Best Buy - More News

[mattsmusiccenter]

8/1/2008

First a trickle. Now a flood.
Richfield, Minn.-based electronics retailer Best Buy will open up to 85 of its music centers by the end of the year, and may add more locations in the future. This move will make Best Buy the second largest MI retailer in the country, after Guitar Center.

"We're not just extending the shelf space in the store, we're creating a designated area specifically for this experience," Kevin Balon, the company's vice president of musical instruments, told the Associated Press. "And we're trying to create an authentic and genuine musical instrument store look and feel inside of Best Buy."

The retailer, already an industry leader in sales of everything from digital cameras to video games, has serious aspirations to carve a niche into the $8 billion spent yearly on musical instruments. The initiative is expected to counter the continual softening of CD and DVD sales experienced by the company.

Those inside and outside the industry are skeptical.

According to retail analyst Brady Lemos of Morningstar, an investment fund research firm, this endeavor will take up a lot of real estate (2,500 square feet per store) and is generally a slow growth segment even during good economic times, making it a challenging proposition.

One manufacturer speaking off the record personally expressed some skepticism about musical products' ability to sustain a presence in mass merchants, but then pointed out that Best Buy is a sophisticated company with extensive market research capacity, so it can be assumed that their market research is accurate and the company will be at least somewhat successful in this endeavor.

Companies working with Best Buy include Fender, Gibson, Line 6, Yamaha, Roland, Korg, and Drum Workshop, among others.

The selection will include everything but acoustic pianos: shoppers will find picks, sheet music, cases, up to $3,200 guitars and $5,000 drum kits.

[ABSOLUT CHARVEL]

GC better be paying attention

[Flatpicker]

Everyone who sells MI better be paying attention. The only way that could be worse for the industry would be if Walmart did it.
It'll be no haggle, but, they can grab volume and ship to each store.
They have the potential to undercut most places.

[MikeStrat]

Those inside and outside the industry are skeptical.

That's me. Be realistic. Those musicians who will buy a $3200 Gibson/Fender or a $5000 DW kit will want to deal with somebody who knows a thing or two about the instrument. Most of the Best Buy employees that I've encountered don't know their ass from a hole in the ground. Nor do they care to learn the difference.

I personally appreciate buying from the dealers like the ones on the JCF who are knowledgable and are musicians themselves.

However, this is coming from a guy who has never bought a guitar hanging on the wall at GC. Also, as I've stated before, I have 3 GC's within 40 minutes of my home and none of them have ever had any guitars worth a shit as far as I'm concerned. I assume Best Buy will have a simliar inventory.

[Flatpicker]

That's me. Be realistic. Those musicians who will buy a $3200 Gibson/Fender or a $5000 DW kit will want to deal with somebody who knows a thing or two about the instrument. Most of the Best Buy employees that I've encountered don't know their ass from a hole in the ground. Nor do they care to learn the difference.

I personally appreciate buying from the dealers like the ones on the JCF who are knowledgable and are musicians themselves.

However, this is coming from a guy who has never bought a guitar hanging on the wall at GC. Also, as I've stated before, I have 3 GC's within 40 minutes of my home and none of them have ever had any guitars worth a shit as far as I'm concerned. I assume Best Buy will have a simliar inventory.

People will buy a $3000 television from these BB employees and they usually know nothing about those either.

[ABSOLUT CHARVEL]

Those musicians who will buy a $3200 Gibson/Fender or a $5000 DW kit will want to deal with somebody who knows a thing or two about the instrument. .

I agree, but a musician dropping 3K and a axe most likely know what to look for anyways. It is the parents of kids that will spend 3K on a axe will take the brunt of getting a lemon.

[thetroy]

I think it's a good move. The sooner we kill off all American businesses, the sooner people here will wake the fuck up and do something.

[ABSOLUT CHARVEL]

I think it's a good move. The sooner we kill off all American businesses, the sooner people here will wake the fuck up and do something.

I get your point, but in this case it is more of an impact on the other giant, GC. The independent guy like Matt I don't think will be as impacted.

[thetroy]

Yeah - I guess I don't see a problem with GC having competition either. Most people here just bitch about GC anyway - why care what happens to them?

