Top 5 things Best Buy doesn't want you to know

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hopjohn

Full Audioholic
I should have posted this long ago. As a former employee, here is an insider's look at the top 5 things from the HT department of Best Buy (where I worked) that I guarantee they do not want their customers to know.

5. Barely legal bait and switch schemes. They push the limits of the laws with many of their flyer ads with some cheap product, like a 40 dollar DVD player to get you in the store, in hopes of encouraging you to buy something better, ie more expensive. That's the salesmen's job under any circumstance, so it doesn't change with these cheapo sales events either.

4. Open box items are usually returned items, not something that just happened to get opened in store, which rarely happens. I've seen many store employees try to avoid saying it was returned, in fear of losing the sale. Also most employees don't take the time to properly label the open box tags so you may think you are getting all accessories when you are not.

3. I've discussed this before, but here is more on this subject. As part of employee training, monster cables are drilled into employee's heads as a part of all applicable sales add ons from day one. In fact it is part of the "Total Solution" mechanism in place that all employess are to follow during their sales routine. Employees are told straight up that monster's products are superior, but never given any detailed reason why this is supposedly so. The employees I witnessed would typically memorize much of the fluff that was written on the package, on their own behalf, as a way to more quickly answer customer questions, preserve "expert" status, and eliminate possible reservations that the customer might have about spending more on something that was already provided in the box. In fact, this was often lied about. Employees don't like telling customers that zipcords come with their dvd player when asked. If they employees are forced into telling a customer, they will be quick to point how poor in quality they are in comparison to monster's products. One manager would actually say "The only thing (the customer) better be using zipcords cords for is to hold their trunk shut after they've just bought something". AR cables and recoton cables are seen as a failure of doing a proper sale at Best Buy and used only as a last ditch effort to get the customer to buy a little something extra. If an employee doesn't ask you "do you want cables, an antenna, blank discs, tapes, etc. with that?" when you are buying an applicable product, then they are simply not doing their job as instructed.

2. Employee know how. There was a recent Home Theater magazine article on the knowledge of Circuit City, Ultimate Electronics, and Best Buy employees. The rag was trying to determine how well each store knew their stuff. I knew what the results of this absolutely retarded article were going to be before I even began reading it, but as a former employee I read it anyway for curiousity's sake. The results, of course, depended on the individual knowledge of the employee that the writers happened to speak to.

Best Buys's policy is for each employee to know as much as they can about the products they sell in their primary area of responsibility. Yet, in order to do so they have to research the product almost entirely on their own time. During slow times throughout the day when you would think an employee could do a little studying, typically this is when the merchandising manager obegins running around being his/her most concerned about the store's cleanliness and the straighntess of the product on the shelves etc., so employees rarely get to know their products that well and also because of the constant product turnover. Also keep in mind when selling something such as a DVD player you can only know so much by looking at the box, the little tag, and the exterior of a product, never once getting a chance to operate its menus or analyse its performance on screen. For these reasons, the most knowledgable of employees are those who are interested in HT, music, etc. for their own personal hobbies and interests and know about these things from the time they spend reading learning, and using them outside of work. Best Buy would rather you think their "friendly experts" are well seasoned and well informed NOT some pimple faced kid, but usually that's exactly what they are. The technical training employees do get is nearly non-existant, and the little that is given is usually in the form of hurried-up computer modules so they can get you back to the sales floor. Also good training starts at the top, and when most employee's superiors know less about the produts than the salespeople do, it's a lost cause from the beginning.

1. PSP. This little acronym stands for Perfomance Service Plan, or better known to most as an extended warranty. It is the single biggest thing harped on by managers to their sales staff to be absolutely certain to sell. coincidentally, it is also one of the most lucrative things that Best Buy sales in terms of pure profit, (cables are up there also). The reason for this is because very rarely do customers take adavantage of the plan., and believe me they know this. If everything is done correctly an employees should try to sell you a PSP on any device which has one, and then the person at the register should also ask you,, though it is the sales persons job to sell it to you. The person at the register merely acts as a vocal reminder. Managers prefer employees to sell their products with PSPs at the register in the department so you can't walk and think alone, since this allows an opportunity for this pressure approach to fail.

