CompUSA is on the way out, but do you know why?

[Regular Guy]

I'd been reading about them losing some stores not long ago...and then more recently, when looking to replace our printer, went there to buy one, and saw they'd be gone in 2 weeks.

Anyone know why?

I read yesterday from MSN that it may be because of big screen TVs...that Walmart just starting selling 40+ inch ones for sub $1K, and consistent with that, CompUSA and others are hit hard in efforts to match or whatever. (eta...specifically, MSN said of about 230 stores nationwide, if would drop more than 1/2...about 130 stores going away). And...I did see CompUSA stocking these big screen TVs in the last 12 months.

In the store, I didn't want to give the staff too hard a time...they're about to lose their jobs, right? But I asked them...what happened. I heard different things. One said people were buying on-line. Later, at Best Buy (where I later went to get that printer) the HP rep that helped me (not the Best Buy rep, since they're not well staffed, and their staff is not well informed...but Best Buy is purportedly the healthiest of the big stores now) said people come here to Best Buy for purchases...and though he didn't say why...he noted their pattern of moving into the "backyards" of CompUSAs and such, to do their business.

None of these answers is particularly satisfying for me, though. Big Screen TVs? Yeah, CompUSA did go there this past year, but it was not nearly their core business. Internet? Internet shopping has been available for a long time, but without hugh price advantages, and not providing an informed sales rep as CompUSA, nor a service dept you can bring your computer to, and who will actually fix it in their store. In fact, in recent years, CompUSA has improved their performance on repairs, keeping you current by commitment with 72 hours, and doing the work pretty quickly.

I think in Northern Virginia, we have a MicroCenter, not too convenient to me, but another similar big chain computer store, which is better than nothing...but frankly probably too far for me to go for when I need to make a next computer purchase.

I'd been a big fan of this store...recommending it as the only place to go, and uniquely worth the money for the warranty they offer, because things do go wrong with computers, they give you an 800 number with the warranty for advice & such, and overall, saw the good value in this.

Obviously, though, I did not see this as everyone does. And...I find this closing has affected me a bit, about how to do shopping for things more generally....like to really more seriously consider the longevity of a place more seriously when I buy something, maybe. It's just that...which of our institutions are invulnerable anymore. I had thought this one was pretty solid.

 

[strmrdr]

mail in rebate scams - they owe me over $60 I will never get.
overpriced
rude sales people if you can find one
bait and switch
did I mention scams?

 

[strmrdr]

another reason, gift cards, for years and years you could combine multiple gift cards for one item so a lot of families got the gift cards for computer geeks and they could get what they wanted.
Then 2 years ago they made it so you can only use one gift card per item.
I know of at least 40 people locally that no longer shop there for that very reason.

 

[TravelingGal]

I deal with chains like this directly (I have been to CompUSA headquarters in Dallas). It''s too bad about Comp...they are nice folks and are going through a painful restructuring right now, I''m sure, with all the store closings. It''s not only them who is affected...I''m sure you have heard that Circuit City laid off their highest paid (and often most knowledgeable) store staff? 3500, if I recall correctly.

I don''t think it''s all walmart or any single factor. Internet IS a big factor though. B&M stores often must make bigger margins to survive and sell close to or at MSRP. e-tailers do not have to, since they do not have the overhead. It''s the same story you find with diamond shopping on PS. But let me tell you, the differences in margins in the consumer tech world are huge. And unlike diamond purchasing, most consumers aren''t scared to buy tech online. The product they can check out in the stores is the exact same model they can do a pricegrabber search for on the Internet.

Best Buy is doing well right now. The are adding stores instead of closing them down and they are the golden egg for lots of vendors. That means that vendors may choose to spend more with Best Buy for advertising, giving them more funding. As the article you read said, BB not only has electronics, but lots of other items which lure consumers in the browse.

Believe me, it''s a continuously changing landscape out there!

 

[TravelingGal]

Date: 4/26/2007 1:26:04 PM
Author: strmrdr
mail in rebate scams - they owe me over $60 I will never get.
overpriced
rude sales people if you can find one
bait and switch
did I mention scams?

As far as MIRs, that is usually not the fault of the store. Each vendor provides the MIR, and may use a different fulfillment house (and some do it themselves). At one company I was at, our mail was full of forms that were never opened, and we had a huge complaint listing at the BBB. At my current company, we use a reputable fulfillment house and don''t get any complaints.

