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Have you noticed that Best Buy has become a lot more stingy in their price matching policies. Remember when Best Buy withdrew support from CAG for "ass" based resons. Well, it looks like the real reason is that they're declaring war on us!
"Mr. Anderson says the new tack is based on a business-school theory that advocates rating customers according to profitability, then dumping the up to 20% that are unprofitable. The financial-services industry has used a variation of that approach for years, lavishing attention on its best customers and penalizing its unprofitable customers with fees for using ATMs or tellers or for obtaining bank records."
they want to eliminate up tio a 5th of their customer base because those customers are "unprofitable." People like you and I who use sites like CAG and Fatwallet to save money.
"In July, Best Buy cut ties to FatWallet.com, an online 'affiliate' that had collected referral fees for delivering customers to Best Buy's Web site. At FatWallet.com, shoppers swap details of loss-leading merchandise and rebate strategies. Last October, the site posted Best Buy's secret list of planned Thanksgiving weekend loss leaders, incurring the retailer's ire. Timothy C. Storm, president of Roscoe, Ill.-based FatWallet, said the information may have leaked from someone who had an early look at advertisements scheduled to run the day after Thanksgiving.
In a letter to Mr. Storm, Best Buy explained it was cutting the online link between FatWallet and BestBuy.com because the referrals were unprofitable. The letter said it was terminating all sites that 'consistently and historically have put us in a negative business position.'
Mr. Storm defends FatWallet.com's posters as savvy shoppers. 'Consumers don't set the prices. The merchants have complete control over what their prices and policies are,' he says."
I don't understand why Best Buy says they don't want our business. then Sell The Suffering, Fire emblem, Wario Ware, and othe games for $10 or less. I can understand them wanting to eliminate those that "game" the system. To give an example...
"At SlickDeals.net, whose subscribers boast about techniques for gaining hefty discounts, a visitor recently bragged about his practice of shopping at Best Buy only when he thinks he can buy at below the retailer's cost. He claimed to purchase only steeply discounted loss leaders, except when forcing Best Buy to match rock-bottom prices advertised elsewhere. 'I started only shopping there if I can [price match] to where they take a loss,' he wrote, claiming he was motivated by an unspecified bad experience with the chain. In an e-mail exchange, he declined to identify himself or discuss his tactics, lest his targets be forewarned."
There's a shopper that doesn't want to save cash but get vengence on Best Buy. So I can accept a company that wants to eliminate those customers. But Best Buy wants to detter 20% of its customer base. I dunno if it's working. I do a lot more shopping at Circuit City now because the service and quality of Best Buy has fallen off in the past year in our area. But I also find I do a lot more regular shopping as well as bargin hunting at CC.
Anyway, the full article is available at the WSall Street Journal Online and this week only they're giving frree access to the site. You may want to read this article, it's very interesting. It also might explain why people are having experiences similar to CheapyD when it comes to having warranty policies pushed on them. "...Best Buy will first try to turn its bad customers into profitable ones by inducing them to buy warranties or more profitable services."
Analyzing Customers, Best Buy
Decides Not All Are Welcome
"Mr. Anderson says the new tack is based on a business-school theory that advocates rating customers according to profitability, then dumping the up to 20% that are unprofitable. The financial-services industry has used a variation of that approach for years, lavishing attention on its best customers and penalizing its unprofitable customers with fees for using ATMs or tellers or for obtaining bank records."
they want to eliminate up tio a 5th of their customer base because those customers are "unprofitable." People like you and I who use sites like CAG and Fatwallet to save money.
"In July, Best Buy cut ties to FatWallet.com, an online 'affiliate' that had collected referral fees for delivering customers to Best Buy's Web site. At FatWallet.com, shoppers swap details of loss-leading merchandise and rebate strategies. Last October, the site posted Best Buy's secret list of planned Thanksgiving weekend loss leaders, incurring the retailer's ire. Timothy C. Storm, president of Roscoe, Ill.-based FatWallet, said the information may have leaked from someone who had an early look at advertisements scheduled to run the day after Thanksgiving.
In a letter to Mr. Storm, Best Buy explained it was cutting the online link between FatWallet and BestBuy.com because the referrals were unprofitable. The letter said it was terminating all sites that 'consistently and historically have put us in a negative business position.'
Mr. Storm defends FatWallet.com's posters as savvy shoppers. 'Consumers don't set the prices. The merchants have complete control over what their prices and policies are,' he says."
I don't understand why Best Buy says they don't want our business. then Sell The Suffering, Fire emblem, Wario Ware, and othe games for $10 or less. I can understand them wanting to eliminate those that "game" the system. To give an example...
"At SlickDeals.net, whose subscribers boast about techniques for gaining hefty discounts, a visitor recently bragged about his practice of shopping at Best Buy only when he thinks he can buy at below the retailer's cost. He claimed to purchase only steeply discounted loss leaders, except when forcing Best Buy to match rock-bottom prices advertised elsewhere. 'I started only shopping there if I can [price match] to where they take a loss,' he wrote, claiming he was motivated by an unspecified bad experience with the chain. In an e-mail exchange, he declined to identify himself or discuss his tactics, lest his targets be forewarned."
There's a shopper that doesn't want to save cash but get vengence on Best Buy. So I can accept a company that wants to eliminate those customers. But Best Buy wants to detter 20% of its customer base. I dunno if it's working. I do a lot more shopping at Circuit City now because the service and quality of Best Buy has fallen off in the past year in our area. But I also find I do a lot more regular shopping as well as bargin hunting at CC.
Anyway, the full article is available at the WSall Street Journal Online and this week only they're giving frree access to the site. You may want to read this article, it's very interesting. It also might explain why people are having experiences similar to CheapyD when it comes to having warranty policies pushed on them. "...Best Buy will first try to turn its bad customers into profitable ones by inducing them to buy warranties or more profitable services."
Analyzing Customers, Best Buy
Decides Not All Are Welcome