Brian L. Frank for The Wall Street Journal
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Tri Tang, a 25-year-old marketer, walked into a Best Buy Co. store in Sunnyvale, Calif., this past weekend and spotted the perfect gift for his girlfriend.
Last year, he might have just dropped the $184.85 Garmin global positioning system into his cart. This time, he took out his Android phone and typed the model number into an app that instantly compared the Best Buy price to those of other retailers. He found that he could get the same item on Amazon.com Inc.’s website for only $106.75, no shipping, no tax.
Mr. Tang bought the Garmin from Amazon right on the spot.
Mr. Tang’s smartphone reckoning represents a revolution in retailing—what Wal-Mart Stores Inc. Chief Executive Mike Duke has dubbed a “new era of price transparency”—and its arrival is threatening to upend the business models of the biggest store chains in America.
I find lower prices on line all the time.
Why is this idea new,I have been doing same thing for years,even before internet people compared price,now days it’s just faster
#27, bobbo, If we are going to place a tax on consumption, I would say that it should probably apply to everybody no matter where they make their purchases. But why would I ever propose a law banning a certain type of retail operation? I’m not complaining about the retailers, I’m just criticizing a particular behavior of a certain segment of consumers.
#25 – SeaL, I understand your point but still I don’t buy an item that I haven’t compared products/features, read test reports etc. and you can’t do this in a brick and mortar store. For example, I bought Roku, Boxee and Apple TV – I couldn’t decide. In hindsight, I wish I had just bought the Roku.
Sounds like a perfect way to stop people coming into the stores in the first place.
Here in Australia the big retailers are all a flutter because the difference in liquidity (exchange rate + local surplus / us deficit) means we can buy goods online in the USA for “half-ish” what they sell for in stores. Even Best Buy’s an improvement on the local retailers.
They seem to think it’s a GST (federal consumption tax) issue and are trying to get the gov’t to levy sales tax on online orders. “Good luck with that!” I say – even if they can implement it, O/S prices will still be significantly lower.
Their other approach is to try to do setup “branded offshore online” sales-sites in China to dodge taxes and payroll themselves (Which seems somewhat hypocritical to me).
#10
You’re telling people to behave like fools. I want to have both maximum information AND best deal when buying something. I feel fine going to look at something in a store and then getting it from Amazon.
When I first got a big TV the guy at Best Buy knew less than I did from a quick scan of review sites. And it cost another $200 at Best Buy compared to online, plus free delivery/setup, plus no tax. That would push it to at least $300 more for the same product.
I’ve seen lesser TVs two years later featured as in store sales at higher prices. Amazon is so wonderful. Most companies start actively screwing people once they get to a dominate market position. Best Buy is the pièce de résistance in that category.
#31 I second that. News… really?
EricD–I apologize. My writing certainly often, but not always, needs an editor. I see your self effacing sense of worth is on par with Sea Lawyer. Perhaps you are a client of his? Or need to be? If you contact him, he will immediately tell you he is not a lawyer. Thats makes certain commentary even more fun. Course, if a very long stick is that far up your ass, you may have trouble verbalizing your issues. The very purpose of a blog. but I pander to myself.
Sea Lawyer: a tax? I’m no Puke. My world does not revolve around taxes or tax policy. But like you, I want to be fair, and I think everyone should be fair. and by and large, what is fair and seen as fair by all should be codified in the law. Short of that would be a recognition for evaluative purposes only that there are “pro’s and con’s to all we do.” Some ideas are actually ideas, while other thought processes are just emotions. Always good to know the difference.
“I’m just criticizing a particular behavior of a certain segment of consumers.” /// A Challenge: describe that segment and for extra credit, what would you do about it?
Here would be my approach: Business does not exist to only make profit for their owners. No, they also exist to provide service for their customers which is a societal value for all people. A level playing field should be formed so that these valuable social enterprises can fulfill the needs/wants/preferences/free choices of consumers in an on going relationship. It is inherently unfair and unequal to have on line stores competing directly with brick and mortar stores. While we won’t go so far as passing laws about it, it really is encumbent on each and every consumer to CHOOSE what kind of retailing experience they want to support. Every person on reaching 18 years of age should have noted on their drivers license, social security card, passport, and other identifying papers, email addresses and so forth whether they are on line or brick and mortar and proceed accordingly. Such choices can be all or none or different product categories can be chosen. Open enrollment/change over periods should be allowed every 5 years. If a brick and mortar store or on line segment goes out of business, the consumer chose wrong and will have to wait for another enrollment period.
Your position will cause hard ship in certain cases, but thats what being true to your school requires.
Yea, I think you got sumthing there Sea Lawyer. Loyalty/Fidelity to the shop keepers. Its what built Britain.
#37
/// A Challenge: Can you write like a normal person instead of a college freshman completing his term paper? Can you stop congratulating yourself so much it embarrasses others? Finally, is it possible for you to write without belittling someone?
What a blowhard!
Yea verily
Nestlie–I agree the mood stuck me to put in on a bit thick. Nonetheless:
/// A Challenge: Can you write like a normal person instead of a college freshman completing his term paper? /// I suppose I could, but why should I?
