The downfall of Radio Shack

[EnhancedFujita]

Maybe I should be glad that my wife hates shopping and just wants to get in and out of a store with what she needed to get and doesn't bring home stupid stuff she later decides she doesn't want. I'm just using Target as an example, I'm not claiming they have the best deals on everything. We're very price conscious especially with larger purchases or things we buy frequently so for certain items we know we can get the best price from certain places and Amazon can actually cost more for some items you can just go down the street to Target or Wal-Mart and get. Plus if you think about it, Target is getting you into the store with Cartwheel app discounts and their 5% off RedCard and chances are while you are there you probably are going to buy other items that aren't at a discount so in the big picture they probably are going to ring up more sales by getting you in the door with some good deals and making up for some of the profit margins with the other items you decide to purchase there too.

Here' my example about smart shopping, had to replace a TV recently. Target had the best deal on sale for $219.99 plus with the 15% cartwheel app promotion and my 5% red card discount it was just under $186 before tax. Same TV on Amazon is priced at $222, and Best Buy for $262. I'm sure we can all find 1 particular item and price them out at different places and depending on the item the same store is not going to have the best deal for everything.

I do this with most of my purchases and it's really one of the most powerful ways to use the internet to your advantage to save money.

Specifically related to Radio Shack, I think a big problem is their prices can be unreasonably high. This winter I bought a 50' HDMI cable to run from my gaming PC through the basement and up to my TV. I finally got around to running the cable on a Friday night and it ended up being about 3-4 feet to short. So my solution was to just buy a 6' cable and an adapter to connect two cables together. My options were buy on Amazon Prime for $6-10 and wait until Monday or find it locally. The only store that had it was Radio Shack. At this point I'm willing to pay a premium because I'm an impatient man-child. I was willing to pay up to double the Amazon cost. When I get to Radio Shack and price it out, the total was $55, it was just ridiculous. And of course they tried to argue that their gold plated connector and cable gave the best signal. I didn't even want to deal with that argument so I just left and waited for gold ol' Amazon.

 

[twocoach]

Maybe I should be glad that my wife hates shopping and just wants to get in and out of a store with what she needed to get and doesn't bring home stupid stuff she later decides she doesn't want. I'm just using Target as an example, I'm not claiming they have the best deals on everything. We're very price conscious especially with larger purchases or things we buy frequently so for certain items we know we can get the best price from certain places and Amazon can actually cost more for some items you can just go down the street to Target or Wal-Mart and get. Plus if you think about it, Target is getting you into the store with Cartwheel app discounts and their 5% off RedCard and chances are while you are there you probably are going to buy other items that aren't at a discount so in the big picture they probably are going to ring up more sales by getting you in the door with some good deals and making up for some of the profit margins with the other items you decide to purchase there too. Here' my example about smart shopping, had to replace a TV recently. Target had the best deal on sale for $219.99 plus with the 15% cartwheel app promotion and my 5% red card discount it was just under $186 before tax. Same TV on Amazon is priced at $222, and Best Buy for $262. I'm sure we can all find 1 particular item and price them out at different places and depending on the item the same store is not going to have the best deal for everything.

I buy all of my big ticket items at the annual Berkshire Hathaway sale at Nebraska Furniture Mart in Omaha. I cannot even tell you how many thousands of dollars I have saved over the years taking advantage of this mega sale. My in-laws get shareholder passes every year and we grab up whatever big items we need at an offensively discounted price. After our huge home renovation last year we needed a new kitchen table w/ 8 chairs, new dining room table w/6 chairs, three new barstools, new couch, 2 new loveseats, new ottoman, new china hutch and two new family room tables. Purchased all at BH sale and saved thousands. I bought all of my home theater equipment there as well over the years. Paid 50% or less of the best price I saw online for every piece of equipment I bought when I bought it.

 

[Mr Janny]

I needed a resistor for a project I was working on. I am not allowed to buy it from the student supply store in Coover because I was not taking a class and not an engineering major.