[eakinj]

That's me. Be realistic. Those musicians who will buy a $3200 Gibson/Fender or a $5000 DW kit will want to deal with somebody who knows a thing or two about the instrument. Most of the Best Buy employees that I've encountered don't know their ass from a hole in the ground. Nor do they care to learn the difference.

actually I have to disagree with you here. I don't really want anyone bugging me when I'm looking at instruments. If I'm going into it knowing i'm spending 2000+ for a guitar, I'm going to do my own research ahead of time, and most importantly I'm going to play that guitar before I drop the cash. Honestly it doesn't matter if it's some snot nosed best buy salesman or someone else. If someone is stupid enough to go into a best buy and trust some random teenager on which instrument to drop 3200 bucks on, then if they get hosed that's sort of their fault. they should have bought something from music yo until they could tell the difference.

Like you, I would rather buy from a JCF'er because I can go on faith that what they send me will be what they tell me it is. but as far as going into a store to buy.. nah I have to play it. It could be the Ghost of Randy Rhoads sitting there saying "this is the one to buy" but if it doesn't fit me, it doesn't matter.

[Vass]

The fact of the matter is the web has changed the game. Sure, Christmas guitars and the like will get sold to ignorant (note I don't say stupid) people, but they certainly won't be buying RR1's.

I know exactly what I'm looking for when I walk into GC. I know exactly what I want to play. No offense to our good sponsors because they're obviously passionate about what they do, but PLEASE SPARE ME THE NOSTALGIC "THE OLD MOM AND POPS WERE THE BEST" BS.

I'm old enough to REMEMBER when there was a local music store in every town, sometimes several. It was THE SAME AS IT IS TODAY- some are honest & well-informed, some are just rip-off scumbags. I dealt with many, many music store owners who were just completely full of shit, either intentionally or because they just didn't know any better.

In fact, I would, with the exception of folks I've gotten to know, MUCH rather deal with GC and their performance guarantees than some hole in the wall place that I don't know much about. You can say whatever you want about Guitar Center, but they aren't liars on a corporate level. They are trying to make a profit, they have policies. Sometimes I'm sure they're violated, but at least you have something to fall back on. If you need to do a return, the clerk isn't going to fight with you, because it's not $$$ out of his pocket.

I was in a store this weekend- Nice enough place. Clerk was a good guy. Knew nothing about the Jacksons hanging there. Nothing. Not the model, nothing. This is the norm rather than the exception.

I know I'll get the "you should go to real stores" rebuttal, but again- The NORM IS NOT "REAL" STORES. Matt, Piney, OnlineStageGear are NOT NORMAL STORE OWNERS.

So if I can get some stuff that our guys here don't carry at a fair price from Best Buy, I will. That's capitalism. It's efficiency. Does it hurt smaller business? You bet. But there is always the imperitive to adapt to a new environment. Those that don't, don't survive. Look at the dealers at JCF- They're not your typical music store from the 80's we all remember- A few dusty guitars, a couple recorders for band class, an old saxophone & instrument rentals. They are specialized boutiques, and they're owned & operated by folks that are experts in their fields.

So there will always be a place for the good quality stores out there. The rest will be gone, the rest probably ALREADY are gone, and frankly, good riddance.

Vass

[Bengal]

I don't think I'd buy from them, I don't buy from GC here in town but it will be cool to look at a few Gibsons or Fenders while I'm picking up DVD's and video games.

When and if it gets down here to the Sticks.

[MikeStrat]

People will buy a $3000 television from these BB employees and they usually know nothing about those either.

But that is what Best Buy is known for. This would be like Home Depot having a grocery section.

[mattsmusiccenter]

Many are assuming the sales people at BB will be ignorant about the products they're selling, and for all I know they very well may be. But... what if BB trains these people very well and what if when you walk into their store you see sales people you know and have done business with in the past at other music stores?

I've heard that unlike GC, BB won't be using a pay structure based on sales performance for their employees. I've also heard they are recruiting their people from within the industry. In other words, it may be of interest for current employees of GC and other stores to possibly work at BB instead. This in itself would change the employee we're assuming will be behind the counter in these BB stores.

[whackmaster]

Hey Bengal - Best Buy on University in DSM is going to be doing this. A friend of mine is being "trained" on the department right now!