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RadioShack AO Message Board

  • mrstocksknowsall mrstocksknowsall Jun 18, 2002 12:07 PM Flag

    Why doesn't RSH sell software?

    Why don't we see RSH sell more software and cell phone companies plans than just Verizon Wireless and Sprint PCS? Why aren't they also selling Nextel, AT&T wireless, VoiceSteam, Cingular and Cricket service?

    It seems to me that RSH could sell a lot more products and services than they currently are selling if they just made a few minor improvments to the companies store.

    Why doesn't RSH sell Xbox or video games? Why don't they sell Nintendo Game Cube or Sony Playstation 2 games and accessories?

    These items don't take up that much room in a store, do they?

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    • It's too bad you did not ask yourself these type of questions before you decided that RSH was a great buy.

    • Originally Posted By: mrstocksknowsall
      Date: 06/18/02 12:07 pm
      Why doesn't RSH sell software?
      " ... Why don't we see RSH sell more software ... "

      I would imagine a large part of the reason is the major software vendors do not offer RS sufficient margin, nor is RS in any way inclined to engage in the nescessary price competition to be viable against already entrenched competition. Additionally, there is the product support issue: RS simply cannot train the floor personel to provide adequate software support ... heck, they couldn't train the floor staff to sell car audio, security, or advanced amature communications gear. What little software RS has offered generally winds up discontinued and closed out at clearance prices after languishing unsold for months on the stores' shelves.

      " ... and cell phone companies plans than just Verizon Wireless and Sprint PCS? Why aren't they also selling Nextel, AT&T wireless, VoiceSteam, Cingular and Cricket service? ... "

      Were there a truly National Cellular Provider, and were RS to stick exclusivey to such a vendor, with heavy promotion and exclusive offers, I believe the sales results could be phenomenal. However, there is no National Cellular Provider, nor will there be for many years, if ever. Verizon is the nation's largest, yet has huge coverage gaps and has little incentive to invest heavily in the requisite additional infrastructure and/or partnerships that would be nescessary to achieve Coast-To-Coast, Border-To-Border coverage. Sprint is experiencing severe financial shortfall at the moment, and has announced major curtailment of planned infrastructure enhancement. Nextel, VoiceStream, Cingular, and Cricket are far too regional to be a viable Chain-Wide product for RS.

      " ... Why doesn't RSH sell Xbox or video games? Why don't they sell Nintendo Game Cube or Sony Playstation 2 games and accessories ... "

      Again, I would surmise the vendors provide too slim a margin for RS to consider profitable, given the intense competition extant in the genre. Some game accessories are sold, or offered, at any rate, but such product does not perform well in most stores and again is generally on-the-shelf until it is discontinued and clearanced out. People do not think of RS as a source for such product.

      As opposed to more or wider product offerings, I see RS's only hope to be consolidation, trimming of under-performing and redundant product lines, the closing of excess, under-performing stores, and a return to the business which built the company. Unfortunately, such is not likely ... at least with current management.

      It would be interesting to see comments from others on this matter. I'm sure there are a variety of views and positions ... bring them on, please!