Rylan wrote:So Wal-Mart without departments?
And wouldn't inventory management be an absolute nightmare?
Sarcastic wrote:$179 for a 1080 40 inch Toshiba. At BEST BUY. Might be a good pick that that additional TV or a pc monitor.
pittsoccer33 wrote:Sarcastic wrote:Yeah, BB has a nice showroom. There is a 20th AVE Electronics in Paramus NJ that I went to a few times last summer. Nice showroom with high-end stuff. I get what you're saying. It'll suck if the only place we can buy are walmart and costco. I don't know what BB can do to lower their prices, but it'd be nice if they did.
Its just a race to the bottom. And I don't blame you or anyone else - Sears longest HDMI cable was 12 feet and it was $60. Monoprice is one 10th of that.
But they can't do much to lower their prices. By and large, Amazon is usually not much less (if they are at all) than any big box on middle of the road tvs or bluray players like the Samsung ES6100 or the Panasonic ST50. Especially if you are going to use your Sears or Best Buy charge card.
I've written before how many many times these tvs are sold well below cost. Sometimes the manufacturers will kick back money because of a promotion. As a salesman, my hourly contribution was one of my most important metrics. Since we were losing money on the tv, to justify me being there I had to make sure you left with five years piece of mind (lulz), all the cables you need, a bluray player, a wall mount (installed by our pros of course), and enough 3D glasses for the entire family.
I remember one night in May 2011 that we were running a 10% off promotion. We had the last of our 2010 floor models on clearance. I sold around $4000 worth of merchandise that night, and I lost the store $3700.
Unless you are really able to capitalize on the high margin items (cables, stands, 3D glasses) and high margin services (extended warranty, installation, networking) you as a store will not be able to compete on price.
pittsoccer33 wrote:Sarcastic wrote:$179 for a 1080 40 inch Toshiba. At BEST BUY. Might be a good pick that that additional TV or a pc monitor.
they're losing at least $150 on that thing. these stores have historically thought that (1) they can sell you additional goods and services to make up for it and (2) that you will be so happy you bought this at such a great price that you will become a loyal customer and come see them again.
what the MBAs running these joints hopefully figure out sooner than later is that the people are buying it on price and price alone. they dont care who sells it, as long as its the cheapest price. and they don't want anything else with it. the loyalty is to price.
pittsoccer33 wrote:i think what walmart is doing is genious - not so much the "if youre here and we're out of it you get a raincheck" - but having various promotions at different times. i dont know how you do that logistically, but its a great idea to keep people in the store all day long.
i can tell you i was completely dead from 6:00am-till 10am-ish last year. around 10 the people who actually wanted to shop instead of buy doorsbusters were coming in.
Sarcastic wrote:Kmart has a 42 inch RCA plasma for $199.
pittsoccer33 wrote:Sarcastic wrote:Kmart has a 42 inch RCA plasma for $199.
I would definitely buy that 2 year agreement. I can't tell you how many RCA tvs went bad sitting on our shelves. The speakers in them are the worst too.