Best Buy gearing up for nationwide iPad 2 promotion on April 17

Posted:
in iPad edited January 2014
A leaked internal memo from Best Buy indicates that the big-box retailer plans to make a marketing push for the iPad 2 on Sunday, April 17, and will resume taking reserve orders for at least a week after the promotion.



After rumors suggested last week that Apple had "blacklisted" Best Buy from future iPad 2 shipments due to a sales dispute, Best Buy issued an official statement claiming that stores were holding non-reserved iPad 2 inventory for an upcoming promotion.



A corporate memo purportedly from Best Buy has outed details on the "upcoming promotion," which will reportedly take place on April 17, as noted by Engadget. According to the memo, "the iPad 2 will be featured on the front cover of the April 17 ad and because of this, the reserve order system will be turned back on on Sunday."



The ad will disclaim that there are "no rainchecks" on the iPad 2, although stores in Michigan and Ohio, which will have a minimum of three units, will offer Reserve Tickets in lieu of rainchecks.



As previously noted by Best Buy in last week's statement, reserve order fulfillment still takes top priority for any iPad 2 inventory that stores receive. After stores have sold through any additional inventory, they will begin taking reserve orders for the device.







"The reserve order system will be turned on for the entire week of the ad, possibly longer," the memo noted, adding that units should be held for customers for no longer than 48 hours.



The directive acknowledges that customer interest on Sunday will likely exceed available supply. "Corporate Support Teams know that many stores won't be in the optimal inventory situation or have available units to meet our customers' requests for this ad. It will be critical that stores have their current reservation(s) worked through and execute any new reservations effectively to take care of as many customers as possible."



Also of note, the memo states that Best Buy employees will be allowed to purchase the iPad 2.



Retail employees are discouraged from sending customers to other stores that show available inventory "since any inventory is most likely for reserves." Alternate store pick up options such as OMS and BestBuy.com will remain unavailable.



Best Buy was a launch partner for both the original iPad and the iPad 2. Last month, leaked photos, which showing that the first-generation iPad had been removed from the Best Buy inventory system on the eve of the iPad 2 unveiling, corroborated an exclusive report from AppleInsider that Apple would surprise with "near immediate availability" of the touchscreen tablet.



Apple has attracted crushing demand for the iPad 2, though supply has appeared to improve since the device's launch drew record lines in March. Estimated ship times for the iPad 2 on Apple's online store still stand at 2-3 weeks, down from the 4-5 week figure quoted throughout March.
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Comments

  • Reply 1 of 45
    Will Best Buy offer discounts? If not there is nothing special about the offer. Since people already are willing to line up at a store with inventory, what real incentive would Best Buy give? People can order iPads online at the Apple web site if there isn't any discount.



    Maybe Best Buy is just doing this to draw in customers in the hope that they will buy other things while they're there and disappointed.
  • Reply 2 of 45
    sheffsheff Posts: 1,407member
    25 bucks off will boost sales by a lot. 50 bucks off will annihilate any competition iPad has. And since it has none there is a potential for an increadible quarter for apple. Playbook is going to have close to no sales as long as such promotion is in place (assuming they don't match)
  • Reply 3 of 45
    walshbjwalshbj Posts: 864member
    Best Buy rant - deleted. Should have said, "They couldn't care less and it shows."
  • Reply 4 of 45
    What incentive would Best Buy have to offer discounts on a product that will have 0% chance of NOT selling-out that very morning? Besides Apple has very strict pricing guidelines and the price points are locked. The best thing Best Buy could do is offer free gift cards but again they have no reason to.
  • Reply 5 of 45
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by sheff View Post


    25 bucks off will boost sales by a lot. 50 bucks off will annihilate any competition iPad has.



    That's silly. It makes zero sense to discount a product that's going to sell out, anyway.



    They will sell every one they have in stock. So discounting will not boost sales by a single unit. They could cut the price in half and would not sell one additional unit (at least, not until production catches up with demand - which is not going to happen any time soon).



    Think first, THEN type.
  • Reply 6 of 45
    sacto joesacto joe Posts: 895member
    Quote:
    Originally Posted by jragosta View Post


    That's silly. It makes zero sense to discount a product that's going to sell out, anyway.



