What do you think of Best Buy stock?
You know, I'm sitting here listening to everyone on CNBC ponder why the stock missed it's mark where other big box stores did OK. So often the market is about companies that you aren't personally that familiar with but in Best Buy's case most of us have seen it, been there, etc.
Do you think that this store has finally had it's notoriously bad customer service catch up with them? I can't tell you how often we've been at a friendly gathering and someone starts slamming that company and stating how they won't shop there again because of terrible return policies, etc.
With so many other options out there that make it easy to compare prices and customer service are companies like Best Buy finding it harder to compete? Electronics is up, so purchases were made, just not at Best Buy. CNBC says they are being flooded by emails, but will not disclose (yet) what they are.
So, if this is not the case, is the stock a buy now on this dip? Or do you think that the company has a bad rep and the stock is going no where?
- Dave B.Lv 79 years agoFavorite Answer
I worked at Best Buy for a number of years, and am also a stockholder. Although I don't keep as close an eye on it as I should, I'll tell you that I think Best Buy is headed for trouble.
Best Buy does one thing, and they don't do it all that well. They have most anything electronic that someone would want to buy, but giants like Wal-Mart and internet companies like Amazon and Tiger Direct can compete with no problem. Also, electronics giants like Fry's have a better selection and better prices, and carry more and more specialized merchandise.
All that aside, though, I think Best Buy's biggest problem is their atrocious would-you-like-fries-with-that salesmanship. Unless you're buying a CD (and sometimes not even then), you can't get in and out without some blue shirt asking you if you want a "performance service plan" (not an extended warranty!), half a dozen printer cartridges, a new UPS system, a free month of dial-up internet, two free months of magazine subscriptions, a free trial of Rhapsody, and a credit application for a Best Buy card. All of those are real things, and I was forced to offer ALL of them to each and every customer I had in the computer department. There are more, too.
I get that Best Buy wants to get every dollar they can out of you. I just think that that's better done through competitive pricing and good product selection, not through the real-life version of pop-up advertisements. That's annoying, as is the "CARE plus" sales method they make their workers employ, which involves asking you your name, asking leading questions such as "what will you be doing with your digital camera? (duh!)" and then trying to leverage that conversation against you to get you to buy more stuff.
I'll tell you how my success with that gem of a strategy went. Occasionally, a customer would listen politely and pick up a few of the suggested add-ons. More often, though, the customer had enough after the second add-on pitch, and stopped listening entirely. More often than not, a customer buying a computer/printer combo will leave the store without so much as a printer cable or paper to print on because they didn't want to hear me or one of my coworkers try to squeeze more money out of them.
Mix into that formula the fact that managers come around with a clipboard every half hour to browbeat you about not meeting your add-on sales goals, BUT you don't earn any commission for selling them. It's unrewarding and demoralizing--the customers hate you, and so do the managers. Even as a stockholder, I can't stand to shop there anymore because of the barrage of BS I have to endure to get my product out the door.
Now that I've finished my rant, here's your answer: Don't buy. Best Buy will most likely rebound somewhat, but they can't transform the business into a competitive, working model in time to save themselves. It'll take a complete overhaul, and they still couldn't compete with Amazon or Fry's. Don't climb aboard a sinking ship, no matter how small the leak.
- Anonymous9 years ago
Technology is cyclical....The big year for Televisions was last year, and before..
3 D is a gimmicky, stupid Idea, that will sell just like 3D has sold all along,..The only place 3D will work is Gaming..."Black Ops".
Best Buy has a wide selection of product, more than the Mart Brothers, and Radio Shack.
What's hurting them is Websites..Amazon.com..New egg..Tiger Direct,etc...More and more are buying online at best prices, and letting UPS/FEDX bring it to their front door.
- MichaelLv 49 years ago
This is a potential candidate for selling cash-secured puts. The big drop in price today has jacked up the put option premiums. You can sell puts to acquire this stock even more cheaply if you want to own it, and get paid for doing it.
- dustmanLv 43 years ago
Any time is an outstanding time to purchase shares. It merely relies upon on which corporation s you place money into. via making an investment in vast companies whose inventory expenses in many cases stay on a similar relative fee are much less probably to generate you any money. making an investment in small companies, supplies the corporation the possibility to enhance and elevate their inventory expenses, having you being waiting to sell the shares at greater then you definitely had until now offered, regrettably, this additionally generates risk, if the corporation fails and forecloses, you never acquire your money back, and your shares are merely approximately valueless.
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- Anonymous9 years ago
Sell it.They reinvest all their profits back into the company or executive bonuses.During years of record profit it was not uncommon for a chump employee to receive a 1 cent profit sharing check.I avoid any BB
store like the plague.
- Shanks PLv 69 years ago
Stock's going no where
Invest in RIM