CompUSA to close all stores after holidays

[aFive]

I have a Fry's about four blocks away.

There ain't any Fry's close to me. MicroCenter is like an hour away

 

[himmy]

I do understand the economics involved in brick and mortor having to charge a little more. However, when the prices are outrageous like ,most of them are, it becomes a scam. When you have BB doing stuff like switching sites to fool customers into paying more than the web site has it listed for, it's a scam. When you have floor staff intentionally misleading people into paying more for less, it's a scam. When you have idiots that don't have a clue misleading customers, it's a scam.

Scam? Not even close to a scam(CompUSA pricing that is).

 

[-O-rigin]

Wouldn't say it's a "scam", though perhaps not acceptable behavior or good business ethics. Sales people on the floor are oft times trained to "push" these days, for the very fact that B&M stores are on their way out. However, I will say that their prices were always amongst the highest of any B&M store, which has always annoyed me.

While the internet can be a great convenience for buying just about anything you can think of, it's sometimes irritating when you might actually want or need to get something immediately, but there's no B&M stores that have what you need. If they're there at all.

Just another sign of the times, though. Have to admit that I don't particularly like being out in crowds of people anyway, but at times, not having a B&M store to run out to can be an inconvenience... unless their prices are ridiculous.

At some point we'll all just be wrinkled, horrid looking, bug-eyed, hairless (from lack of sun/vitamin D) trolls eek just staring at computer screens, never having to get up and go out to do anything.

 

[Monkey God]

Sorry, I ended up ranting and I didn't realize how long the post was before I hit submit.

good info though. mostly factual and non-rantish.

 

[Dan_D]

There ain't any Fry's close to me. MicroCenter is like an hour away

The Fry's is five minutes away, and Microcenter is only 15 minutes away. Another five minutes from there is yet another Fry's.

Wouldn't say it's a "scam", though perhaps not acceptable behavior or good business ethics. Sales people on the floor are oft times trained to "push" these days, for the very fact that B&M stores are on their way out. However, I will say that their prices were always amongst the highest of any B&M store, which has always annoyed me.

Comp USA did have the highest prices. They always tried for a 30% markup but sometimes it wasn't feasable. There was a code on the price tags for everything telling employees what had the highest margins so they knew what to push on people.

They just didn't have a realistic business model. They felt their non-competition agreement kick backs would be enough to cover for the fact that they sold small volumes of everything. From top to bottom they just made too many mistakes. And really, all the higher paid executives couldn't have cared less as long as they kept getting their fat salaries.

 

[Cinge]

One of Comp USA's problems was their inability to handle market fluctuations in pricing. If they started selling X1950XTX's at $399.99 and six months later they started selling for less, Comp USA would never adjust their prices on the card.

This was especially bad in regard to processors. A year after the FX-57 was released they were still trying to sell them for $999.99.

Same way with BadBuy and their memory, etc. It averages 3 times higher than online, even at Kingston own website.

Yeah I like the BB deal. Its like baiting people into the store thinking they are getting a good deal cuz of the price on the website.

Yep, that's exactly what it is, bait and switch.

 

[-O-rigin]

Comp USA did have the highest prices. They always tried for a 30% markup but sometimes it wasn't feasable. There was a code on the price tags for everything telling employees what had the highest margins so they knew what to push on people.

They just didn't have a realistic business model. They felt their non-competition agreement kick backs would be enough to cover for the fact that they sold small volumes of everything. From top to bottom they just made too many mistakes. And really, all the higher paid executives couldn't have cared less as long as they kept getting their fat salaries.

Totally ridiculous. Their "mistakes" don't really seem like "mistakes" at all, but a greedy method of doing business that eventually brought them down even faster than they might have gone down eventually anyway (due to B&M stores going the way of the dino at this point as it is), trying to get the "most out of the least" through bad business ethic or a reasonable business model, as you've pointed out.

It's been quite a while, but I remember a while back having to have snagged a few things from them at truly ridiculous costs. What's the first thing I thought? "I wish I didn't need this right now. I could get it online for almost half this price."

Hence, the downward spiral of B&M stores continues, and the wonderful intraweb comes out on top yet again

Of course, it costs more money to run a B&M store, due to overhead etc. But to be so ridiculously over-priced just simply isn't necessary, and is just trying to milk the cow as fast and hard as possible, without care for the outcome in the long-run.

You know, it makes me wonder if Staples has the same "ethics" or "business model"... you ever go into Staples for a package of sticky notes? You practically have to sell a kidney. LOL. Need a package of pens with that? You might have to sell your first-born. It's ridiculous, and my wife and I were just laughing about that recently (while feeling disgusted) as we exited Staples empty-handed to go to Target for sticky notes and pens she needed for work.

 

[Dan_D]

Totally ridiculous. Their "mistakes" don't really seem like "mistakes" at all, but a greedy method of doing business that eventually brought them down even faster than they might have gone down eventually anyway (due to B&M stores going the way of the dino at this point as it is), trying to get the "most out of the least" through bad business ethic or a reasonable business model, as you've pointed out.

