CompUSA promises up to 40 percent savings on everything from PCs, notebooks, flat panel TVs, and GPS devices at its "store closing" sales. I checked some of its "discount" prices at two of 126 CompUSAs set to close in the next few months. I thought I'd find loads of great deals. Instead I found PCs, LCD displays, and digital gear that is priced 10 to 20 percent higher than what even CompUSA sells it for at the 103 CompUSA stores that will not shut down. And, yes, I also found a few good deals.
Here are some of the everything-must-go "deals" advertised by a CompUSA in Framingham, Massachusetts and Norwalk, Connecticut.
CompUSA marked a HP Pavilion Media Center m7780n desktop down 10 percent to $1439. Meanwhile retailer Circuit City was selling the same system at 15 percent below CompUSA's sale price. Circuit City's price $1224.
Other CompUSA desktops, supposedly marked down 10 percent at the Framingham store, like a $449 eMachines T5082 Minitower were selling for 15 percent less ($384) at Best Buy. Even CompUSA's Web site, and some CompUSA retailers, beat the price I found in Framingham by 15 percent selling the same eMachine desktop for $389.
The bad deals didn't stop there. At the Framingham CompUSA it advertised HDTVs were all marked down 20 percent. CompUSA's sale price for a Olevia 27inch 327V LCD HD-Ready TV was $559 after the 20 percent savings. Meanwhile the exact same model LCD TV is going for 18 percent less at HomeDepot for $459.
Despite discount claims, many of the prices for products at the CompUSA stores I visited were higher or matched those at other CompUSA stores. When I asked CompUSA if it would match prices at other CompUSA stores or its own Web site I was told no.
I spotted a Garmin Street Pilot c550 GPS Navigation marked down 20 percent in Framingham going for $549. The same item was sold for $549 at Circuit City's Web site and JR.com. I ask, where is the savings?
A Few Good Deals
There were some good deals. A JVC eAViNU Portable GPS Navigation System was marked down to $239 at the CompUSA in Framingham. The cheapest I could find the same GPS unit at a reputable online merchants was for $399 at Best Buy.
I also spotted a CanoScan 8400F Color Image Scanner marked down to $87. The cheapest I could find it for was $129 at Canon?s E-Store.
Marketing Hype
I wouldn't have cared so much that CompUSA had jacked up the price on some merchandise so high that after a 20 percent savings you were still paying too much. I'm not so niave to think other retailers don't do the same. But I was struck by CompUSA's aggressive curbside sales campaign I witnessed in Connecticut.
(The "closeout sale" is advertised just before you walk inside CompUSA store in Framingham, MA.)
On a recent Saturday in Norwalk CompUSA had hired a small army of people to wave down cars with big signs promising steep 10 to 40 percent discounts on all inventory. The curbside marketers were not only standing in front of CompUSA but also Best Buy and Circuit City - which were right down street. Once inside the CompUSA store sales staff hovered over me blurting out things like "That's a great PC. I think it's the last one we've got."
I inquired about a Canon flat bed scanner asking what would happen if the product just didn?t work when I brought it home. Sales staff reminded me all sales were final and any problems with products purchased at the store would have to be addressed by the product manufacturer.
"Going out of business sales" are notorious for being promotions to draw people into a store. It appears this was the case with the two CompUSA stores I visited.
If you head out to buy some digital gear this weekend and end up at CompUSA check the price before you buy and make sure whatever it is buy works before you take it to the register.
I couldn't agree more! I too was drawn to CompUSA by its outdoor idiots standing around waving those signs in San Mateo, CA.
When I entered CompUSA I found a D-Link router marked at $49.99 so with the 40% off would make it $30+tax. That same weekend the bi-weekly CompUSA ad had the same item on listed for $49.99 minus $20 with 2 mail-in-rebates. I figured, $30 plus tax out the door was better than $49.99 plus tax and then waiting 2-3 months to get $20 back. However, when I got to the checkout lane the price came up as $59.99 even though there was a tag on the box marked $49.99, the price at all other CompUSA stores! The fat checkout lady said it was tagged incorrectly and the price was really $59.99 and I could get 40% off that price ($36 plus tax) OR she could charge me $49.99 but without any 40% discount since it was marked incorrectly. I thought that was complete bull because it was obvious they were marking up prices to then lower them!
