Could This Be The Beginning Of The End For Circuit City?

A few weeks ago, Circuit City announced that it was closing over 100 of its store including all locations in Georgia. The company cited the ailing economy as the cause. Well I wish I could be one of those people that after hearing the news, their jaw drops and have such a surprised look on their face. Well I can honestly say that I’m not surprised, in fact I predicted the company’s downfall, but not because of current circumstances.

I’ve told this story it seems like hundreds of times, but I don’t mind doing it again. I only wish I had my blog around this time a year ago. Perhaps things would be different. Anyway… last Christmas I decided to treat myself to a new HD TV. Because I don’t believe in just walking in a store and buying the prettiest model I see, i did tons of research on brands, models and prices. After crunching all the info I decided that I would not buy just one, but two TV’s. When I bought my last two TV’s I paid nearly $2000. So when I decided to buy these new TV I was expecting to be paying around the same price. To my surprise the price had drop considerably, partly due to the demand but also because of the holiday discounting the stores do to move inventory. I quickly realized that for the price I was prepared to pay, I could buy two TV’s. My original intention was to buy an HD LCD TV for my den. But now I could also buy a TV for my new bedroom. So that is that was the plan I went with.

After careful research I choose two TV’s. They were two different brands, sizes and located at different stores. The TV for my den I decided to buy a Polaroid 42’ LCD TV from Circuit City. The best deal I could find for the size I wanted was on Circuit City’s website. So I bought the TV online would pick it up at the closest store. The Closest store to have the TV in stock was a 25 minute drive away. So by the time I was able to get to the store, they had already closed for the night. So I go the next evening to pick the TV up. By the time I get to the store the next night it’s already more than 27 hours since I originally ordered the TV and received email confirmation. So I go to where you are suppose to go, to present the confirmation number, ID, and method of payment verification. They tell me to go over to the merchandise pick up area. So I’m waiting over there for nearly 10 minutes, so I knock on the service window and ask about my TV. The lady that said they were trying to find a guy that was big enough to bring it out. So after another 6-7 minutes a guy emerges with the TV and helps me load it into my car. So after ordering the TV 27 hours ago, and waiting nearly 20 minutes, I believed that I was owed a gift card for waiting because of the Circuit City’s 24 minute guarantee. According to the store’s guarantee the time you wait in line inside the store is excluded from the 24 minutes. I waited nearly 20 minutes for my item to be brought out from the stockroom, when it should have already been ready to bring out. So I explain this to the manager on duty and they say no. You have to give them time to get the item. I countered, “That’s not what the guarantee states, if that were the case you would never be violating your guarantee.” So instead of arguing with the manger on duty, which turns out was only a supervisor, I decided to call the Store Manager the next day.

The next day comes and I call the store and ask to speak to the store manager, I’m told he’s not available but they were the Assistant manager. I tell her my complaint, and she says no problem. She gives me her name and tells me it won’t be a problem. So I’m happy that it’s resolved. The Assistant manager tells me to ask next time I’m at the store to get my $24 gift card. So a couple of days later I’m in the area and stop by and try to get my gift card. I’m told that the Assistant Manager I spoke with is off that day, and I would have to speak with her because no one knows about the situation. So I’m thinking ok, I’ll come back another day. I was kind of bummed in the fact that this store is 25-30 minutes away from where I live. I do not really want to make a special trip for the gift card. So I call the next time to see if she is there, and I speak with her to let her know I’m on the way, they she pulls a 360 on me. She totally changes her tune and says that she can’t issue me a gift card because of the incident. So I ask to speak with her manager, and he tells me the same thing. I get all the way to a regional manger that apologizes but doesn’t issue me a gift card. So At this point I’m pretty ticked. If it were not for the fact that the TV was so big, and I had a hard time getting it out of my midsize car, I would have taken it back. I was so mad; I came close to renting a truck or van just to return it. But I decided to exact my anger in telling people my story and not recommending Circuit City for anything.

You see my revenge is very satisfying to me. I’m the person that people I know go to ask recommendations on what to buy and where. So when I recommend brands or stores, I just don’t include Circuit City in my advice. So when people ask what about Circuit City or why I didn’t mention them, I explain what happened to me. I am happy to say that in the last year I’ve bought or helped people buy several thousand dollars worth of electronics. I’ve often joked about becoming an electronics personal shopper for people that are not tech savvy. My only concern with the downfall of Circuit City is the status of my extended warranty on the TV a purchased.

