experience of returning camera to Best Buy

Discussion in 'Digital Photography' started by Racer X, Jan 10, 2006.

  1. Racer X

    Steve Guest

    Interesting. If this is first-hand knowledge, I take it these are
    friends or family members?


    --

    My friends tell me I have an intimacy problem.
    But they don't really know me.

    ....Garry Shandling
     
    Steve, Jan 10, 2006
    #41
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  2. Racer X

    Paul J Gans Guest

    Yeah, but you are in Texas, right?

    Perhaps if more of their customers were armed they would be
    a bit nicer to them.

    :)

    ----- Paul J. Gans
     
    Paul J Gans, Jan 10, 2006
    #42
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  3. Racer X

    akamu Guest

    True, but I wonder if it's even remotely pervasive. Is there any
    I suppose they could always point to this example...
    http://www.imdb.com/title/tt0378407/plotsummary
     
    akamu, Jan 10, 2006
    #43
  4. Racer X

    Bill Funk Guest

    I wonder if these 'restrictive' return practices are, instead, efforts
    to make the practice of 'borrowing' items from retailers less
    pervasive.
    As I said earlier, can you imagine the results of an open return
    policy?
    Not only would there be a *lot* more returns for frivolous reqasons,
    but there would also be a *lot* more fraud, in the form of bricks in
    boxes.
    There must be some sort of curb on returns. While it's often fun to
    think of the big stores getting burned, we need to remember that
    someone pays for those returns, and it's nto the stores or
    manufacturers. They will adjust prices to make up for them. It's the
    consumers that pay. It's *always* the consumers that pay.
    How much are you willing to pay for those open return policies?
     
    Bill Funk, Jan 10, 2006
    #44
  5. Racer X

    UC Guest

    Consider someone who buys a $3000 lighting setup on Wednesday and
    returns it the following Monday.

    Obviously, a free rental...

    It happened to me...
     
    UC, Jan 10, 2006
    #45
  6. Racer X

    Tony Cooper Guest

    It shouldn't be when the thread has been about big box stores.
    If you want to bring in stores that sell nothing but Madame Alexander
    dolls to the thread, your point is correct. When the thread is about
    Best Buy, Circuit City, and those type of stores, my statement is
    unambiguously true.

    Best Buy's last quarterly figures pegged selling and administrative
    expenses at $289 million. On sales of $7.3 billion, they earned $138
    million. That's less than 2% of sales. I'd consider that a very low
    net margin figure.

    BTW, I'm not naive enough to believe that annual report figures are
    dead-on accurate. You've got write-offs built in there, but you also
    have gift card sales built in. They don't book gift card income until
    the card is redeemed. However, all of the major corporations use the
    same general accounting techniques, so comparisons are valid.

    You miss the point about net margin, not margin on sales of product
    where I said: "That's net, not gross on each item sold."?
    No, it really depends on the percentage of sales that result in loss.
    A retailer worries more about the percentage to sales than dollar
    amount. You don't compare a chain that does $7 billion with a store
    that does $250,000 in annual sales based on the dollar amounts.
     
    Tony Cooper, Jan 10, 2006
    #46
  7. Racer X

    Steve Guest

    Yep, that's definitely statistically valid scientific proof. If it's
    in IMDB, it must be true. :)


    --

    My friends tell me I have an intimacy problem.
    But they don't really know me.

    ....Garry Shandling
     
    Steve, Jan 10, 2006
    #47
  8. Racer X

    Tony Cooper Guest

    Inject a little logic into your thinking. (Not that you haven't, but
    add some) The competition between the big box chains is intense. The
    net profit margins are extremely slim. The market value of the stock
    is dependent on the earnings per share numbers.

    Given these very apparent factors, why would a big box chain clamp
    down in an area where it's clear that clamping down will alienate
    customers? These guys aren't going to go out of their way to piss off
    their market unless there's pretty solid evidence that the clamping
    down is justified.

    They're all afraid of each other. Best Buy isn't going to do
    something that Circuit City doesn't do for fear that CC will take
    their customers. So, when they all do it, I think the conclusion has
    to be that it's something that good business sense say is necessary.

    Unless you believe there's collusion. I don't think they'd risk that.
     
    Tony Cooper, Jan 10, 2006
    #48
  9. Racer X

    Steve Guest

    Maybe, but retailers operated for decades without restocking fees, and
    somehow seemed to make money. And some retailers still manage to stay
    in business without these fees. And perhaps the results of an open
    return policy wouldn't be as you imagine, because perhaps the problems
    have been grossly exaggerated by the retailers. I don't know. But
    neither do you.


    --

    My friends tell me I have an intimacy problem.
    But they don't really know me.

    ....Garry Shandling
     
    Steve, Jan 10, 2006
    #49
  10. Racer X

    Steve Guest

    I remember reading somewhere that almost all of Best Buy's profit
    comes from the sale of extended warranties.


    --

    My friends tell me I have an intimacy problem.
    But they don't really know me.

    ....Garry Shandling
     
    Steve, Jan 10, 2006
    #50
  11. I wonder how they hid all the "profits" they collected on them dreaded
    extended warranties? I guess that's a separate division (insurance)? As
    for the 2% sales they did some creative bookkeeping to get that number.
    Don't let them fool you; their margins aren't as slim as they would want you
    to believe.
    Yes, and them damn gift cards that expire in 365-day. It's a win-win for
    them on the cards. I was given a $100 card for Best Buy a few years back
    and since I didn't use it in the allotted time it expired. Since I don't
    set foot in Best Buy I was going to pass it on to someone else and forgot
    about the damn thing.