The explanations of coverage by the PSP it is often errored, because the specific coverage varies from product to product. This causes a tremendous amount of confusion and often salespeople tell you that something is covered under the plan when in fact it is not. The employee probably doesn't do this consciously, but because the managaers are as confused about the specific coverage as anyone else their is no source for accurate information when making the sale, so employees might embellish when they aren't sure.

The status of a salesmen lives and dies by the ability to sale the PSP along with as many other related products as is possible.The more expensive the product, the more expensive the PSP, and consequently the more important it is for a salesmen to attach one to the sale. If a salesmen sales a big screen television without a PSP you can bet money that the manager is going to be wondering why, and you can bet the employee is going to be trying to avoid the manager for the next few hours. An employee would also be expected to sale cables, a dvd player, a surge supressor, and whatever else seemed logical as a result of answers to strategically asked questions during a big screen sale. This is the idea of the "Total Solution" I spoke of earlier. You didn't think they asked all these questions to be nice did you?, but that's how they try to play it off. Friendly experts with all the answers.

Most employees will probably tell you in private thet they hate selling PSPs because it is a contradiction to th view that the corporate office holds dear. The corporate ideolgy is that of a proper, friendly, non pressured sales approach. Unfortuately this happens only in theory compared with that which actually takes place. In practice, managers ride the asses of employees to sell the PSP. So much so that salespeople are basically forced into being very bullish in their approach to selling them, and that's when an employee is forced to be very "creative" in how they handle the situation, sort of be friendly, but persistant as hell approach.

Well I hope this post was informative, I wish all former employees would call out on their experiences. I think this only helps consumers understand the mendling that goes on behind the scenes.

Peace,
hopjohn
 
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rgriffin25

rgriffin25

Moderator
Hop,

I think it is funny that you mention this. I have not had the misfortune of working at one of these retail stores. However, I was at Circuit City this evening looking for a movie and killing time while the wife was shopping next door at a dept store. I happen to over hear a vunerable customer fall into the hands of some over zealous salesmen. I am not going to ramble out the whole story.. I will say that the customer didn't know much going into the store. So after being convinced on which equipment to buy the salesman lead him to the Monster accessories rack. They went right to the $200 a roll speaker cable and told him this was what he needed to get it all hooked up. (All this for a HTIB)

I desperatly wanted to say something, but after much deliberation I resisted the temptation and went on looking for movies. It makes you wonder how many people get duped on a daily basis..

Another quick story.. I work at a locally owned electronics store. We recently sold a $500 TV and a $110 DVD player to a customer. A week or so later he came back in asking questions on how to connect his stuff with his new Monster Cables. Yep, you guessed it.. He went to Best Buy and the salesman there sold him close to $600 in cables. (I kid you not!) So after his $610 purchase at our store, he spent the same amount he spent on the equipment on the cables. (Power conditioner, high dollar comp video, Svideo, and A/V kits) A Best Buy salesman of the day I bet!
 
N

nm2285

Senior Audioholic
Just as a side comment: I've never worked at a Best Buy but in patronizing them, the management seems as inept as the employees. Once, I returned a DVD player that I had opened, the woman at the register told me I'd have to wait until the manager checked it. The manager was standing there shrink-wrapping some documents and continued to do it for 10-15 minutes while I stood there. Finally he finished, walked over to the box, looked in, and said ok. 15 minutes of waiting for a job that took 2 seconds. That was the height of ignorance.
Just one of many horror stories.