Circuit City shot itself in the foot a few years back. It put more emphasis on it’s spin off CarMax, that it allowed store like Best Buy and Wal-Mart to come up and take control of the market. They had to play catch up, like creating their tech repair unit fogdog after the successful launch of Best Buy’s Geek Squad. Sales have taken a nose dive for years, and the economy over the last few years did not help their position. Big box retailers still have not learned the basics of retaining customer loyalty. In this economy companies can’t afford to lose repeat customers. $24 dollar gift card in the long run is a small price to pay to retain a repeat customer. There isn’t much in Circuit City that one can buy for just $24, so pretty much any purchase made with the gift card will require additional money. That gift card would translate to additional purchases in Circuit City and another opportunity to sell even more merchandise. It’s a cliché, but it’s very true, a bad customer experience cost a company more customers as opposed to a good experience. People like to tell as many people that will listen to a bad experience, this blog entry as an example. I call it therapy for a frustrated consumer.

Georgia’s Senate Race Decided

The Georgia Senate race between incumbent Saxby Chambliss a Republican and Democratic challenger Jim Martin is finally over. Sen. Chambliss retained his seat by a clear majority. Chambliss beat Martin by receiving nearly 57% of the vote. Voter turnout for the race was about 20% of registered voters.

Both candidates put up a fierce 4 week long battle of campaign ads, big name speakers and of course the name calling and mud slinging that we have come to expect. Some of the Republican’s superstars came to Georgia to campaign for Saxby Chambliss such as Alaska Governor Sarah Palin, Arizona Sen. And former Presidential candidate John McCain and for Arkansas Gov. Mike Huckabee. Jim Martin had Former President Bill Clinton and former Vice-President Al Gore come down and help his campaign. Martin had asked for the Democrats biggest star, President-Elect Barrack Obama. However it seems that the President-Elect wasn’t interested in making any kind of significant effort to help Jim Martin win the Georgia Senate seat and help the Democrats gain the so called “Super Majority”, 60 Senate seats that would make the democratic controlled senate filibuster proof. To his credit, President-Elect Obama did help Jim Martin’s campaign by recording a radio ad that was released the week before the run-off, robotic calls to residents to ask them to vote for Jim Martin, and he mailed out a postcard with “Happy Holidays” on it along with a picture of the Obama family.

I think that President-Elect Obama might as well make this mistake number one as the highest profile Democrat and as a leader. Let face it, the radio ads, postcards, and “robo” calls are all great, but making an appearance in Georgia would have been a 100 times more effective than all four combined. Georgia had record turnout for the Presidential election. Nearly a million and two-thirds fewer democrats voted in the runoff than the general election. The President-Elect could have taken a few hours at the beginning of the run-off campaign and towards the end to come down to Georgia and talk Jim Martin up, and help motivate people to go to the polls. I really believe that most people didn’t understand how crucial this election was to the democrats. Sure they heard all the spin on TV news show, but it’s different if the top Democrat himself, a superstar came down for the people to see and hear.

Barack Obama’s presence in Georgia would have been the extra boost needed to get people to the polls. People are still caught in the awe and excitement of his election. Having the President-Elect here campaigning for Jim Martin would one, tell people that the election isn’t over yet, two, that he cares about what happens in Georgia, three, that having a 60 seat in the Senate is so important it warrants’ his attention especially since it will help him make the changes he campaigned on. People clearly needed motivation to go to the polls for a run-off.

Recently the President-Elect revealed his choices for cabinet appointments, among them were current Secretary of Defense Robert Gates, and former political opponent Hilary Clinton, nominated for Secretary of State. I think he made some great choices in people, however I don’t think it was very smart to pull an active and popular Senator from a seat that can be strangle defended by Hilary Clinton. But despite the difficult work he is obviously conducting in preparation for the transition of power, there isn’t any excuse why he couldn’t have hopped on a plane and come to Georgia for a few hours. As President-Elect he can be briefed or hold meetings anywhere he chooses. He has time to go to the gym for a couple of hours a day, he could have flown down and help win the Senate race in Georgia. I hope this doesn’t come back to hurt him politically in the future. He has such great plans; it would be a shame that his first mistake could affect the rest of his administration. Let’s hope it doesn’t.