Can Brick-And-Mortar Retailers Beat Amazon At The Pricing Game?

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I think we all know what the answer to this question is. Hint: It starts N and ends in O.

The Wall Street Journal cites a William Blair & Co. study that found Amazon's prices (including shipping but excluding sales tax) are 9% lower than what you'd pay on Walmart.com. And Walmart's online prices are about 1% lower than what you'd pay in a Walmart store. Meanwhile, Amazon's prices are 14% cheaper than Target.com's, which are 2% less than the prices in Target retail locations. Even factoring in sales tax, which Amazon does collect in a handful of states, another study shows that the online giant is still charging 11% less than what you'll pay at a Wal-Mart store and 8% less than at Best Buy outlets.
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It depends. Amazon doesn't beat Microcenter at the pricing game on CPU/Motherboard bundles, and MC wisely makes you come to the store to get those. But Best Buy is essentially a showroom for electronics that you'll buy elsewhere.

That being said, you still can't buy a gallon of milk at Amazon. If I need a gallon of milk and other stuff, I go to Walmart.
 
Yes, they can. The problem is they SERIOUSLY think that MSRP is in ANY way reasonable for things such as:
1) Videogames that are 6 months old :rolleyes:
2) Appliances that are 5 years old :rolleyes:
3) Music CD's for $15.99 :rolleyes:
4) Gaming Headsets / Mice / Keyboards for $110 :rolleyes:
5) Hard Drives for $200 :rolleyes:
6) Blu-rays for $30 :rolleyes:

All those prices are unbearable and at this point in life - they are literally laughable. The more that life goes on, the more that this generation dies and the new generation takes over. What does that mean? Less old people to take advantage of (literally, they take advantage of them) and the new generation actually does research.

What they need to do:
1) Spend less on employees. I hear the pay for stupid ass Geeksquad people (whom 99% of are actually retarded to boot with computers and all they know is how to put a restore CD inside)
2) Be able to support reviews of products. People come to these places to see the TV in person. All you need now is a review / knowledge to convince them to buy it. Make a contract with places like CNET to give out their reviews at the store instead of hiring morons to say BUY THIS BUY THIS BUY THAT for commission :rolleyes:
3) Reasonable Prices. They try to sell @ MSRP to profit because they have to spend so much on retarded employees, gay show rooms, and advertisements.


Let me know if anyone else agrees with me here - they have potential if they could sit down and analyze the generation of people we have.
 
Even if they could, they can't match Amazon's Service.
 
You forgot USB Cables for $30 and HDMI Cables for $99. In some cases, Monoprice is 1/100th the cost.

Cyraxx said:
Yes, they can. The problem is they SERIOUSLY think that MSRP is in ANY way reasonable for things such as:
1) Videogames that are 6 months old :rolleyes:
2) Appliances that are 5 years old :rolleyes:
3) Music CD's for $15.99 :rolleyes:
4) Gaming Headsets / Mice / Keyboards for $110 :rolleyes:
5) Hard Drives for $200 :rolleyes:
6) Blu-rays for $30 :rolleyes:

All those prices are unbearable and at this point in life - they are literally laughable. The more that life goes on, the more that this generation dies and the new generation takes over. What does that mean? Less old people to take advantage of (literally, they take advantage of them) and the new generation actually does research.

What they need to do:
1) Spend less on employees. I hear the pay for stupid ass Geeksquad people (whom 99% of are actually retarded to boot with computers and all they know is how to put a restore CD inside)
2) Be able to support reviews of products. People come to these places to see the TV in person. All you need now is a review / knowledge to convince them to buy it. Make a contract with places like CNET to give out their reviews at the store instead of hiring morons to say BUY THIS BUY THIS BUY THAT for commission :rolleyes:
3) Reasonable Prices. They try to sell @ MSRP to profit because they have to spend so much on retarded employees, gay show rooms, and advertisements.


Let me know if anyone else agrees with me here - they have potential if they could sit down and analyze the generation of people we have.
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kirbyrj said:
It depends. Amazon doesn't beat Microcenter at the pricing game on CPU/Motherboard bundles, and MC wisely makes you come to the store to get those.
Click to expand...

You're forgetting that a) Microcenter's best deals are usually in store only...and b) that Microcenter's are very uncommon. Most states in the USA do not even have one.
 
I think they can, and here's how:
(a) Start by modeling your business on Amazon's model. If you can't beat them, copy them, so to speak.
(b) Treat your stores like distributed warehouses. It's really not hard to design a system to do this, not with modern technology and connectivity. This permits Amazon-like pricing while retaining on-the-spot availability. Might even usher in some new reporting and controls.
(c) Continue offering services that Amazon cannot, but do it wisely. That huge wall of TVs is probably a bad idea, but educational classes (ala Home Depot's or Lowes' "how-to"s) might be just the ticket.
(d) Do something with Geek Squad (Outsource?), or begone with it entirely. It is insulting to people in the know, and you can only sucker in customers so much before they wise up.
 
The problem I have had with Best Buy has been really bad customers service. They ether don't know much about the products they sell. Or treat there customers like crap. Or all of the above. It gets really tiring trying to buy something in there stores when you have to fight with them about extended warranties. 90 dollar 6 foot hdmi cables. And do you want magazine subscription when you checking out. With Amazon its 1 click. And I don't have to go anywhere.
 
