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Best Buy Employee: ‘High School Kids’ Will Replace Skilled Magnolia Staff
Who will sell Magnolia’s bread-and-butter $15,000 home theaters? Image from Thomas Grace Construction
Apparently, the restructuring will include pay cuts of up to 40 percent. "We’ve known there was going to be restructuring, but the details are leaking out," he says.
He tells us that at least three Magnolia associates who currently make $17 to $18 per hour cited a new wage of $12.56 per hour -- typical of Best Buy's "line-level employees," aka the Blue Shirts, he says.
Apparently, June 3 will be the last day of regular pay.
Best Buy spokesperson Justin Barber cautions, "One employee's particular experience is not necessarily the same for the [Best Buy] masses."
He explains that the changes at Best Buy, as well as its Geek Squad and Magnolia franchises, are "not that cookie cutter."
At least two years ago, Barber says, "We had announced we would look at the organization as whole -- who to shuffle around, how to better allocate the resources we have."
Ultimately, he explains, "It's all about getting in front of more customers."
Losing the Best People?
Our caller wonders who exactly will be getting in front of those customers. With the alleged pay cuts, he suggests, the experts will give way to amateurs.
"They’re going to lose their best people," he says. "I imagine as people quit – you’ll probably have a mass amount leaving – their positions will be filled by PSAs (personal shopping assistants) or CAs (customer assistants) who are basically unskilled labor units – kids in high school who walk around the store with a broad knowledge of nothing."
Even as a high-schooler working at Best Buy, Maggie was one of the smart and conscientious ones (spoken like a proud step-mom). But could she learn to sell $15,000 home theaters?
He would only offer, "There are indeed some jobs being eliminated, also some being added, and some getting shuffled around."
When asked if Best Buy fears a mass exodus of talent, Barber hedged.
"Some people whose pay was affected, there are things being put into place so they have time to find other positions [within Best Buy]," he says.
At the same time, Barber explains, Best Buy is creating some "leadership roles in the stores and giving them more face time with customers, so there will be an elevated experience for more people."
Our caller isn't convinced.
"It’s just crazy how similar this seems to what happened at Circuit City," he says.
Indeed, Circuit City was widely criticized for replacing its experienced A/V salespeople and installers with more affordable, but apparently ineffective personnel.
Our source sees a similar fate if not for Best Buy then for Magnolia. The $15,000 media rooms that are the specialty store's "bread and butter," he says, will evaporate because there won't be experts left to sell and install those systems.
Earlier this year, Best Buy closed seven of its 13 stand-alone Magnolia stores, and Best Buy corporate took over operations of the other six.
In 2007, Best Buy closed six other Magnolia stores because of “our desire to transform the model to become a more service-oriented provider,” said spokesperson Sue Busch back then.
Since then, Geek Squad has taken over the home theater installations for both Best Buy and the in-store Magnolia shops.
Arlen Schweiger contributed to this article
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26 Comments (displayed in order by date/time)
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
I understand the worry over losing skilled, knowledgable sales people. There is no replacement to knowledge. But the stigma that just because employees are young means they are not knowledgable or effective is offensive. I work in the industry. I am about 19, and I am more than confident in not only my product knowledge but my ability to operate such equipment. We all know that there are A LOT of mindless best buy employees but there are a few good ones and they deserve a chance. Wouldnt you rather be helped by a talented young guy or a 40 year old moron with a mortgage.
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.