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mostly true....

I remember spending many hours with that catalog.

And I still spend $100 or so a year there for the odd adapter or a decent cable that I need now or a Skype headset or whatever. My local one closed down though, so they are on harder times. In talking to the sales rep at the store cross town, I learned they had closed several stores near by.

But while the big numbers are in the high ticket stuff, the profit is in that little stuff that I tend to buy. You're talking 70-80% margins versus 30-40%. Back in the old days, I always saw the same guys in the stores, always with a handful of parts for some project. I suppose some of them are still alive.

Best Buy isn't so much the problem as the speed that new technology becomes a commodity. Back in the old days, Radio Shack was fairly innovative and had a knack for seeing trends early. Take CB Radios and computers in the 70s. Remember the TRS-80. They owned the PC market for several years before IBM came out with the PC.

Now, iPods and iPhones are at Costco the first week of introduction.

If they can't hold on to knowledgeable staff, then they're doomed in the long run.....unless they find the next big thing.

-Rod


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