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Best Buy Co., Inc. Message Board

  • jkistotass jkistotass Feb 16, 2013 7:39 AM Flag

    economics of price matching

    New to this board. Has anyone bothered to look at the economics for BBY under this new policy? I think they should be able to retain some sales, but is this a profitable policy for them? Doing it during Xmas makes sense bc they need to get the holiday shoppers in the door. It seems like doing it year round could be just another form of slow death. How can this be profitable for them longer term? Does this address the company's fundamental issues?

    I have no position, but was thinking about dabbling.


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    • The point is to get the customers in the store. Once they are there (because they are already confident they'll get the best price), they may buy other things or maybe even different product after they learn advantages/disadvantages of the model they are looking for.

      Sentiment: Strong Buy

      • 1 Reply to vookota
      • Agree, it makes a lot of economic sense, especially if you are the biggest kid in town. it would also reinforce the brand on key purchases made by consumers - bestbuy.

        I am also curious about the timing of this announcement. Its just a guess, but the new matching policy must have worked well for them during the holiday season - meaning not too much pressure on margins after evaluating all q4 data for themselves.

        Sentiment: Hold

39.46-0.02(-0.05%)Oct 21 4:03 PMEDT