Best Buy fights back against "showrooming", will match online retailers' pricing starting March 3rd

Best Buy fights back against
Fighting back against consumers using its pricing as a guide to find lower online deals, Best Buy has announced that starting on March 3rd, it will match prices from online retailers. The big box retailer had previously allowed this practice during the holiday shopping season, but it will now be made permanent. The price matching will be available for merchandise bought at the store, online or even over the phone. And speaking of phones, we know you are dying to know if this covers smartphones. The answer is that handsets bought under a contract are not affected by the new policy, although accessories like chargers are covered.

Best Buy has been frustrated by the latest "showrooming" craze. Potential customers walk into the store with a smartphone or tablet, and use Best Buy's price as a stalking horse for lower online deals. According to Best Buy spokesman Matt Furman, the new price matching policy should do away with "showrooming". "We are going to a low-price guarantee," Furman said. "There is no doubt that this new policy ends showrooming for Best Buy customers."

At the same time, Best Buy has slashed its 30 days return policy to 15 days. This shortens the time that Best Buy customers have to return purchased merchandise because of a lower price elsewhere. Best Buy will continue not to charge a restocking fee on returned merchandise. You might think that this will put a damper on Best Buy's bottom line, but according to Erik Gordon, a business and law professor at the University of Michigan, "If their sales are OK, they can claim that cost-cutting measures will make up for the gross margin contraction."

source: Bloomberg

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16 Comments

1. JusMePnut

Posts: 31; Member since: Apr 23, 2012

It's possible a good start to stay in the game.

10. Synack

Posts: 688; Member since: Jul 05, 2011

Article says affects "bought under a contract are not affected by the new policy". What about handsets bought WITHOUT contract?

11. thephoneguy92

Posts: 191; Member since: Dec 29, 2011

As far as I know, the price of a handset without a contract is a fixed price, the MSRP. I could be wrong though.

12. RORYREVOLUTION

Posts: 3131; Member since: Jan 12, 2010

Best Buy charges you crazy amount on off contract prices. Droid X cost over 700 dollars off contract through Best Buy but you could get it for 550 directly at a Verizon Store.

16. metalpoet unregistered

Best Buy it doesnt matter what you do because the truth is you guys are blatant liars in your commercials, you try and state that you do not earn any other additional incentive from phone sales in which you actually do, all best buy mobile employees receives monthly bonuses if their sales are good enough....very much like commission!

2. imkyle

Posts: 1112; Member since: Nov 18, 2010

Their price match is really good in the store. Bought a TV from them for $1499 and then 1 week later it went on sale for $200 less. Gave me back the difference no problem.

3. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

Haven't been to a Best Buy since an unfortunate encounter with the Geek Squad and a call to customer service yielded zero rectification. Got my girlfriend (though it was probably more for me) a budget gaming pc a while back in which I upgraded the RAM from 4 gigs of DDR2 to 8 gigs of DDR3, She let her daughter use it and the wonderful teen that she is went willy nilly torrenting music. It kinda started acting weird so we took it to Best Buy for the Geek Squad to take a look at, and since it was intended for gaming, I thought I'd have them upgrade to a newer graphics card as well. Got it home from the Geek Squad and realized that the RAM had been downgraded back down to 4 gigs, and while I was given an empty box back that the graphics card I purchased came in there was still only the same original graphics card installed. I don't even want to get into the calls to "Customer (Dis)Service". Best Buy? More like Buyer Beware.

4. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

I don't really hold a grudge though... No, I nurture them. Sometimes on my days off I'll go to Best Buy and listen to the problems people are having that they're telling the Geek Squad about, Google them on my phone, & then point out all the smoke the Geek Squad is blowing up the customer's behinds. Damn I'm petty; maybe I should talk to a counselor?

5. Goldeneye

Posts: 419; Member since: Jan 22, 2011

They already price match Amazon's pricing in smartphones contract and retail prices at least in my area, I bought a roku box, my DNA and a Note 2 both retail price, and they price matched from Amazon and Verizon respectively, sales tax is where Amazon has the edge in most states, but once all of the states follow what California and a few others have done, it will be a fair retailing game.

6. jcpwn2004

Posts: 314; Member since: Jan 18, 2012

Wow, I'm honestly shocked. Seems like best buy might actually be heading in the right direction. I never really step foot in best buys anymore but after March 3 I may be tempted to go back in.

7. Desmund

Posts: 74; Member since: Nov 01, 2012

They are because at the rate they were going it wasn't going to end well I actually am happy for them right now. I do admit I liked shopping Amazon myself, but sometimes you really want to see the T.V physically so you know it's there and you can have it. I've heard many people say that things aren't what the seem "sometimes" on amazon.

8. freebee269

Posts: 542; Member since: Aug 10, 2012

I recently got an LG optimus g from best buy for $80. They had it in store for 150 but amazon mobile had it for 80 so they price matched it for me.

9. freebee269

Posts: 542; Member since: Aug 10, 2012

I am really impressed with this optimus g. Its a nice phone for sure. LG did a good job with it. Wish the optimus g pro that's coming to the states wasn't 5.5 inches and 5 inches instead.

13. Desmund

Posts: 74; Member since: Nov 01, 2012

I was going to tell you should have waited, but you're not interested in the 5.5 inch phones so I'll hold my tongue on that one. As for Originaly Optimus G if I were able to upgrade that's the phone I would have gotten as I was very impressed when I went to AT&T store in my town and the guy showed it to me.

14. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

Best buy blows, I went in with a friend of mine to see if I could get an SSD to throw in his computer (his idea not mine, I'm a New Egg man) Anyway he said he had a few questions for the computer guy there (he bought his computer there) He asked the guy some questions and the guy started telling him that he didn't need an SSD EXCUSE ME!?!?! Anyone who says that you don't need an SSD has not used one! Idiot.... I have an old Dell Precision 490 Running dual Quad core Xeons @ 2ghz (The computer will take up to 3.0 Ghz ones but then the cooling fan will be running louder, with the SSD it is very quiet now) I put an SSD in it and it starts in 26sec and shuts in 6 sec and the computer is seven years old! Spotify opens in 1.5-2 sec vs 7 w/ the 7200rpm spinner ONCE YOU GO SSD YOU DONT GO BACK!

15. networkdood

Posts: 6330; Member since: Mar 31, 2010

Huh, and normally avoided Best Buy because they normally had the worst prices in town...good to hear.

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