They deserve to go out of business!
What inCOMPetentUSA is doing is no different than what most closing retailers do. They ALL hire the same low-life liquidation companies with the same strategy. Jack up the price to list, take of small percentages to start, and then gradually increase them up until closing day. The problem is, the customers. Most people are too stupid to know how to shop. They see the "discounts" and automatically think they're getting a good deal. Most people don't possess the intelligence to think for themselves, I mean that requires A. a brain, and B. work. People would rather have things force fed to them. Until these morons LEARN to stop following the carrot on the stick and THINK for the first time in their lives, these things will continue. If after a month, the overpriced merchandise didn't sell, WATCH how fast the prices will begin to fall.
As a previous employee of CompUSA, I can see what has happened. When junk like this happens, they can only discount clearance items from teh full retail price, which means they cant discount sale items (if you discount something with a rebate, generally the rebate from the manufacturer will no longer be redeemable). Thus, their deals are only good if you can only find the product at full retail price, unless it drops further (which it might do).
I'm planning to buy a few things from there, they had some great prices on alot of stuff, no so much computers just because they are always on sale and everything (read above), but on phones etc.
CompUSA sold all the merchandise in its stores that are closing, They do not own the merchandise and have nothing to do with pricing it or marketing it. Do your homework before you publish an article - any article.
I JUST got back from shopping for a laptop and spotted this post. I actually have a compUSA in my hometown NOT closing. I looked at the prices of Toshiba notebook and it's a good deal. the prices at other compusa store - i don't know.. or really care.. all I know is is compusa might not be the best pc superstore.. but if the one closes by me I'll be sad... where else can I find a kvm switch (radio shack doesn't carry them) or a scanner (circuit city didn't have any) or a fan for my CPU... I'm going to buy a laptop from the company that offers the best price.. I don't care if it's compusa or dell.. I like the convenience of having a store nearbye.. don't like buying everything from amazon.com..
I'm glad you did MY homework for me.. much appreciated.. I don't even want to know who prices what at compusa.. just if the prices are any good... thanks again
There no good. I went to one store that was closing and the deals not much, if at all. The store was party empty, but I don't see how all that would go. I saw an HP laptop that was almost $2,000 but at Staples it was only $1,600. Some deals. So could it be that they shipped most of the products to another store? Save your self the time. Don't go!
Amazing, but NOT surprising that the former employee, who posted here, writes using such WONDERFUL English. He was probably a manager. See what $6 an hour gets ya!!! Like I said, inCOMPetentUSA. Oh, and for the guy buying the Toshiba laptop, stores like inCOMPetentUSA are tailor made for you. You go and buy that piece of junk. I can see you've done your homework. hahahahahahahaahahahhaha
> CompUSA sold all the merchandise in its stores that
> are closing, They do not own the merchandise and
> have nothing to do with pricing it or marketing it.
Still says CompUSA in big letters on the building doesn't it? Gee, why would anyone think it was being sold by COMPUSA?
CompUSA actually had some real potential. Great selection and the employees at my local store were actually pretty knowledgable. So why are they going out of business?
Simple... If you annoy your customers enough, they go away. All too often the seemingly great prices were after all kinds of rebates, and had requirements like 'with purchase of monitor and printer'. People aren't stupid and they won't tolerate those kind of silly games.
They also were constantly pressuring you to be buy extended warranties. I had one salesman actually try to make me fill out a form and sign it saying I'd declined the extendead warranty. I replied "Well, if you really want to lose a $1500 sale, go right ahead and push the issue..."
People will go where they get what's advertised and are treated fairly. Fake pricing gimmicks are nothing new at CompUSA and they're also a big part of the reason CompUSA is going out of business.
Businesses take note. Annoy your customers and they will go away.
These posts should be part of a business class somewhere. I couldn't agree more with the poor pricing and complex advertising strategies. I guess their corporate in Dallas felt it was part of doing business in the USA. Any chance they learned anything?
Oh I hope they bump up their "going out of business" discounts to 50% before too long so their prices are actually competitive.