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RadioShack AO Message Board

  • mattha mattha Jun 23, 1998 12:34 PM Flag

    Interesting Tandy story

    An interesting (and slightly humorous) story about the buyout at:
    http://www.dumbmoney.com

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    • I doubt Coke had the intention to do that. The
      point was it ended up costing millions in promotional
      monies and failed. Another marketing mistake by a
      corporation that thought they could dictate to the people
      what they should have and not have

    • The new coke Idea was one of the greatest marketing events of the time. Take away classic and everyone wants more of it.

    • My comment about departments stores was aimed at
      those constanly critisizing CC about how poorly they
      did. No question that the computer market has become
      like everything else. Competition has forced everyone
      to sell for less and less. If I can buy a pair of
      Nike sneakers in a JC Penny's, their prices may be
      higher than a Sneaker Stadium whose price may be higher
      than the Nike factory outlet. My point is everyone has
      a niche to fill and regardless of price they all
      sell some sneakers. In my experience, I think CC has
      better sales people. That is MY opinion. CompUSA has
      more freebies, in the form of rebates( Has anyone ever
      gotten back any money from a Mouse Systems rebate?)If a
      scanner was 300 last year and 75 this year, I don't think
      they sell 4 times the amount to make up for that same
      dollar volume. They will sell more but usually at a
      lower profit because of increasing competition. Getting
      back to what Tandy knows best is the best thing for
      them. Look at Circuit City trying to sell cars. Talk
      about unrelated. And notice how poorly they are doing.
      They spun it off as a separate unit so as not to drag
      Circuit City stock down and it worked. That line between
      profit and loss is getting thinner and thinner. Knowing
      when to hold and when to fold, although not always
      being right, is part of American business.

    • You may find this site interesting. You can sign up for free stock info.

      http://www.insiderwire.com/entry/?referrer=3655

    • Hi spooley--
      I'm not sure which category buyer
      you fall into, but you do sound knowledgable. As the
      resident "computer nerd" in my office, it's interesting
      that we see things differently. Most of the novices I
      know are scared spitless to attach new stuff to their
      PCs and generally go with the unit as it comes out of
      the box. And don't even MENTION cracking the cover.
      Ohmigod, you want to OPEN it??? LOL

      You're darned
      right about the price spreads. It definitely pays to
      shop around. Prices keep dropping so steadily it can
      cause analysis paralysis. How long should I wait? How
      low will they go? LOL

      I'm a little confused
      about your comments regarding department stores. I
      don't recall saying anything about factory outlets
      putting department stores out of business. How do you
      mean department stores? I did mention the big box
      computer retailers putting many software retailers out of
      business. That's one reason Egghead went internet. They
      couldn't compete against CC and CompUSA in physical store
      fronts. Their stores were too small and all they could
      carry was software and accessories. People seem to want
      few and fewer stops these days, although sometimes
      I'd like to go to the grocery store without it taking
      over an hour to walk all those aisles, LOL.

      Of
      course, big box retailers putting the hurt of smaller
      store fronts isn't exactly news anymore. There were
      several locally owned computer companies in my city that
      had been around for a while. All but one had closed
      within 90 days of CompUSA opening. Computer City killed
      the last one, due to close proximity.

      As for
      comp revenues, there's a big competitive difference
      between flat or a small increase coupled with operating
      profits and flat or small increases coupled with
      operating losses. For example: CompUSA had annual comp
      increases with profits the last three fiscal years. CC had
      comp increases but experienced mixed results at best.
      I just think that, due to their experience with
      higher margin retailing, they had a hard time doing
      things lean.

      Dropping prices are a definite
      crisis for many retailers. Some of that is made up by an
      increased volume or number of sales, but not all. Still,
      people who would never pay $300 for a scanner will pay
      $75 to $100 for one in the blink of an eye because
      the potential cost of a purchasing mistake goes way
      down. It's a lot easier to shrug off buying the wrong
      scanner at that price.

      Margin preservation is
      definitely the name of the game these days.

    • Good advice

    • Your comments are interesting but not entirely
      accurate. Novice buyers spend more on acessories ( high
      margin items) not less. They do not want to be left out
      in the cold so they rely on the salespersons who
      would recommend a lot of add-ons. Serious buyers
      of
      anything look for the low prices but many other serious
      buyers
      purchase where they feel comfortable. If you
      look on the internet and search a price of a computer
      item, you will find a variety of prices . I found as
      much as $75. on a flatbed scanner, same model, from
      different vendors . All can survive because of differnt
      marketing techniques. The department stores aren't going
      out of business because of factory
      outlets.
      Comparable store revenues were flat because prices dropped
      on EVERYTHING. It is amazing they could even keep
      stay flat. Scanners can now be had for $50.00
      ..Systems with printers and monitors and one half what they
      were in Dec 0f 1996. Thats a lot of ground to make up
      just to break even.

    • What in the hell is a "artificial non-repeatable profit event"?

    • I seem to be agreeing with DEP212 pretty well. Of course I don't have to tout the party line anymore. Free at last, Free at last, etc. etc.

    • We can play that game if you want...do you ask
      every customer if they need batteries, if they want
      TSP, if they want a wireless phone, if they need any
      other applicable add-ons, if you can get their name and
      address even if they're buying a 49 cent pack of
      resistors and you have 6 other customers waiting to talk to
      you about computers. If you can honestly say you do
      all that every time, then why aren't you bucking for
      Len Roberts' job? If not, why not? All these are foci
      just like SSLD. Just because SSLD pays more than
      selling a 2-pack of AAA's doesn't mean that's more
      important. How much does your store get in residuals from
      Sprint? Oh, that's right, much less than RSAP residuals.
      Why not ask every person that comes in to your store
      if they want a RSAP card? One word...TIME. Where do
      you draw the line?

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