Best Buy’s New Weapon against Amazon: a Try-Before-You-Buy Option

Megalith

Megalith

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Best Buy is embracing a “try-before-you-buy” approach for certain products, which is pretty interesting for a store that is likely tired of folks buying and returning expensive electronics. Customers will be able to visit their site to rent devices ranging from cameras, audio equipment, fitness trackers, and smartwatches. One example is the Apple Watch, which can be rented for a week for $50.

Later this month, the big-box retailer will start advertising try-before-you-buy rentals on its website for cameras, audio equipment and fitness trackers, the company recently told Recode. Best Buy is working with a San Francisco-based startup called Lumoid on the partnership. Best Buy will feature the try-before-you-buy option on BestBuy.com and then send interested customers to Lumoid’s website to make the rental. Customers earn about 20 percentage of the rental price back in Lumoid credits and can use them if they go on to buy the item outright.
 
So someone can:

  • Rent a watch for a week for $50 OR
  • Buy it, try it for 4 weeks 15 days, and return it for free*.
This sounds like a winning plan.

*Drones, DSLR Cameras and Lenses, Mirrorless Cameras and Lenses, Projectors, Rideables and Special Order Products 15% of item purchase price
 
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Seventyfive said:
So someone can:

  • Rent a watch for a week for $50 OR
  • Buy it, try it for 4 weeks, and return it for free.
This sounds like a winning plan.
Click to expand...

Best Buy Might have a return restocking fee of 20 percent of whatever you bought.
 
Looks like you don't actually get the item from Best Buy anyway. They send you to Lumoid to"rent" the item and then sell it to you if you want to buy it. You have to buy the item you want from Best buy and return it. If it gets returned it almost sounds like you have to pay a restocking Fee because they will give it to Lumoid for the "rental" after you purchased and returned the item from the actual store.

Best Buy will feature the try-before-you-buy option on BestBuy.com and then send interested customers to Lumoid’s website to make the rental. Customers earn about 20 percentage of the rental price back in Lumoid credits and can use them if they go on to buy the item outright.
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Unless I misunderstand but I'm somewhat reading between the lines on this.
 
Things that might work better than this.....I don't know just off the top of my head how about a Price things Fucking Competitively instead of costing 30-50% more than Amazon and Ebay and actually have knowledgeable sales staff that doesn't try to pressure me into buying something more expensive that does not meet my needs Approach.
 
So is there now going to be an section for previously rented items for 30% off?

Seriously though, this isn't a bad idea. It's not a good idea either, it's mearly an idea that needs more work. A lot more.
 
kinjo said:
Things that might work better than this.....I don't know just off the top of my head how about a Price things Fucking Competitively instead of costing 30-50% more than Amazon and Ebay and actually have knowledgeable sales staff that doesn't try to pressure me into buying something more expensive that does not meet my needs Approach.
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The problem is those two things are at direct odds:

Amazon/eBay doesn't have to pay ANY sales staff. So that's part of the reason they're cheaper then BestBuy.

And you have to pay more money to find, train, and retain knowledgeable staff. They could, but then they'd have to raise prices even more to pay them.
 
kinjo said:
Things that might work better than this.....I don't know just off the top of my head how about a Price things Fucking Competitively instead of costing 30-50% more than Amazon and Ebay and actually have knowledgeable sales staff that doesn't try to pressure me into buying something more expensive that does not meet my needs Approach.
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They do price match, but I'd rather buy from Amazon than waste my time driving to the store unless I need something right now.
 
Never had any problem returning anything to Best Buy before. I remember their funny internal e-mails about "angels" and "devils" when it came to product returns. Seems like they're finally just giving in.
 
TheBuzzer said:
Best Buy Might have a return restocking fee of 20 percent of whatever you bought.
Click to expand...

Restocking Fees
The following items have a restocking fee if returned by any customer, including My Best Buy® Elite and My Best Buy® Elite Plus customers.

Product

Returns Fee

Cell Phones with a Carrier Agreement and Unlocked Phones $35

Drones, DSLR Cameras and Lenses, Mirrorless Cameras and Lenses, Projectors, Rideables and Special Order Products 15% of item purchase price

There is no restocking fee if the product is unopened or if the purchase and the return both occur within: AL, CO, HI, IA, MS, OH, OK, SC and where prohibited by law. The restocking fee will be taxed in select states.
 
kinjo said:
Things that might work better than this.....I don't know just off the top of my head how about a Price things Fucking Competitively instead of costing 30-50% more than Amazon and Ebay and actually have knowledgeable sales staff that doesn't try to pressure me into buying something more expensive that does not meet my needs Approach.
Click to expand...
That might just be crazy enough to work...
 
Best Buy could probably 1/2 their sales staff and inventory. The mostly abandoned CD's and DVD's are in fucking alphabetical order. You don't need to have 3 people patrolling to "help you find something" by looking the same way you would. Put one person in the video games section (where everything is locked up) and put all of those media-based products in Redbox-like vending machines.
The people in the home theater department actually seem to kinda sorta know what they're doing so whoever is training them should probably train the PC people, too.
 
What training should Best Buy provide to give you the knowledgeable workers you seek? Do you teach them the marketing materials from the companies? "Here is why TCS thinks their sets are better than Samsung!" or "Here is why 3D is here to stay, and why you should consider it!".......?? Or do you want them to be technology advocates: "Oh, so you're ok with a middle-of-the-road picture and poor upconversion? Try our "below $1000" line over here..."...all they'd have to sell are six sets, the rest being garbage. Half their store is music and movies and video games, the rest is a small handful of appliances and the rest are computer crap that you wouldn't buy unless you knew what you were doing.

If you need hand-holding, they have a paid service for that called Geek Squad.

