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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: Ahda who wrote (5298)8/17/2002 1:49:39 PM
From: ahhahaRead Replies (1) | Respond to of 24758
 
They have a method of pricing their appliances that does not include the add on Natural Gas so cost increases considerably when compared to tagged price.

Can you elaborate on what "add on Natural Gas" means?

they have stores that are very close together in my vicinity.

Is this unique to your area or is it part of a general pattern that management chose in the past in order to exploit a circumstance that no longer exists?

Too many stores in similar location increase convenience for consumer but increase costs for the corporate on space service as well as decrease same store sales in the area.

Can you go into the meaning of "corporate on space service"? Do you mean the superfluous extra cost of service overlap?

Best buy's price has been its biggest draw as the staff is not savvy in knowledge of major appliances

The same is true in consumer electronics. They aren't much better elsewhere, but when you have thin margins you can't afford to get or retain capable people. Another problem is that a lot of the employees don't speak English.

when people are price conscious and prices are not lower there is no advantage so you are looking at why Sears can't compete with WMT.

Sears has changed in comparison to the they way they were say, 5 years ago. They instituted a lot of changes that make buying simple. That isn't the case at BBY where you feel like aliens are challenging your right to be in this country.

If the draw is their CD-DVD department the space in the stores is far too great to be supported by this dept.

Yes. This is a ploy that is now failing. They have endless rows of obscure videos and music titles. There's nothing but saturation and low margins there.

I suppose on could say in an economy that has surplus dollars convenience means more as it increases leisure hours.

Real estate price inflation is having the unexpected effect of swallowing those surplus dollars. I'll have to explain that in more detail in a coming post.

In an economy where surplus cash is not so surplus the convenience changes to cost to your pocket and the drive to buy the product becomes the entertainment.

However the "gate" has been low. BBY is no longer maintaining storm troopers at the door. So I wonder if it's worth the drive now for most. Gas price isn't helping at least not psychologically.