Is Geek Squad really your competition?

[altrenda]

In reading various posts, a lot of members compare themselves in price or services to Geek Squad. Some mention them on their websites or price lsts. I'm not sure about equivalents in the UK or Aus.

Are they really your main competitors? Does your customer base think of them first, or compare you to them?

I live in Los Angeles, where Best Buy is everywhere, but our business clients would never use them, and I'm not sure how aware residential customers are about them. When quoting a price, I used to compare prices to them, and just got a blank stare, so I stopped.

I know they are a big part of Best Buy, but maybe I just run in different circles than their clientele. Maybe we're looking in the wrong place and they're doing it right?

 

[OldSchoolPC]

When on the phone with a potential client I tell them I charge $39 to come out and $69 per hour. They can be like "Really? That much?" Then I tell them that Geek Squad often bills for $300 plus (since most clients have viruses). Therefore they can save over 30%. Some balk at it, but others don't because they had previously gotten burned by a $50 pizza tech, or have used Geek Squad. Without Geek Squad, our industry would suffer. Their insane rates create a median that a good technician can really work with.

 

[mraikes]

I suppose BB is a main competitor simply because I see people lined up at the GS counter all the time.

But I don't mention them or compare my pricing to theirs when speaking with clients. Many times the client will mention them in a uniformly unfavorable manner, but that's to be expected. Someone who is happy with BB wouldn't be calling me for repairs in the first place.

So yes, they're a competitor but I don't mention them or their pricing (nor any other local competitor) when marketing myself.

 

[altrenda]

"Some balk at it, but others don't because they had previously gotten burned by a $50 pizza tech, or have used Geek Squad. Without Geek Squad, our industry would suffer. Their insane rates create a median that a good technician can really work with."

I guess I hadn't checked their prices in a while.

Virus removal
ONLINE
Chat now without leaving your chair
$149.99

IN-STORE
Bring everything in and we'll take care of it
$199.99

IN-HOME
Stay right there, we're on our way
$299.99

I almost feel like I'm giving it away.

 

[phaZed]

Geek squad certainly has enough people at the counter when I go to Best Buy, so yes, they are competition.

In the way of knowledge and positive customer outcomes, Best Buy doesn't stand a chance, but that seldom matters... they still get paid, and we don't get the customer.

On the flip side, I have had quite a few customers that have used Best Buy before and don't have many kind words for the service they received or the price they paid. So there is a certain amount of blowback from the use of Best Buy.

 

[callthatgirl]

I consider them "Referring partners" people go there first, have sticker shock, come to us and book.

Thanks Geek Squad!

 

[Vicenarian]

I consider them "Referring partners" people go there first, have sticker shock, come to us and book.

Thanks Geek Squad!

I love that term...'Referring Partners'

 

[Mr.Mike]

On the flip side, I have had quite a few customers that have used Best Buy before and don't have many kind words for the service they received or the price they paid. So there is a certain amount of blowback from the use of Best Buy.

Almost all of my clients who have used the GS in the past have something negative to say about them. Could just be the local BB, but outrageous charges and poor interpersonal communications between clients and GS techies are keeping me in business.

 

[RegEdit]

My prices are about 1/2 of what GS charges. I absolutely mention this on my website. If they still think that I'm too expensive then they're probably the types of customers who I want to avoid.

There's a bunch of freelance PC repair people in my area, but they're all unlicensed. I be sure and advertise that fact as well.

 

[gunslinger]

I guess I hadn't checked their prices in a while.

Virus removal
ONLINE
Chat now without leaving your chair
$149.99

IN-STORE
Bring everything in and we'll take care of it
$199.99

IN-HOME
Stay right there, we're on our way
$299.99

I almost feel like I'm giving it away.

Grandma pays $298 for her new computer at Walmart (everyday low price) After a few days and a grand kid or two over its predictably infested with all manner of malware and viruses. Geek squad would actually charge her more than the system is worth.

People who model their business after this or jack up their rates to even 50% of what GS charges are only hurting themselves in the long run as computer prices keep falling year after year.

15 years ago a decent system would set you back a grand. 5 years ago a decent system could be had for $500 or less. Now its $299, (less in some places) and by decent I mean for most people (web surfing, youtube, facebook, Office ect.) In a few more years a good system will be less than $200 and be very disposable. What are the guys charging $100 per hour or more going to do then?

