Circuit City is Closing, Liquidating


I know most of us here on this site probably don't shop there, but what impact other than the obviously painful loss of jobs. How does this bode for the other stores? More and better sales?
Thoughts?

Larry
lrsky

Showing 10 responses by lrsky

Natural order of business...a not so unique way of saying, that 'they died', or 'the king is dead, long live the king'.
Tom, I thought at one time, that the Magnolia in Best Buy might be a mistake, and given the sales people I have met, it still may be, but it certainly gives them the full range of product offerings.
I am sure you're right about CC losing after they let their top sales people go, or lost them, whatever. After all is said and done, great sales people make great sales, poor ones, well...

As to Best Buy wins, yes, but maybe too, some of the B&M stores, the mom and pop stores will be aided by this. I hope so.

Larry
As Audio' goners, and people who observe the industry, it's pretty sobering. While they were the template for all that is wrong, they were at least the 'volume' of the industry. They were antithetical to what we, at least most of we see the audio industry. Without them to ridicule, we almost have nothing. They were the antichrist of audio, the worst of the best, or at least the better.
Someone talk me down, please....

Larry
TRUE CIRCUIT CITY STORY: (cue music, poignant but not sad, yesterday, but not forgotten, thoughtless but not really dumb...hell you get the idea)

A friend of mine went in to Circuit City, (he's blind) looking to buy an ipod, or walkman.
A sales lady approched them and this conversation took place.
At the point of explanation of the product, my friend wanted to know about recharging, so he asked:

Do these have an AC adapter?
Sir, what does AC mean to you?

Hmmm...'What does AC mean to you?'

I guess it means that I am never going to buy anything from a company who would hire someone who doesn't know what AC is!!!!!!!!!!!!

This really happened, it's not an epitaph, or an I told you so, it's just a recitation of an event. Perhaps now we know why they went under...poor quality help in a high tech business.

Larry
You make Theaudiotweek's point...
Having traveled the country for THIEL as VP of Sales and Marketing, in an effort to train sales people for dealers, (to THIEL's credit, at no charge to the dealers, something I was charging $1000. per day for) I can tell you that MOST dealers have, and this will come as no surprise, mediocre staff.
I remember distinctly, role playing in one store, and my hand to God, this really happened.
I told the sales person that I wanted to hear the speakers that had been reviewed in Stereophile, showing him the cover photo, which happened to be a pair of CS6s.
He proceeded immediately to try to sell me a turntable. No efforts to switch him back to topic helped. Finally, I asked him if he had the CS6s and he said 'yes', but didn't skip a beat, on with the turntable. I was reminded of the Linn Sondek groupies who, if you came into the store to ask for a drink of water, would try to sell you a turntable, back in the day.
Finally, I went off role and said, "Why are you not demoing this speaker already, as I have asked you to do so at least 5 times?"
This is what audiophiles are up against...this is why the used market is so strong, this is why pricing is questioned with such ferocity, this...is why Circuit City is out of business...GOOD RIDDANCE!!!!! When they fired their only hope for success, the paved the road to failure.

Larry
You know, its really hard to believe, (of course I do, since it happened), that CC would let their 'professional sales staff' go. Let's visit that for a moment.
I have NEVER been in CC and been impressed with any sales person that I met. If they 'let go' what we're considering a professional staff, and replaced them with something less than that, what did they have with the new personnel?
Here's a fictional account of the level of sales people that certainly must have been in place 'after' they let the good ones go.

Act 1
Scene 1
Salesperson: "OK sir, I see you've picked out that...really big, a flat looking...T.V. thingy...that has a lot of, what? hook ups, and it's really...hmmm black and light at the same time, and like, really, clear.

Customer: "Uh, yea, well that's the Panasonic 52" Hi Def Plasma TV, with HDMI, 3 component, with a contrast ratio of 1Million to one, and it..."
Salesperson: "Whatever...let's see, are you pretty strong, I can't lift this and my service/delivery guy is right in the middle of an XBOX 360 online tournament..."
Customer: "Well, what about you, why can't you help me put it in my truck?"
Salesperson: "Dude...I've got a test in freshman biology tomorrow, I need to get crackin' otherwise I'll spend another year in that class...and I don't think 3rd time is really a 'charm', if you know what I mean."
Customer, with disgust: "Ok, ok, I'll do it, just get me the paperwork..."
Salesperson" "Oh, almost forgot, you wanna supersize that?"

Good riddance.
Trejla,

I hark back to my friend's experience of, and this is a quote from an 'expert' at CC: "Sir, what does A/C mean to you?", when asked about an A/C adaptor.

Epitaphs are easy as they are now out of business--sort of like writing a movie review, or Broadway play review after they have tanked. But this is/was not an epitaph. Merely an observation on the sad state of affairs at CC.

Theaudiotweek pointed out that CC's decline (recent economic issues nothwithstanding) could be traced back to the elimination of their 'professional sales staff', I only concur with his, and many others assessments. When one goes into an electronics store and the paid help doesn't know what A/C is, what hope could these people have for appealing to any serious customer. This doesn't mean that the people they had working there weren't trying, or didn't work hard, it only relfects on the hiring, training philosophy of the company, in this case, Circuit City.
They spent by actual accounting tens of Millions in advertising, yet would seemingly only hire totally unqualified, then, compounding the problem, untrained help. This is part of a larger problem with some of the work forces in place today in various companies. It goes to a larger problem of values or lack thereof.

Think about what could become of McDonalds if they would actually sell quality food instead of high fat, low nutrition, artery clooging goop--yet advertise at a rate of hundreds of millions of dollars. Why not put some of that money that they use for advertising, into their finished product.

I remember Jim Thiel coming into Kathy Gornik's office while he was developing the CS2.3, several years ago. She and I were planning a Northeast trip to visit dealers.
He stood there for a while looking at a Capacitor. Kathy, knowing Jim was lost in thought said, "What is it Jim?"
He said, "Well, this cap is waaaay better than the one I was using in prototype and I'd like to use it, but it costs four or five times as much."
Kathy, without missing a beat said, "Who are you trying to please here Jim?"

The message, one I never forgot was-- "you do this because it reflects who you are, and what you want to put out into the marketplace--your creation."
The speakers were completed using the much more expensive part.
This to me Trelja, is an example of what all companies should try to do...CC being the polar opposite of this basic theology, IMHO. I know that selling is a tough profession, I did it, taught it, for more than 35 years. Everyone CAN'T and SHOULDN'T be in sales, any more than in Accounting or Medicine.
Companies need to create an identity...work to their strengths, and be consistant. CC didn't do this and paid the price. Sometimes in life we're victims of circumstance...sometimes we plot a course for failure. They belong in the second category, and your one good experience doesn't alter this fact. You and I are usually on a similar page, so I apologise if my observation upset you. No malice toward the hardworking young people at CC, just a silly 'caricature' of a fictional sales experience, meant to add a little deflective humor to some tough economic times.
Within that 'silly story' is a kernel of truth though. How many times have any or all of us gone into a store and had an experience similar to that in the little one act play?
Again, and yet another epitaph...

"We don' need no stinkin' salespeople..."

CC Management

Wonder where they'll look for jobs?