Comments on: Best Buy Giving Away Gift Cards to HD-DVD Player Owners

By: hellaxe

hellaxe — Fri, 21 Mar 2008 19:17:33 +0000

Hm. I read this article somwhere

By: Norbit

Norbit — Wed, 19 Mar 2008 21:06:56 +0000

@ ManOfTeal

Exactly. Customer loyalty is hugely important and this is sure to make their customers happy and will make customers who bought their HD-DVD players elsewhere think more highly of BestBuy. In real terms they haven’t really taken much of a hit with this. About 30% of a stores sale price is profit so they would have made between $30 and $70 profit on each HD-DVD player they sold so they are simply giving up the profit they made on the players. When the customer returns with the $50 about $15 of that will go back to the store as profit once again so overall the sale of the HD-DVD player and the donation of a $50 voucher will still see the store making a profit and will be great PR.

By: Strikerzex911

Strikerzex911 — Wed, 19 Mar 2008 20:27:35 +0000

Lol $50

By: ManOfTeal

ManOfTeal — Wed, 19 Mar 2008 18:23:03 +0000

Maybe they are doing this to show the public how good their customer service is????? Who knows??

By: veaudaux

veaudaux — Wed, 19 Mar 2008 18:22:00 +0000

This is hardly “taking the fall” for anything – $50 is _way_ less than customers already paid for their Best Buy HD-DVD player. More than that, it’s way less than they’ll pay either for a Blu-Ray player, or snatching up a bunch of remaining HD-DVDs. That’s the purpose of the gift card. Everyone that owns a HD-DVD player is doing one of those two things. If you send them a gift card, they’re more likely to do it at _your_ store. So it’s all down to straight business – they’ll make a lot more money off these gift cards than they put into it. Especially considering $10 million in gift cards is only about $1.5 million worth of goods at wholesale.

By: DeathDream

DeathDream — Wed, 19 Mar 2008 18:15:00 +0000

Yeah I don’t know why they are taking the fall for this either, should be like HEY my pc is outdated, give me money!

~Death Dream~