where you know you can go to the one place that has all the computers, printers and all the associated peripherals and software that goes along with them - at prices that are similar to US prices only adjusted for the value of CDN dollar. The present set-up of Future Shop and Best Buy just doesn't cut it.

Here in Toronto we have only two truly major retailers of high-end photographic equipment, but there is a price issue that probably constrains the market below what it could be. The retailers aren't alone to be blamed for the existing pricing problem. Local distributors add margins to meet their high overheads. Minolta just decided it doesn't make sense so they shut theirs down. Especially with the CDN $ now in the range of 0.85 US and likely to appreciate further, it gets more and more attractive simply to log-in to B&H or J&R Music World - between the two of them they have it all, they ship to Canada, their prices are good and they back their products. One wonders whether it takes a metropolitan area the size of NYC and the whole US marketplace to support such retailers; perhaps there simply isn't enough competition in Canada because the market is too thin, preventing new local entrants on the retail scene from really being able to shake the place up a bit. Hard to know.

Anyhow, the bottom line right now is that the combo of Future Shop and Best Buy here in Toronto is no substitute for the combo of B&H and J&R in NYC. Since you bought-out Future Shop you have a huge amount of retail real estate under your control that I am convinced you can do something more imaginative with than to largely duplicate eachother's market niche with acres of run-of-the-mill consumer electronics. It's very frustrating here - there's enormous duplication of the same kind of stuff, but no full-range inventory of anything anywhere. Time for you retailers to re-invent the market here, and you guys are big enough to do it.
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Mark D Segal (formerly MarkDS)
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Jonathan Wienke

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Question about Best Buy
« Reply #10 on: September 19, 2005, 09:36:18 pm »

I've not used Best Buy for photo purchases for several reasons:

1. Selection. I'm not in to the consumer-grade end of the market (I have a 1Ds, 1D-MkII, a collection of L glass, and an Epson 7600), so what Best Buy carries generally is not of interest to me. Carry L glass and better-than-20D bodies, large-format printers and supplies (Epson 7800, 220ml Ultrachrome carts, 24" paper rolls, etc.) or decent studio lighting equipment (Alien Bee or better monolights, softboxes, grids, stands, etc.) and you'd see me a lot more often.

2. Pricing. I know it's hard to beat B&H, but if you could even get close, I'd be more inclined to buy local. And having stuff in stock locally would be handy if somebody wanted a few dozen 24x36 posters day after tomorrow, even if it cost a bit more. Shipping delays suck.

3. Convenience. CompUSA is about 5 blocks from my house, Best Buy is about 10 miles.
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61Dynamic

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Question about Best Buy
« Reply #11 on: September 20, 2005, 01:02:13 am »

I used to be a huge fan of Best Buy. I remember back in the Good-Ol-Days™ I could walk in there and find a good selection of items. It was two steps up from Circuit City ant the likes. I could even find miscellaneous items such as electrical connectors and whatnot! Being able to buy stuff like that and drool over electronic devices delighted my nerdy heart.

Unfortunately these days that is not the case. The selection at Best Buy these days is pathetic. In that sense it's no different anymore than any of the other electronics stores.

Then there is customer service. I had an issue with a DVD-based PC game. It had some copyright encryption crud that didn't work well with my Computer. In fact it fudged up the firmware on the DVD drive during the install turning it into a paperweight.

I tried to return the game since it didn't work and was met with hostility. The clerk couldn't do anything and so I spoke with the manager who came to the return desk and didn't bother with any of the typical customer service pleasantries (i.e. good day, how can I help you) and instead approached my with the attitude as though I was a crook. Then she lied to me on two counts. First she said she was the head store manager (which she was not) and then she stated that she could not take the software back due to a California law that prohibited them from taking the software back.

Well, I wasn't born yesterday and knew that was a load of bull. No matter how persistent I was that BB should stand behind the products the sold she would not budge.

the amount of effort I was putting into a game was not worth it and so I eventually left without any refund after I realized there was not chance on getting one.

She may have saved Best Buy $50 and herself the hassle of taking a return but BB has permanently lost a customer. Helll will have to become so friggin cold that it implodes upon itself before I consider venturing into a Best Buy again. If that's how they treat one of their smaller purchases what could I expect with a big-ticket item?

There are enough companies out there that know the meaning of the word customer service for me to never need to deal with BB again.

There have been similar instances with friends family and clients as well (an example was a client who bought a problematic PC. BB refused to fulfill their end of the contract and provide any support. She was forced to buy an extended warranty before they'd help her).

Best Buy is a company that can't go out of business fast enough. I've had bad experiences with companies before but BB takes the cake. My experience along with that of those I know and the hostility against customers I've read in the news will prevent me from ever going there again.