It's been quite a while, but I remember a while back having to have snagged a few things from them at truly ridiculous costs. What's the first thing I thought? "I wish I didn't need this right now. I could get it online for almost half this price."

Hence, the downward spiral of B&M stores continues, and the wonderful intraweb comes out on top yet again

Of course, it costs more money to run a B&M store, due to overhead etc. But to be so ridiculously over-priced just simply isn't necessary, and is just trying to milk the cow as fast and hard as possible, without care for the outcome in the long-run.

You know, it makes me wonder if Staples has the same "ethics" or "business model"... you ever go into Staples for a package of sticky notes? You practically have to sell a kidney. LOL. Need a package of pens with that? You might have to sell your first-born. It's ridiculous, and my wife and I were just laughing about that recently (while feeling disgusted) as we exited Staples empty-handed to go to Target for sticky notes and pens she needed for work.

Trust me, I've worked there before and I know a considerable amount of people that worked their for years. Trust me the company made huge mistakes in many areas. Piss poor management can be blamed for nearly all of them. Poor selection and bad prices are the two big ones that killed them. A brick and motar store can succeed, but not with the business model Comp USA worked off of. Not in today's market.

 

[nilepez]

No, my statement still stands. I really think they jacked up the prices and then marked them with 10%, 15%, etc. off.

For CompUSA to close their doors, they obviously didn't know wtf they were doing.

Then Gordon Brothers will go out of business. They want to sell as much stuff for as high a price as possible. Slashing prices isn't the way you do that.

If they can sell an overpriced CPU, then why not? What's more, those who don't know any better (and most B&M stores don't sell CPUs, AFAIK), will think the discounted price on the CPU (which is now roughly the same as other stores sell it for) is a great deal.

 

[Cinge]

Then Gordon Brothers will go out of business. They want to sell as much stuff for as high a price as possible. Slashing prices isn't the way you do that.

If they can sell an overpriced CPU, then why not? What's more, those who don't know any better (and most B&M stores don't sell CPUs, AFAIK), will think the discounted price on the CPU (which is now roughly the same as other stores sell it for) is a great deal.

To a point, the people that allow themselves to be scammed like this kinda deserve it but the people that do the scamming are just scum.

 

[-O-rigin]

Trust me, I've worked there before and I know a considerable amount of people that worked their for years. Trust me the company made huge mistakes in many areas. Piss poor management can be blamed for nearly all of them. Poor selection and bad prices are the two big ones that killed them. A brick and motar store can succeed, but not with the business model Comp USA worked off of. Not in today's market.

No, I'm not disagreeing with you by any means. Actually, I was in total agreement. I was simply addressing the specific issue of the bad prices you mention, and the fact that all of the "higher-ups" end up rolling in cash until the entire business goes under.

Absolutely, brick-and-mortar stores can survive, but with as difficult as it is in a market such as today's, you'd think they would have got smart and done something about their severe over-pricing, which is just one of (as you've said yourself, and what I was addressing) the many bad decisions they made with the way they've run things.

All other mistakes aside, you'd think that'd have been one they could have readily started with in order to try to get the business doing a bit better, as severely bad pricing does stand out like a sore thumb as an issue. As you explained about their attempted 30% price-jacks, codes on products so the employees could know the ceiling of cost they could attempt to push things to... you'd think they would have at least got wise where that was concerned.

It's just one of many things that seem to have played a relatively big role in their downfall, all the severe over-pricing etc., which most (smart) consumers wont fall for. Especially in a world where it is indeed becoming increasingly difficult for brick-and-mortar stores to survive.

If they did indeed make that many other mistakes on top of the ridiculous prices etc., as you say they have from even your own personal experience, then they were destined to be doomed. You'd think a company that big would know well enough to hire responsible (and smarter) business managers, store managers etc. to keep the company on an even keel. But, I guess things snowballed for over time with their bad business decisions.

 

[Dan_D]

No, I'm not disagreeing with you by any means. Actually, I was in total agreement. I was simply addressing the specific issue of the bad prices you mention, and the fact that all of the "higher-ups" end up rolling in cash until the entire business goes under.

Absolutely, brick-and-mortar stores can survive, but with as difficult as it is in a market such as today's, you'd think they would have got smart and done something about their severe over-pricing, which is just one of (as you've said yourself, and what I was addressing) the many bad decisions they made with the way they've run things.

All other mistakes aside, you'd think that'd have been one they could have readily started with in order to try to get the business doing a bit better, as severely bad pricing does stand out like a sore thumb as an issue. As you explained about their attempted 30% price-jacks, codes on products so the employees could know the ceiling of cost they could attempt to push things to... you'd think they would have at least got wise where that was concerned.

It's just one of many things that seem to have played a relatively big role in their downfall, all the severe over-pricing etc., which most (smart) consumers wont fall for. Especially in a world where it is indeed becoming increasingly difficult for brick-and-mortar stores to survive.

