Best Buy puts "Hot Items" Behind $200 Membership Fee

[mr fobs]

Summary

With the most recent restock of the PlayStation 5, Best Buy has required a $200 per year subscription to their Totaltech membership. Customers must be subscribed to Best Buy's Total tech membership in order to be eligible to purchase of PS5 or "other hot items". This brings on a whole new level of scalping..

 

 

Quotes

Quote

"The $200 annual service—which has benefits like round-the-clock tech support, up to two years of protection on Best Buy purchases (including AppleCare+ insurance, which can cost $200 on its own), and member discounted prices—is throwing in exclusive access to "the season's hardest-to-find products" as a bonus perk for the holidays, the company said in a statement."   -Ars Technica

Quote

A new restock of the PlayStation 5 took place today at Best Buy, but unlike past sale opportunities at the retail chain, this restock wasn't available to all customers. Specifically, Best Buy opted to lock this new release of the PS5 behind a paywall and only would allow select consumers to pick it up. -Comicbook.com

Quote

Although, other customers are confirming that they successfully canceled their membership and got a full refund after getting a PS5. -Gaming Intel

My thoughts

 This isn't unheard of, GameStop has had something similar to this with their Pro membership. However $200 for what will most likely be for only one purchase is pretty steep. One thing I would add to this is Best Buy's FAQs do state this: 

Can a Total Tech Support membership be returned?    

Total Tech Support cannot be returned, but it can be canceled. You can cancel your membership by calling 1-888-BEST BUY (1-888-237-8289) or you can opt out of auto-renewal by managing your subscriptions on your BestBuy.com profile. You will not be able to cancel your membership at a Best Buy store. For information about returning a Gift Membership, please see Total Tech Support Gifting FAQs.    

For a yearly membership, if you call within 30 days of purchase, you will receive a refund for the full value of your membership, minus any membership discounts you may have received. If you cancel after 30 days, you will receive a prorated refund, minus any membership discounts or benefits you may have received.

 

Not something I have the funds to test, but maybe? The article from Gaming Intel touches on that more.

 

Sources

Ars Technica

Comicbook.com

Gaming Intel

Image from @Wario64 on Twitter

[StDragon]

There's a shortage of "everything". I don't fault Best Buy for doing this; they're just leveraging what little inventory they can obtain. I expect other stores to start doing the same.

 

I'm just calling it out for what it is, not how I would like it to be. Hopefully this eases up in the next year or so.

[mr fobs]

3 minutes ago, StDragon said:

I'm just calling it out for what it is, not how I would like it to be. Hopefully this eases up in the next year or so.

It sucks, but its reality. I would rather pay BestBuy $700 than pay a scalper $700. At least the membership has other benefits.

[WolframaticAlpha]

SaaS: Scalping as a Service.

[Blademaster91]

Seems like scalping but i'd rather pay Bestbuy an extra $200 for a graphics card than an ebay scalper.

[Dracarris]

If that means they'll actually sell GPUs at MSRP well okay. Otherwise GTFO. Where I live we now can "freely" buy 30 series GPUs but a 3070 comes in at 1000€, and a 3080 LHR starts at 1300€ for some Gainward models. Hell no.

[mr fobs]

1 hour ago, Dracarris said:

If that means they'll actually sell GPUs at MSRP well okay. Otherwise GTFO. Where I live we now can "freely" buy 30 series GPUs but a 3070 comes in at 1000€, and a 3080 LHR starts at 1300€ for some Gainward models. Hell no.

I am from the US, I assume this will mean we will get GPUs at the "new" MSRP that includes the tariff tax. However it sucks because we were already getting that with BestBuy restocking nearly every 2 weeks..

[bmwdriver]

This seems like extortion to me.  Best Buy is taking advantage of their customers.  I hope Linus and Luke cover this in the next WAN show.

[Falkentyne]

This stuff has been going on for years.  Premium memberships are not new.  We made a stick of this when Dell started offering it and what good did it do?

Either deal with it or don't buy.  

[TetraSky]

So now only scalpers will be able to buy them, because they will get that $200 back. Normal people who just want the damn thing to use for themselves, won't pay best buy an extra $200 just for the chance of getting it, may as well pay scalper prices at that point since it won't be that far off anyway.

[AwesomenessZ]

One thing to note is Total tech support and Total tech are not the same thing. Total tech support got "upgraded" to total tech.

Also i saw a 3060 (don't remember the brand) today for $600 usd for a idea on how pricing is going at best buy. Also saw a 3090 for $2,200

[StDragon]

2 hours ago, TetraSky said:

So now only scalpers will be able to buy them, because they will get that $200 back. Normal people who just want the damn thing to use for themselves, won't pay best buy an extra $200 just for the chance of getting it, may as well pay scalper prices at that point since it won't be that far off anyway.

That depends entirely if they limit one GPU per member that's paying that $200. In which case, your odds go way up. That said, they should have implemented limitations per buyer to begin with, starting with a valid Driver License to validate fake accounts aren't being made by scalpers.

[mr moose]

This thread disgusts me,   a shop charges customers $200 a year to buy from them and customers are happy about it.