Can you stop congratulating yourself so much it embarrasses others? /// I suppose I could, but why should I?
Finally, is it possible for you to write without belittling someone? /// Yes, and I often think of that==then wave it off. I could, but why should I?
There are pro’s and con’s to all we do. Quite purposefully, there is an ulterior motive in what I do, my own personal quirk. I expressly state it from time to time. Not much defines one person differently from anyone else. Thats why we are all the same yet all different, all at the same time. Rather life affirming wouldn’t you agree?
What a blowhard! /// Yea, but not just.
Yea verily /// Ha, ha. Thank you.
Now read everything you don’t like with the purpose of finding something therein you agree with. Its an exercise.
I wonder how many Kindle owners go browsing through brick-and-mortar stores, check out a few books on the shelf, then take out their Kindle and order it off Amazon and walk out of the store.
Chuck==that is an excellent point. I wonder how many folks read book reviews on Amazon and then buy an ebook from some other on line vendor to read on their home computers? Just look how the disloyalty and double dealing mushrooms arithmetically?
I can see my bifurcated consumer loyalty model above just won’t cut it in the real world. Seems to me if you read the Amazon reviews, you have a moral obligation to buy the ebook from Amazon. And if Kindle established the ebook reader market, then really only Kindle’s should be used. Gosh, the world of morality sure does get complicated when you look at it clearly.
DOn’t people on this site always complain about WalMart offering low prices that hurt local businesses and customers? How is shopping online better?
chris For The Win.
#41 – I don’t know where the morality fits in, but I’m pretty sure what I described is exactly what Amazon would love people to do.
And I’m sure Apple would love it if the same thing happened with music and video.
I did that last Christmas at Walmart. Showing their prices were only 2nd or third cheapest on about a half dozen items at random. This year I noticed stores are selling products with unique SKUs for the same item as other stores. Of course they wouldn’t price match. Bastards!
@Sea Lawyer,
Shopping is lame? An educated buyer is lame?
O RLY.
Promotion of buying without knowledge is even more lame that that.
Lawyers like it that way from my experience, like this one last week who “forgot” to tell customers about state surcharges when they sell you their service. The state surcharge is greater than the fine! Lawyer discussed fine, said nothing about surcharge being the most significant component of a traffic violation.
Said lawyer counted on lack of knowledge by his counterpart to close that deal. “Best Buy” would be a good name for that lawyer.
Mail order is great sometimes — we used to call it “mail order,” now we call it internet shopping, which is the same thing, as your product is shipped via mail.
However I still prefer bricks and mortar for some purchases. For one thing there is much less chance of damage in shipping.
I look at the product for damage BEFORE I visit the cashier, and that’s the unique clear advantage of bricks and mortar.
BB seems to make money on accessories, just like many other BaM stores. HDMI cables $80-100, absolute BS. And really how much fondling do you get BB? Other than TVs, the workout you can give to stuff is limited.
[I just bought an HDMI cable from Amazon… $2.43 with free shipping. – ed.]
This is just another example of people who will go outside their local market for goods, and the first ones to whine because they or their kids/grand kids can’t find a job locally. When your Main St. dies because of online shopping or Big Box stores. You had just better keep your mouth shut.
No manufacturing jobs, and now no retail jobs. Just consumers who want to buy for the cheapest price. Sea Lawyer has the idea. Johnny can always work at McDonalds. Oh, and don’t bother bringing your computer, printer, etc. to my shop, warranty reimbursement is nowhere what it used to be,call Amazon, I hear they do house calls.
bobbo- you asked about advantages of brick and mortar. All I can say is it’s about the local economy stupid. Jobs, ya know. Forgive me if you have already addressed this as I find I just can’t force myself to read most of your commentary, it’s much too painful.
#10
How is that any different than using one store to find an item you like and buying it at another store? Before the interwebitubies, I used to shop at a mall to find items that I liked, but knew were overpriced (like electronics), and would then buy them where I suspected they’d be cheaper depending on distance. The mall provided the advantage of having many stores in a single location but at a cost of price. Sometimes, I’d even call another store from the store I was in to do a price check. Sometimes, I’d buy it at the store in the mall just because the difference in price was not sufficient to justify the additional drive. Restricting price knowledge is not a sustainable basis for competition.
#42 – I enjoy going to WalMart to look at the people. It is better entertainment than visiting to the zoo. I also like to move items from one department to another, like panty liners to the paint department, Afro-Sheen to sporting goods.
I had an incident there that I still have nightmares over. I picked up cat food and was standing in line to check out. All of a sudden I heard this terrible breathing, kind of like a herd of cattle behind me. I turned around and there was an entire fat family. Every one of them could barely breathe. The mommoth had one of the largest gunts that I had ever seen.
[What’s a gunt? – ed.]