Rates can't keep going up to fix a product who's price is falling like a stone.

 

[OldSchoolPC]

Grandma pays $298 for her new computer at Walmart (everyday low price) After a few days and a grand kid or two over its predictably infested with all manner of malware and viruses. Geek squad would actually charge her more than the system is worth.

People who model their business after this or jack up their rates to even 50% of what GS charges are only hurting themselves in the long run as computer prices keep falling year after year.

15 years ago a decent system would set you back a grand. 5 years ago a decent system could be had for $500 or less. Now its $299, (less in some places) and by decent I mean for most people (web surfing, youtube, facebook, Office ect.) In a few more years a good system will be less than $200 and be very disposable. What are the guys charging $100 per hour or more going to do then?

Rates can't keep going up to fix a product who's price is falling like a stone.

My memory is a little different. 15 years ago a "decent" computer set you back 2 grand, not 1 grand. 5 years ago was 1 grand not 500. Today, about 600. So for me, if I charge $150 then is is better in most people's mind that spending twice as much on crap, or 4 times at much on something decent. So for most people, fixing their pentium 4 is better than buying new. Cuz even a p4 can handle the functions you mentioned.

 

[houstonpcrepair]

Geek squad is not our competition. They are just the most popular.

 

[tempusfugit]

My memory is a little different. 15 years ago a "decent" computer set you back 2 grand, not 1 grand. 5 years ago was 1 grand not 500. Today, about 600. So for me, if I charge $150 then is is better in most people's mind that spending twice as much on crap, or 4 times at much on something decent. So for most people, fixing their pentium 4 is better than buying new. Cuz even a p4 can handle the functions you mentioned.

I agree, emachine isn't decent, and I've heard manufacturers are going to be moving away from super cheap computers. Further, I don't see 200 bucks happening with hard drive prices what they are.

 

[gunslinger]

I agree, emachine isn't decent, and I've heard manufacturers are going to be moving away from super cheap computers. Further, I don't see 200 bucks happening with hard drive prices what they are.

Decent for what MOST people use a computer for. Email, web browsing, Facebook, and word processing. Emachines work just fine for those things. You don't have to have an over clocked quad core CPU and 16 gigs of RAM to do those things. MOST people do not game on the computer they have a console.

Oh, and hard drive price are only up until the over seas factories are back up full swing. Within a year they will be lower than they were a few months ago.

 

[tempusfugit]

For what most people use their computer for a 5 year old dell would work as well, be cheaper, and outlast a new emachine, or any 300 dollar computer.

You are also ignoring the value of data, and not having to get used to a new computer, which is terrifying for the average user.

 

[altrenda]

The users you are describing are moving to $400 -$600 tablets and ipads.
For a little more than a geek squad nuke and pave, grandma can get a shiny new tablet that doesn't get infected (yet) and does everything she needs.

 

[gunslinger]

For what most people use their computer for a 5 year old dell would work as well, be cheaper, and outlast a new emachine, or any 300 dollar computer.

You are also ignoring the value of data, and not having to get used to a new computer, which is terrifying for the average user.

I agree about the average user being terrified of change. Not so sure about the data when backups are becoming so dirt easy I'm seeing a lot of the older gen buying external drives and doing it themselves. The are not tech savvy people either.

The users you are describing are moving to $400 -$600 tablets and ipads.
For a little more than a geek squad nuke and pave, grandma can get a shiny new tablet that doesn't get infected (yet) and does everything she needs.

True. I am seeing more and more people not having a computer at all and instead going with an iPad or smart phone.

 

[flightrisk]

I only compete with Best Buy in that we offer similar services. Even though price point is not something I use to sell my business although I am less expensive than Best Buy. I also don't believe there is such a thing as decent computer for $300 and the kind of people who those computers are for are not my target market.

 

[gunslinger]

I also don't believe there is such a thing as decent computer for $300 and the kind of people who those computers are for are not my target market.

Hmmm, a quick check turned up a core two duo machine with 2 gigs of RAM and a 250gig HDD for $269. This machine will do 99.9% of anything the average computer owner needs. I'm sure if you are charging what some do these people are really not your market.