Anyway-
I have worked at Circuit City and they drill the ideal of spending 10% of your total budget on cables (they ONLY carry Monster). Each employee is supposed to have a certain total of his sales in extended warranties (City Advantage) and accessories-usually about 5% or so. That makes it a bit easier working...managers aren't riding your *** about it unless you are just making or lower than your requirements.
Also, Circuit City actually puts their staff through online training about the specific products and technologies they sell. I only worked in the portables, video games, media, and phone sections and I still had a good 5 or 6 hours of training. I think some Circuit City stores are far superior to Best Buy. Unfortunately, they are inconsistent; some are awful.
 
H

hopjohn

Full Audioholic
I would second that about Circuit City. It usually boils down to the luck of the draw in terms of who you end up dealing with in any consumer electronics place. Even boutiques aren't immune to this. Some employees are quite knowledgable, and some are on the verge of falling into a coma for lack of brain activity. :D
 
annunaki

annunaki

Moderator
rgriffin25 said:
Hop,

Another quick story.. I work at a locally owned electronics store. We recently sold a $500 TV and a $110 DVD player to a customer. A week or so later he came back in asking questions on how to connect his stuff with his new Monster Cables. Yep, you guessed it.. He went to Best Buy and the salesman there sold him close to $600 in cables. (I kid you not!) So after his $610 purchase at our store, he spent the same amount he spent on the equipment on the cables. (Power conditioner, high dollar comp video, Svideo, and A/V kits) A Best Buy salesman of the day I bet!
I am not trying to be mean here, but him purchasing that dollar amount in cables from someone else is the salesperson's fault. If the customer would have been qualified more extensively, the salesperson may have been able to sell him a $900 TV and a $220 dvd player and an additional $90 in cables and peripherals (which would have made a much bigger difference than the cables he was sold, which were sold to do that purpose). The customer would have been more satisfied with your store and received better equipment in the end. Customers, and people in general, will spend more money than what they tell you they are willing to spend. IF they can be shown the benefits of the superior product and why they may be necessary.
 
rgriffin25

rgriffin25

Moderator
I agree to some extent. I didn't actually help this customer. So you may be correct in assuming that he would have spent more money. That was not the point of my story. Which was that some customers believe anything they are told. (these people are targeted by dishonest salesmen)

Maybe if the guy at best buy actually cared he would have done a better job helping this guy instead of sticking it to him.
 
Mudcat

Mudcat

Senior Audioholic
My complaint about both Beast Bum and Circuit $H!!tty are that you cannot get what you want when you are more knowledgable than the sales twerps. If you want to waste money on Monster's top of the line stuff, you cannot get it. If you want plain 12 awg zip wire, you cannot get it. If you want AR's top of the line you cannot get it. But if you want KLH crap they can get it.

I bought both a Sony RDR-GX7 DVD player/recorder and a Sony RCD-W500C CD player/recorder at big blue. I had done my research and knew what I wanted and what my budget was (I'm not comparing these units to other brands, just my research and budget). I walked in and put the boxes in my cart and walked up to the cashier. I tried, with all my military special ops training to avoid the sales people, but dam they're good. I did not make it through the CD racks to the cashier before being accosted about service plans, extended warrenties, cable upgrades, HD TVs (to better view the DVDs on my upcoming purchase). I almost had to get physical to get out of there.
 
annunaki

annunaki

Moderator
I agree griff. Sorry to go off topic. I do agree that the best buy "experts" set people up with things that they really do not need. I will say however, that if that customer was willing to spend $600 with best buy, he may have been willing to spend it at your store. :)
 
T

trumpet

Guest
185263

Although Best Buy is not the perfect store, they do come in handy for me. I ussually buy things that I really can't afford at the time by using their no interest financing plans. Though I don't buy the psp plan for everything, I actually use it when I do. I faithfully use it with cell phones and Pocket PCs. Because of the fact that something always goes wrong with these types of products I ussually upgrade about once a year and only pay the difference.

So they are not all bad.
Just my Opinion
 
T

tjkahn

Enthusiast
This is a great thread - thanks Hopjohn.