    They will sell every one they have in stock. So discounting will not boost sales by a single unit. They could cut the price in half and would not sell one additional unit (at least, not until production catches up with demand - which is not going to happen any time soon).



    Think first, THEN type.



    Correct. This is all about getting bodies in the door. If they have a bunch to sell, no waiting required, then they should get mobbed.



    It's presence advertising.
  • Reply 7 of 45
    realisticrealistic Posts: 1,154member
    Quote:
    Originally Posted by sheff View Post


    25 bucks off will boost sales by a lot. 50 bucks off will annihilate any competition iPad has. And since it has none there is a potential for an increadible quarter for apple. Playbook is going to have close to no sales as long as such promotion is in place (assuming they don't match)



    How can a reduced price possibly boost sales of a product that Best Buy already can't get enough of to satisfy current demand at the full retail price.
  • Reply 8 of 45
    Quote:
    Originally Posted by jragosta View Post


    That's silly. It makes zero sense to discount a product that's going to sell out, anyway.



    They will sell every one they have in stock. So discounting will not boost sales by a single unit. They could cut the price in half and would not sell one additional unit (at least, not until production catches up with demand - which is not going to happen any time soon).



    Think first, THEN type.



    I don't think it makes enough sense to even call it silly. A quick check on Craigslist and the asking price for iPads is about a $100 premium for all models. The only thing I can see is that there will be a small number of people who are wavering between an iPad2 and a Xoom or netbook or some other product. Reducing the price on an iPad $25 or $50 was suggested might sway those few buys. That's great for Apple, but doesn't do anything for Best Buy directly, except loose money. Indirectly they might have a higher profit margin on iPad accessories or extended warranties... but right now, I just don't get it.



    Of course it could be INCREDIBLY GREAT publicity for Best Buy. That may be all they are after... just general marketing for the company name. Positioning. If that's the case, then it's not aimed at people who read these forums.
  • Reply 9 of 45
    So the famous "promotion" is finally here. I can't wait! Are they going to drop iPads out of helicopters over shopping malls all across the country? "As God is my witness, I thought iPads could fly!"
  • Reply 10 of 45
    charlitunacharlituna Posts: 7,217member
    Quote:
    Originally Posted by Smallwheels View Post


    Maybe Best Buy is just doing this to draw in customers in the hope that they will buy other things while they're there and disappointed.



    THat is most likely the game. If they do offer any kind of discount it will probably be very small. More likely they will tag on a $25 iTunes gift card like they often do to the iPods during the holidays. Or perhaps a case or Zagg film or such.



    But in the end they are hoping to get folks in the stores. And will do reserves to get them in twice



    As for those saying it is silly to offer a discount. Actually it isn't. If they don't offer something folks won't consider taking the chance that what they want could be in stock. But if they can save $50 and have it now, that's a reason to try it rather than just for that online order they just placed with Apple
  • Reply 11 of 45
    When I was a supervisor at Target we used to do this all the time. Two particular examples that popped into my mind are the Wii Fit and the iPod Mini ("OMG COLORS?! I TOTALLY WANT A PINK ONE!!1!"). We would internally call it a promotion and sit on inventory, but "promotion" really only meant that there would be a small picture of one in the weekly sales flyer that equated to "we do really sell these from time to time when we actually have them in stock." Both items were in short supply for an extended period of time, and withholding sales for weeks at a time was the only way to guarantee that we would have any at all and, by extension, avoid getting rapped for bait-and-switch.



    Quote:
    Originally Posted by Smallwheels View Post


    Maybe Best Buy is just doing this to draw in customers in the hope that they will buy other things while they're there



    I'm not sure about Best Buy, but at Target this was not the primary motivation. It's always bad business to disappoint your customers and the percentage of folks that stick around to do shopping so they haven't wasted a trip is very low. So why bother even advertising them at all if we really weren't counting on the foot traffic generated by the ads? The reason is that it helped perpetuate the image that we carried items that were current and desirable. This type of image-building counts for a lot in retail, especially if you have competitors that have a reputation for lower prices.
  • Reply 12 of 45
    Quote:
    Originally Posted by charlituna View Post


    THat is most likely the game. If they do offer any kind of discount it will probably be very small. More likely they will tag on a $25 iTunes gift card like they often do to the iPods during the holidays. Or perhaps a case or Zagg film or such.



