Best Buy to go under?

[DaveyF]

Best Buy to go under? Or how and where were you first exposed to high-end audio

The large electronics store 'Best Buy' is apparently on the brink of insolvency.

http://finance.yahoo.com/blogs/breakout/best-buy-ceo-brian-dunn-resigns-company-going-151536950.html

Personally, I never understood this brick and mortar store...most of the time their prices were in fact a " Worst Buy".
OTOH, I was in the store a few weeks ago and they were selling ( trying to Sell) a few high end products in some of their "Magnolia" rooms; including a MAC 275 re-issue and MAC gear, plus B&W 800 series speakers and a few Sonus Faber speakers. The salespeople didn't seem to have much idea as to what the gear was, but that didn't stop them from having some enthusiasm for it.
So, perhaps it is a shame that another 'brick and mortar' electronics store is possibly going under.... less selection is IMHO never a good thing.

 

[cjfrbw]

The Best Buy in Dublin, CA always seems packed to the gills. However, The Good Guys, which used to do much the same thing, went under years ago, as has Circuit City. Wal Mart's campaign to rule the world must be progressing undiminished.

 

[treitz3]

Hello, DaveyF. This has actually been expected for some time. It wasn't a matter of "if" but when. As far as less selection?.....go to a ever increasing in numbers audio show near you. You'll see that there is more than enough selection to suit many audio desires.

 

[DaveyF]

Hello, DaveyF. This has actually been expected for some time. It wasn't a matter of "if" but when. As far as less selection?.....go to a ever increasing in numbers audio show near you. You'll see that there is more than enough selection to suit many audio desires.

Hi Treitz3, I agree if you are already an a'phile, that the selection available to you is seemingly increasing, particularly IF you are visiting shows, etc.. However, what a brick and mortar store like "Best Buy' can do is to bring the uninitiated an option that they never realized that they had. How many people were able to see/hear what 'high end' is all about because they happened to visit a store like this and were exposed to a better product than what is typically available at the Target's and Walmarts of the world, and never would have known about otherwise.
IMO, the smaller brick and mortar 'high end' dealer doesn't have the exposure to the public that a large 'box' store does, additionally if that same 'box' store carries a few mid fi or even 'high end' products that has to be great exposure. When that option becomes extinct or very rare, this is what leads to my opening comment.
Which leads to another interesting thought, how/where were you exposed to your first high-end system?

 

[NorthStar]

Wow! I'm the only one who voted so far! 100%

* Best Buy, are they high-end audio dealer? ...I guess not. :b

 

[DaveyF]

Ok guys, those who posted "other" maybe you could elaborate.

 

[caesar]

The Best Buy in Dublin, CA always seems packed to the gills. However, The Good Guys, which used to do much the same thing, went under years ago, as has Circuit City. Wal Mart's campaign to rule the world must be progressing undiminished.

I think the power has shifted from the likes of Walmart and Costco to Amazon and other online sites. People use Best Buy as a showroom and then use the web to search for the best price.

 

[Ronm1]

An other!! If on wants to call it Hi-End? Certainly upped the ante.
Started with my dad's Zenith console playing Harry Belafonte at Carnegie Hall, Ray Charles, etc...
First h/w was duty free gear on first med cruise in USN 66'-67' Sansui AU777/TU777, Elac/Miracord with Shure cart. On return I picked up a pair of AR 4's, later 2AX's then 3a's and on from there.

 

[Phelonious Ponk]

There's a Best Buy with a Magnolia room not far from me. I'd say the odds of finding someone who knows the equipment fairly well are 50/50, which is not bad for a big box store. I'd say the same about the TV and computer departments. As big box stores go, it's pretty good. And their problem, IMO, is a common one -- ever-shrinking margins. A huge chunk of their business is TVs and computers. There isn't enough margin in those products to run a business on, so they have to sell something else. Given that their primary competitor for mass market electronics is Walmart with Target close behind, they could try to get those 50/50 numbers up, and sell knowledge and service with their electronics. During this horrible recession, they could have hired all the expertise on the street in the wake of the failure of so many local/regional AV and computer stores, upped the quality (and margins) of their products a bit, and become the "go-to" place, nationwide, for consumer electronics. Instead, they have chosen to hire more clueless kids for as little as they can pay them and train them to relentlessly push service contracts and store credit cards. They think Walmart is the competition and have acted accordingly.

Best Buy took a long, keen look at their own foot, and shot a hole right through it. MHO. YMMV.

Tim

 

[mep]

Tim-I think you made some astute observations. The biggest profit makers for Best Buy is probably their credit cards and extended warranty programs. Store brand credit cards are the gift that keeps on giving with their high interest rates, and extended warranties are seldom exercised which makes them very profitable.

It kind of reminds me of how profits were made in selling cars once upon a time. The biggest profit center in a dealership was (and may still be-MikeL can chime in here if he wants to) the F&I department. And for those not up on the lingo, F&I stands for Finance and Insurance. Dealers make lots of money if you let them finance your new car for you because they never give you the best rate they could based on your credit history. They gave you the highest rate they think you will stand for. And lots of people don’t shop car loans by the total amount they will pay back, they shop by what their monthly payment will be. And dealers love to talk monthly payment amounts rather than total interest.

 

[audioguy]

While this won't be a surprise, I believe it will further hurt high end audio. Folks who don't know about high end audio won't go to a high end audio store (since they don't know they exist). But they might wander into a Magnolia room and maybe hear some better sound and then begin the exploration process.

Stores like this still meet a need but apparently not enough of one to survive !!

 

[NorthStar]

In the year 2012 they suit a niche from the masses, no more no less.

 

[DaveyF]

While this won't be a surprise, I believe it will further hurt high end audio. Folks who don't know about high end audio won't go to a high end audio store (since they don't know they exist). But they might wander into a Magnolia room and maybe hear some better sound and then begin the exploration process.

Stores like this still meet a need but apparently not enough of one to survive !!

Audioguy,that's my point also. OTOH, I think Tim's points are well taken and correct. I always feel that Co's like Best Buy sometimes succeed inspite of themselves! Perhaps this time, an ineptly run Co is going to go the way it should

The problem that I think we are all facing in our hobby today, is that the awareness of the public is shrinking due to a lack of exposure that has seemingly grown since the mid 80's.
So much so, that even when a Big Box store goes under, the ripples of that event negatively impact our end of the hobby.

 

[caesar]

While this won't be a surprise, I believe it will further hurt high end audio. Folks who don't know about high end audio won't go to a high end audio store (since they don't know they exist). But they might wander into a Magnolia room and maybe hear some better sound and then begin the exploration process.

Stores like this still meet a need but apparently not enough of one to survive !!

I agree with you Audioguy. Guys who listen to Dr. Dre Beats think they got great bass. But they have no clue of what great bass is or what they are missing.