Circuit City In Trouble

[sjdgpt]

How many people have visited CC, BB, Tweeter, CompU etc for the sole purpose of "auditioning" a product and then proceeded to purchase their selection from a mailorder or internet seller to save a few $.

I know I am guilty.

I suspect 99.9% of the readers of this site have done something similiar, usually blaming the Brick & Motar for being "too high" with their prices.


Well all that looking and buying the product elsewhere is starting to cause problems.

Tweeter and CompU are having major problems and are closing stores.

BB is in the news with their own sets of problems.

CC is now in the news with a massive layoff and cost cutting measure.

Even businesses warehouse companies are having problems as Costco had to eliminate their return product loophole due to abuse and trying to preserve their profit margins.


Anybody else see a cause and effect? The loss of a few sales by a B&M may not seem like a major problem, but in reality the results are quite different. B&M overhead costs are far to great to lose even a few sales. The failure to sell a single unit causes the prices of other units sold to be even that much more higher. The end results are stores closing and people losing their jobs or being forced to take wage cuts as a means to control overhead costs.

Not a good situation.


Next time you visit a B&M to "audition" a product, think long and hard about where you spend your $. Better yet, just remember to tip the staff at the B&M for letting you suck down their free AC and cleaning the dirt off the floors left behind by your shoes.... the B&M staff might as well get paid for something.

 

[stratman]

A small audio/video store owned by a person or persons. Not a franchise chain store.

Like this one that I purchase my gear from.

www.tropicalvideosystems.com

Ok, I just saw your link, it's just a matter of semantics, down here that wouldn't be considered a boutique. It falls between an electronics store and a boutique. The boutiques down here carry all the unreachable stuff, ie Wilson Audio, etc etc, and Iv'e yet to see Dennon or Yamaha in one of their "showrooms" also they tend to discourage walk-ins and prefer appointments. Snobsville. This is where snake oil thrives, you know, cables for 6000.00 per foot and the poor rich ignorants that actually pay for them.

 

[The Dukester]

if you try to shop there on a Sunday, you'll have to bring a club.

That shouldn't be a problem for you! I can see it being your favorite place to shop

 

[majorloser]

A small audio/video store owned by a person or persons. Not a franchise chain store.

Like this one that I purchase my gear from.

www.tropicalvideosystems.com

Bought my Stewart screen from them. They are a fairly unusual B&M boutique store that carries low/mid to high end.

Coming from South Florida where the caveman lives, I can tell you the boutique stores down there cater to the high end and custom install. There are also a lot of custom installers that are reps for equipment you may be interested in, but don't have a showroom or display. I've ended up buying some of my Canton's from one of these guys since they are so hard to find.

 

[stratman]

That shouldn't be a problem for you! I can see it being your favorite place to shop

Man, I even have limits, the Major's right, you have to experience to believe it.

 

[Starmax]

Ok, I just saw your link, it's just a matter of semantics, down here that wouldn't be considered a boutique. It falls between an electronics store and a boutique. The boutiques down here carry all the unreachable stuff, ie Wilson Audio, etc etc, and Iv'e yet to see Dennon or Yamaha in one of their "showrooms" also they tend to discourage walk-ins and prefer appointments. Snobsville. This is where snake oil thrives, you know, cables for 6000.00 per foot and the poor rich ignorants that actually pay for them.

What's wrong with $6000.00 per ft. cables? Doesn't everybody spend that much? You mean I can get 'em cheaper?

 

[jonnythan]

I'm not excited about Best Buy being the only electronics retailer left in my area.

Tweeter, CompUSA, Circuit City... all crumbling at the might of Best Buy? Meh.

 

[stratman]

What's wrong with $6000.00 per ft. cables? Doesn't everybody spend that much? You mean I can get 'em cheaper?

Hey S,

I've got some goldplated Belden stuff that's off the chart (literally), unobtanium connectors, it has miniature hydraulic lifts to keep the snake cable off the floor, for you: 5500.00 and that my friend is 'cause you're an Audioholic, regular crowd: 7,000.00. BTW, I've got some lots in the Glades. interested? Good for vacation homes.

 

[westcott]

I say good ridance to big box stores. All they do is drive the mom and pop stores out of business.