They seem to have their bases pretty-well covered.
 
Vicinity said:
I noticed you used the word "had". How did that work out for them?
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We've had and still have. It's a multinational chain here in Scandinavia. It's one of the cheapest and most successful electronics stores here.
 
Seventyfive said:
So someone can:

  • Rent a watch for a week for $50 OR
  • Buy it, try it for 4 weeks, and return it for free.
This sounds like a winning plan.
Click to expand...

You are overlooking one important factor.

Rent for $50 straight up.

Or float the full price while you try it out, and then pay the restocking fee.

For a $300 watch maybe not a big deal, but I would consider spending $50-$100 to rent a pair of Martin Logan electrostatic speakers before dropping several thousand dollars.
 
First, return enough stuff at best buy or multiple items within x years and you will land on The Retail Equation banlist. Best Buy wont accept returns at that point. Return 10% stuff on amazon and they will give you a warning that says stop returning or your account will be banned with no appeal process.
 
I need Best Buy around for their open box deals. Literally the only reason I buy from them.
 
westrock2000 said:
You are overlooking one important factor.

Rent for $50 straight up.

Or float the full price while you try it out, and then pay the restocking fee.

For a $300 watch maybe not a big deal, but I would consider spending $50-$100 to rent a pair of Martin Logan electrostatic speakers before dropping several thousand dollars.
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Well clearly given the ratio it wouldn't work that way. $50 / $300 * $2,000 = $333

Is that worth it? Or just buy them (and you aren't even floating the cost, it's on your credit card so THEY float the cost), try them for 15 days, then return them WITH NO RESTOCKING FEE.
 
kinjo said:
Things that might work better than this.....I don't know just off the top of my head how about a Price things Fucking Competitively instead of costing 30-50% more than Amazon and Ebay and actually have knowledgeable sales staff that doesn't try to pressure me into buying something more expensive that does not meet my needs Approach.
Click to expand...

Lol so charge me less but offer me more skillful people.

I'm okay with things going the way of the dodo. But I do think the internet has killed the worth of information to people. Having someone who knows stuff cost money. Money no one can afford because people don't think information is worth it.
 
Seventyfive said:
Well clearly given the ratio it wouldn't work that way. $50 / $300 * $2,000 = $333

Is that worth it? Or just buy them (and you aren't even floating the cost, it's on your credit card so THEY float the cost), try them for 15 days, then return them WITH NO RESTOCKING FEE.
Click to expand...

I don't understand the calculation.
 
I am actually banned from returning items at Best Buy. *Shrug*. Who cares...Just won't buy anything from them at all now.
 
Reps to Best Buy for trying something different... but this is doomed.

Want to beat Amazon? Beat all their prices by 5% on everything. Done. How will Best Buy make money you say? That's for their accountants to figure out.

They could also try hiring people who actually have a clue to sell their high end gear... put them on commission! I know that's a bad retail word nowadays, but a salesperson who only gets to eat and survive if he/she sells... is a motivated one.
 
Burticus said:
Reps to Best Buy for trying something different... but this is doomed.

Want to beat Amazon? Beat all their prices by 5% on everything. Done. How will Best Buy make money you say? That's for their accountants to figure out.

They could also try hiring people who actually have a clue to sell their high end gear... put them on commission! I know that's a bad retail word nowadays, but a salesperson who only gets to eat and survive if he/she sells... is a motivated one.
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Forcing people to "sell" or "starve", that always works out best for everyone involved.
 
Burticus said:
That's for their accountants to figure out.
Click to expand...

This is a great way to run any business into the ground or set yourself up for a huge scandal of playing hide the debt.


One really important thing I have learned in the many hats I have worn over the years is that the people/companies that get myopic trying to "win" at something are the first to go under. I see this a LOT in the contracting world (especially now that I'm on the other side of the table). Contractors and their business development people get into this mindset that they must win every contract ever and somehow it'll work out in the future. They squeeze their margins so thin that a missed paperclip in their cost estimate puts them into the red, all because the project is "good for the company" since it'll "lead to more work" or they'll magically make up margin in <insert magic construction phase here that they'll be more efficient at even though hundreds of past projects say otherwise>. Well it'll lead to more work alright, more work that's expected to be just as cheap and unprofitable as the last contract.

Likewise with Best Buy. They can make nothing on every sale in the hope that they'll become more popular with these lower prices, but people are only going to stick around as long as those prices stay rock bottom.

There is certainly ways to bring overhead down and lower prices a bit, for instance I really liked that idea above of Red Box like disc vending machines instead of having staff constantly reorganizing shelves. But I definitely do not think that there is a simple magic bullet that will turn the tide. If BB's going to climb back, it's going to be by several small gains over a long period.
 
RayderR6 said:
Forcing people to "sell" or "starve", that always works out best for everyone involved.
Click to expand...

You make it sound bad. But I put quite a few years into retail, and I know first hand that if your salespeople get paid the same no matter what, mediocrity rules. People will do the least amount of work possible to get paid. Salespeople on commission are motivated to sell, and it doesn't (always) have to be through high pressure smarmyness (ie - car salesmen). It can motivate people to actually learn and be knowledgeable about the crap they are selling, and want to be helpful to make a sale. Go try to find some technical sales expertise at your next trip to Walmart's electronic section... good luck. Same at Best Buy, wander around in the TV section. Blue shirts will avoid you like water around a rock in a stream if they think you need help. I hate to use Circuit City as an example because they had more problems going on than could be counted. But WAAAAYYYY back in the day, you could expect a CC salesperson to have a clue about what they were selling and offer advice. They got rid of commission and suddenly it became no better than Best Buy, which they were already losing their shirts to. Then poof, gone.
 
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