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ivan@stellysee.de
| From | DanAbnrml9@aol.com |
| Subject | Re: Mail order bad? and 'playing it safe'? No way, Jose! |
| Date | Fri, 28 Feb 2003 13:50:32 EST |
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In a message dated 2/28/03 12:16:29 PM Eastern Standard Time,
popmusic@notlame.com writes:
> IS the best buys and circuit
> cities and h ow they do business with selling music. Sure, they sell cd's
> cheaply. Why? Most of them are sold below cost or at cost. Really, folks.
> It's true. You get a great buy picking cd's up there...no argument
Bruce brings up some very good and very true points.
In my time working in music retail, I've become extremely aware of how the
business functions and how, if you care about music at all, you really really
should not let your money go to stores like Best Buy, Circuit City
and--because they're just as bad, and operate in the same ways--Wal-Mart,
Kmart, Target, etc.
Auditeers in the Boston area may have seen last Sunday's Boston Globe where,
in two separate articles, Newbury Comics founder and CEO Mike Dreese, in a
typically no-bullshit tone, said that in 5 years time there will be virtually
no CD stores and didn't shy away from admitting that Newbury's days as a
retailer of MUSIC are probably numbered. We're weathering this storm better
than many of our competitors, but it's not because of the CDs--it's because
of the rest of our product mix. If CDs begin to lose money--and they're not
far from it--they're gone. That's a very chilling thought considering what
else is available.
That said, keep in mind that the general music buying public is not aware of
this. At all. People will constantly complain about our prices (which are far
from unreasonable), citing that "Best Buy has it cheaper". The official party
line on this is "Go to Best Buy, then"--we don't price match and
realistically can't afford to compete with them on price. We try,
occasionally, but in all honesty it hurts more than helps. We used to charge
around 11.99-13.99 for almost everything in the store. Now the hits and new
releases are priced similarly to the big chains, but that forced the cost of
the other CDs up by several dollars. In the long run this might hurt. We try
to stay strong in what we're best at--being a "fun" store to hang out in
(read: we don't hound and harrass the kids), offering a wider and deeper
catalog than most retailers, and offering far more knowledgeable employees
per square foot than any of our competitors. (I should note that, unlike most
chain retailers, Newbury takes remarkably good care of their employees,
offering full benefits to full timers and generous bi-annual raises). But all
those things cost money.
One customer, while returning a Busta Rhymes CD that was a couple bucks less
at Best Buy, said rather frankly that she said she hopes Best Buy puts us out
of business. While that's a bizarre thing to say, especially considering that
our cardinal sin was charging more for a catalog CD and not, say, poor
customer service (something Best Buy is frequently guilty of), it does speak
to how uneducated the average consumer is on how the world of retail works.
Best Buy does charge below cost for their CDs. What happens when their
competitors--the Newburys or even TransWorlds--go under? There's no way in
hell Best Buy is going to keep charging below cost if they have no serious
competition--those prices will certainly go up. Every time you buy a CD at
Best Buy and not your local (or even smaller chain) store, you're supporting
this end result.
I don't mean to sound like a Newbury Comics commercial, because most of these
things would apply to similar-sized chains and local retailers all over the
country. They do not, however, apply to those generic big-box type
discounters.
--Jason
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