Originally Posted by jrwalte
No it isn't. B&M, such as Best Buy, have distribution warehouses no different than amazon or newegg. They need to offer direct sale to customer from their website from these distribution points at a cheaper price than their B&M - and they may already do this when you do order from their website - the price just isn't always cheaper or competitive. The more volume they sell at the online price from their distribution points, the lower they can make the B&M price, as the lost B&M profits are made up from the distribution-to-customer, and then due to lower B&M prices, they'll sell more volume from their B&Ms.
This has been tried before and failed. Then tried again and failed. I am sure it will be tried again and fail then too. See below:
Originally Posted by Elvis Is Alive
Heck, many big box stores won't even match their own website pricing. That frustrates me to no end. I understand to the additional overhead but I MAY actually purchase a few other items while I'm there but they won't give me a reason to even step in the door.
Now - take this answer, triple the anger involved, maybe add some profanity in it and what you end up with is a large number of people demanding the online price in store.
A. Remain firm and don't give in on the price and end up with a pissed off customer who won't return and tell others about the horrible experience
B. Give in on the price and deal with the lost revenue at the store front (due to the additional overhead costs incurred locally)
C. Mix of A and B until the idea is shelved for a couple of years before it is tried again
Originally Posted by Ghpr13
Funny thing is just the other day I came across a website for Circuit City. Seems they still have an on-line business.http://www.circuitcity.com/
The same people who bought the CompUSA address also bought the Circuitcity.com address. (I think it's the same company that owns tiger direct)
Originally Posted by [Irishman]
But how profitable are Frys and Micro Center? Are they growing? Even businesses that were considered "strong" have passed (Comp USA, Tweeter, Circuit City).
I have only been in the Micro Center by me so I don't know if this is universally true for them but I believe MC and Frys operate close to the same way - which is not how CC and BB operate. MC and Frys have a small number of stores in very population dense areas. This most likely makes them much higher volume stores. BB and CC had significantly more stores which lead to a number of them having a signficantly lower volume of sales merely due to location
Also - the store I was in seemed much more crowded with products than your typical BB or CC. They are cramming more products into a smaller space in (I am guessing) an attempt to maximize the products per floorspace and minimize realestate costs. CC and BB would tend towards more open layouts which, while I feel makes them more comfortable stores, is probably monetarily less efficient
I am guessing that they carry more products on site (due to the limited number of stores, distance between them, number of products on the floor) in order to reduce their distribution costs
I think this will be the way more and more B&M stores operate (A more warehouse-ish business model). They'll stay around but in vastly diminished numbers.