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News: Why do so many SMs at Frys believe that software is worthless and Frys should get rid of it?

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    Our old DM told us this and that at least one store manager always suggests getting rid of it during financials every time.
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      CommentAuthorSasquatch
    • CommentTimeNov 7th 2008
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    The software department is great at getting people in the store. They may not make much, but as long as we break even... Close to zero returns is a very good thing, too.
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      CommentAuthorPunkzilla
    • CommentTimeNov 9th 2008
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    Hope you're not talking about games, maybe the actual software but not DVDs/Blu-Rays/Games. Keep those. They are awesome.Store 25 / San Marcos, CA / I shit trains, Now what?
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      CommentAuthorSuzukiman
    • CommentTimeNov 12th 2008
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    software is free join the software liberation front and free software make it all open source and usable by everyone and everyone makes it better.Looking for my head ............... yeah the eight valve one yeah ....
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      CommentAuthorworm
    • CommentTimeNov 12th 2008
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    Suzukiman: software is free join the software liberation front and free software make it all open source and usable by everyone and everyone makes it better.
     
     
    free software already won. Source is better that binary.i am a worm.
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      CommentAuthorSuzukiman
    • CommentTimeNov 12th 2008
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    yes but there are still fossil like corporations that believe making money on the software and screwing over the endures that paid for it legally is just fine. see im fighting for the end user even though i will be starting my own software company soon i think i have an uncrackable solution to the issue at hand. let the end users suffer for me and me alone everything else should be free though.Looking for my head ............... yeah the eight valve one yeah ....
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    Sasquatch: The software department is great at getting people in the store. They may not make much, but as long as we break even... Close to zero returns is a very good thing, too.
     
     
    They may be great at bringing people into the stores, but I am skeptical that they are very effective in bringing in people who...buy other things. I remember when I worked for Fry's that there were people who would buy [fill in the blank] Disney flick that was released that week and it was selling below cost and they weren't buying enough other stuff to bring the purchase above break even. I remember reading a story about how Wal-mart on average loses ~$2 a sale on DVDs because they simply use the items to get people into the stores to buy other things that are profitable.  
     
    If you don't consider the labor cost of merchandising all those little packages for CDs, DVDs, and software I am sure the software department more than breaks even, but after the labor costs of merchandising all that stuff and the shrink (a lot of DVDs and console games get stolen) I would wager virtually EVERY Fry's store loses money in their software department. The only purpose I see for a real software department anymore is as an excuse to run loss leaders to get people into the store.  
     
    Now that iTunes passed Walmart for sales in CDs it is clear CD sales are going now on a permanent decline. Even if they are turning a profit I imagine that there are a lot of things that could make more money per square foot than CDs.  
     
    With DVDs it isn't a question IF, but rather when digital rental and download services make retail DVD sales/rentals obsolete. Bluray will remain a profitable niche for retail stores for at least a couple more years before HD downloads become so practical that a physical disc for HD content isn't needed anymore.  
     
    Where does that leave us? Computer software and console software. Except for some rather large pieces of software (Windows, Photoshop,etc.) most software can easily be downloaded off the internet. Considering that most retail boxes have no added value beyond a pressed CD/DVD that is more durable than a burned DVD I rather question what future computer software offers. I would keep selling Windows and a few high end creative apps like CS4, Final Cut, etc., but pretty much stop selling the other stuff. That leaves us with consoles and their games. The consoles themselves make almost no money unless you sell a warranty plan with them, which at least on the Xbox 360 has gotten a lot harder since they extended the warranty. The games make OK money provided that you keep theft down.  
     
    So what's that leave Fry's with: Bluray titles, a couple of expensive pieces of software and console games...maybe. Fry's shouldn't axe their software department, but they should scale it down because a lot of the stuff they sell has no future in retail.
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      CommentAuthorFrenchyFry
    • CommentTimeJan 7th 2010
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    Fry's Total Shopping Experience, was to allow The Customer a Choice.  
     
    That is why they had PRIMESTAR< DIRECT TV< and DISH NETWORK all at the same time. THis was late 1998 or so.  
     
    They were "We Offer ALL the Satellite Providers," and they did it very well.  
     
    Until 1 year later they pulled comissions from the Dish Networks Sales, the saleman made at $25 a sale. ! year later they were pulling comissions off their paychecks.  
     
    They had to put aside the comission pulls at some point, as some people had no paychecks..  
     
     
    This is True.  
     
    The customer would take their Satellite, FREE INSTALL KIT, knocked off the Retail Price and walk away. The Store would benefit a $300 activatation. 100% Gross profit. minus the install kit.  
     
    And up to a year later, they started pulling comissions off the salesman, that made the sale. $100 - $225 off their check with no verification.  
     
    They would at times, I hear, ask employees, to hold "Activations" to increase the GP $ (Gross Profit Dollar) at the end on the day, to meet their numbers.  
     
    Management, under the WATCH. Employees, with their their heads on the line.
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      CommentAuthorworkerbee
    • CommentTimeJan 7th 2010
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    Did Fry's get sued for this?  
    If you do a search for Frys and PSC, there is a page about a class action lawsuit over charging taxes on PSCs. I wonder how many lawsuits they face on an annual basis.
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      CommentAuthorSuzukiman
    • CommentTimeJan 7th 2010
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    alotLooking for my head ............... yeah the eight valve one yeah ....
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      CommentAuthorObiWan
    • CommentTimeJan 7th 2010
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    Last time I ran a D&B on them, there were three pages just in the judgments/suits section with a notation that there were additional actions against Fry's. The majority were actions against Fry's in which they lost better than 90% of them....with some noted that Fry's had failed to pay the judgment.

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