 

[Mara]

i totally agree re the changing landscape. does compusa even do a lot of business on their internet site if they even have one?

to me companies like bestbuy do well because they leverage their internet presence in their offline stores as well. aka you can buy online and pick up at a local store if you need it right away...but don't want to go and deal with the store and finding what you need in person. this was really helpful to me over the holiday season.

also the internet with online-only stores like amazon and buy.com do eat into the B&M stores big time, less overhead and lower prices.

personally it's been years since i was in a compusa or a microcenter...the last time i went into a store like this was best buy at holiday to pick up my online order. come to think of it i haven't even been in frys since i think the time we bought our fridge there when we bought our house! they had a great deal on one we wanted. otherwise i use amazon.com or buy.com almost exclusively for my purchases. amazon prime makes it easy because it's like 2 day shipping at no cost or something, i used that over the holiday as well a ton.

as people become more and more comfortable buying online, especially people who are 'tech savvy' and would be shopping at a store like compusa to begin with, they will continue to eat into B&M profits. so B&M's have to continuously get smart about how they manage to stay in business.

 

[TravelingGal]

Yup, the problem is these guys sell to computer geeks...who have computers and are searching the net for deals. They also tell each other to shop at computer geek sites like newegg or buy.com

 

[Cehrabehra]

My husband works for a major chip manufacturer, probably THE major one, and we never really shopped there at comp usa. We bought our first computer from an add in the small print of a computer magazine back in 1995 and last year bought a new dell... but other than that we''ve not bought a single new computer at all. My dh''s company *gave* him an HP laptop that is now like 5 or 6 years old but everything else we''ve upgraded on our own or replaced or rebuilt or just plain old built from the ground up and always got our parts from local places that had obscure things or ordered them online. I think the trend has (somewhat) diverged into groups who buy whole computers from companies like dell or they service their own using parts they can find the best deals on even if it means purchasing from various sources online and local. Traveling to a center to go to a megastore to purchase parts for more $$ just never sounded appealing to me. The entire computer industry is not thriving the way it did... it used to be people HAD to replace their dinosaur computers every year or two (or get their *first* computer ever!) and now for half the price it lasts 3-6 years. Of course we''re probably not typical in that we have at least 7 computers plus many parts... only 5 are hooked up though LOL and really one of those is my dh''s work computer but we do have our ps2 and replay tv on the network as well so we''re not out of geekdom woods yet LOL

 

[Regular Guy]

Date: 4/26/2007 1:33:25 PM
Author: TravelingGal
It''s not only them who is affected...I''m sure you have heard that Circuit City laid off their highest paid (and often most knowledgeable) store staff? 3500, if I recall correctly.

I might have gone first to Circuit City, because my experience with them is that they had a somewhat knowledgeable group...except that I had read about this change with them, yes. Then, I might have instead gone to Office Depot, because they were more convenient, but on my way out of Comp USA, they mentioned as a side bar that both Circuit City & Best Buy were authorized service centers for their computers, and I believe they might have something somewhat more internal than Office Depot...so to Best Buy I went.

Yes, CompUSA has internet presence, too.

But...while having your prongs tightened is one thing (before buying my diamond from DCD, I determined that at BBB for $40 I could have this done...and since have been sloppy about it, frankly, but know how service can be managed...)...a differential for me for computers has been concerns about service. CompUSA offered this, and with package pricing with their gold turned platinum warranties. Do you guys not worry about this? Who do you go to? Unlike diamonds, this is something I have looked to a local shop to get assistance with, in after purchase assistance. Five years ago, it turned into a computer replacement, after the guy from there had been out to the house.

 

[TravelingGal]

Date: 4/26/2007 2:08:32 PM
Author: Regular Guy


But...while having your prongs tightened is one thing (before buying my diamond from DCD, I determined that at BBB for $40 I could have this done...and since have been sloppy about it, frankly, but know how service can be managed...)...a differential for me for computers has been concerns about service. CompUSA offered this, and with package pricing with their gold turned platinum warranties. Do you guys not worry about this? Who do you go to? Unlike diamonds, this is something I have looked to a local shop to get assistance with, in after purchase assistance. Five years ago, it turned into a computer replacement, after the guy from there had been out to the house.

To be honest, I have gotten computers/laptops from my employer for every job I''ve been in. I have never bought a laptop. And even if I did, I have so many friends in IT, I wouldn''t worry about getting help if something were to happen to it.

