There has been considerable banter about the imminent demise of Best Buy. Custom retailers and integrators should rue the day that this would happen.
We cannot deliver the volume necessary to keep specialty suppliers in business. The outcome would be the manufacturing of more commodity products, less consumer awareness of new technologies and gear, and the strengthening of our true enemy, Amazon.com.
Where did Circuit City’s volume go? Certainly not to specialists or Best Buy! We have learned to coexist with Best Buy/Magnolia. They complement our deficiencies and at the same time allow ample opportunities due to their endemic shortcomings. (We should all be so lucky to charge their labor rates).
My suggestions for Best Buy are simple:
- Adopt a smaller footprint as suggested my many.
- Personalize the client experience
- Focus on strengths like display. capabilities and salesmanship.
- Insist on proprietary models and model numbers.
- Concentrate on profitable categories and drop all the others.
- Develop deeper vendor programs based on mutual support.
- Selection is death. Focus is rewarded. Cut your vendor list in half.
- Pay commission to selected personnel in specific profitable selling spaces.
- Be a leader. Be the leader. Show the future.
I wrote an article last year about how Best Buy killed 3-D. Specialists should introduce new technologies or at least have access at the same time. We’ve seen companies come and go. We need Best Buy as their departure would change consumer electronics forever to the benefit of one iniquitous player.
This blog was sent to the media as an email by Richard Glikes, president and founder of Azione Unlimited, a custom retailer and integrator buying group, right after Brian Dunn’s resignation from Best Buy last week.