So I went to Radio Shack. Cost me 50 cents. Please find a resistor that I can have shipped to me for 50 cents.

I'll wait.

Wow. There's a successful business model. 50 cent resistors. Have you let Radio Shack's Board of Directors know of this fantastic new way to save their company? You'll be heralded as a savior! Pretty soon there will be nothing but Radio Shacks on every street corner, selling all of the 50 cent resistors you could possibly want! It will be PARADISE!!!

Let me rephrase my argument in light of this new evidence: "There's just nothing that they do, OTHER THAN 50 CENT RESISTORS, that someone else doesn't do cheaper or faster."

 

[cloneswereall]

That you still look at CDs and even DVDs tells me you're probably not the target demographic that most online retailers cater to, and online retail has a big advantage over brick and mortar stores when it comes to getting you to look at related items (just about every site has a "you might also like..." algorithm that identifies and displays what other items you might be interested in buying...and it's based on what you've actually viewed or purchased).

My original point was that Target's 5% in-store discount does nothing to address the larger issue of the company simply having higher operating costs than Amazon.

You're right. Brick and mortar stores have higher operating costs. However, online retail does not have the best prices for a lot of things people need/want. And oh no, online retail probably doesn't cater to me because I like box-art that I can look at while I listen to music, such a terrible thing. Just because they have a higher operating cost doesn't mean they have the worst prices on things. That's my point. Otherwise I have no idea why you keep talking about online having a lower overhead.

 

[twocoach]

I do this with most of my purchases and it's really one of the most powerful ways to use the internet to your advantage to save money. Specifically related to Radio Shack, I think a big problem is their prices can be unreasonably high. This winter I bought a 50' HDMI cable to run from my gaming PC through the basement and up to my TV. I finally got around to running the cable on a Friday night and it ended up being about 3-4 feet to short. So my solution was to just buy a 6' cable and an adapter to connect two cables together. My options were buy on Amazon Prime for $6-10 and wait until Monday or find it locally. The only store that had it was Radio Shack. At this point I'm willing to pay a premium because I'm an impatient man-child. I was willing to pay up to double the Amazon cost. When I get to Radio Shack and price it out, the total was $55, it was just ridiculous. And of course they tried to argue that their gold plated connector and cable gave the best signal. I didn't even want to deal with that argument so I just left and waited for gold ol' Amazon.

That's at every store, not just Radio Shack. that same cable at Best Buy would have been $200 probably if they even carried it. Never buy any cable at a store.

 

[CYdTracked]

Pre-Internet, Radio Shack used to practically demand your address whenever you bought anything, even a couple of batteries, just so they could get you on their catalog mailing list. I can remember arguing several times with the clerk that if they want the sale, drop it, because they weren't getting my name and address.

That's why you just give them some random information, unless you are in their regularly they aren't going to know if it is legit or not. There are still stores that ask for phone number or zip code and I'll just rattle off a random number to prove my point that it's stupid. Even with ordering on the internet I have an email account setup just for online accounts because those places will email you crap all the time or some even sell their email lists to others and really don't want that in my primary email inbox.

 

[EnhancedFujita]

That's at every store, not just Radio Shack. that same cable at Best Buy would have been $200 probably if they even carried it. Never buy any cable at a store.

Oh yeah, Best Buy's cable prices are definitely worse. The better quality argument always cracks me up. I read something awhile back about a test that was done on speaker cables. These guys bought the high-end speaker cables and hooked up a system to it. Had some audiophile guys listen. Then they hooked the same system up with metal coat hangers and the audio experts couldn't tell the difference.

 

[cycloneworld]

My guess with Lowe's and Home Depot is that the things like a rake or paintbrushes are seen as a more emergent need. We only go out and get a rake right when we need a rake - but arguably nobody NEEDS a 60" TV, particularly not right this minute.

I agree. But it could easily be done with proper planning. I think it has to do more with an emotional purchase. You REALLY look forward to buying that new 60" TV and when you do, you want it now. Not so much when you buy a rake.

