Today Best Buy launched their Buy Back Program (BBP) to encourage shoppers to keep upgrading to the latest tech without every having to worry about the device becoming dated. With the BBP, people can upgrade as often as they like, getting a lump of credit on a gift card.
What is this BBP you ask? Its an in-store and online credit program offered at the time of purchase. Say you’re grabbing a laptop, netbook, tablet, mobile phone or HD TV (only these products apply), Best Buy will purchase the product back from you within 2-4 years; 4 years being TVs if you pay them $69.96 extra when you buy it.
50% of your original purchase price will be tacked on to a Best Buy gift card so long as the purchase is returned within six months of the purchase date. The longer you wait, the less money you’ll get; after 6 months to 12 months you get up to 40% back, 12 months to 18 months is 30%, and 18 months to 24 months a mere 20%.
Lets say you laid out $500 on a 16 GB iPad Wi-Fi with the BBP, within six months you would get $250 credit (not including the extra $70 you spent originally.) Craigslist in Toronto offers over a dozen 16 GB iPads with Wi-Fi for sale. The least expensive one was $480. Two people placed ads hoping to buy an iPad, $330 and $450 were offered. Right now that iPad you got last year is barely getting you $150. Not much of a choice for me.
Customers can buy new gadgets with added confidence from an upfront re-purchase schedule, instant re-payment on redeemed gear
January 10, 2011 02:09 PM Eastern Time
MINNEAPOLIS–(EON: Enhanced Online News)–Today Best Buy (NYSE: BBY) is launching its first-ever Buy Back Program to help customers embrace new technology with greater confidence. Created for people who want to stay current with their gear but who are concerned about obsolescence, the Buy Back Program provides convenient access to upgrades with the help of a Best Buy gift card from ”buying back” past purchases.
“We call this ‘future-proofing’ because our customers can now have more confidence that they’re protecting the value of the products they’re purchasing today. With the Buy Back Program, consumers benefit from assurance, convenience and transparency so they can stay current and stay connected.”
Beginning this month, Best Buy customers can purchase the Buy Back Program in-store or online when buying products in one of five popular categories: laptops, netbooks, tablets, post-paid mobile phones and televisions. Customers may purchase the Buy Back Program when they buy their new devices, with pricing based on the product category. For example, Buy Back protection for any laptop, netbook or tablet is $69.99. Best Buy will purchase the product anytime within two years for laptops, netbooks, tablets and post-paid mobile phones, and four years for televisions.i Customers may receive up to 50 percent of the product’s original purchase price paid in the form of a Best Buy gift card if redeemed within six months of the effective date to purchase new products of their choice.ii
Buy Back Program appeal has been validated by a year of extensive consumer research, and most recently in a study conducted by Impulse Research Corporation.iii In the study, 40 percent of consumers surveyed agreed that concerns about technology becoming outdated have likely prevented them, or would prevent them in the future, from purchasing products such as laptops, mobile phones, TVs, tablets and netbooks. The study also affirmed the appeal of a Buy Back-like program when deciding on where to shop for popular electronics gear in the coming year. It revealed that 30 percent of consumers plan to purchase a TV or laptop in the next 12 months, and that 73 percent of consumers would consider purchasing these electronics from a retailer that offers a re-purchase type of program.
“We recognize that technology is changing faster than ever, and our customers tell us they want to enjoy these devices without worrying about when the next or newest version will launch,” said Brian Dunn, chief executive officer of Best Buy. “We call this ‘future-proofing’ because our customers can now have more confidence that they’re protecting the value of the products they’re purchasing today. With the Buy Back Program, consumers benefit from assurance, convenience and transparency so they can stay current and stay connected.”
Best Buy customers may purchase the Buy Back Program when buying a new product and redeem it at a later time, as long as the device is in good working condition and includes all original parts. Unlike typical retail trade-in programs customers don’t have to wait for re-payment, and can immediately apply money from their Buy Back product redemption to the purchase of new products at any Best Buy or Best Buy Mobile store. Better yet, consumers know what they’ll be paid up front, with a schedule that is available at the time of Buy Back Program purchase and is based on duration of product ownership:
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
“A program like Best Buy’s Buy Back should encourage higher consumption by early adopters and fast followers that are considering new technologies, because it gives them confidence that the electronic devices they have just purchased will have real value going forward,” said Stephen Baker, vice president of industry analysis for NPD Group.
Impulse also found that when purchasing personal electronics, 84 percent of consumers say it’s important to deal with a reputable company who will responsibly re-use and re-cycle their old products. Electronics redeemed through the Buy Back Program will be assessed by its built-in team of Geek Squad Agents, and distributed among Best Buy’s aftermarket, trade-in and recycling programs. To learn more about the Buy Back Program and find the nearest Best Buy store, visit www.bestbuy.com.
About Best Buy Co., Inc.
With operations in the United States, Canada, Europe, China, Mexico and Turkey, Best Buy is a multinational retailer of technology and entertainment products and services with a commitment to growth and innovation. The Best Buy family of brands and partnerships collectively generates more than $49 billion in annual revenue and includes brands such as Best Buy; Best Buy Mobile; Audiovisions; The Carphone Warehouse; Future Shop; Geek Squad, Jiangsu Five Star; Magnolia Audio Video; Napster; Pacific Sales; and The Phone House. Approximately 180,000 employees apply their talents to help bring the benefits of these brands to life for customers through retail locations, multiple call centers and Web sites, in-home solutions, product delivery and activities in our communities. Community partnership is central to the way we do business at Best Buy. In fiscal 2010, we donated a combined $25.2 million to improve the vitality of the communities where our employees and customers live and work. For more information about Best Buy, visit www.bestbuy.com.
i Televisions $5,000 or higher are excluded from this program.
ii Effective Date is 31 days from the purchase date.
iii The Impulse Research Corporation online survey was commissioned by Best Buy with a random sample of 1,075 men and women, 18-64, who describe themselves as the sole decision maker or involved in at least 50% of the buying decision when purchasing consumer electronics products or major household appliances. Research was conducted in late December 2010 and early January 2011. The overall sampling error rate for this survey is +/-3% at the 95% level of confidence.