Best Buy's Price Mistake

[Walkoff Balk]

http://abcnews.go.com/Business/story...d=ESPNheadline

Did Best Buy honor those orders at that price?

[Amati]

Re: Best Buy's Price Mistake

http://abcnews.go.com/Business/story...d=ESPNheadline
Did Best Buy honor those orders at that price?

According to the TV news report that I saw, "no", and that no reasonable person could expect that low price.

[TuNnL]

Re: Best Buy's Price Mistake

Best Buy® should do something for the consumers who successfully placed a Samsung™ flatscreen order at $9.99. Obviously honoring the rediculously low price would be an enormous loss and an extreme solution. But what about giving them the employee price for the television or a discount on services like their 4-year “Black Tie” protection plan, calibration or in-home delivery? The company should provide some gesture of goodwill for leading on these shoppers, whether intentional or not.

[cynsaligia]

Re: Best Buy's Price Mistake

that best buy doesn't exactly have the best ethical reputation is old news.

[Frankie's Market]

Re: Best Buy's Price Mistake

Best Buy® should do something for the consumers who successfully placed a Samsung™ flatscreen order at $9.99. Obviously honoring the rediculously low price would be an enormous loss and an extreme solution. But what about giving them the employee price for the television or a discount on services like their 4-year “Black Tie” protection plan, calibration or in-home delivery? The company should provide some gesture of goodwill for leading on these shoppers, whether intentional or not.

At first glance, what you say makes sense. After all, the "too good to be true" $9.99 HDTVs did attract more visitors to Best Buy's site and did prompt many folks to register new online accounts with them.

But in the end, it's not surprising that Best Buy would be resistant to these kinds of concessions, even if their P.R. image has to take a hit. Let's face it. This probably won't be the last time there will be a pricing error on their website. BB might figure that if they give up some concession for this particular error, then it will set a precedent for future pricing mistakes.

[TuNnL]

Re: Best Buy's Price Mistake

in the end, it's not surprising that Best Buy would be resistant to these kinds of concessions, even if their P.R. image has to take a hit. Let's face it. This probably won't be the last time there will be a pricing error on their website. BB might figure that if they give up some concession for this particular error, then it will set a precedent for future pricing mistakes.

I was ready to debate this point, but then I thought about several factors. According to wikipedia, Best Buy had 159 million visitors to their website last year. That’s a lot of exposure for a monumental “pricing error.” Considering they’re the figurative “only game in town” now, it paints a huge Target™ on their back. Circuit City and CompUSA are gone, and locally, Shirokiya has eliminated its electronics department. If Best Buy doesn’t want to end up in that boat, they need to paddle without the distraction of needless “hits” that could cost them million$ of dollars.

Safeway Stores (which owns Vons, Ralph’s, Dominick’s and Genuardi’s, among others), thought they had safely monopolized the grocery business. Now they’re #4 — far behind Walmart, proving that volume trumps customer service when it comes to food. So even though Best Buy showcases its “Geek Squad” technical support and “Black Tie” service, they also have to keep an eye on the amount of investment capital they have to fight Big Boxes® like Walmart and Costco, which continue to expand their electronics offerings. I chose to buy my laptop at Best Buy, after all, because it was cheaper than Costco.

[Frankie's Market]

Re: Best Buy's Price Mistake

I was ready to debate this point, but then I thought about several factors. According to wikipedia, Best Buy had 159 million visitors to their website last year. That’s a lot of exposure for a monumental “pricing error.” Considering they’re the figurative “only game in town” now, it paints a huge Target™ on their back. Circuit City and CompUSA are gone, and locally, Shirokiya has eliminated its electronics department..

Pricing errors, whether it be online or on print ads, aren't really all that great a factor in the competitive battle that retailers engage in. Ultimately, it's a business angle that no store wins. Besides, just because a store honors a "too good to be true" pricing error,... will it necessarily inspire return-business from all the "new" customers when it comes to purchasing products at the normal prices? The answer: very doubtful.

Safeway Stores (which owns Vons, Ralph’s, Dominick’s and Genuardi’s, among others), thought they had safely monopolized the grocery business. Now they’re #4 — far behind Walmart, proving that volume trumps customer service when it comes to food. So even though Best Buy showcases its “Geek Squad” technical support and “Black Tie” service, they also have to keep an eye on the amount of investment capital they have to fight Big Boxes® like Walmart and Costco, which continue to expand their electronics offerings. I chose to buy my laptop at Best Buy, after all, because it was cheaper than Costco.

When it comes to things like grocery, books, CDs, small or mid-sized businesses just can't compete with the high volume chains when it comes to pricing. But these are the types of merchandise that requires little in the way of customer service and technical support.

With things like electronics, appliances, and automotive repair, there is a greater need for a higher level of personalized service and expertise. This is why there is still a market/niche for small-sized speciality businesses. Sure, I could have unfamiliar mechanics and service managers working for paychecks at Goodyear perform a tune-up on my car. But I would rather take my vehicle to a local garage owned and operated by someone that I personally trust and have a relationship with, even if that does involve spending a bit more money. With the latter, they'll go beyond the minimum, do a thorough check and inform me about what needs to be done to keep my car in top shape. They won't try to BS me with unnecessary work and parts, just to make a quick buck. Without some bigtime national brand like Goodyear, Firestone, or Autozone to fall back on, the independent garage owners needs to maintain their good name and reputation in the local community,.... or they won't be in business for long.