This is why web sites such as this are so valuable. You can do all your own research, talk with experts on these forums, and if Best Buy or Circuit City has something you want at a decent price, you can grab it and ignore the sales people. Believe me, one "I know what I want and I'm in a hurry" and most sales people get the message.

Another note, the mass stores are not the only ones that do this. I regularly buy from a home theater store in the Chicago area, and they carry higher quality mainstream brands (Denon, Yamaha, Integra) up to very pricey exotic/boutique brands. Their sales staff is pretty knowledgeable. Yet, they only carry Monster Cable ("only the best"). Every time I buy a component, they try to sell me M-Series Monster interconnects. I did buy a very expensive subwoofer cable and some other expensive interconnects, but I have a Denon 2900 on order, and thanks to audioholics.com, I ordered interconnects from Blue Jean Cable. I'm convinced from my research this will be as good as or better (but probably indistinguishable) from the best Monster product I could have been sold. I have no complaints about Monster Cable, but I think there is a huge mark-up on their producst. BTW, Blue Jean's communication was excellent - product shipped priority mail in less than 24 hours. Thank you audioholics!
 
Tsunamii

Tsunamii

Full Audioholic
Great Thread and great comments. This is why I never listen to the Sales people (no offense to any sales people here). I like to research on my own find the best dollar value and have a local store like Tweeter price match my item and buy from someone I know will stand by their product.

Tsunamii
 
M

markw

Audioholic Overlord
annunaki said:
I am not trying to be mean here, but him purchasing that dollar amount in cables from someone else is the salesperson's fault. If the customer would have been qualified more extensively, the salesperson may have been able to sell him a $900 TV and a $220 dvd player and an additional $90 in cables and peripherals (which would have made a much bigger difference than the cables he was sold, which were sold to do that purpose). The customer would have been more satisfied with your store and received better equipment in the end. Customers, and people in general, will spend more money than what they tell you they are willing to spend. IF they can be shown the benefits of the superior product and why they may be necessary.
They really would rather sell more $$ in cables. The markup on theTV and DVD player are barely there. The markup on cables is tremendous.

Back "in the day" when I sold (before botique cables), we made most of our money on phono cartridges. We could afford to cut our margins on the other stuff knowing full well that we could make it up on the cartridge. Also, using their low whosale cost to our advantage, we could offer a cartridge "for only one cent" and mark up the other stuff and still offer an attractive, no haggle system price.

It's all about profit margin and nowadays cables are where it's at.
 
annunaki

annunaki

Moderator
I guess you are right in that respect Mark. Cables do help out with margins, but $610 worth is quite overboard. I guess you could call me old fashioned but I like to see my customers happy, with better equipment, without selling them a bunch of B.S. I have always taken the no nonsense sales approach, as I cannot willingly tell a customer that they will see huge performance advantages from cables. So far it has been pretty rewarding.
 
H

hopjohn

Full Audioholic
annunaki said:
I have always taken the no nonsense sales approach, as I cannot willingly tell a customer that they will see huge performance advantages from cables. So far it has been pretty rewarding.
Best Buy employees don't have that luxury. What they willingly do, is not the same as what they are told to do. Just curious what you do tell your customers about the low end cables you sell, certainly you're not unhappy with expensive peripheral sales should they occur. How do you handle the subject of cables with your customers?
 
annunaki

annunaki

Moderator
Basically, most of my cable sales are the $30/meter variety. Not too expensive but not too cheap either. And no B.S. marketing and sales tactics. If a customer wants a $100/meter cable I can get that for them. If they want the $6/meter cables I can get them that too. By going with a cable in the $30/meter range one is pretty assured of good construction and oxygen free copper (though even at $6/meter on would be pretty sure of getting an ofc cable, but not the same durable construction of the $30/meter). Some very cheap cables do not employ ofc and over time the copper oxidizes. When the copper oxidizes it can have adverse effects on sound by raising the impedence and inductance of the cable. That is usually how I can steer people into a little better cable. Simply give it to them straight. As far as the high end cables go, if a customer has already bought into the crap, I will give them my opinion and they can still buy the $100/meter cable if they want. It won't bother me. :)
 