If they did indeed make that many other mistakes on top of the ridiculous prices etc., as you say they have from even your own personal experience, then they were destined to be doomed. You'd think a company that big would know well enough to hire responsible (and smarter) business managers, store managers etc. to keep the company on an even keel. But, I guess things snowballed for over time with their bad business decisions.

They just handled things poorly all around. Good riddance to a bad company. Hopefully someone else can break into the brick and mortar market and give Fry's and Microcenter some competition.

 

[bbz_Ghost]

Hopefully someone else can break into the brick and mortar market and give Fry's and Microcenter some competition.

Why? Prices at these places can't possibly go lower, if they do either of these franchises could find themselves going out of business.

Hell, Fry's just got done selling 320GB hard drives for $44 - CompUSA wouldn't sell a hard drive for that price even if it was IN PIECES IN A BOX after being pissed on by a mongrel dog and shit on too.

Good riddance, indeed.

 

[Dan_D]

Why? Prices at these places can't possibly go lower, if they do either of these franchises could find themselves going out of business.

Hell, Fry's just got done selling 320GB hard drives for $44 - CompUSA wouldn't sell a hard drive for that price even if it was IN PIECES IN A BOX after being pissed on by a mongrel dog and shit on too.

Good riddance, indeed.

Well these places don't all just sell computer parts. Trust me, there is a ton of margin in TV's and other products they sell.

 

[bbz_Ghost]

I was an Ops Manager for Circuit City for nearly 7 years in the past, so yeah I understand costs on such materials and retail outlets. Hence my strong opinions about CompUSA (and yes I do call them CompUSSR myself, on many occasions). Their bad management, inflated pricing compared to the competition, and general lack of customer care did them in, and I for one won't miss them.

Of course, I live in a town where there's a Fry's only a left turn and then a right turn away from me. A new Circuit City opened recently also - about 250 feet from a Best Buy. Talk about competition... geez. But Fry's stands alone in this town, and owns it.

 

[nilepez]

Well these places don't all just sell computer parts. Trust me, there is a ton of margin in TV's and other products they sell.

True, but Fry's has plenty of competition in the TV, Stereo and White goods markets.

Nevertheless, home Audio sells at cost/.6. Speakers sell for cost * 2, TVs are at least cost/.7

Competition isn't going to change that, since most of the manufacturers set minimum prices...and tend to pull the line if stores go below the min.

 

[-O-rigin]

They just handled things poorly all around. Good riddance to a bad company. Hopefully someone else can break into the brick and mortar market and give Fry's and Microcenter some competition.

I agree (good riddance), and hope you're right and someone reasonable takes their place. I get most of what I need online, but having moved from the East Coast to northern AZ five years ago, where there isn't much here as it is, it would be nice to have something around locally, just in the event. There's a BB around here that sells quite a bit, but while some prices are reasonable, some things are still way over-priced.

 

[watertown28]

Why? Prices at these places can't possibly go lower, if they do either of these franchises could find themselves going out of business.

Hell, Fry's just got done selling 320GB hard drives for $44 - CompUSA wouldn't sell a hard drive for that price even if it was IN PIECES IN A BOX after being pissed on by a mongrel dog and shit on too.

Good riddance, indeed.

I remember once i tried to talk the guy down at CUSA on a cpu that was opened. I mean they cared so little about it that they didnt even clean the paste off the top of it. He flat out told me he didnt give two poos if the box was open or not that the full price was for the cpu open or not. I laughed at him and walked away to look at PC stuff like keyboards and whatnot. 1 hour later i saw some dude walking out with the CPU. what a moron. if CUSA can do that im saving all my boxes for the CPUs...use em and then throw in the box again and charge full price.

Also to the people that say brick and mortar stores have a hard time, the best example to undo this claim is by comparing walmart to say ( here in wisconsin we have these stores ) piggly wiggly. Now walmart DOES sell alot if not all stuff lower priced then the other store. alot of people shop there. But the thing is the Piggly wiggly has figured out to make it up in other areas that walmart cant do like the services they provide there. People are always nice, greet you with a smile ( most times, everyone has bad days they are human ) They are always there to help and be there when needed. Plus the quality of the meats and bakery and deli are all fresh and not pre packaged 1 week ago and shipped to the store.

It is possible for stores to compete its just that they have to be better at something else that the other ..in this case, online retailers, cant offer. Costumer service is always a good start. I WILL pay a bit more for something if the people there have somewhat of a brain and also if they make me feel that they are happy to have me as a costumer .

O BTW before this overhead thing is thrown around m I like to state with my store thing, The piggly wiggly pays thier employees very well. compared to walfart. In fact you can sometimes make close to 10+ bucks an hour working at piggly wiggly if you got exp, and most new employs start out alot higher then any walfart employ can dream of. Believe me i worked at both stores, and to this day I have not found anything that has been better ( besides the money,cant become rich working at any retail store LOL ) Out of the 3 different store owners for piggly wigglys i worked at, all of them made me feel like they wanted me to work for them, which reflected in my work, walfart, you just another number to them

okay post is long enough, sorry about this lol. I hope it kinda makes sense at what I am saying.