05-10-2010 04:48 PM
Just ask Verizon about deciding not to carry the iPhone because the pricing terms demanded by Apple; see if they think it was a "profitable" decision in the long run.
When the customer finds another retailer to meet their demands and take their money, they will be lost to BestBuy on future purchases for years, perhaps forever.
Actually, it was apple who decided not to go with VZW, not the other way around. VZW demanded the iPhone run a branded OS, and apple refused. And actually, it was a very profitable decision for VZW. ATT loses money on every iPhone sold because they have to pay so much money to apple just to offer it.
Maybe you, but for the average consumer, not stocking a product isn't going to cause them to boycott the company. They'll check BB's site, see they don't carry it, then just look somewhere else. If they need something else, such as a memory card or lens, they'll most likely check BB, along with other retailers.
05-10-2010 06:28 PM
Maybe someone else can explain the concept of the loss-leader subsidized handset vs. contract residual ARPU, but I don't have time right now. Bottom line: Verizon made the mistake of rejecting the iPhone deal and suffered churn to the tune of millions of subscribers to AT&T.
No one is suggesting boycotting BestBuy, it's simple free market stuff. The company that meets the needs of the consumer with the least resistance gets the business. Consumers are reluctant to change, so once they make the change from BestBuy to a competitor, they won't be back unless their newfound retail relationship sours. Again, BIG losses for BestBuy. Problem is, it's difficult to prove a negative and thus the opportunity costs BestBuy bears as a result may never be properly recognized.
05-10-2010 06:40 PM
I do understand the concept, and even with that revenue, they are still losing money with every iPhone sold due to the massive amounts of money they pay to apple.. VZW didn't lose all that many customers, and ATT is actually losing many currently due to not having a network robust enough for the iPhone. Only time will tell if it was a good decision. And again, VZW did not reject them. They wanted the iPhone. Apple rejected their terms. VZW still wanted it when apple went to ATT.
Loyalty is not won just because a retailer has something in stock. With the economy as it is, price becomes more important, and consumers are much more likely to price-shop and jump around between retailers.
If I was a retailer, I don't think I'd want a customer who makes demands and threats. That's not the mark of a loyal (read: profitable) customer.
05-10-2010 07:28 PM
Unfortunately, it looks like you're convinced you're right although your assertions don't align with the facts. Verizon didn't agree to Apple's terms and bled customers as a result. Check AT&T's earnings reports as well for more contradictions with your claims. For reasons that should be apparent to everyone by now, Verizon was in no position to dictate any terms when Apple approached them with the iPhone.
I'm as resistant to change as any consumer, so I thought I'd try to continue to shop with BestBuy. I will not continue to invest any more energy into this endeavor. Hopefully, someone at BestBuy will have the sense to see what they are doing. I doubt 99.9% of customers would bother to tell them.
I'm off to spend my money elsewhere. Maybe with Sony directly...not really sure we NEED a middleman in some markets anyway, particularly ones that don't offer any added value.
05-10-2010 08:22 PM
I never said ATT wasn't profitable. The iPhone itself isn't profitable. They did gain a lot of customers, true, but many of those customers came from Sprint, not VZW.
05-11-2010 11:32 AM
Anxious2Angry has made a very enlightening contribution to this thread, that would have otherwise been very pedestrian. Thanks for posting!
05-11-2010 12:16 PM
Thank you b12njoy2010. I'm guessing that by "pedestrian" you mean something other than the stagnant "No, we don't carry it and I can't tell you why not." corporate line? I'm not sure how the sidebar iPhone conversation went as far as it did!
I also wanted to point out another camera that BestBuy does not stock that might add fuel to the conspiracy angle: The Lumix TS2 from Panasonic another rugged, waterproof camera that is sure to not need to be replaced anytime soon.
Again, I ask how about it, BestBuy? Can you offer some quality, ruggedized, waterproof cameras?