    Best Buy and Circuit City never incur loss since they repack returns and
    sell them as new. And shoplifting and inventory loss is nonexistent with
    the use of guards at the doors.







    Rita
     
    Rita Ä Berkowitz, Jan 10, 2006
    #51
  12. Racer X

    Steve Guest

    Thanks for the credit, I think! :)
    Maybe not collusion, but clearly there's copycatting going on. Some
    hang back longer than others, waiting to see what they can get away
    with. And who's to say what the correct restocking fee might be - 10%?
    20%? 50%? Clearly, they'll charge whatever the traffic will bear, just
    as the banks do. That doesn't necessarily mean there's any scientific
    basis for it, only that they've discovered a way to charge another fee
    without (yet) alienating too many customers in the process.


    --

    My friends tell me I have an intimacy problem.
    But they don't really know me.

    ....Garry Shandling
     
    Steve, Jan 10, 2006
    #52
  13. They do make a lot of money off of the warranties and financing from the
    people desperate enough to use it. I think they were in the 21%+ range on
    financing? Trust me their overall business model is a cash cow for them.







    Rita
     
    Rita Ä Berkowitz, Jan 10, 2006
    #53
  14. Racer X

    Tony Cooper Guest

    When were these decades? I'm decades, several, old. They were being
    charged on some purchases as far back as I can remember.

    When I was young, there weren't any big box stores. We bought things
    from local merchants and they often knew us by name. We didn't try
    to pull any shit on a merchant that knew us and knew our daddy.

    Now we are anonymous and the stores don't know the good guys from the
    bad guys so we all pay the penalties.
    Do they? How many local camera stores and book stores and record
    stores are still around? Some, but most have bitten the dust.
     
    Tony Cooper, Jan 10, 2006
    #54
  15. You got that right! The independently owned auto parts stores of yesteryear
    had their policies in place and fully displayed for everyone to see. It was
    a simple sign, "Absolutely NO returns on electrical parts" It seemed to work
    great. If a mechanical part wasn't needed or was the wrong one they would
    cheerfully replace or refund. Then again, in those days if they knew you as
    a regular customer they would fill out the invoice and allow you a couple
    weeks to pay if you didn't have the money. Dear old dad did it a lot back
    in the day when your word meant something.







    Rita
     
    Rita Ä Berkowitz, Jan 10, 2006
    #55
  16. Racer X

    Tony Cooper Guest

    My Best Buy credit card statement came today. My balance is
    $1,648.75. The interest rate on regular purchases is 25.4%. However,
    the interest charged on this statement was 22 cents. The balance is
    in Promotion categories with no interest if I pay off the amounts
    within the specified time period. I will.

    The only reason I was even charged 22 cents is that I made a small
    purchase that didn't qualify for the "same as cash" plan. It will
    probably be the total amount of interest I will pay in the year.
    I've never purchased a service plan, but I do use their credit card
    "same as cash" option. I'd be foolish not to.
     
    Tony Cooper, Jan 11, 2006
    #56
  17. Racer X

    Tony Cooper Guest

    Rita, there's a hint of smoke in the air, and I think you're blowing
    it towards my nether regions. You base your statement on what source
    of knowledge?
    OK, they're smart and you're not. What's new?
    There's that smoke again.
     
    Tony Cooper, Jan 11, 2006
    #57
  18. Racer X

    Tony Cooper Guest

    Sure there is. How do professional photographers set their rates?
    Ouija boards? How does Nikon set the MSRP for a new camera? Dart
    board?

    I owned my own company most of my working life. I set the product
    pricing and my employee's salaries on what it took to be competitive
    in the market. I was a copycat. What business isn't?

    I guarantee you that anyone reading this post that is not already a
    professional photographer, and sets up business to be one, will first
    figure out what the other photographers in the area are charging and
    set their rates based on this. Copycats, and foolish not be.

    If the going rate for a particular wedding package is $500, the new
    photographer's rate will be in the same ballpark. Charge $750 and
    claim your talents are superior and you'll starve to death. Charge
    $250 and you'll starve to death.
    Again, sure. Who's to say what a photographer should charge for a
    wedding? Isn't it whatever the traffic will bear meaning it's in line
    with what other photographers in the area charge? The only reason one
    charges less is to gain competitive advantage. Certainly not because
    they are reluctant to take money from the customer.

    Banks, utility companies, and telephone companies are in a separate
    league. There are state and federal regulations that govern their
    rates. All they worry about is how much to pay their lobbyist.
     
    Tony Cooper, Jan 11, 2006
    #58
  19. No, that 22¢ may come every month. In most cases the promotional portion
    must be paied off before any money is applied to the interest gathering
    portion. It is best not to mix things on a card like that.
    Maybe. The upside is that you are using their money. The downside is that
    you are showing a credit card on your credit report. If the available
    credit gets too much, even if you owe nothing, it can adversely affect your
    FICO score.
     
    Edwin Pawlowski, Jan 11, 2006
    #59
  20. Racer X

    Tony Cooper Guest

    Yeah, but if I pay off that small balance - which is greater than the
    minimum payment - all that's left is the special promotion items. You
    have it backwards above. You have to pay the minimum payment, but
    anything over that amount can be applied to the promotional items.
    You have to designate this if you are not paying off the complete
    non-promotional balance. Any non-designated payments go to
    non-promotional items.

    I don't plan to open any more charge accounts.
     
    Tony Cooper, Jan 11, 2006
    #60
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