Info on EWs BEst Buy and Circuit City dont want you to know

 

Silver Member
Username: Tombo777

Post Number: 488
Registered: Jul-05
http://www.businessweek.com/magazine/content/04_51/b3913110_mz020.htm

Last year, profits from warranties accounted for all of Circuit City's operating income and almost half of Best Buy's, say analysts. They figure that profit margins on contracts are between 50% and 60%. That's nearly 18 times the margin on the goods themselves. For example, a four-year contract on a $3,000 flat-panel TV costs about $400. Best Buy gives its insurers $160 and keeps $240 for itself.

Indeed, Wal-Mart Stores Inc. (WMT ) has jumped into consumer electronics in a big way and now controls 20% of the market. Best Buy, with $22 billion in sales in fiscal 2004, still has 31%. But Wal-Mart has passed Circuit City, which had $9.7 billion in sales last year and a 14% share.

Unlike the many specialist chains, Wal-Mart doesn't offer extended-service contracts;

(They do now! $189 on RCA 52" DLP 3 years)
Circuit City is more forthcoming. The Richmond (Va.)-based outfit reports how much revenue the contracts generate, along with the percentage of sales they make up -- but not the profit they produce. For the year ended Feb. 29, it said its warranty revenue totaled $326 million, or 3.3% of sales. Clearly, says SAFE's Sebastian, the retailers "don't want to disclose to J.Q. Public how much money they are making on these contracts."

"Using details gleaned from industry sources, though, analyst Boehringer put together estimates of just how lucrative these contracts are. For the year ended Feb. 28, he estimates contract profits accounted for 45%, or $600 million, of Best Buy's $1.3 billion operating profit. He figures that without contract profits, Circuit City would have posted an operating loss from continuing operations of $195 million last year instead of a $564,000 profit."


You never lose playing with the house.....
 

Silver Member
Username: Dlp4me

Post Number: 144
Registered: May-05
Interesting!

Not surprising!

Insurance policies are profitable, no doubt.

Not an option with auto and home.
Personal choice with new expensive technology.

Sounds like Wally World will discout the hell out of them.

Could mark the end of the ultra high profit margin.
 

Silver Member
Username: Tombo777

Post Number: 489
Registered: Jul-05
WAlly world is sellin them now.

$189 3 years on $2500 anything.(Making $9 profit where BEst Buy is making $240)

$113 3 years on $1000- $1500

$5000 to $9000 Plasma TV costs $583 Yikes! Best Buy must charge $1000 for that one LOL

CostCo has the best though FREE! True Replacement or refund indefinately.



 

To Those that say
Unregistered guest
1: Costco IS the place to buy!!!!!

2: On the EW's ... If these sets are SOOOO good.... you shouldn't need a EW.

I don't know what kind of arrangement COSTCO has with the mfg's....

I don't know if it is a case that the mfg credits them back... Or if they absorb the loss internally..But I would hope others follow there model.

Hopefully they keep detailed records of the number of products that "failed" and forward that info to their buying depart so they don't buy any more of the "buggy" crap...

About a year ago, on some cell phones, a certain model was having "problems". It was a "hot" model. What impressed me was that the company selling them had a standing order for 40,000 units and they told the mfg they could KEEP the crap until the problems were "fixed".

I ask you, How many people here would rather buy from a company like that, instead of a company that KNEW there was a problem.. and just keep pushing the product?

I hope Costco remains in business a LONGGGGGGG time... and the others selling EW's and crappy, buggy products go out of business.

One last thought, I would hope that Costco charges back the mfg for any such item returned, and the mfgs having to pay the shipping, re-stocking ,etc
Maybe thru Costco the mfg's will start making FREE LAMP replacements? After all a LAMP rated for 6,000 to 10,000 hours should last a LONGGGGG time, unless you are a couch potato, use the TV as a nite light, or use is in a commercial setting.

Seems to me that it would be allot cheaper to offer a FREE LAMP, instead of returning the product, would it not?
 

Silver Member
Username: Dlp4me

Post Number: 152
Registered: May-05
LOL

This guy wants free lamps for his lamp projector!
How absurd!
 

To Those that say
Unregistered guest
I want the lamps to LAST for 6,000 hours, or 10,000 hours if that is what they are rated for.

I also want retailers to follow Costco's business model. Like I said I don't know if the mfg's are charged back for returns but I hope they are.

