Best Buy considering posting competitor’s prices in store

Best Buy considering posting competitor’s prices in store
Things at Best Buy the last few years haven’t been going exactly the way the once leader in consumer electronics had hoped. Somehow through the boom of smartphones and mobile data, Best Buy has become a sort of showroom for the digital shopping experience. Many people go to their local Best Buy to check out a phone, tablet, or otherwise only to jump on their mobile device to start searching for a lower price online.

While there is much debate among analysts of how big a problem “showrooming” actually is, Best Buy feels that it has nothing to hide when it comes to its pricing. Best Buy’s new digital chief, Stephen Gillett, recently said the company is considering mounting displays throughout the store that display real time prices from some of its biggest competitors such as Walmart and Amazon. In addition to price comparison, he said the screens could also display product reviews.

Essentially, if you are in the store looking at that new tablet, as soon as you got that nagging feeling that you’re pretty sure you could find it cheaper online, there would be a display showing competitors prices. While the competitor’s price might actually be cheaper, Best Buy believes that in those cases the gap will be small enough that customers will opt to take home their new gadget right then and there rather than go all the way home and wait for it to be shipped just to save a couple of bucks.

While this may work great for core products, they would probably shoot themselves in the foot if they used this strategy for accessories. We’ll have to wait and see if this comes to fruition and, if so, how it plays out.

source: Star Tribune

FEATURED VIDEO

16 Comments

1. LostInTheRed

Posts: 85; Member since: May 03, 2012

They won't want to display Wal-mart phone prices. Even at another re-seller like Best Buy, the prices are usually about $30 more. Displaying corperate store and their online prices would be a good addition though.

3. LostInTheRed

Posts: 85; Member since: May 03, 2012

Example: RAZR MAXX Verizon Price: $299.00; Best Buy $299.00; Walmart $199.00.

6. N.Reynolds

Posts: 257; Member since: Feb 15, 2011

That is why you ask them to price match, and they will.

13. 14545

Posts: 1835; Member since: Nov 22, 2011

Meh, then you still have to pay taxes. Net loss for me compared to Amazon and whoever.

14. cthunder

Posts: 126; Member since: Nov 02, 2010

Amen! I live in S. Cali and got the Droid 4 for $99 from Amazon. When Verizon had it for sale at $99 I not only had to pay taxes. But I had to pay taxes on the full price of the phone. Thank god there is Amazon :)

16. LostInTheRed

Posts: 85; Member since: May 03, 2012

Corporate stores will not price match. Trust me, I work at a Walmart connection center. We will match any STORE (no online) with a physical ad.

11. InspectorGadget80 unregistered

Our DROID RAZR price for 2y contract @ our connect center is 89.99$ 2yr contract.

7. miguel6632

Posts: 21; Member since: May 25, 2012

have u heard of price match or r u just lost in the red?

2. itiswhatitis

Posts: 423; Member since: Jan 23, 2012

Good strategy!!!

4. clevelandiskindacool

Posts: 37; Member since: Jul 03, 2012

As long as they start matching prices of online retailers such as amazon.com I think it comes down to not paying state taxes and waiting a few days vs. having the product now

5. fraydoe

Posts: 57; Member since: Dec 27, 2011

yeah if you can find free shipping, otherwise i dont think the shipping cost is a big difference from the tax

8. xtroid2k

Posts: 601; Member since: Jan 11, 2010

I think this is a good strategy. This feeds of American need for instant gratification. If you are going to shop and then go out of your way to save $30 then I could see this working however for wider margins I can't see them price matching a $100 difference. Best buy needs to find ways to show value and convince people that there is a reason for paying a more premium price. Such as a free accidental damage protection or bundle package. So yeah in the end I will always shop amazon and in my personal opinion there days are numbered

9. bubbadoes

Posts: 1225; Member since: May 03, 2012

really no benefit. Amazon price check app usally does a good job finding the best price in store or the web orwww.salescircular.com

10. moofoodooloo

Posts: 137; Member since: Jan 04, 2011

Also post the hours spent in a corporate store or on the phone fixing the account set up errors Best Buy or any third party cause.

12. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

F*** Best Buy!!!! Let em rot... Circuit City (RIP) FTW

15. ZayZay

Posts: 571; Member since: Feb 26, 2011

I don't go to best buy because the last time I was there, I was going to buy a tablet and everyone in the mobile department looked at me and then went back to spinning in their chairs and talking to each other. Maybe sales are down because their workers are incompetent, not because of prices.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.