I certainly understand the difference between Best Buy and Lowe's but find it curious why the different attitude when buying electronics online vs. home improvement stuff. Like others have said, if you need a rake, you go buy a rake at Lowe's. But when you buy a TV, many don't go buy one at BB and opt for the internet. It's an interesting consumer mindset.

 

[capitalcityguy]

That's at every store, not just Radio Shack. that same cable at Best Buy would have been $200 probably if they even carried it. Never buy any cable at a store.

As a general rule, yes, but there are times when you are hooking up a system or changing things around or troubleshooting and you don't want to stop what you’re doing for a few days by ordering online. . The internet can't solve the need for immediacy....yet. I used Best Buy just the other day for such a reason.


Never say never.

 

[cycloneworld]

You're right. Brick and mortar stores have higher operating costs. However, online retail does not have the best prices for a lot of things people need/want. And oh no, online retail probably doesn't cater to me because I like box-art that I can look at while I listen to music, such a terrible thing. Just because they have a higher operating cost doesn't mean they have the worst prices on things. That's my point. Otherwise I have no idea why you keep talking about online having a lower overhead.

Plus, you can certainly find times where Best Buy has a sale and it beats the Amazon price.

 

[capitalcityguy]

Plus, you can certainly find times where Best Buy has a sale and it beats the Amazon price.

...and honestly I like to give brick and mortar businesses my business periodically as I appreciate their expertise and their convenience.

 

[zarnold56]

...and honestly I like to give brick and mortar businesses my business periodically as I appreciate their expertise and their convenience.

I like to buy local when I can, but I cannot buy stuff when I know how ridiculous of a markup they have on an item. I had a bad sata cable for my hard drive, and when I went to best buy they wanted $25 for a dynex branded one. It wasn't even a sata 3.0 cable. I got one off newegg for for $2.50 shipped.

 

[CYdTracked]

I do this with most of my purchases and it's really one of the most powerful ways to use the internet to your advantage to save money.

Specifically related to Radio Shack, I think a big problem is their prices can be unreasonably high. This winter I bought a 50' HDMI cable to run from my gaming PC through the basement and up to my TV. I finally got around to running the cable on a Friday night and it ended up being about 3-4 feet to short. So my solution was to just buy a 6' cable and an adapter to connect two cables together. My options were buy on Amazon Prime for $6-10 and wait until Monday or find it locally. The only store that had it was Radio Shack. At this point I'm willing to pay a premium because I'm an impatient man-child. I was willing to pay up to double the Amazon cost. When I get to Radio Shack and price it out, the total was $55, it was just ridiculous. And of course they tried to argue that their gold plated connector and cable gave the best signal. I didn't even want to deal with that argument so I just left and waited for gold ol' Amazon.

Best Buy makes all their money off of cables, accessories, and extended warranties and now the highly overpriced rip-off service known as the Geek Squad. Just have a friend that works for BB because they will tell your their employee discount doesn't get them much off the high ticket items because they are already sold for just over cost. Long time ago before USB became the norm I needed a parallel cable for a printer I just bought. I was just going to pick the cheap one and my buddy at BB that was going to buy it for me takes the $45 premium gold plated one off the shelf which I freaked out on him saying I don't need the top end one. He says "trust me on this, it will ring up for less than the full price of that cheap cable you picked out once my employee discount is taken off." Wouldn't you know it, it rang up for something like $7 or $8!

 

[GrindingAway]

Wow. There's a successful business model. 50 cent resistors. Have you let Radio Shack's Board of Directors know of this fantastic new way to save their company? You'll be heralded as a savior! Pretty soon there will be nothing but Radio Shacks on every street corner, selling all of the 50 cent resistors you could possibly want! It will be PARADISE!!!

Let me rephrase my argument in light of this new evidence: "There's just nothing that they do, OTHER THAN 50 CENT RESISTORS, that someone else doesn't do cheaper or faster."

I got a 75¢ capacitor there, just saying.