[Kaonohi]

Re: Best Buy's Price Mistake

Everyone makes mistakes. (I'm good evidence thereof!)
Sometimes it's not even their fault!
Greed drives people to take advantage of mistakes.

Be greedy or be understanding.

Does it really matter so much that greedy XYZ took advantage of the letter of the law?
Or does it matter more that you embraced the spirit of then law?

[Walkoff Balk]

Re: Best Buy's Price Mistake

It didn't come to mind that it might be a bait and switch.

[LocalMotion]

Re: Best Buy's Price Mistake

Dell has done that twice!!! in Taiwan, and the Taiwanese govt has made them honor it or pay a fine... and dell recently closed down it's Taiwanese online store

http://www.computerworld.com/s/artic...rsen_in_Taiwan

[localmoco]

Re: Best Buy's Price Mistake

I saw a story on the news last night about a hotel that mistakenly listed rooms on their website for 99 cents. Over 200 people booked rooms at that price before they discovered their error. But they are honoring the reservations.

[TuNnL]

Re: Best Buy's Price Mistake

When it comes to things like grocery, books, CDs, small or mid-sized businesses just can't compete with the high volume chains when it comes to pricing.

Well, the business I cited (Safeway) WAS a high volume chain, and not a “small or mid-size business.” Yet, they’re still #4, and growing their business at a snail’s pace. Also, Foodland and Times would be considered “small or mid-sized businesses.” Yet, when it comes to pricing, they often kick Safeway’s @ss.

With things like electronics, appliances, and automotive repair, there is a greater need for a higher level of personalized service and expertise. This is why there is still a market/niche for small-sized speciality businesses.

The only “small-sized specialty business” cited here was Shirokiya — and it went out of business (shut down its electronics department). Best Buy is the largest consumer electronics store in the world. Period. Retailers like Video Life survive because they sell items that no one else carries, not because the market allows them to compete, or because of their personalized service/expertise (non-existent). In that respect, Best Buy has the trump card. No one else in the state offers a 4-year protection plan or in-home service for electronics. And you can count the competition on one hand (Sears, Costco, Wal-mart, OK TV, I hear Sam Sung is closing down — anyone know?) On-line retailers, by definition, can’t offer any services other than telephone tech support.

I wish there was that “local garage” with personal service for consumer electronics in Hawai‘i, Frankie. I really do. Ironically, The Aloha State™ has never been well-known for customer service. It took multinational chains to change that.

[Frankie's Market]

Re: Best Buy's Price Mistake

Well, the business I cited (Safeway) WAS a high volume chain, and not a “small or mid-size business.” Yet, they’re still #4, and growing their business at a snail’s pace. Also, Foodland and Times would be considered “small or mid-sized businesses.” Yet, when it comes to pricing, they often kick Safeway’s @ss.

Then we're talking about two different things here. Safeway is a national chain of supermarkets. But most individual stores do not move high volumes of product. For example, whereas a Costco, Sam's Club, or Walmart might bring in entire pallet loads of a given brand of bottled water or coffee, the Safeway grocery/liquor manager will only order a few cases of the same products, at most. Having worked in the wholesale business before, I know how each of those of those respective stores worked. To a higher degree than the other supermarkets (Foodland, Times, Star), Safeway primarily stocks and pushes their own house brands (i.e. Select, Lucerne). And while they'll carry popular "outside" brands on their shelves, they keep very little (if any) in back stock. This is why in contrast to the other stores, Safeway puts only a handful of outside brands "on ad" at sale prices.

The bottom line is: Safeway caters to a clientele that is different from those who regularly patronize the membership stores or the other supermarkets. Heck, they won't even bother trying to generate foot traffic by putting name-brand soda (Coke/Pepsi) and Kona coffee (Hawn. Isles, Royal Kona, Lion's) on ad, a la Long's and Don Quijote.

The only “small-sized specialty business” cited here was Shirokiya and it went out of business (shut down its electronics department). Best Buy is the largest consumer electronics store in the world. Period. Retailers like Video Life survive because they sell items that no one else carries, not because the market allows them to compete, or because of their personalized service/expertise (non-existent).

Your last sentence is totally irrelevant. If Video Life is able to carry on its business because they sell certain upscale brands (like Cary Audio Designs or Sunfire) that Besy Buy won't even bother with, then that is why they are still around. Period. AFAIAC, there is no asterisk attached to that. Electronic speciality stores survive by catering to "niche" customers that are looking for things that aren't mass-produced in this day and age and won't be found in Best Buy, like high-end/esoteric brands, tube equipment and phono cartridges.

You think that personalized service/expertise at electronics specialty stores are "non-existent?" Tunnl, you have obviously never visited the likes of Hi-Fi Hawaii, have you? Or even Design Systems?

[sansei]

Re: Best Buy's Price Mistake

hi,my truest apologie's for posting this,

only if anyone may wish to go and visit best buy on which im a member there,.

i wish to share that they have hp printer's on sale and it's an all in one printer and it's at $59.00 and it's worth the price if anyone ever need's one.

they also have epson on sale for almost the same price only with the tax,it's a little bit more.

Well thank's for your time

[sansei]

Re: Best Buy's Price Mistake

hi i just returned from best buy and i purchased a new #60 black ink and it only costed me $13.00 plus tax,not like their competiton office depot on dillingham and their's cost at least about $20.00 plus tax so since im a good member at both place's.i'd say best buy for the price of #60 black ink is worth it and maybe at walgreen's or office depot for $60 tri color ink is the best place to purchase this one.

well thank's for your time