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Geek Squad clones worry Best Buy analyst

Posted Aug 12 2008, 01:36 PM by Kim Peterson
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I've argued that Best Buy should spin off Geek Squad, its service that installs and repairs TVs, computers and other devices. It's not getting any easier to set up components, and an independent Geek Squad could partner with other retailers and turn this service thing into a real industry.

Too late. Wal-Mart is working with Dell on a similar service, and Target has a clone up and running as well. That's enough for Citigroup analyst Kate McShane to slap a "hold" rating on Best Buy. Geek Squad was a competitive advantage for Best Buy, she writes, but now its share is threatened.

She has set a $47 target on the stock. Best Buy shares are up nearly 2% today to $45.21.

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Comments

 

If you need help with set-up and installation, the Geek Squad is the way to go. Yes, their prices might be a little high, but they have the backing of a corporation. If you hire some no name, or have a friend do your computer work, will they replace your computer if they mess up? Can they afford to? Best Buy is insured, and so is their work. Most people are willing to pay for that comfort.

I work for Best Buy and I want to clairify the restocking fee. First of all, the 15% restocking fee only affects computers and gps units. This was put in place for those customers that needed the product for one job and would then return them. (Bad for any business, don't you think?) Second of all, if there is a problem with the product, the restocking fee is waved. It would not be fair for us to charge a restocking fee on defective items! *Almost every item other than computers and gps units can be returned to the store without a restocking fee.* Special order item, however, cannot be returned. As for Geek Squad... Our store usually has computers returned to the customer in about 2.5 days, unless it has to be sent off for further repair. Axel Ahlers, Im sorry you had a bad expierence at one of our stores, but that isn't how we normally do business. Don't let one store ruin the reputation of Best Buy. I hope to have cleared up any questions you might have had. Thank you for reading and please pass this on.

GEEK SQUAD,FIREDOG,EASY TECH ARE ALL RIP-OFFS I used to be a Staples Easy Tech and I can't tell you how many of Geek Squads screw ups I had to fix I finally got tired of RIPPING people off so I opend my own computer repair company Mobile Computer Repair so if you live in New Jersey caontact me I travel the entire state also I go into NYC  I do it cheaper and faster than all three mysite.verizon.net/mobilecomputer

mobilecomputer@verizon.net

201-739-1785

Most of these comments show a complete lack of understanding of the purpose of the blog.  People internationally like what Best Buy is doing.  They like it so much that Geek Squad went from being centered on computer service and repair to expanding into the A/V market.  Doing so has made the company even more viable as a stock option.  Lo and behold, other companies saw the profits and jumped on the bandwagon.  Now Best Buy is in danger of forfeiting margin to competitors.  For anyone looking to invest this is timely information.  The opinions on "whether Geek Squad is good" are irrelevant and redundant.  Find another blog to post on.  This is about finances for professionals not personal feelings for people with too much time on their hands.  Grow up.

As a former Geek Squad member (I quit after 3 months) I have to say that it is one of the most over priced/over-rated things out there.

I was lured into the position because I was told that I would be able to offer what I felt was best for the customer and not pressured to meet sales quota's or be paid based on commission. Part of which is true, the pay isn't commission based. I was getting a flat $12.50 an hour.

3 months into the job I noticed a disturbing trend. After starting out at 40+ hours a week for the first 6 weeks, I was slowly going down til I hit ~28 hours a week. It wasn't productivity, I was pushing out more systems per hour than any other tech. I later found out that the scheduling is based upon sales $$ per hour. So, the more sales$$ you have, the more hours you get...not exactly commission, but not exactly no pressure to produce sales either.

My last day came when the Tech lead came to me and said 'I see you have taken in and repaired 28 systems today', 'Yes, I've been busting as usual'- thinking this was a compliment. He responded 'But you have only sold virus/spyware removal/installiations on 3', 'That is because only 3 needed it'. And the part that get's me- 'You need to get your sales upto $600', 'So, you want me to sell things like virus/spyware removal to people who don't need it', 'No, that's not what I said, I said you need to get your sales to $600', and I responded 'There is no way I am using my knowledge in computers to make someone pay for something they don't need, and based on your comments, I don't need this job'. I clocked out and walked out.

All of these messages sound like they're coming from bitter garage wanna be geek squad techs..Best Buy took something small and unknown and turned it into a household name and a cool one at that. How many teenagers do you see wearing those black geek squad tshirts that don't even work for BB? Sure, in any service related industry you've got your techs that know what they're doing and you've got the ones who just  aren't cut out for the job.Nonetheless Geek Squad is what all these other clone services WISH they could someday be. Enough Said!!!! You think mom and pop shops don't want to generate that kind of revenue? Of course they do, but 90% of those shops fail within year 1 becasue they don't know how to market and there's usually a BB nearby, bottom line people buy the namebrand , all of these horror stories may be true but BB is an authorized reseller of the products they carry which means the manufacturer backs the products they carry...who do you call when mom and pops basement trained "tech" can't fix something??? Of course!!! Best Buy!!! Because it's a household name and national chain. That's why!!

Check Out this blog.            computerbreath.blogspot.com

U can find almost any repair or fix for a computer on the internet, at no cost.  Geek squad wants $60 just to look at the darn thing.  Something that would have cost me $250 at Best Buy Geek Squad cost me nothing to repair myself with the help of a few downloads from the internet.

Bestbuy's Geek Squad in Lafayette, Indiana wanted $399 to diagnose (enough though I told them the problem) and install a new hard drive on my 3yr old Sony Vaio laptop.

I went to the local computers on campus at Purdue and they did it for ~$125 with an even larger hard drive.

Their services are way to over priced as well as hyped.

As a former Geek Squad member, I'll admit it's a complete rip off for the services. I worked there as I made my way through college until I got my degree, granted my main reason for working there was for the big discounts you get on products, and to pay the bills.  I also took it upon myself to get things done right for people, even if that meant doing it for them on the side (which is frowned upon by BBY).  The main reason was for people skills, dealing with all types and now I am the IT Tech for a major construction company!!!

Geek Squad honestly is more based on Services like ppl have mentioned, also hitting revenue for the day and the month.  If these goals are not met consistently people are demoted and lose their jobs, which is complete garbage since we are suppose to help ppl and computer problems not sell them crap they don't need. I quit the job, before they fired me, due to the fact that I was helping people for no charge with simple problems and information on how to do it themselves. I even had people give me cash personally while at work.

All in all, Think about this...You are probably not the only person who's having your problem, look it up and do some research and if all fails go from there.  Otherwise do stay away from geek squad since trust me on this, they do hire ANYONE (even though I knew what I was doing)

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