That sucks! Looks like the end of an era for Magnolia, although I knew it’s happen sooner or later.
My thoughts go out to a lot of friends that I have still working there.
Next thing they’ll do is put shopping carts in the stores, and dust will gather on all of the higher end equipment on display.
Very Sad.

“Barber would not confirm that there would be across-the-board salary cuts for experienced A/V technicians.”

He can’t/won’t confirm this, obviously, since experienced A/V techs don’t exist within the organization.  The level of crap they are pumping out to the masses deserves no more than 12 bucks per hour.

This is 100% fact. It didn’t only affect Magnolia pros either - all “specialized” sales positions, such as Magnolia Pros, Appliance Pros, Personal Shopping Assistants, and Best Buy for Business Pros, were eliminated. Very few of those people did not get a pay cut.

As for those who like to rant and rave about Best Buy - there were those of us who took intense pride in our jobs and roles, and many times we are also the ones who are very experienced indeed. It may not be immediately due to the economy, but I can guarantee that I will not be with this company 6 months from now in any capacity. All I have for my hard work is a pair of injured feet and a long record of being taken advantage of.

If this is true, I think that it is sad that companies feel that they do not need to pay for skilled employees.  When BB entered the specialty CE market by purchasing Magnolia, I was very skeptical that they could make it work.  I felt this was not their area of expertise.  If these plans are true I think that they are proving what I was thinking about them.

While elements of this story are somewhat accurate. I don’t think it is entirely fair.  I work for the company and I feel that everything was handled very well considering the state of CE.  I am not sure what I am allowed to say, but what I can say is that BestBuy has been very gracious in their handling of the issue with its current employees.  I have seen many of my fellow CE counterparts being put out with no notice at other smaller companies.  In all fairness BestBuy has always done well by its employees.  This is from someone who comes originally from the custom industry, but is happy to have the ability to move up within a larger company.  I know our ranks will continue to be filled with the specialists where it counts and that is in the customer’s home.

Britton, I generally agree with your sentiments and believe BB will do what it can to help employees during the transition. These are tough times and every company is making cuts, so you can hardly blame BB for doing the same.

My step daughter works for BB in customer service and as a cashier as she attends college, and has had a very positive experience.

The big question is: how important are the higher-paid Magnolia sales/design associates? Will they stick around amid pay cuts? And will their lower-cost replacements be as effective?

In my experience, those working in the Magnolia sections of Best Buys I have been in were no more knowledgeable than those working in other areas at Best Buy, and certainly not comparable to those working at specialty A/V retailers.

I don’t think it is fair to malign “high school kids”—there are a lot of very smart ones out there.

Henry, I’d like to think my stepdaughter (first job Best Buy) was one of the smart ones. But does smart-and-eager trump experience in a particular field? Maybe, maybe not.

The reality is that abandoning commission-based compensation in favour of some sort of illusory “cost cutting” has killed customer service at many retailers.  We can all point to counter-examples of sleazy greasy salesmen but at the end of the day, who’s going to work harder and generate more business, the guy with kids and a mortgage, or the student who gets paid the same trivial amount no matter how much or how little they work?  Where’s the incentive to excel if it’s not on your paycheck?

All independent A/V companies should see this as another opportunity to gain market share.  Everyone is shopping price, but no one likes poor or marginal service.  Just like the philosophy from the Art of War “keep your friends close and your enemies closer”,understanding your competition and the strategies they employ will make you a better competitor.  One example is how many A/V companies ask for marketing dollars from their vendors?  Every retailer does including BB.  You should too.  Take the opportunity to find a diamond in the rough from their soon to be departing staff. Every big box retailer is grabbing at straws to squeeze out every penny of profit to keep Wall Street and their investors happy.  One of the first areas to cut are employee wages and benefits.  This is a short sighted approach that has imploded many companies both private and public.  Quality, knowledgeable employees are the backbone of all companies.  Capitalize now, pursue marketing dollars and emphasize your credentials and certifications.

Have a profitable day.

Jeff Haynes
VP Sales
Zektor Inc.

http://www.zektor.com

“Skilled Employees” my ass.  These drooling clowns dont have even a basic understanding of these modern systems.  Any time I go into one of their stores to buy a component for one if my clients, I’m astonished at the complete absence of any knowledge, training or basic sales professionalism I am treated to.  The main problem is that no one works on commission, a basic premise in professional selling.  Their new touchy-feely socalist approach to getting paid whether you work or not has clearly shown the inevitable results.

I’m sure that a few enthusuastic high school kids will do a far better job then the current crop of slackers and loosers currently getting paid for doing nothing.

We just helped a customer with a Magnolia nightmare.  He could not figure out why his amplifier did not work after Magnolia installers connected the speaker outputs of the amp directly to the line level inputs on another amp that they sold him to expand his system.  It’s time BB realizes that they cannot compete and make money in the CI business.  Until then we will continue to make money cleaning up their mess.

To be fair, “custom” guys screw up too. The question is: is shoddy work endemic to the org?