    But in the end they are hoping to get folks in the stores. And will do reserves to get them in twice



    As for those saying it is silly to offer a discount. Actually it isn't. If they don't offer something folks won't consider taking the chance that what they want could be in stock. But if they can save $50 and have it now, that's a reason to try it rather than just for that online order they just placed with Apple



    Best Buy and Apple do not idscount Apple products. They are fair traided across the country except on Black Friday.



    Your marketing expertise is suffering from delusion.
  • Reply 13 of 45
    I have heard that some of the best buys are only selling you iPads if you agree to purchase THEIR extended warranty. You decide you don't want that, then no sale. They still sell out and this gives them more profit to deal with.
  • Reply 14 of 45
    nvidia2008nvidia2008 Posts: 9,262member
    Good ******* luck to Best Buy to

    (a) resolve disputes with Apple and more importantly

    (b) get enough stock for "a big nationwide push"
  • Reply 15 of 45
    nvidia2008nvidia2008 Posts: 9,262member
    Quote:
    Originally Posted by bjojade View Post


    I have heard that some of the best buys are only selling you iPads if you agree to purchase THEIR extended warranty. You decide you don't want that, then no sale. They still sell out and this gives them more profit to deal with.



    I hope Apple sues them out of existence if this is the case. Or at least just stop them from selling Apple products for at least five years.



    Time and time again we see that there is just no experience close to the Apple Store experience. It's not perfect and peachy 100% of the time at the official Apple Stores... but at least they avoid most of these common retail shenanigans. Retail is sometimes such a garbage lifestyle, career, and business, it's sad so much of modern life depends on it.
  • Reply 16 of 45
    ogun7ogun7 Posts: 6member
    Quote:
    Originally Posted by nvidia2008 View Post


    I hope Apple sues them out of existence if this is the case. Or at least just stop them from selling Apple products for at least five years.



    Time and time again we see that there is just no experience close to the Apple Store experience. It's not perfect and peachy 100% of the time at the official Apple Stores... but at least they avoid most of these common retail shenanigans. Retail is sometimes such a garbage lifestyle, career, and business, it's sad so much of modern life depends on it.



    I bought my Black 64GB AT&T model on Tuesday. The salesman told me that reserve orders are held, but any additional inventory can be sold, even to employees!



    I found it through the online tracker from a tip at MacRumors via Obamapacman.com. There's still availability showing in the greater NYC area. (Sorry about the rival site mention Phillip)
  • Reply 17 of 45
    MacProMacPro Posts: 19,383member
    I hope the sales staff have been told that any one of them that starts mouthing off about how he or she doesn't approve of Apple's 'closed, walled garden' is fired.
  • Reply 18 of 45
    MacProMacPro Posts: 19,383member
    Quote:
    Originally Posted by bjojade View Post


    I have heard that some of the best buys are only selling you iPads if you agree to purchase THEIR extended warranty. You decide you don't want that, then no sale. They still sell out and this gives them more profit to deal with.



    I don't see that as being possible. You walk up to a check out clerk with a product and hand over a credit card in Best Buy. I can't see how the check out clerk can say at that point you can't buy it when you say 'no thanks' to the extended warranty. Unless they are insisting the purchase takes place at the Apple booth within the store not the normal check out, that might be the case I guess.
  • Reply 19 of 45
    rot'napplerot'napple Posts: 1,839member
    Quote:
    Originally Posted by Mac-sochist View Post


    "As God is my witness, I thought iPads could fly!"



    iPad 2's CAN fly... but it is usually 'out the door!'



    Get it... they're flying out the door... (drum rim shot)



    "cricket, cricket"... Boy, tough crowd. \

    /

    /

    /
  • Reply 20 of 45
    nvidia2008nvidia2008 Posts: 9,262member
    Quote:
    Originally Posted by Rot'nApple View Post


    iPad 2's CAN fly... but it is usually 'out the door!'



    Get it... they're flying out the door... (drum rim shot)



    "cricket, cricket"... Boy, tough crowd. \

    /

    /

    /



    *golf clap*
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