If they were and the mfg's had to eat it, that would be good for all of us in the long run.

Mfg's couldn't get away with mfg'ing crap.

a 1 year warranty is a joke. A lamp being warrantied for only a year is a joke.


I think you are a SHILL, or you are just so eat up with it you can't see the forest for the trees.
 

Silver Member
Username: Dlp4me

Post Number: 167
Registered: May-05
You didn't read the lamp link!
Rated hours are not actual hours.

One more time...

http://www.cherrywood-av.co.uk/guides/Lamps.pdf
 

Silver Member
Username: Tombo777

Post Number: 500
Registered: Jul-05
The reason Costco has such a generous return policy is because they take in over a Half a billion each year in membership fees (pure profit). That moey can more then absorb returns the manufacterer do not honor. But you have to remember the manufacterer also needs Costcos distribution channel and customer base as well.


The return policy is much better understood in that way

There is a Costco RIGHT NEXT to the Best Buy here. Love watching the sales dweebs at Best Buy cringe when you ask for a price match on the TV AND EW!!!

Look if the manufacturer can design a chip with millions of flipping little mirros on hinges and this micro display technology....Certainly they can design a lamp to last a MINIMUM of 6000 hours. (meaning its rated at 12000) Lamps have been around a whole lot longer technologically speaking.,
 

Silver Member
Username: Dlp4me

Post Number: 172
Registered: May-05
I'm not sure where the lamps are manufactured.
Could be China or Maylasia. No telling!
Phillips and Sylvania could have plants anywhere.
 

Silver Member
Username: Tombo777

Post Number: 503
Registered: Jul-05
Not so much about the place of manufacture as the design sent to those manufacturers.

 

annoyed
Unregistered guest
How can you ask someone at Bestbuy to price match something that is sold only at Costco? Costco gets slightly different model numbers and slightly different products. You can find an exact match at BestBuy for the TV you see in Costco. It may be one less connection or something minor but it's something.
 

annoyed
Unregistered guest
How can you ask someone at Bestbuy to price match something that is sold only at Costco? Costco gets slightly different model numbers and slightly different products. You can't find an exact match at BestBuy for the TV you see in Costco. It may be one less connection or something minor but it's something.
 

To Those that say
Unregistered guest
RE: You didn't read the lamp link!
Rated hours are not actual hours.

One more time...

http://www.cherrywood-av.co.uk/guides/Lamps.pdf


Read the link... and I think that is a crappy way to RATE something.

You better hope and pray that the next airplane you get on doesn't use that rating system.

To me 6,000 hours means 6,000 hours.
 

Silver Member
Username: Dlp4me

Post Number: 174
Registered: May-05
annoyed,

Who says you have to buy from BB?


"Not so much about the place of manufacture as the design sent to those manufacturers."

tom,

I believe the projector sets are designed around the available lamp technology set fourth by the R & D of the lamp manufacturer, not the other way around. I'm sure the lamp manufacturers have informed the set makers that the UHP Mercury at 100W to 120W is the whitest, brightest, longest lasting lamp they know how to make at this time. Each set maker has come up with a different lamp housing for each specific model to make that lamp work. I don't think the set makers were ever driving the design of the lamp itself.
 

Silver Member
Username: Tombo777

Post Number: 508
Registered: Jul-05
>>>>>How can you ask someone at Bestbuy to price match something that is sold only at Costco? Costco gets slightly different model numbers and slightly different products. You can find an exact match at BestBuy for the TV you see in Costco. It may be one less connection or something minor but it's something.<<<<<<

I did not say you are getting an exact match. I did say it was fun presenting them with a 51" Sony WEGA WITH the stand for $200 less then their $2600 SONY. Or their 65" Toshiba, or their 55" Panasonic

They are all at least $200 less ,another $350 for the stands and $400 for the EW........Its jsut fun watching them twist in the wind when you can save nearly $1000 on a TV....even last months model and have the option for the next few years to return it for another.

MOst people do not know of Costco's liberal return policy. IF they did Costco would be selling more TVs then BEst Buy. They have all sizes and technologies in there.

DLP:

I understand that, My issue is with the manufacterer CLAIMS of lamp life.

BE CONSERVATIVE....Set up realistic expectations. Out perform. Seek out ONLY vendors who will do the same....Read the Toyota success story and follow their lead. Ask for guarentes from your vendors not low prices. Eventually you will be regarded as the best even if slightly more expensive.

