Best Buy made its name by selling technology products at the lowest possible price.Of course the best prices don't always mean the best service. In fact, there is no free lunch in life. You usually get what you pay for.
To that point, Best Buy has always had trouble providing technology services to consumers, businesses or any class of customers.
Now that technology product sales have plummeted, though, the company is making a big push on services. In fact, Best Buy's new CEO Brian Dunn sees services as the future for the company.
In the most recent quarter, Best Buy's comparable domestic store sales were down 4.9 percent due to what the retailer called a decline in customer traffic. Interestingly enough, the sales decline was partially offset by what Best Buy called gains in notebook computers, mobile phones and repair services.
So are Best Buy's Geek Squad techs being pressured into making repairs that are flat out just not necessary? It's a question worth asking given the experience of one of our senior editors Scott Campbell and a number of other consumers complaining about the Geek Squad.
To get the full impact of Best Buy's services shortcoming check out this blog post by Campbell. For those that don't want to digest the full Campbell saga let me summarize: Campbell's wife earlier this year bought him a Dell laptop and purchased the Best Buy three year "Black Tie Protection" warranty. How much margin, by the way, does Best Buy make on this Black Tie Protection warranty plan? My bet is it's a lot more margin than they are making on the Dell laptop.
The Black Tie black eye for Campbell came after only a few months when the hinge on his Dell laptop came loose. How many of these low priced Dell laptops are coming unhinged? My bet is there are a lot more Dell laptops being repaired than HP laptops.
Campbell brings his Dell laptop back to Best Buy which agrees to ship it out and return it to him in three weeks. How in the world can you justify a warranty that does not provide a one or two day turnaround in this day and age? Three weeks. Are you kidding me? What exactly are you paying for if you can't get a repair done in 48 hours?
We've already proven that Best Buy's Black Tie warranty isn't exactly a barn burner. Then Best Buy's Geek Squad replaces the hard drive without so much as even a heads up to Mr. Campbell. Then Mr. Campbell gets a phone call from another Geek Squad rocket scientist asking if he wants to buy data recovery services from Best Buy?
Do you see a pattern here? Does this sound like an advertisement for a local computer store, system builder, reseller or solution provider? You bet it does. There is no way that any local solution provider could provide this kind of service and last more than a month.
Mr. Dunn and Best Buy really need to do some soul searching and implement some best practices from its warranty services offerings to its Geek Squad policies regarding making repairs that have not been approved by a customer. From this vantage point it looks like there is a lot more bad business than best buys going on at Best Buy.
Best Buy, of course, won't answer any questions from Mr. Campbell. My question for local resellers and solution providers out there is: Are you seeing MORE customers knocking on your door in the wake of a bad Best Buy experience? And for technology consumers: What kind of BEST BUY experience have you had with the retailer's warranty offerings and its Geek Squad service?
Contrary to popular belief, services are not an evil plot thought up by retailers to steal consumers' money and screw them over. Yes, there is high margin on services, but that is a big part of how electronics retailers stay in business. If consumers want a store where they can choose from a wide selection of gadgets and also have the option to purchase some sort of protection (beyond what is briefly covered by the manufacturer) then they must accept the fact that services are a means of keeping such stores in business. As annoying as it may seem, if you want to be able to shop at these places, they have to make money somehow. Surprisingly the stores don't get to decide how much money they're going to make off of the products they sell.
I understand how frustrating it is for one to be without his or her computer for weeks at a time, but doesn't it seem a bit unrealistic to expect Geek Squad to service and return a computer in a matter of days? Especially considering the volume of computers that are brought in? What can be done in store is done in store, but the "Geeks" are not magicians who can magically fix anything with the resources on hand, nor do they have the means to solve all problems.
If your computer had a virus and if removing/fixing that problem meant potentially losing your valuable data, wouldn't you want your information to be backed up? I can't help but notice that your incredible bias in this situation is painting every interaction with the Geek Squad as that same evil plot to steal money from customers. You said it yourself: you get what you pay for.
Computers, just like most other forms of technology, just aren't made the way they used to be. Again, surprisingly, the retailers you shop with do not manufacture the products they sell. A company that offers any type of service to its customers (no matter how long it takes for that service to be performed) is in most cases offering a serious benefit in that the product is covered for a longer period of time, it covers more issues, and there is an actual human being to interact with and ask questions.
So, in answer to your question of "What are you paying for?", you are paying for continued use of your product without having to pay to replace it. If you can afford to buy a new computer (iPod, TV, washing machine, etc...) when it breaks then by all means do not purchase service plans. However, if this is something you cannot afford to do, then consider the fact that the retailer you shop with is doing its best as a profitable company to offer you a solution for the products that it sells but does not manufacture.