D

docferdie

Audioholic
Think about it this way, even though a cable may cost 5 cents and is sold for $50 they didn't neccesarily make a profit of 49.95 as a store because they have huge operating costs that aren't always apparent to the consumer. The best example I can't think of is how the Cleveland Clinic was so proud that in one year they made a profit of $100 million. Upon further questioning it came out that this was for an operating cost of $10 Billion.
If you like having a store that is fairly well stocked with a diverse number of items and a reasonable return policy then you shouldn't feel so bad about paying a little bit more for some items as opposed to others.
 
U

Unregistered

Guest
there was website

there used to be a website dedicated to bringing down futureshop and best buy. It seems to be down or taken out.
heres the url just incase it pops up again
www.futureshopexposed.com
 
H

hopjohn

Full Audioholic
This post wasn't designed to prevent you from shopping from Best Buy or any other electronics store. It was intended to inform people of what to expect, and to provide essential information for avoiding snake oil. So let's not turn this into the steam vent.

Here is a portion of an interview that ecoustics held with Gene. It highlights what I was refering to with regards to the profits made by Best Buy and other cable vendors.

Q:
Why aren’t hardware vendors who design the electronics more vocal about cables?

A:
This is a rather complicated subject that I will try to answer as eloquently as possible without offending anyone. Many of the reputable hardware vendors I have spoken with feel exactly as I do about cables, at least privately. I suspect they aren’t publicly vocal about it because they don’t want to undercut their dealerships. Believe it or not, most dealer’s bread and butter result from cable sales. Cables offer some of the highest profit margins in the industry. It is not uncommon for a dealer to do in excess of $100K/month in revenues for cable sales where they would be lucky to do 1/4th of that in sales and maybe 1/8th in profit margins of say loudspeakers.
 
Rob Babcock

Rob Babcock

Moderator
You're best bet if buying something over $100 is to look for a real slacker. Just like anywhere, some BB employees are pretty "gung ho" to follow the party line, but others are lazy/laid back kids that just go thru the motions. "No" once works fine for the slackers- they look like they're trying, at least a bit.

My local BB isn't nearly so bad as some must be. Although a few years ago, my brother bought a 55" projection set from them and was hounded about the warranty to the point that he just went off. Something to the effect of "Are you gonna sell me this f**kin' TV or am I gonna drive over to Ultimate Electronics?" According to what I've read, some store managers would rather you not even buy the TV than to get out the door without getting jacked for the gravy (it messes up their "ratio", I hear).

Lastly, I think BB is near criminal in their many techniques developed to screw you out of getting the service you paid for on your PSP. Several times in the past I've taken something in for service repeatedly only to have it returned to me STILL NON-FUNCTIONAL, and eventually had them claim I abused the item when they couldn't figure out how to fix it. The end result is that under no circumstance that I can think of would I ever buy anything electronic from them that I could buy elsewhere (with the exception perhaps of a printer or game console).

That said, I do spend a couple grand per year at BB, mostly on software (movies, games & music). You gotta watch your arse.
 
W

Westrock2000

Junior Audioholic
To add insult to injury;

At Best Buy, an Arresting Price Policy

By Peter Finn Washington Post Staff Writer Friday, February 28, 1997;
Page A01

There are comparison shoppers.

And then there's Ronald Kahlow.

Kahlow, 54, wanted a TV set. So he created a program on his laptop
computer that would let him record the model number and price of every
television in a string of stores near his Reston home.

First stop: Best Buy.

And that's where things started to get, um, bizarre. Kahlow, a computer
jock who owns a small software company, was arrested twice and led away
in handcuffs when he refused to stop recording TV prices. In court, he
read a poem by Robert F. Kennedy to the judge, who declared him not
guilty of trespass. The judge, Donald P. McDonough, compared Kahlow to
the civil rights demonstrators of the 1960s.