Skripka said:
You're forgetting that a) Microcenter's best deals are usually in store only...and b) that Microcenter's are very uncommon. Most states in the USA do not even have one.
Click to expand...

Yes but it doesn't change the fact that a local retailer can indeed compete with online stores. When I walk into MicroCenter I'm not harassed by ignorant employee's, and looking at ridiculous prices. Walk into BestBuy I'll have employee's harassing me about products that they have no idea about, and prices that are laughable.

Stores like Walmart and Target are betting on that you either...

A. Can't wait long enough for something to be shipped to you.
B. Are so ignorant or afraid to buy things online.
C. Would rather have the product in front of you, even if it's still in the box the whole time.

People still need to go to retail stores for things like cloths, food, and measuring the object you're going to buy. For everything else there's going online.
 
I think it's funny how we've gone from Wal-Mart being the 800lb gorilla to Amazon.com...
 
B&M stores need to find and focus on their niche.

It isn't all about price... anybody ever been to Whole Foods?
B&M stores can sell premium goods at premium prices with premium service and be wildly successful.
 
I sure hope they can. I would much rather be able to walk into my local store and by my gear than having to pay online and wait a week for shipping them hoping to the gods that its not DOA and I have to deal with RMA instead of just walking back into my local store.
 
make a little less money, sell more of it.

i wonder how much of BB's store inventory sits there for over a year.
 
Zangmonkey said:
B&M stores need to find and focus on their niche.

It isn't all about price... anybody ever been to Whole Foods?
B&M stores can sell premium goods at premium prices with premium service and be wildly successful.
Click to expand...

This is exactly it.
B&M store are NOT for the tech savvy and never for the [H] type. :D
For people that really don't have a grasp on the aspects of technology, they need to touch, feel, finger and ask questions of someone while doing it. B&M stores, here is your customer.
Personally I have not purchased any electronics or even blank media from a B&M store in YEARS. No need to waste my time and pay a higher prices+ tax. Simple as that.
And this is nothing new. This goes way back.
I recall waiting until the local stores carried the computer I wanted to buy. 1981, this was an Atari 400 (drooled over the 800, but couldn't afford it).
Buy this time I read everything ever printed about it and knew it pretty well, I just wanted to get my hands on the real thing.
The local story that carried it was a TG&Y. (if anyone remembers that old chain)
What I found was they had it set up for demonstrations by a saleman only.
I got a hold of someone and told them I wanted to check the Atari Computer out.
Here comes this fat woman that was suppose to be their computer expert.
She said "you mash this here button to open it up. Then you put this little box in here (cartridge). Then you shut this back. Then you can play your games."
I told her I was interested in the basic programming cart that cames with it.
She said "No, this is for playing games". :rolleyes:
 
Zangmonkey said:
B&M stores need to find and focus on their niche.

It isn't all about price... anybody ever been to Whole Foods?
B&M stores can sell premium goods at premium prices with premium service and be wildly successful.
Click to expand...

That's the key word there: niche. Whole Foods is a niche store that is successful because they are preying upon consumers that are following a current trend/fad, more or less.

When it comes to a B&M company like Best Buy, there is no trendy niche to feed consumer's desires and rake in the green at. They sell music, movies, electronics, and appliances. Same as every other multi-department e-tailer. As a prime example, this is the area where Best Buy is failing at.
 
It's not impossible for B&M to overtake Amazon but it will be very hard! With very little overhead costs & Amazon's free shipping policy on most items or purchases of more than $25 it will not be easy. B&M's greatest advantage over Amazon is their ability to provide instant gratification. So they should focus more on this to entice customers and at the same time price their items just slightly above Amazon. People will be willing to pay for a little above online prices in exchange for instant gratification but not an "arm and a leg" just like Best Buy's.
 
TechLarry said:
You forgot USB Cables for $30 and HDMI Cables for $99. In some cases, Monoprice is 1/100th the cost.
Click to expand...

This is the one that's made me stay away from BB for at least several years. I understand the concept of having a really low-ball price on a printer and then making it up on ink and cables, but I think it's insulting to sell a $2 cable for $30. I don't like the practice, so I don't frequent the practitioner.
 
DejaWiz said:
That's the key word there: niche. Whole Foods is a niche store that is successful because they are preying upon consumers that are following a current trend/fad, more or less.

When it comes to a B&M company like Best Buy, there is no trendy niche to feed consumer's desires and rake in the green at. They sell music, movies, electronics, and appliances. Same as every other multi-department e-tailer. As a prime example, this is the area where Best Buy is failing at.
Click to expand...

Trend/Fad? More like false information that organics are healthier :p Silly silly people. When will you learn to research for yourself instead of listening to bogus crap and gobbling it up? But hey - you pay 10x the price for your groceries, more taxes to Uncle Sam is always appreciated.

Whole Foods is a place that I don't mind for having a good international selection, however. I tend to do a good amount of crazy cooking for other cultures. I don't, however, buy nothing but organics like most people are there to do.
 
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