I am going to go on record as saying once the mass market starts buying these TV enmass, There will be an upswell of anger and the word will get out about the lamps as people have black TVs for a week or more waiting for a $300 lamp.

The average Joe is not used to having his TV go dead for weeks then paying $$200 (to fix it himself) every year or two. Its just not within his paradiam of what a TV has been. I do not think he will accept it becasue CSI looks like the cartoonish "Dick Tracy" movie on HD content.
 

New member
Username: Imustbecrazy

Post Number: 5
Registered: Sep-05
Tom;

But you miss the finer points of RPLCD and DLP TV's.

Suppose your mother-in-law decides to move in with you. Now, with RPCRT TV, they never fail. Your mother-in-law will never have a reson to go to your sister-in-law's or your brother-in-law's home.

And then there's "The Children" factor. If your sixteen year old daughter comes home with a twenty-one year old college junior what better opprotunity will you have to walk in on them to say "Oh, I'm just checking the lamp in the T.V."

And then there's the "Happlied Married Example." If I buy a RP-CRT, my wife has less floor to vacuum and less objects to dust. This means that she'll be sitting closer to me and forcing me to watch "Oxygen" or "Life-time" channels. With DLP or RPLCD, there's more floor to clean. There's all those shelves to dust. Dam, she'll spend so much time cleaning the dam thing that the T.V. room will be the last place she'll want to be. Thus, you are free from "Are you listening to me?" "Can you believe she is really wearing that?" "Can my mother come over?"

 

Silver Member
Username: Tombo777

Post Number: 511
Registered: Jul-05
LOL...Yeah you may have a point there. I have said I would not recommend a DLP to anyone I liked,,,,,,I may buy one for the mother -in-law though LOL
 

Silver Member
Username: Tombo777

Post Number: 520
Registered: Jul-05
bump-a-roo...
 

Silver Member
Username: Dlp4me

Post Number: 212
Registered: May-05
Be careful if you are reading a "tom bong" post.
Don't get caught in the "bong spin zone"!


https://www.ecoustics.com/electronics/forum/home-video/158832.html

BTW, no charge for my opinion.
 

Silver Member
Username: Tombo777

Post Number: 557
Registered: Jul-05
Bolding does not make yourmessage any more credible. But as a former TI employee and now advertising for Texas Instruments, I understand your tactics.

I guess bolding gives you better visibility or somehow reinforces your weak points. Well If people buy that they will buy the crap they call RPDLP Television and you deserve each other.
 

Silver Member
Username: Dlp4me

Post Number: 215
Registered: May-05
Missing letters, mis-spelling, and running your words together sure doesn't make you look very credible. Sorta makes you look like the dumbass you are! LOL
 

Silver Member
Username: Tombo777

Post Number: 560
Registered: Jul-05
o Im shur u git da messagaa aneeway. Ya DINK?

I guess there are a whole lotta a doctors and scientists out there who are not credible as well. They are the worst when it comes to spelling and grammar. Your attempt to discredit me using my typing skills and lack of proof reqding has been done before,,,,,,,I really do not care about my credibility. I only want those who can read and understand my message to research for themselves.

DO NOT believe me...especially those like you who are rah rah....and research themselves before being seduced by the picture. Many will be sorry if they don't. Do I care if they dont? NO...I will enjoy spending some time with them here though when they start the inevitable whining!!!
 

Silver Member
Username: Tombo777

Post Number: 583
Registered: Jul-05
bump this thread!! People need to know this stuff.
 

Silver Member
Username: Tombo777

Post Number: 615
Registered: Jul-05
and again
 

fred bailey
Unregistered guest
Yes they do. I did not realize the profits made off those policies. Now I understand the big push. I have purchased them in the past but never used them or got my moneys worth. Especially on cars. I dont buy them any more.
 

Silver Member
Username: Tombo777

Post Number: 641
Registered: Jul-05
Smart man...
 

Silver Member
Username: Tombo777

Post Number: 691
Registered: Jul-05
bump
 

Silver Member
Username: Tombo777

Post Number: 749
Registered: Jul-05
bump
 

Silver Member
Username: Fyi

Dallas, Texas

Post Number: 289
Registered: May-05
"bump"

No...that's your brain tumor protruding from your head! hehe
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