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Tired of hearing about big box stores

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Silver - Posts: 346
Silver spacespace
Joined: March 23, 2005
Location: United States
Posted: February 20, 2006 at 12:01 AM / IP Logged  
Ok tragik, you have missunderstood what i said. I never claimed that our department makes the most money out of any other department. But we are the highest margin department. That is a fact and is why they have us. We are able to sell stuff for so cheap because of the bulk that we buy it in. So I think that you need to go back and do some more research. Also if best buy didn't care about our department making money, why would they choose to spend thousands upon thousands to sponser the dub shows this year. Because they know the pure profit that is in the mobile department.
Platinum - Posts: 2,806
Platinum spacespace
Joined: February 23, 2004
Location: Canada
Posted: February 20, 2006 at 10:44 PM / IP Logged  
OK, first things first, FS is Futureshop which is Basicly a Canadian Big Box store that was bought out buy Best Buy 5 years ago. They have 118 stores. Now Tragik, I go through our PNL repots every month, its part of my job. I dont know where you got your info from, but it sure isnt inline with our chain. Not even Kinda. Car Install contributes massive profit to the company bottom line ever quarter (numbers I WILL NOT RELEASE) and car install is driven by car audio and security product sales. I can tell you to that just because the Big Box stores sell products only several points above your cost doesnt mean its low margin to them, also dont forget that we get back end funding from the companies them selves. Independants definatly get better suport from product reps and sures the hell get more visits from demo cars and what not, but when it comes to dollar and cents the Big Box stores get taken care of better than the indies because we buy more product. The problem with big box stores is we can kill companies as quick as we expand them. Rockford is a perfect example. Rockford did very well on the indies for a long time, then they decided to go big and go to best buy. They expanded their manufacturing facilities and redesigned their products to supply the demand of a national retailer. The problem lies in that they didnt take off as quick as they thought and were very very close to going completly under for the first 3 years. Most dont relize how close they were to going under but they are a public company and all this kinda info was avalible on their corprate site during this time period. They have started to even out now but I still dont think they are turning a profit in a year big enough to constitute the move to the big stores. So now when any of you big box people bitch about not having stock on alpine or eclipse or what ever, just remember that it might be due to the fact that they didnt wanna bankrupt themselves to keep your 149 deck on your shelves.
double-secret reverse-osmosis speaker-cone-induced high-level interference distortion, Its a killer
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