When people mention electronics or going to BB, I go out of my way to recommend that they stay away.
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Sheldon N

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Question about Best Buy
« Reply #12 on: September 20, 2005, 02:17:48 am »

I do shop at Best Buy, but not for photographic gear. They simply don't have much of anything I'd be interested in. Usually what draws me into a photo store is having a selection of things I can't afford but would like to drool over (1Ds Mark II, 300mm f/2.8, etc) as well as more reasonable high end items.

As far as steering friends/family towards Best Buy, I don't think that I'd steer anyone towards any electronics retailer. The sales people at these types of stores are just not knowledgeable enough to help someone buy something that they really need.

The smart purchaser (and my recommendation to family/friends) is someone who spends some time researching what fits their needs, and then buy based on price/convenience. Everyone else is simply uninformed and waiting for a teenager to tell them how best to lighten their wallet.
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Sheldon Nalos
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Question about Best Buy
« Reply #13 on: September 20, 2005, 08:05:28 am »

Horses for courses, basically, shop at BB for small things, cd's, dvd's, a PC cable,  may even go to look at the nice shiny plasmas, but not for one second would I buy anything significant from them.

For major electronic stuff you are better off at a Tweeter at least most employees are over 30, at least locally or a high end store that is knowledgeable and considerate of all price ranges.

For camera stuff, am lucky that I have a local family run store that is fantastic and comes real close on most prices to B&H, and on some things even better, like Sigma lenses. The local pros go out of their way to support them as there service is second to none. NO, they are not part of my family. I am good friends with the manager, also not family, and he has bailed me out of lots of stuff. Even on some things that are more than B&H, I still purchase there as their service is tops.

Anyway, horses for courses, and btw, I have had no trouble returning stuff to BB locally. So it is not company policy, only a stupid store manager with a little too much power. My wife had 3 mp3 players all defective and all gladly returned and  credited immediately without incidence. could not do enough for her or me.....is that I??? :laugh:
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Steven M Anthony

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Question about Best Buy
« Reply #14 on: September 20, 2005, 11:19:57 am »

61Dynamic:

If your experience was recent, you should contact corporate customer service at 888-BEST BUY and explain what happened.  

A question of clarification:  You mentioned camera selection was poor.  Did you mean poor for you, personally, or even for someone looking for a consumer-level camera.  If the latter, what makes/models would you like to see.  If the former (and you aren't looking for an $8,000+ camera) the same question--what would you want to see them carry (even though I understand you are not likely to shop at BB again).

Jonathan:  Clarification question for you:  Is BB's selection sufficient, in your mind, to recommend to a friend?  If not, why not?

There are other follow-up/clarification questions I have, but I think they might work best as new topics--so keep an eye out them!

Thanks,

Steve
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Jonathan Wienke

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Question about Best Buy
« Reply #15 on: September 20, 2005, 11:33:27 am »

Quote
Jonathan:  Clarification question for you:  Is BB's selection sufficient, in your mind, to recommend to a friend?  If not, why not?
It depends on if they're looking for consumer-type stuff or more prosumer/pro gear. BB has a reasonably good selection of consumer-grade products, just not the higher-end stuff. If the friend was looking for a digicam for casual family snaps, yes, if the friend wanted to start shooting professionally and wanted gear to get started, no.
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61Dynamic

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Question about Best Buy
« Reply #16 on: September 20, 2005, 12:05:37 pm »

It is no surprise to me that BestBuy has lost it's BBB membership.

Quote
n May 2004, Best Buy entered into an Assurance of Voluntary Compliance with the New Jersey Attorney General. The agreement alleged that the company engaged in deceptive advertising, failed to have advertised merchandise available for sale, and failed to honor rebates and warranties. The company has not admitted any wrongdoing. However, the company has agreed to comply with the State's advertising laws in the future. More information can be obtained by contacting the New Jersey Attorney General' office or by accessing their Web site at: www.state.nj.us.

In August 2004, the Attorney General of Ohio filed a lawsuit against Best Buy Company. The lawsuit alleges that Best Buy engaged in a pattern of unfair and deceptive acts and practices including: Failure to honor implied warranties of merchantability, substandard and/or inadequate customer service, and making false and misleading statements to consumers. The matter is currently pending. Consumers can see the formal complaint at: www.ag.state.oh.us.