Maybe it will force consumers to actually do some homework before they make an impulse buy at one of the chain stores.

The internet has a big advantage, price wise, and I have gotten great service from many of them. Fast responses from knowledgable people. If I do not get that, I move on. I know I am not going to get that at the chain stores and do not waste my time trying any more. Most internet stores have a good return policies and I am not afraid to use them. I may be the exception, but I doubt it. The proof is in the financial condition of these chains. Retail just has too much overhead to compete.

As far as mom and pop stores or boutique stores. They have become just as hit or miss as chain stores IMO. I live close to a major city in the US and probably have more access to them than most. I have probably visited many of them when I was auditioning equipment. Some of them are very good, but most of them are just as bad as the chain stores for many reasons. Manufacturers share the blame because the do not seem to have any minimum standards for reps, their knowledge, or their sound\viewing rooms. They are usually limited in what they can carry because of established sales territories and how they are metered out to reps.

Accountants must also share the blame. They do what is best for the bottom line (at least what they are taught is supposed to good). But how many accountants would make good sales representatives or understand the importance of qualified personnel. Their business models have ruined this country, and not just in retail.

 

[Starmax]

Hey S,

I've got some goldplated Belden stuff that's off the chart (literally), unobtanium connectors, it has miniature hydraulic lifts to keep the snake cable off the floor, for you: 5500.00 and that my friend is 'cause you're an Audioholic, regular crowd: 7,000.00. BTW, I've got some lots in the Glades. interested? Good for vacation homes.

SOLD!! Go ahead and send...I'll put a check in the mail.

 

[smurphy522]

CC woes

Well I am not really suprised. I worked for CC back in the early 90's. Back then we were lauded in the industry for our knowledge base and caring employees, well most of us. Take note that era was when CC employed sales staff and paid them a spiff or commission for the product sold. now that could mean that some unscrupulous employees would try to steer purchases into more expensive products but in general I found that we tried to educate the buyer and let them decide what was best for them. In the mid 90's they made the move to where the commission was all but eliminated and that the salary was increased some to offset it. Now it looks as though CC is going even further away from their roots by doing this employee "down-grade". I am so glad I sold my CC stock a few years ago!

 

[saaudio]

Circuit City, the Beginning of the End

All of you are on point as far as the problems at CC. The don't know what they want to be and just try to follow BB(They don't do a very good job). Anyway, I also used to work at CC back in the good days. We tried hard to stay up with product and took our jobs seriously. Then came the first cut, firing the top sales people nationwide. I survived do to the fact I was in college and didn't work very much. After this, they began to tumble. Yesterday, they treated these employees like criminals. They took them back one by one, let them go, and escorted each one out the same way they do when someone gets caught stealing. These people have worked there for years, at least show them some respect. Today, I had to go there to pick up a cheap CD player for a client. The only employee on the floor was one of the Wirehog's. I stood at the only checkout counter for over ten minutes before someone finally showed up to check me out. Terrible and unacceptable. As I was walking to my car, an old lady came up to me and asked me a question. She said, "Do these people know what they are talking about? I have heard they don't." I asked her what she wanted to buy. She said she just needed a cordless phone. I told her I thought they were still capable of that, but I might have lied. I really don't know if they are.

 

[Tomorrow]

Internet sales are fine as long as there is a balance of B&M versus virtual stores. As Mark pointed out, if you theoretically negate all B&Ms, the friendly virtuals will no longer be too friendly, re-stocking fees, higher shipping rates, higher prices. After all competition is necessary for the consumer to get a break. One such example in my town was Home Depot, years ago when they were getting established they drove all the mom and pop stores out of business with below market prices in some items (it gets people in, then they get you going out), the mom and pops couldn't make money so they closed. Lo and behold we have no decent mom and pops left down here, the rest were "forced" to become ACE protectorates. Now Home Depot isn't that cheap anymore. All these chains will have to change their business model, learn to adapt or they will disappear much to our harm as audioholics.

Accurate description, S-man. Two decades ago, my wife had a successful door and window sales and installation business in San Diego until a Home Depot opened two blocks away. There went the neighborhood.

