Best Buy has a clever (and potentially profitable) solution designed to protect its customers from gear obsolescence. It new Buy Back Program allows participants to trade in their old gear purchased at Best Buy, and apply the store credit toward new electronics.
The program applies to five product categories: laptops, netbooks, tablets, post-paid mobile phones and TVs. Say, for instance, you buy a new tablet from Best Buy, and decide to pay an extra $70 to join the Buy Back Program. The retailer will purchase your tablet anytime within two years, provided the device is in good working condition and has all its original parts. (For TVs, the buyback period is four years.)
How much will you get? Below is Best Buy's redemption timetable (from its news release):
· Redeem your Buy Back within 6 months from purchase effective date, and get up to 50 percent of your purchase price
· Redeem your Buy Back after 6 months to 12 months from purchase effective date, and get up to 40 percent
· Redeem your Buy Back after 12 months to 18 months from purchase effective date and get up to 30 percent
· Redeem your Buy Back after 18 months to 24 from purchase effective date and get up to 20 percent
· For TVs only, redeem your Buy Back within 48 months from purchase effective date and get up to 10 percent
But is the Buy Back Program really a good deal? It costs $70 to join, and the "up to" wording of the redemption clause is suspect. What if you think your gear is worth more than Best Buy is offering? And since the store credit is redeemable only at Best Buy, you can't apply it toward new hardware at a competing retailer with lower prices. The program does succeed, however, in preventing customers from shopping elsewhere.
Contact Jeff Bertolucci via Twitter (@jbertolucci) or at jbertolucci.blogspot.com.