Kristy
Beverly Hills,#2UPDATE EX-employee responds
Fri, December 29, 2006
I'm an ex-employee of geek squad. we used to do this all the time.. I have been told (by current employees who I am close friends with) that Best Buy corporate office specifically sent out internal memo's to managers & posted on internal newsletters for all employees to read... Banning stores from doing this "preloading" due to potential AG (attorney general) complaints and PR issues. so what you have is an indivual store (or possibly a local district /group of stores) violating corporate policy to raise Revenue numbers so indivual managers can get a free all expenses paid trip to DisneyWorld(achiever's holiday contest) What I would do if I were you is send a letter to best buy corporate headquaters CEO explaining what happened, giving the store exact address/location etc. and that you really wanted to buy the laptop at $599 but couldn't due to the preloading and jacking the price artifically up.. and could they sell it to you today for that price.. you will probably get a nice apology letter back from the company, saying "were sorry.. there must have been a miscommunication with that indivual store on policy.. " no we can't sell you the laptop for $599... but here's a $25 gift card (or whatever value)for your trouble.. now be quite and go away of course if you do go into the store to spend the free $25 gift card.. odds are you won't spend $25 but anywhere from $50 to $75 resulting in at least a 100-150% revenue increase for the store on that single $75 transaction (without giving you the free gift card, you would have spent zero) and would probably never come back to the store again.. since you were only given a free $25 gift card.. you would probably end up buying a lower priced item.. low priced items have very high profit margins (network cables 400% inkjet around 40% etc) so when customers are "happy" they got a free gift card it's really not a good thing.. that's why best buy has stopped giving price reductions on open boxed items.. (they used to give 5-10% off the item.. now they charge the exact same amount as a factory sealed item.. but give you a free gift card fof 5-10% value toward a future purchase) best buy managers expect customers to spend about $25,000 in say a 5-7yr period (average $300-$400 a month or $75-$100 a week) this could be 4 new PC games or DVD movies each week .. or big ticket items.. if you don't spend this much, quite frankly.. they don't want your business.. my manager used to constantly tell me "20% of customers provide 80% of your profit - the rest I don't care about" alot of unhappy people on this board post "I hate best buy & will never shop shop there again" I found the Offical answer to this question from Best Buy signed by the CEO & board of directors and filed with the U.S. Securities & Exchange commission (SEC) as part of the company 10-K filing to shareholders. regarding business risks and customers.. "we do not have a significant concentration of sales with any indivual customer and therefore the loss of any one customer (or a special interest group of customers) would not have a material impact on our business"