 

[stratman]

Accurate description, S-man. Two decades ago, my wife had a successful door and window sales and installation business in San Diego until a Home Depot opened two blocks away. There went the neighborhood.

There's never a free lunch, someone always pays down the line, usually the consumer. I try and patronize as many B&Ms as I can, for I know the people that own these places are usually trying to swim against the currents created by the big guys. I also shop online for certain items that are hard to find locally or the prices are consistently below anywhere else (and that I try to limit.)

 

[JonBaker99]

As a former commisioned sales person from Circuit City, I am somewhat saddened to see them take this approach to move farther away from qualified sales people and to instead fill the store with "greeters". In my mind the only way to beat a competitor like a Best Buy is to be able to offer actually sales support and informed sales people. If I am making $10 an hour I don't care what you buy. Buy a $5000 TV or buy a $500 TV. In fact, buy the $500 TV because I probably have to answer less questions about it. Commissioned sales people work for thier money and take the job seriously. We study, we learn the new product and we are always acting in the best interest of the company because it is in our best interest, making more money. Obviously no major retailers was prepared to deal with the plummet in flat screen pricing. Margins have tumbled and most major retailers are selling TVs at the 15-20% margin range, which for a retailer often time equals death. Making $200 on $1000 usually isn't enough to keep the lights on unless you are moving a large volume very efficiently. I am actually stunned that more retailers aren't trying to push audio products which traditionally have much higher margins 35%-40%. But as was said before, audio has become a commodity and has been killed by the HTiB.

Moral of the story: Man I'm glad I am out of working retail. Smaller custom dealers are the way to go (and no we don't all focus on high end. That usally is more market driven than anything else).

For those CC veterans: I was the guy the posted the amusing photos on the company stock holders messaging board the night before black wednesday (The commissioned sales person termination day).

 

[htwaits]

I wonder who those "higher salaried" employees are -- the ones with more experience.

I haven't met one since CC eliminated commissioned sales people.

 

[saaudio]

I wonder who those "higher salaried" employees are -- the ones with more experience.

I haven't met one since CC eliminated commissioned sales people.

They did exist. Very few were left though. CC did an excellent job of weeding them out over the last few years. Through intimidation, lots of write ups, and cutting hours they managed to run off most of the good ones that survived the first cut.

The ones that were left were the ones who have been there a long time. The guy in TV's who is 45 and thats all he's ever done. The guy working in the warehouse for the last 15 years. Older managers who already had to take a pay cut and demotion when they eliminated their positions.

 

[markw]

Let's hope they keep their auto sound people happy.

The main reason I bought my car radios there was for the "free" installation. Considering only a speaker adapter was needed, we got off for $10 in parts.

 

[657Gold]

Circuit City Ex-employee

I had to leave Circuit City in May 2006 to care for an elderly uncle who passed away in September 2006. I've reapplied but this story brings doubts that I'll be rehired. There is a new manager who doesn't know the circumstances of my leaving, and upon talking to him the first time I could see the doubt on his face.
I was a Senior Product Specialist for Technology, i.e., PCs and Cameras, and I had gained the trust of a large customer base. Because of this trust I received the President's "Circuit City Hero" award...to my knowledge the only one ever given at the store in Mishawaka, IN. Some of the people I know no longer shop at that store just because they feel that the staff is not as knowledgable. There may be two things against me, the salary I received, and the fact that I'm NOT a pimply face kid. Age doesn't make you less knowldegable, in fact because you do take the time to read the trade magazines, and visit wonderful sights like Audioholics you gain a lot more insight into the present and future of the industry.
Circuit City is making a terrible mistake, and I predict the end of an era because of their management errors.

 

[patnshan]

I am driven by price or by service. Circuit City has never impressed me with service. In my experience, their stores are often in disorder and the sales people don't know what they are talking about. The pushing of "idiot warranties" is also extremely annoying.

Frankly, I read many reviews and participate on forums like this one to learn as much as I can about electronics. Then I buy the product from a reputable dealer, usually online as they don't try to sell me a warranty and are almost always cheaper. I would say I have more gear buying online then I ever would have if I had to get at a B&M.

I do buy heavy things locally, because of shipping.

Pat