This TV is on the way!
I’m written about my terrible Best Buy customer service experience before, and that was just the beginning of their current problems. Now, Best Buy (BBY) has clearly explained that one of the biggest weaknesses with their business model is so-called “showrooming”, where customers simply come to their stores to look at the products, and then buy them online.
The problem doesn’t lie within Best Buy, but rather that the competition online is fierce, and many retailers are consistently trying to win market share by under-pricing the competition. However, companies like Best Buy can compete because the quantities they buy will usually get them the best price in the marketplace. However…Best Buy is their own worst enemy, as I highlight below.
My Showrooming Experience
I’ve been looking to buy a television for about 3 months. I’d gone to every store imaginable: Best Buy, Costco, Sears, and looked online. When buying a TV, you have to see the television in person, and in a bunch of different lighting conditions. I’m buying a TV for the picture quality, and some of the features, but not much else. Best Buy has a great showroom for looking at TVs, and Sears was helpful because it’s so dark (sorry if that’s not supposed to be the case). Costco always had the best prices of any big box store for the television I was looking at.
I knew that prices would be going down as we approached Black Friday, so I continued to watch the prices. I finally found what I thought was the best deal about 2 weeks before Thanksgiving, and it turned out to be at Best Buy. I wanted to get the 55″ Samsung Edge-Lit LED TV, and it was selling for $1,999, but it included a sound bar worth $300. I was still concerned that the price could go lower as we got closer to Thanksgiving, but the representative in the store showed me Best Buy’s Price Match Guarantee.
Best Buy will match the price if you find a lower price on an identical available product at a local retail competitor’s store, a local Best Buy retail store or BestBuy.com. Simply let us know when you are making your purchase or during the return and exchange period.
I felt pretty good about that, especially since we had 30 days to get the price match (the same as the return policy), which is the same as the return policy. So, even worst case scenario, I could just return the TV.
The Reality of the Price Match Guarantee
Well, this Black Friday weekend, I found a lower price online at Amazon.com. It was a lot lower – $1,599. And there were some “less reputable” websites out there that were advertising my same television for as low as $1,549.
So, I went back down to the store I bought it at to get my price match. Well, guess what – Best Buy pointed to the fine print on their price match guarantee and told me they would not honor the price.
The Guarantee does not apply to: Our competitors’ website prices, offers that include financing, bundling of items, free items, pricing errors, mail-in offers, competitors’ service prices, items that are advertised as limited-quantity, out of stock, open-box, clearance, refurbished/used items, Deal of the Day items, BestBuy.com Midnight Sale and special hour sale events, BestBuy.com Clearance & More and Marketplace items, and items for sale Thanksgiving Day through the Monday after Thanksgiving.
Well, that just sucks…good thing I knew that this may be coming and checked the return policy as well.
Why Best Buy Made Me Go Online
Well, Best Buy still offers a 30 day return policy on my item, so the next day I lugged the TV (unopened) and the sound bar right back to Best Buy and returned it. I had already bought the TV from Amazon that night, and got the sound bar, and still paid $400 less that I would have paid at Best Buy.
The sad part is Best Buy was selling the same TV in store without the sound bar for $1,599 as well this weekend. They just wouldn’t match the price. It makes no business sense because they had me as a loyal customer – they could have continued to keep me as a customer by honoring the price, but instead they wanted to focus on the fine print on their Price Match Guarantee and not honor the prices.
I do wonder if I went in today if they would honor the adjustment, but they probably would have said no, it’s Cyber Monday.
Regardless, Best Buy essentially forced me to showroom and then buy the TV for lower online. Isn’t this what they are the most afraid of?
Do you think Best Buy will last another year? Have you ever showroomed?
About Robert
That really doesn’t make any sense and I wonder if they believe that policy will deter people from doing what you did. Some people might not want to deal with the hassle of returning the item and ordering it again online. For $400 though, I’d venture to guess that most would be willing to!
I’m not sure if they’ll last another year, but my guess is probably not. They may keep a few successful stores opened and may just go to a mostly web-based presence.
I think that’s what they are betting on, but it really doesn’t make sense at all. They should be scraping for any business they can get!
Wow, that’s just crazy. I did not know that about the fine print, but it does not surprise me. I don’t think they’re going to last another year. I think they’ve dug themself too much of a hole plus they’re getting slammed with the showrooming. I just wonder if someone will snap them up or not. The market is going so heavy to being online, but I know some people will always want the in person experience.
I heard that this weekend had it’s first $1 billion dollar online shopping day, which really goes to show how much people are buying online. I think that stores do serve a purpose – I know I want to see a TV before I buy it. But once I know which one to get, all bets are off.
I bought a TV there (32″ model for $179) and haven’t found it cheaper anywhere else, but it’s also a cheap-o TV. For nicer models, I expect everyone to buy online, because they just have a better business model. Brick and Mortar is going away, but I hope they stick around so I can continue to preview products before purchasing the online
While it is sad I can’t say I am surprised. I would have returned it too. I give them a few more years of being around in their current form but they wont last more than 3 or 4 more years at this rate.
I agree with you about “their current form”. They are going into more mobile and smaller box stores, so they may just discontinue their current business form.
They’re so dead it’s not even funny. I can’t imagine that they’ll be around for much longer in current form, and wouldn’t be surprised if they get taken private by an end-of-life private equity firm in the future. I’m really surprised shareholders balked at the founder’s offer to take it private. Bad move.
Wow, not much to say about that situation. Good for you though!
In terms of showrooming, I think it’s a good idea for bigger ticket items. Now, I’m not into spending tons of time looking at things and evaluating because time is valuable. However, when the cost reaches a certain level, it becomes more than worth it to “showroom” and then get it cheaper online. Why not? It’s a win-win for the consumer!
UGGH! That is ridiculously frustrating. Best Buy use to be my go to store 10 years ago but it has dropped dramatically. Another bit of information for you…. I went to design my home theatre system and while I was talking to the young man he told me ever since Best Buy has been on the hook employee benefits have dropped severely. He mentioned that they use to get about 30% off speakers but now only get 5% off. Either way he didn’t sound very happy or loyal. In fact he referenced a couple other stores where I could buy the same equipment cheaper.
Best Buy will last more than a year, but not five years in their traditional model. Perhaps they could learn a thing or two from Circuit City. It’s a shame for how they promote themselves to be low pressure but nothing could be further from the truth with their check out counter process.
Bummer. Yeah, they excluded that time period in their fine print but there was so much press coverage about the price matching that I’m sure most people heard about it, but never heard about the fine print. That’s a great way to frustrate (and lose) customers.