I stopped in Radio Shack after getting a new tv this winter. It needed an odd combination of adapters etc you get all the kids gaming stuff hooked up. The kids (me) didn't want to wait.

I hadn't been in there in years but was surprised by two things. 1) There is nothing in there but cell phones. I'm not sure you could even get a resistor anymore. 2) Everyone shopping there was just hanging out by the counter and literally looked like they were waiting for me to leave to complete their meth transaction. So maybe the Dubuque store found it's business model

Also I often stop into Best Buy still. Mostly to check out products in person before getting them online.

 

[ianoconnor]

I agree. But it could easily be done with proper planning. I think it has to do more with an emotional purchase. You REALLY look forward to buying that new 60" TV and when you do, you want it now. Not so much when you buy a rake.

I certainly understand the difference between Best Buy and Lowe's but find it curious why the different attitude when buying electronics online vs. home improvement stuff. Like others have said, if you need a rake, you go buy a rake at Lowe's. But when you buy a TV, many don't go buy one at BB and opt for the internet. It's an interesting consumer mindset.

A rake is just a rake. It's like a $20 purchase. With a TV, someone is likely doing a lot of research on different models and not in as much of a hurry. Plus, a TV is a pain to load into a vehicle, when you can have Amazon deliver it to your door for free.

 

[SoapyCy]

I'm glad the one in Mtown is in a prime location, it should be taken over by something quick.

perhaps a cell phone retailer since those pop up everywhere.

 

[3TrueFans]

I got a 75¢ capacitor there, just saying.

I stopped in Radio Shack after getting a new tv this winter. It needed an odd combination of adapters etc you get all the kids gaming stuff hooked up. The kids (me) didn't want to wait.

I hadn't been in there in years but was surprised by two things. 1) There is nothing in there but cell phones. I'm not sure you could even get a resistor anymore. 2) Everyone shopping there was just hanging out by the counter and literally looked like they were waiting for me to leave to complete their meth transaction. So maybe the Dubuque store found it's business model

Also I often stop into Best Buy still. Mostly to check out products in person before getting them online.

Maybe there are resistors in the cell phones.

 

[roundball]

You're right. Brick and mortar stores have higher operating costs. However, online retail does not have the best prices for a lot of things people need/want. And oh no, online retail probably doesn't cater to me because I like box-art that I can look at while I listen to music, such a terrible thing. Just because they have a higher operating cost doesn't mean they have the worst prices on things. That's my point. Otherwise I have no idea why you keep talking about online having a lower overhead.

Because it's a huge factor in a company's bottom line, and it's one that Amazon will always, always have an advantage in.

So what exactly is your point about Amazon not always having the lowest price? If Amazon charges a higher price for certain things, it's because they can; what's it say about a company that has lower overhead costs per unit and charges a higher price? People have willingly paid a premium on items at convenience stores for decade because their time has value, too, and nothing's more convenient than ordering something with a few clicks while sitting on your couch.

I really don't know what we're arguing about, though...the health and viability of a company has to do with a lot more than the prices they're able to charge. Online retail has been growing exponentially and "traditional" retail is being left in the dust.

 

[SoapyCy]

What concerns me is our suburbs are littered with empty big box stores than have little-to-no reuse potential. Smaller stores don't need large spaces, they aren't set up ideally for non-retail uses, and the parking lot situations means it's quite difficult to make anything new look friendly and inviting.

We know that's the likely outcome yet cities continue to subsidize big box developments in the name of "progress". At least Radio Shack's stores are small enough that anyone can reuse the space.

 

[aeroclone]

My last trip to Best Buy was when my WiFi router crapped out. Certainly couldn't live without WiFi for a day or two waiting for shipping, so I did my research online and headed off to Best Buy to make my purchase. They price matched Amazon, and I was back up and running in under an hour. That said, I am also one who used to be a regular at Best Buy that barely sets foot in the store now, and I don't know what they could do to change that. I'm not sure my random emergency purchase scenario is enough to keep a big store like that running.