 

[njc]

RG – You are not alone… DH is heartbroken as well. I dont know what to tell you about repairs... we never need any... bring it over to my DH! He''ll fix it.

Out of all the electronic crap we have in our house, I’d say a more than half has come from CompUSA, the majority being in DHs computer. And yes, he is a computer geek… capital C, capital G. He took much pleasure in building his computer.

We have both purchased items online from them, me more so because I have a Mac and that stuff isnt easy to find anywhere, but CompUSA was one of the places I could always count on having Mac things. The Apple stores around here are always so crowded with people wanting iPods. Best Buy took their Mac stuff (including Mac iPods) out of store a few years ago and just recently brought it back. DH black listed Circuit City a while ago after HE started an arguement with a poor salesperson about the sign on the computer being wrong. Poor guy didnt know what he was talking about, but DH obviously did. He can be so annoying with his geek crap sometimes. As long as he knows what he is looking at, who cares about the staff?

CompUSA was always on the list of places to compare prices for us. DHs laptop and a B&W laser printer were far cheaper there than at BB or CC. And I do believe they had the pick up in store option, or could at least tell you the item was in the store, but I cant be 100% certain because my items where never available in any store.

I vote for internet sales hurting them. They just don’t have the people coming into the stores like BB and CC to pump up their sales. There are all sorts of online electronic dealers such as newegg.

 

[VegasAngel]

Date: 4/26/2007 2:00:04 PM
Author: TravelingGal
Yup, the problem is these guys sell to computer geeks...who have computers and are searching the net for deals. They also tell each other to shop at computer geek sites like newegg or buy.com

My husband who is a computer/electronic geek (His job) buys from newegg all the time. Almost every computer part he buys he purchases from an online vendor. No tax most of the time and better prices.

 

[TravelingGal]

Date: 4/26/2007 2:41:57 PM
Author: VegasAngel

Date: 4/26/2007 2:00:04 PM
Author: TravelingGal
Yup, the problem is these guys sell to computer geeks...who have computers and are searching the net for deals. They also tell each other to shop at computer geek sites like newegg or buy.com

My husband who is a computer/electronic geek (His job) buys from newegg all the time. Almost every computer part he buys he purchases from an online vendor. No tax most of the time and better prices.

Newegg is one of my favorite places to deal with. Their operation is incredible, and while my contact there is easygoing and awesome to work with, a lot of the buyers there are merciless...you have to give them a great deal or they will not selll your stuff.

The interesting thing about newegg is that is all word of mouth. They have no salespeople...only a customer service group that has a stellar reputation. They''ll take back things even if the vendor won''t...because their reputatation for CS is a big reason why people shop there. In addition, they warehouse everything (it''s common for some etailers to drop ship from a distributor) which means if they say they have it in stock, you''re going to get it fast.

 

[Madam Bijoux]

Another reason could be that there are more MAC stores now. When I bought my MAC laptop from CompUSA in 2000, there were no MAC stores nearby; now there is one just a couple of miles down the road and they have every MAC product a person could want. It makes more sense to get a MAC from a MAC store than from CompUSA.

 

[Mara]

repairs? what are those?

for me, like TG, i pretty much have always had laptops from companies (and Greg too) for working at home, but above and beyond that i have my own home computer or laptop typically, and if something happens to it within a few years after buying it, i would probably just get a new one.

i have really no patience for taking it in or getting it fixed etc. and computers are SO CHEAP now compared to what they used to be that pretty much everyone i know does this too. my last laptop was like $1k and my home computer before that was like $500.

we just donated like 3-4 old computers to some school program last year that have been kicking around for years. once they start working too slowly or just don''t work as well it''s just time for a new one. and my latest laptop i got online at dell.com.

 

[TravelingGal]

Timely article on Circuit City...

After firing 3400, Circuit City Enriches CFO - article here

 

[VegasAngel]

My husband builds our computers so if it''s broke he fixes it, if it''s too slow he adds ram or whatever it is that makes it fast etc. I love it.

 

[lumpkin]

Date: 4/26/2007 1:26:04 PM
Author: strmrdr
mail in rebate scams - they owe me over $60 I will never get.
overpriced
rude sales people if you can find one
bait and switch
did I mention scams?

I also agree about the gift cards in your second post.

