dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
7
share rss forum feed


TLS2000
Crazy Canuck
Premium
join:2004-02-24
Mississauga, ON
Reviews:
·TekSavvy Cable
·Rogers Hi-Speed
reply to Guspaz

Re: Futureshop/Bestbuy abruptly shut down a dozen stores

said by Guspaz:

Futureshop/Bestbuy have nobody to blame for "showrooming" but themselves. The entire phenomenon only exists because Futureshop/Bestbuy prices are too high.

Ya, we'll exclude the fact that they actually have expensive stores to build, operate and maintain.
--
Tom


Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:4
When one considers all the additional back-end infrastructure and freight/courier costs involved to run an operation like Amazon, and that the actual stores are capital costs that are eventually paid off, I would expect that the costs wouldn't be as different as everyone automatically assumes.

Costs would be higher for a B&M and a slight increase in price can be justified by someone who wants something right away, but those costs are certainly not so high as to justify some of the obscene price differences between the two. It is for this reason why people showroom. If they were smart, they'd turn that into an opportunity rather than something to rant about.


Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23
reply to TLS2000
said by TLS2000:

Ya, we'll exclude the fact that they actually have expensive stores to build, operate and maintain.

And what does that have to do with anything? If you have an item with a $100 profit margin, and you sell 10 units, or you have an item with a $20 profit margin, and you sell 100 units, which is making you more money?

NCIX also has stores, and they don't seem to have issues with profitability.
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org

Warez_Zealot

join:2006-04-19
Vancouver
said by Guspaz:

said by TLS2000:

Ya, we'll exclude the fact that they actually have expensive stores to build, operate and maintain.

And what does that have to do with anything? If you have an item with a $100 profit margin, and you sell 10 units, or you have an item with a $20 profit margin, and you sell 100 units, which is making you more money?

NCIX also has stores, and they don't seem to have issues with profitability.

I knew Best Buy was doomed to failure when they started giving their employees their stupid store credit cards and encouraging them to get indebted to them. Anyhow, I'll be happy when Best Buy finally folds up completely.
--
"You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it."-Malcolm X



corster
Premium
join:2002-02-23
Gatineau, QC
said by Warez_Zealot:

said by Guspaz:

said by TLS2000:

Ya, we'll exclude the fact that they actually have expensive stores to build, operate and maintain.

And what does that have to do with anything? If you have an item with a $100 profit margin, and you sell 10 units, or you have an item with a $20 profit margin, and you sell 100 units, which is making you more money?

NCIX also has stores, and they don't seem to have issues with profitability.

I knew Best Buy was doomed to failure when they started giving their employees their stupid store credit cards and encouraging them to get indebted to them. Anyhow, I'll be happy when Best Buy finally folds up completely.

The only reason every Best Buy/Future Shop employee has their credit card is because Best Buy passes on the processing fee when an employee uses their employee discount and pay with a credit card. The BB/FS credit cards didn't have to pay the upcharge.

zod5000

join:2003-10-21
Victoria, BC
Reviews:
·Shaw
reply to Gone
said by Gone:

When one considers all the additional back-end infrastructure and freight/courier costs involved to run an operation like Amazon, and that the actual stores are capital costs that are eventually paid off, I would expect that the costs wouldn't be as different as everyone automatically assumes.

Costs would be higher for a B&M and a slight increase in price can be justified by someone who wants something right away, but those costs are certainly not so high as to justify some of the obscene price differences between the two. It is for this reason why people showroom. If they were smart, they'd turn that into an opportunity rather than something to rant about.

To be fair the price differences between future shop/best buy and Amazon.ca (or any other Canadian online retailers) is minimal.

It's when you compare any Canadian retailer to a US retailer that that price difference is obscene.

I do think that B&M's have higher overhead. More staff, more expensive physical location, higher property taxes, more infrastructure, etc...