Best Buy to announce "Buy Back" program during the Superbowl
Feb 3, 2011 | 10:13 AM
#1
Thread Starter
| Full of Win.
Joined: Nov 2008
Posts: 6,295
From: Gobbles Air Force Base
Best Buy to announce "Buy Back" program during the Superbowl
Got this interesting message from Best Buy today:
Because you're a valued Best Buy® customer, I want to personally tell you about a program we're launching during the "big game" this Sunday, Feb. 6. It's called the Buy Back Program and we're announcing it in a commercial during the third quarter, with stars like Justin Bieber and Ozzy and Sharon Osbourne.
Buy Back is essentially "future-proofing" your technology. You purchase the technology you want today, and we'll buy it back at a set price when you're ready to upgrade to something new. You'll know upfront what your gear will be worth, and you can conveniently redeem your Buy Back at our stores and immediately receive a Best Buy Gift Card.
You already enjoy Reward Zone® benefits, and I hope you consider the advantages that Buy Back can provide. We're excited to introduce it in a big way on "big game" day. Be sure to tune in and learn more.
Buy Back is essentially "future-proofing" your technology. You purchase the technology you want today, and we'll buy it back at a set price when you're ready to upgrade to something new. You'll know upfront what your gear will be worth, and you can conveniently redeem your Buy Back at our stores and immediately receive a Best Buy Gift Card.
You already enjoy Reward Zone® benefits, and I hope you consider the advantages that Buy Back can provide. We're excited to introduce it in a big way on "big game" day. Be sure to tune in and learn more.
Feb 3, 2011 | 10:28 AM
#2
Watch this space.
Joined: Mar 2008
Posts: 12,211
There's no way that's cost-effective unless they front-load it (like a car lease). I'm curious to see what the "residuals" will be. I got the same email and deleted it. Sounds too good to be true. Personally, I was happy with the sale price and 36 mos no interest.
Feb 3, 2011 | 11:11 AM
#4
Teamspeed Pro
Joined: Apr 2008
Posts: 31,976
From: Minnesota
I'm curious to see how this works out as well. Best Buy already grossly overcharges on the vast majority of their products so if this really is as sweet of a deal as I'm hoping, it might get me back into their stores again.
Feb 3, 2011 | 11:33 AM
#5
Teamspeed Senior Member
Joined: Jan 2008
Posts: 765
From: Austin, TX
I freakin hate Best Buy. Even if they were throwing in a lifetime supply of hookers and blow I would not do business with them. Obviously I kid about the hookers and blow, but you get my point.
Last edited by ambleZ06; Feb 3, 2011 at 12:06 PM.
Feb 3, 2011 | 11:34 AM
#6
Teamspeed Pro
Joined: Apr 2008
Posts: 23,875
From: Orange County
We'd both take that deal.
Feb 3, 2011 | 01:03 PM
#8
Official Teamspeed Duck's Fan
Joined: Jan 2009
Posts: 2,227
That is pretty common in the high-end audio/video world. It is a great way to get people to keep upgrading. Just like a used car we would look up the current "value" in the audio/video blue book and make an offer. As the sales guy you might take a 20% hit on commissions (on the new product) but you get the volume and a long term client to go with it.
The issue is that the market is changing so fast now that we would never move the used stuff for even close to the value we paid for it to buy it back. We were working on 40% standard margin, Best Buy shoots for a 18% standard margin and is still making money at 12% as a single location.
There is no way this can work in a large scale big box store with razor thin margins. The amount of stagnant inventory will go through the roof.
The issue is that the market is changing so fast now that we would never move the used stuff for even close to the value we paid for it to buy it back. We were working on 40% standard margin, Best Buy shoots for a 18% standard margin and is still making money at 12% as a single location.
There is no way this can work in a large scale big box store with razor thin margins. The amount of stagnant inventory will go through the roof.
Feb 3, 2011 | 01:55 PM
#9
I give good hugs. Bo, you're first.
Joined: Jan 2010
Posts: 3,160
From: Beyond the lighted stage
Probably no chance this program applies to the $6K TV we bought from them a month ago. Not that the incentive would likely amount to much anyway.