What I noticed is a few years ago our Comp USA changed its store layout and it seemed like they didn''t sell as much of the little pieces that made it easier to simply upgrade your existing system, but I''m really not sure if that''s a function of the manufacturers not offering parts piecemeal as much, or whether CompUSA just began to focus more on replacing entire systems. There just wasn''t as much a geek could tinker with, LOL! (Radio Shack is the same way -- they hardly have anything in stock, it all has to be ordered.) But the staff didn''t seem to be all that helpful. And the gift card things really tick me off. If I buy something and I have $3 left on the card, give me the darn change back! Geesh, what a way to nickel and dime the public.

I''m not sure if Best Buy does that or not, because we stopped with the gift cards. But their staff is infinitely more helpful, knowledgable, and friendly, and approachable!

I also got my camera at Wolf instead of trying to go through Walmart or the internet. I don''t mind paying more if I feel like I''m going to get help when I need it. The other day I was trying to figure out why I was getting an error message and I called the store and got help. If you call Walmart, you''re lucky if anyone in the department actually picks up. But CompUSA didn''t seem that helpful, and as I said, I''m happy to pay a little more for service, but not if the service is useless.

I think one of the reasons people are going to Walmart to buy things is that they are basically cheap. If you can save $10 or $100 most people will do that, even if they know it robs the specialty stores. They don''t care. And speaking for ourselves, the big company employers don''t value loyalty and when there are multiple companies who regularly lay off people, those people working for them are going to be less inclined to pay that little bit more, because they have to be tighter with disposable income because who knows when they''ll be out of work. I don''t know, maybe not everyone falls under that umbrella, but a lot of people do.

 

[lumpkin]

Date: 4/26/2007 3:10:47 PM
Author: TravelingGal
Timely article on Circuit City...

After firing 3400, Circuit City Enriches CFO - article here

This is becoming more and more typical in corporations. It''s really sickening. It''s an issue my husband and I have been watching for about 5 or 6 years, and finally the press is starting cover it.

 

[strmrdr]

Date: 4/26/2007 2:41:57 PM
Author: VegasAngel

Date: 4/26/2007 2:00:04 PM
Author: TravelingGal
Yup, the problem is these guys sell to computer geeks...who have computers and are searching the net for deals. They also tell each other to shop at computer geek sites like newegg or buy.com

My husband who is a computer/electronic geek (His job) buys from newegg all the time. Almost every computer part he buys he purchases from an online vendor. No tax most of the time and better prices.

I used to buy from newegg back when it was a 2 person operation out of their parents garages selling on internet boards.
Still do buy from them often.

 

[sna77]

Date: 4/26/2007 12:48:08 PM
Author:Regular Guy
I''d been reading about them losing some stores not long ago...and then more recently, when looking to replace our printer, went there to buy one, and saw they''d be gone in 2 weeks.

Anyone know why?

I read yesterday from MSN that it may be because of big screen TVs...that Walmart just starting selling 40+ inch ones for sub $1K, and consistent with that, CompUSA and others are hit hard in efforts to match or whatever. (eta...specifically, MSN said of about 230 stores nationwide, if would drop more than 1/2...about 130 stores going away). And...I did see CompUSA stocking these big screen TVs in the last 12 months.

In the store, I didn''t want to give the staff too hard a time...they''re about to lose their jobs, right? But I asked them...what happened. I heard different things. One said people were buying on-line. Later, at Best Buy (where I later went to get that printer) the HP rep that helped me (not the Best Buy rep, since they''re not well staffed, and their staff is not well informed...but Best Buy is purportedly the healthiest of the big stores now) said people come here to Best Buy for purchases...and though he didn''t say why...he noted their pattern of moving into the ''backyards'' of CompUSAs and such, to do their business.

None of these answers is particularly satisfying for me, though. Big Screen TVs? Yeah, CompUSA did go there this past year, but it was not nearly their core business. Internet? Internet shopping has been available for a long time, but without hugh price advantages, and not providing an informed sales rep as CompUSA, nor a service dept you can bring your computer to, and who will actually fix it in their store. In fact, in recent years, CompUSA has improved their performance on repairs, keeping you current by commitment with 72 hours, and doing the work pretty quickly.

I think in Northern Virginia, we have a MicroCenter, not too convenient to me, but another similar big chain computer store, which is better than nothing...but frankly probably too far for me to go for when I need to make a next computer purchase.

