Wishing for a geek IPO
Posted
Jun 03 2008, 01:56 PM
by
Kim Peterson
Rating:

You know what IPO I'd love to see? A spinoff of Best Buy's Geek Squad.
There's unlimited potential for a service that sets up and fixes PCs, audio and video components and other devices. As technology gets more complicated, the Geek Squad will only become more of a necessity.
Consider this story, which says that 95% of electronic goods that are returned still work. People don't read manuals, they can't figure out how to get Gadget X working right and they give up, telling retailers the product is faulty. Between 11% and 20% of electronics are returned, costing the electronics industry $13.8 billion in the U.S.
That's a huge market opportunity for the Geek Squad, which could forge relationships with other retailers after Best Buy spins it off in an IPO. Best Buy says that when the Geek Squad is involved in a sale, the return rate is cut by nearly half.