CompUSA stores closing down

[Son of Clyde]

So out I go to look for a dvd drive for my pc and I decided to check out CompUSA in Columbia MD. The entrance is barricaded because the store is closing down and everything is 20 to 30 percent off. I don't care, a $1,800.00 laptop on sale for $1,200.00 is still an expensive laptop.
The dvd drives were gone before I got to the store and just a week or two ago there was business as usual.
Seems CompUSA stores have been taking a beating and they are becoming strictly an online catalog store much like Amazon.com. Why don't these types of stores survive more than a few years? I remember  "Record Theater" and "Planet Music" were two discount record stores and "Mars" a discount musical instrument discount store all went under in a similar fashion. Funny how WalMart has survived. 

[catzenmouse]

Funny how WalMart has survived.

Totally different business model here. Wallyworld waits until the customer base is built up in an area (usually by small business owners) then they swoop in, undercut all the other businesses on price, give the customer a "one stop shop" for everything instead of going to 3 or 4 places and then the small businesses go under leaving Wallyworld the only game in town.

JMHO,
 Ken

[timothe]

Having been in the business for 15 years, I can tell you exactly why most computer stores close down.

Best Buy and the internet.

About 10 years ago, I managed a computer store chain in Chicagoland where we built PCs, did some small business networking, and sold parts like cables and CD-Rom drives.  We did a fair amount of business; mostly in computer repair and networking but even then, there was a lot of competition for the hardware part of the business.  Too much of my time was spent giving out free information to people only to have them then go out and buy their stuff from Best Buy or Walmart or the internet.  Very few respected my need to generate revenues so our little repair shop could stay profitable. 

Also, there was a lot of legal exposure involved in fixing PCs.  If someone brought in a computer with a failing hard drive, we had to be able to diagnose the exact problem before the drive actually failed.  Otherwise, the customer would blame us for wrecking his/her computer and threaten legal action.   That particular scenario got so bad that we had to force our customers to stand there and wait while we fired up the PC the first time just to alleviate our exposure to litigation. 

Walmart and BestBuy survive and thrive because their business processes are significantly more efficient than their competitors.  Walmart's business processes are so good, they have been credited by some for single-handedly staving off inflation.  BestBuy's services, like Geek Squad, are sold at full retail which allows them to offer these services without worrying about the exposure.  BestBuy also does a phenomenal job of selling extended warranties to boost their margins. 

In this internet world we live in, it is now up to the consumer to get their own help online. (or through friends, family, etc.)  That's the price you pay for the lower costs of goods and greater selection online.  Personally, I think it's a good trade off in most cases. 

But there is no way in hell I would ever work in retail again, especially computers.  I handle contract negotiations for software licenses at schools now.  Although we have a number of competitors, software licensing is complex and most schools recognize they need some assistance in making sure they are licensed correctly and at the lowest price possible.  Therefore, my company can compete with the low priced guys with the value we offer.   

[BillyB]

I don't like stores like CompUSA because they advertise a lot of products with rebates and you go in paying more for something but thinking you're getting a better deal after the rebate. So I fill out the rebate form and follow directions but they never send me the rebate. After a few times of this happening, I don't go to CompUSA anymore. Has anybody here had any luck with collecting on rebates?

[timothe]

We always pay out on our rebates.  But I can tell you that the reason we have rebates of our own is to enable us to charge a higher price.  Only 1/4 of those who buy products with rebates ever send in the rebate forms.  I wouldn't have believed it if I didn't see the data for myself.

[Son of Clyde]

I have never had a problem with a rebate. It just takes up to 8 weeks sometimes. The idea of CompUSA was to present a huge warehouse of stuff.
Nobody seemed to care if they were overpriced (in the beginning) they were so overwhelmed with the size of the store. Best Buy and Circuit City have the same basic products (on a smaller scale) and they entice people with discounted prices. Actually, I have used the Geek Squad twice and they did a pretty good job. The first agent was extremely thorough.

Do not buy an electric shaver at the WalMart near where I live. You may take it home only to find it does not work and has someone else's hair in it. True story.

[phantom]

I've never had a problem with getting a rebate either, except when I forget to send them in  .  Plus, I think what happened with CompUSA, is back in 1999, when I took it as a second job, it was bought by a Mexican man that owned a big chuck of Sears, and after that, he started to eliminate posistions in the stores and have one person and department handling two-four different aspects of the business.

[AnastassiaAsh]

Hmmm, interesting, I didn't know this was going on. I like both CompUSA and BestBuy very much.
I got tired of rebates in general that come in 2-3 months and don't buy anything with them.