On 12 JAN 08, I ventured to the Circuit City in Kildeer, Illinois to purchase a new HDTV and BluRay player. I brought with me an advertisement for Frys Electronics promoting a Samsung HDTV model LNT4071 discounted $800 off the original price of $2,399. Circuit City claims to have a low price guarantee where the purchaser can receive 110% of the difference between the CC price and a competing retailer.cc listed the sale price as $2,199.99. I presented the sales person with the Frys ad and inquired about CC matching the price. He consulted with the on-duty assistant store manager Erik who came to me, examined the ad, and walked away. A few minutes later, Erik sent the sales person back to me stating he would not honor the price listed in Frys nor would he honor the CC price guarantee policy. I inquried about the policy with the sales person, who had to go back to Erik and speak with him. After a few rounds of back and forth with the sales person speaking to Erik, I finally had to ask why Erik did not have the stones to speak to me personally. Erik, obviously concerned I believed he had no stones, finally came to speak with me personally. Erik stated he did not have to honor the ad as he considered Frys a 'wholesaler', not a retailer. I asked Erik if he would negotiate a price with me, and he walked away after saying if I had any concerns, I should call 1-800-THE-CITY. So I did, and spoke with Kim, who stated the store should honor the price guarantee and explained the process for obtaining the price difference. Kim, apparently hard of hearing, had to be told ten times the process she outlined for me is not acceptable to the store's assistant manager, Erik. Kim called Erik and, after holding for nearly ten minutes, came back and told me how sorry she is, but Erik would not honor the policy nor the price.
I went down the street a half mile to Best Buy and dealt with Steve, Scott and Duke who immediately provided assistance. Steve informed me the price advertised by Frys was extremely low and below cost. While the store could not meet the $800 difference in price (Best Buy also priced the Samsung unit at $2,399), they would discount the price $500. Throw in a Samsung Blu Ray machine for $100 off, ten free Blu Ray discs, and a Monster HDMI cable, and I walked out the door - taxes included - for the original price of the television with two years interest free financing.
Based on this experience, I can see why CC stock plummeted from a high of $22.02 eleven months ago to its current pitiful $4 performance. At this rate, I will be shocked if CC is operating in 2009 lest a major corporate overhaul occurs.
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