#49
it’s about the local economy stupid
If those local jobs are predicated on selling overpriced products and services, then it is doomed to failure. Consumers are not obligated to ignore price when evaluating against marginal benefit. If the local retailer is not providing a benefit that justifies the additional cost, then consumers will go elsewhere. You want to keep more local jobs? Be more competitive. Often, consumers will buy local if the prices are close; but it has to be close or the retailer has offer something more substantial than “buy local or we’ll go out of business.”
#10 “….but I do agree that it is pretty lame to use the in-store retail experience to find things to buy, and then turn to Amazon for the actual purchase.”
I think you are more likely find this attitude in small towns where you may have known the person behind the counter for years.
#49–McCullough==you say:
bobbo- you asked about advantages of brick and mortar. /// No, I didn’t.
All I can say is it’s about the local economy stupid. /// Local? Meaning just what? Square block, side of town, town, half of the State, State, Region, USA, Western Culture? What? So, if there is a local chicken slaughter house, I should buy chickens and not pork or beef from down the road? Is that what you mean?
Jobs, ya know. /// So, the purpose of commerce is to provide jobs? What economic theory posits that?
Forgive me if you have already addressed this as I find I just can’t force myself to read most of your commentary, it’s much too painful. /// Yea, I know how you feel-from the opposite side of the mirror?
Actually I don’t think I addressed whatever “this” is except by strong inference. No, I only offered a challenge to people, the same challenge I would make of your statement: make sense of it. Beyond the initial flush of emotions, its nonsense. Oops. I gave it away. Fair enough. I don’t want to be a blow hard, freshman level or elsewhere.
Silly Hoomans. Follow your train of thought. What comes next? Thinking. Consequences. Balance. Tradeoffs.
It would be a different and better country.
I didn’t know they feared me 🙂 I’ve been doing this for a year now. The Internet can pay for itself…
In a race to the bottom the wired always wins.
The same leverage that created Amazon as the world’s largest book seller can be applied to any other “real world” product.
Ultimately, the consumer wins the lowest price, but he ends up with nowhere to do any consuming.
We’re talking REALLY NOWHERE. How long can you keep the malls around if they don’t fill any need? Keep going. Who needs a shopping district? Akiabara becomes superfluous, never mind Fries Electronics.
Now who needs all those people now employed by all those retailers?
Maybe you either work for a hard goods manufacturer, a shipper, the gummint, an NGO, an entertainment company (a kind of soft product manufacturer) but retail would be dead.
Sucks to be us, I guess. We’re going to have to change…
#51, you enjoy going to Wall*Mart to people watch?
Yuck.
But thanks for the laugh.
I just had an image flash through my mind’s eye of going to the beach to see stranded whales.
Must be something like that…
Monster’s Lawyer, you forgot one item in your list of Brick-N=Morter “cons”:
“limited stock variety and quantity”
Its a systemantic axiom that something popular is never available but the shelves are groaning under the weight of “slow-movers.”
Corollary #1, “The store only has stuff you’d look terrible in.”
Corollary #2, “The store only has stuff you’d have to lose/gain twenty pounds to wear. (They have it, but not in your size.)”
RCA #9 said:
“WE need to FORCE companies to compete.
WE need repairable PRODUCTS, and MODULAR.
WE need durable goods, NOT designed to FAIL from a $0.10 part.
So, that we can KEEP OUR MONEY LONGER,
instead of BUYING NEW every year.”
We can, by not shopping there.
Retail thrived in the pre-internet age when shopping was as much about what caste you were as what you could afford.
The “exclusive” retail Mall at Short Hills, NJ is as rapidly dying a dodo as the Bergen street strip malls in Jersey City.
FedEx will deliver a hand-blown blue-gray Japanese vase even to my ram-shackle hovel (with one heck of a security system. 🙂
UPS will delver my Arduino™ kits to the same hovel.
The first item was bought in Japan thirty years because the vase caught my mother’s interest, the second was bought off the web because an article in “Boing Boing” caught my interest.
Who needs retail again?
Oh yeah, stoonts!
They need McJobs that aren’t too demanding.
So, here’s what the brick’n’mortar stores need to do:
Advertise a bunch of good deals on line. Don’t mention the goods are counterfeit. When people buy the stuff, take ’em to court for trademark infringement.
http://bit.ly/e8rnhh
Before you know it, on line shopping will be dead!
Animby==wow. I have to believe there is more to the story–as always? Like the advertisements really did telegraph that the goods were counterfeit or faux in some way? Otherwise, your plan, a plan more clever than a clever weasel could devise, is just the ticket.
To that end, the real benefit of buying local is that all the goods/services/products will be locally produced. None of that “mass produced assembly line interchangeable parts” crap a la the industrial revolution. Buying locally means every product is custom made with the loving craft of someone who’s grandfather went to the same trade school your own grandfather went to. These are REAL VALUES I’m talking about now. The benefits are endless to those who really care. Once everyone bought/made things locally, the need for a international or national or even State Wide medium of exchange would vanish and we would all have the benefits of individual bartering in a cash free society. No Federal Reserve, no printing cash in Washington==just good local buying and selling the way the Lord has instructed us all.
Yea Verily. Lots of benefits if you just think about it.