In May 2005, the Attorney General of Wisconsin filed a lawsuit against Best Buy Company. The lawsuit alleges that Best Buy engaged in a pattern of unfair and deceptive acts and practices including: Representations related to promised rebates, extended service plans, supplement magazine subscriptions, the return and exchange policies and restocking fees, gift cards and "Reward Zone Points". The matter is currently pending. Consumers can read the formal complaint at: www.doj.state.wi.us

So obviously my experience and that of others I know is not just an isolated area. The BBB page states BestBuy is cooperating with the BBB, I'll believe they're making changes when I see it.
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John Camp

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Question about Best Buy
« Reply #17 on: September 20, 2005, 03:30:49 pm »

There are a lot of Best Buys in my area -- I'm in the Twin Cities, which I think is the chain's home town -- but I only go when I know exactly what I want. And actually, that's fairly frequently, at least for small computer-related items like memory sticks, DVDs, even printer paper. I did buy an early digital point-and-shoot, had a satellite radio system installed in my truck, and a year ago bought a small flat-screen TV.

Two major drawbacks -- The Best Buy salesmen never know as much about a particular product as I do. There may be a few enthusiasts among them, who really do know a lot about some particular item, but I've never found one. I've decided that your typical BB salesman is a guy who was selling shoes last week, and will be selling hats next week, but this week he's selling cell phones. And, frankly, they're usually willing to lie about the product, or at least inflict their incorrect information on you, to get the sale. One of the hardest things to do is see some woman in BB with a kid, shopping for a first computer, obviously without much money or knowledge, and hear some aggressive BB guy unloading a bunch of BS on them. This happens quite frequently. One guy was so bad that when he went off to check something, I took the woman aside and told her about Dell; she was obviously very nervous about spending fifteen hundred or two thousand bucks for a computer for her ten-year-old, and why shouldn't she be? I don't know what she did, but what was happening to her wasn't right. What I'm saying here is that agression, combined with a lack of specific knowledge about products, makes going to BB really dangerous for the uninformed or the timid.

(I will go so far as to say that if you go to BB, and browse through the computer section for fifteen minutes, you will almost always hear at least one person being given a load of BS. It's that pervasive.)

The other thing is the selling of extended warranties. I know they're basically just a scam, but again, the aggression is annoying. (Don't tell me it's not a scam; it is. It's a vastly profitable form of insurance, so profitable that it qualifies as a scam.)

The most amusing thing that ever happened to me at a BB was when I went in to buy a flat screen TV for my studio. I went to BB because they had one that specifically fit my needs, at an OK price. The salesman was INSISTENT that I buy the extended warranty. We actually got in a little snarling argument about it. Then he went away, apparently to talk to a manager, then came back and told me that the TV I wanted was being closed out, and that the manager had authorized him to give me a discount of exactly the amount of the extended warranty, but only if I'd buy the extended warranty. So I got the extended warranty -- no skin off my butt. It'd be perfect, now, if the TV broke, but unfortunately it has been absolutely reliable.  

In that particular case, I got a good deal, I suspect the salesman got a good deal, but I don't thing BB got a very good deal.

Overall: BB is okay for prices, if not great, and they're handy. Otherwise, because of the attitude of the sales people, I wouldn't go there.

JC
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Mark D Segal

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Question about Best Buy
« Reply #18 on: September 20, 2005, 03:48:04 pm »

The reason why they are so insistent about selling you the extended warranty is that most of the profit from the sale and therefore most of the commission paid to the sales person comes from the extended warranty - not the product. This business is so competitive that prices have been cut to the bone and profit margins on the products are THIN - so they really depend on selling those extended warranties to earn their keep. That explains the aggressive behaviour - it's their bread and butter. I'm not excusing it, just explaining it, as it was explained once to me by someone from the "in-side". When they try this deal on me, I just cooly tell them I know the name-of-the-game and thank-you but no thank-you. Discussion is a two way street and it stops if the customer stops.
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Mark D Segal (formerly MarkDS)
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Question about Best Buy
« Reply #19 on: September 20, 2005, 03:52:47 pm »

My experience with Best Buy is a mixed bag. My bigger purchases have included two prosumer digital cameras and a laptop. They went smoothly, in large part, because I had already done my research and knew what I wanted when I walked in the store. I really don't like salespeople that are paid with commissions, especially unknowledgable ones. I hate going into a store and having to be prepared for the young kid to immediately come up to me and start his sales pitch. I have two suggestions: Make the salespeople really know the products through tests or something and secondly, have them wait a while to see if a new customer really looks like they need help or are just browsing, it's usually obvious. I don't know a lot about sales and maybe commissioned-based sales are necessary but it is truly a turnoff that I try to avoid. Another big turnoff is when I can't turn on and test out a camera. I know battery and memory card theft is a real problem but there has to be way for users to test out the gear better. Most of my other issues have been addresed already. One thing that I have had a good experience with is actually the customer service. I have had to bring in my laptop twice for repair and there was no hassle and both times I got it back sooner than expected. However, they forgot to call me on both occassions and I had to call them to see if the service was done. As I said it is a mixed bag.

T
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