Now Kahlow is suing Best Buy for $90,000.

All for a good deal on a TV.

Best Buy officials said the company, which is based in Minneapolis, has
an unwritten policy not to allow anyone to record prices in its
stores.

"For competitive reasons, we ask that pricing not be written down,"
said spokeswoman Laurie Bauer. "It's a disruption of other customers.
[The policy is] so other customers will not feel threatened or
disrupted."

Bauer declined to discuss either the trespassing case brought against
Kahlow or his civil suit.

It all started in July. Looking like a gunslinger with a laptop, Kahlow
sauntered into Best Buy in Reston with his computer strapped around his
waist. He said he was leaning toward a big screen model but was
pricing everything. Kahlow said he was keying in the information when
store employees asked him to stop. Kahlow said he explained what he was
doing and refused to stop.

According to court testimony, Best Buy employees stood in front of
Kahlow and pulled the tags off every television he had not yet priced.

The store also called the police, who asked Kahlow to leave. He refused
and was arrested on a trespassing charge.

The next day, Kahlow came backarmed with pad and paper.

He started taking down prices again. The police were called again.
Kahlow was arrested again.

"I felt very intimidated," Kahlow said. "Each step of the way, I felt
more and more furious. I mean, come on, I'm a consumer. I was totally
in the right. When something is plumb wrong, you have to stand up."

Retail analyst Ken Gassman, who secretly records prices all the time to
compare different companies, said some stores do throw out professional
shoppersif they can detect them. But, Gassman said, Best Buy's
competitors and price analysts such as him never would be as obvious as
Kahlow.

"Is Best Buy out of its mind?" asked Gassman, of Davenport and Co., a
brokerage house in Richmond. "This is so anti-consumer, it's
unbelievable. And it raises the question about whether they are the
lowest priced. . . . If you call yourself Best Buy and you are the best
buy, then why would you worry about comparison shopping?"

One of Best Buy's main competitors said it doesn't proscribe comparison
shopping. "As long as someone is not disruptive, we have no policy"
against it, said Morgan Stewart, a spokesman for Richmond-based Circuit
City.

It isn't the only one. "Customers can come in and take down any price
they want," said Brian Dowling, a spokesman for Safeway Stores Inc.
"In fact, it's something our customers and our competitors do all the
time."

"Someone wants to price, we tell them to enjoy themselves," said Barry
Scher, a spokesman for Giant Food Inc.

After his arrest, Kahlow said he priced TVs at several other
electronics retailers, including Circuit City. In each instance, he
said, he was asked what he was doing but was allowed to continue when
he explained he was comparing prices before deciding where to buy a
TV.

A month after his misadventure at Best Buy, Kahlow stood before
McDonough in Fairfax County General District Court.

Best Buy argued that Kahlow was interrupting other sales.

The judge, in full rhetorical flower, disagreed.
Original Link

A story regarding a Best Buy pricing snafu has been circling the Web for several weeks now. Usually stories like this equate to some irate individuals with a loud voice getting wide attention. However, this time it's different. Some Best Buy managers are now having people arrested when they show up to claim their Internet order. We covered the original story in February, and since that time there have been new developments.

To review, in February a price listed on Best Buy's website and on many in-store price tags read "VisionTek GeForce4 Ti4600 for Special Pre-Order Price of $129.00 ... the savings is a $200.00 Value". More than 2,000 consumers placed orders at that price on Best Buy's website. Originally, the number was estimated to be around 1,400; it is now confirmed that more than 2,000 people have valid orders, some with more than one card per receipt.

Many consumers are showing up at Best Buy these days to inquire about their order and find out why it was never filled and why they never received it. When they do so, some of them are being arrested for criminal fraud. It has come to pass in recent days that several Best Buy managers are having people arrested when they show up to claim their order. Even individuals holding valid receipts with legitimate grievances are being escorted away by police.
Original Link


For more information refer to;
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