Shoddy work is endemic to any system that is not merit-based.  And in this case Merit = Comission = Motivation to know something about what you’re doing.  It’s human nature to compete.  Any time you try to circumvent human nature, the system will fail.  Eliminating competetion in business will be deadly to the American system of business.  This goes back as far as “feminists” and liberal teachers in the public school system eliminating scoring in sports because someone’s feelings might get hurt.  Wise up before it’s too late.

Here is the thing. What Best Buy had to do with the pay cuts sucks- no doubt about it. As a retail employee there and being one of the people affected by the change, I am quite frankly thankful that they didn’t just ELIMINATE our jobs. The economy is going through rough times, and the reason why Best Buy has not seen the fate of Circuit City is because it does re-organizations. Best Buy makes changes that makes current business sense.

Yes we screw up sometimes but not the basics. When you screw up the basics it is probably an indication that the problem is endemic to the org.

I could care less about the fate of Magnolia employees.  When you lay down with dogs, you get fleas.

This is what killed off Good Guys! and later Circuit City. Now people will only stop in to touch the gear, then go home and buy on line.

Might as well give in and change the business model.

Close all but a few regionals. Carry ZERO inventory in-store. Have internet purchase kiosks all over the showroom. Customer can touch and play, then order over the internet from you at lowest cost. All self service, no sales folks, just a few security guards to make certain the display gear does not get stolen.

Here’s another point of view - I think it’s the business model that is out of whack.  Why would a serious Audio/Video buyer go to a store that sold washers and dryers?  The concept of ‘high end audio and video’ is not present in a ‘We’ve got it all’ type store, it just can’t be.  The Magnolia model was good as a stand alone, but when you start tacking on the overhead of all of the other departments, something has to give.

And Julie, your question about how important are the sales/design associates…I believe that question can only be answered by looking at who your target market is.  Maybe BBs target market is not the discerning client that would seek out a designer for help with their system.
I agree with jeffzek; it IS an opportunity for specialty CI businesses.

I think that if BB/Magnolia was paying high wages for people who knew nothing, then that’s part of the problem.

If you’re going to have a storefront and not bottom-barrel your prices, you need to add value to the equation and give people a reason to buy from you, and not an online store.  All the overhead you spend needs to create trust and value, and it doesn’t, you’re sunk.

Lol…  I thought high end A/V was ALREADY staffed with High School kids at least that is the way it works in the PC world where all the youngsters are the genius money makers -  What’s the problem here? .  Seriously,  read the writing on the wall.  It is like “skilled programmers” getting replaced by $25 coders from off shore (india and china).  I mean really did you not see that coming?  You can go on the internet and have someone answer technical questions for you for FREE – so why do I need seasoned/experienced, paid “professionals”?.  You can get detailed product information from blogs (who needs dealer reps?) and you can buy direct through ecommerce sites.  So the writing is on the wall.  what WE need to do in this market place to add value is NOT sell black boxes and rely on margins… We need to sell solutions just like professional services companies have been doing for years with distributed systems and PC’s.  I know this is nothing new..  Just calling out the obvious.  The people that are making the biggest stink about this are those of us that have been selling at the highest margins, providing the lowest value and who have the most ridiculous EVA numbers for work units re programming/deliverables.  We (after market service providers) need to focus more on hand holding for customers, conversion of assets into digital assets, creation of content libraries, lifestyle programming, content management, training, web/branding services and more IT services so customers can leverage their PC assets more shrewdly and effectively.  So there IS opportunity, but we have to change the way we make money and MUST add more value.

I was a customer at Magnolia Audio Video shortly after they move into the Bay Area. At that time BB management was hands off.

The first sign of trouble, that I noticed, was the brand confusion caused when BB opened their Magnolia Home Theater in-store areas that were managed as just another department in selected BB stores. It seemed to me that BB was killing the value of the brand that they had purchased.

Those Magnolia Home Theater departments are mostly unmanned in our area, which happens to be the financial center of Silicon Valley.

The second trouble sign was when BB managers started replacing Magnolia Audio Video store managers, and the stores started looking more and more like something out of a BB marketing plan.

The third sign, now of impending doom, was replacing Magnolia Audio Video’s support staff with the Geek Squad.

I used to send customers to Magnolia Audio Video on the basis that their great customer support was worth the extra cost of shopping there. That’s no longer the case. Magnolia Audio Video is now truly Magnolia Home Theater, which was always BB through and through.

So I just want to say to those of you who think BestBuy/GeekSquad doesn’t have any experienced tech’s who are worth the money; you are apparently extremely un-educated, and should know more on a subject before you open your mouth.  Some of the GeekSquad techs have over 20 years of experience, including owning their own business, control 4, Creston systems, and structured cabling.  not experienced?? HOW IGNORANT!!!!!

So, who is going to replace BB as the next GREAT big box store?  There isn’t much to choose from? Specialty dealers must take this opportunity to hire some of the Magnolia “experts” and take advantage of their knowledge.

First of all yes it may be sweet but truthfully it is annoying and overdone, if she likes the whole high school sweetheart thing….I would suggest Blood and Chocolate, about a werewolf falling for a human…but it ends kinda sadly and is short…but I think any romance would do good…she will love anything you get her…good luck..Vinyl Banner Printing