I''d been a big fan of this store...recommending it as the only place to go, and uniquely worth the money for the warranty they offer, because things do go wrong with computers, they give you an 800 number with the warranty for advice & such, and overall, saw the good value in this.

Obviously, though, I did not see this as everyone does. And...I find this closing has affected me a bit, about how to do shopping for things more generally....like to really more seriously consider the longevity of a place more seriously when I buy something, maybe. It''s just that...which of our institutions are invulnerable anymore. I had thought this one was pretty solid.

My take... And under the full disclosure, I''m the IT Director of a company--which means all buyi9ng and selling goes through me...

- I never, ever, ever buy anything PC related in a B&M store. We have corportae purchasing accounts with DELL, CDW and PCConnection. All 3 vendors will price match for me, and over night it to me at basically no cost.
- The CompUSA staff are some of the least knowledgable people I''ve ever met. It is impossible to find anyone to give you help.
- They are over-priced. By a lot.
- The selection is terrible. They don''t have little adapters and gizmos (like Radio Shack used to), and the ones they do have are way over priced (like $30 USB cables).
- I would never purchase a consumer grade PC. Dell / IBM (Lenovo) business models are the only models I buy -- period. Both have unmatched warranties on their PC''s, Dell''s with Complete Care, which covers accidental damage (i.e broken laptop screens). Plus they come onsite either NBD or 4 hours depending on your service level agreement. This is instrumental when you have a sales force of 300+ traveling maniacs, who do things liek check their laptop in their suitcase, as our CFO did the other day... Dell was at his hotel the next day with a new LCD screen for his monitor...

 

[door knob solitaire]

People, this is the tip of the iceberg. Wally world is going to be the SUPER POWER of our future. We will buy what they want us to...because there is not going to be any other game in town...left standing. Those in the medical profession/family practioners... you are next! Not kidding. Walmart is now opening medical clinics in locations. Price is king. There is talk of legal practioners too.

I have noticed my grocery shopping at Walmart is now not complete. The selection that I am used to is diminishing. I have to make a few more stops to fill my list. My theory is that they are narrowing the vendor list. Those who aren''t willing to play ball and lower their prices, get nudged out.

Panasonic didn''t protect Compusa and the suggested retail price. Walmart chose to sell way lower and hurt COMP...and at what price? In the future, companies such as Panasonic will only have so few retailers to choose from...their and others products will have to be built cheaply, to maintain the price point for the SUPER POWER. Yea, we will get a low price guarantee, but we will also have merchandise not worth having.

The Super Power is goose stepping right through main street America...please excuse me while I put away my low priced groceries

.

DKS

Ditto on the CompUSA rebate thing...you must DO EXACTLY as they request (and no one gets hurt-otherwise no

 

[TravelingGal]

Date: 4/26/2007 10:04:35 PM
Author: sna77


My take... And under the full disclosure, I''m the IT Director of a company--which means all buyi9ng and selling goes through me...

- I never, ever, ever buy anything PC related in a B&M store. We have corportae purchasing accounts with DELL, CDW and PCConnection. All 3 vendors will price match for me, and over night it to me at basically no cost.
- The CompUSA staff are some of the least knowledgable people I''ve ever met. It is impossible to find anyone to give you help.
- They are over-priced. By a lot.
- The selection is terrible. They don''t have little adapters and gizmos (like Radio Shack used to), and the ones they do have are way over priced (like $30 USB cables).
- I would never purchase a consumer grade PC. Dell / IBM (Lenovo) business models are the only models I buy -- period. Both have unmatched warranties on their PC''s, Dell''s with Complete Care, which covers accidental damage (i.e broken laptop screens). Plus they come onsite either NBD or 4 hours depending on your service level agreement. This is instrumental when you have a sales force of 300+ traveling maniacs, who do things liek check their laptop in their suitcase, as our CFO did the other day... Dell was at his hotel the next day with a new LCD screen for his monitor...

I would second that the only computer that ever died on me (and within only 6 months of purchase) was a cheapo consumer HP computer laptop that my stingy company bought at a retail store. We got an IBM after that.

 

[FireGoddess]

I tried - I really did - I needed something and went to CompUSA...only to wait around for 20 minutes trying to stalk someone who would help me...and then having to end up waiting in line to talk to a cashier because no one was on the floor....only to be told they don''t have what I want and I should look at....BEST BUY! UGH!