 

You get 2 years guarantee in Australia by LAW,  none of this having to fucking pay for it BS.   In fact some of these "extended" warranties and support services have been found to be illegal in Australia.

 

 

 

 

 

[poochyena]

4 minutes ago, mr moose said:

This thread disgusts me,   a shop charges customers $200 a year to buy from them and customers are happy about it.

Being upset over other people's happiness is very strange.

6 minutes ago, mr moose said:

You get 2 years guarantee in Australia by LAW

No you don't. Australia isn't requiring businesses to replace products that the customer breaks within 2 years of purchase.

[mr moose]

1 hour ago, poochyena said:

Being upset over other people's happiness is very strange.

No you don't. Australia isn't requiring businesses to replace products that the customer breaks within 2 years of purchase.

I'm not upset, I'm disgusted, there is a difference. A pretty big one.

 

Two year warranty is Australian law for GPU's, it comes under our consumer protection, baring intentional or obviously unintended usage like hitting it with a hammer,  that warranty is honored. 

[poochyena]

31 minutes ago, mr moose said:

Two year warranty is Australian law for GPU's

The best buy program is for a lot more products than GPUs.

32 minutes ago, mr moose said:

it comes under our consumer protection, baring intentional or obviously unintended usage like hitting it with a hammer,  that warranty is honored. 

I really doubt that. I think your confused since you keep using the word "warranty". This is insurance, not a warranty.

[mr moose]

7 minutes ago, poochyena said:

The best buy program is for a lot more products than GPUs.

I couldn't care less how many products it's for, paying $200 a year for the honor of being able to buy from a shop and have your product replaced when it fails is Bullshit in the highest order. 

7 minutes ago, poochyena said:

I really doubt that. I think your confused since you keep using the word "warranty". This is insurance, not a warranty.

 

Insurance for what?  I think you don't understand how consumer warranties work. If you need insurance for a breakage that is outside of intended use then you are using it wrong.

 

 

 

 

Also, can I interest you in joining the moose club?  you send me $300 every year and I will let you buy my services. 

[SansVarnic]

15 hours ago, mr fobs said:

This brings on a whole new level of scalping..

Absolutley.

I see this backfiring though, give it time. Or, people will accept it as another new norm for the times and that is not right, dont let yourself be run over folks, ever heard of the man who became a rug? Got walked all over. 

 

BestBuy just lost this customer. 

[poochyena]

12 minutes ago, mr moose said:

I couldn't care less how many products it's for, paying $200 a year for the honor of being able to buy from a shop and have your product replaced when it fails is Bullshit in the highest order. 

Then don't buy it. Whats the big deal?

12 minutes ago, mr moose said:

Insurance for what?

Products you buy at Best Buy.

12 minutes ago, mr moose said:

I think you don't understand how consumer warranties work. If you need insurance for a breakage that is outside of intended use then you are using it wrong.

I do. A warranty covers damage from a products due to manufacture negligence. Insurance covers damage from a product due to consumer negligence.

[StDragon]

46 minutes ago, mr moose said:

Insurance for what?  I think you don't understand how consumer warranties work. If you need insurance for a breakage that is outside of intended use then you are using it wrong.

SquareTrade got sold to Allstate, which is an actual insurance company; so the business model is 100% inline with what they do.

Some products have limited warranty (90 days) which you can pay extra to SquareTrade to extend it. If the product can't be repaired, it gets replaced with a similar model of equal value (because models change, don't expect to get an exact replacement unless "new old-stock" exists). They also offer damage protection for phones in case you break the screen. $5 per month = $60 per year. If you've got butter fingers, it's probably worth it. But then again, I'd recommend an OtterBox case instead 

[mr moose]

27 minutes ago, poochyena said:

Then don't buy it. Whats the big deal?

Products you buy at Best Buy.

So no point then. 

27 minutes ago, poochyena said:

I do. A warranty covers damage from a products due to manufacture negligence. Insurance covers damage from a product due to consumer negligence.

Consumer negligence?  on a GPU?  what sort of negligence do you expect would hurt a GPU that insurance is warranted? 

 

8 minutes ago, StDragon said:

SquareTrade got sold to Allstate, which is an actual insurance company; so the business model is 100% inline with what the do.

Some products have limited warranty (90 days) which you can pay extra to SquareTrade to extend it. If the product can't be repaired, it gets replaced with a similar model of equal value (because models change, don't expect to get an exact replacement unless "new old-stock" exists). They also offer damage protection for phones in case you break the screen. $5 per month = $60 per year. If you've got butter fingers, it's probably worth it. But then again, I'd recommend an OtterBox case instead 

 

So you are paying $200 a year for the privilege of not only buying from them but to have your product's warranted for what should already be a reasonable period? 

 

 

You guys can convince yourself you are paying for something of value all you like.   You're getting ripped absolutely blindly and you are defending it.

[Ravendarat]

I dont like this at all but its not that much different than paying for a Costco Membership every year for the "privilege" of shopping at their stores

[Blademaster91]

14 minutes ago, mr moose said:

Consumer negligence?  on a GPU?  what sort of negligence do you expect would hurt a GPU that insurance is warranted? 

The insurance might be nice if you could for example only get a GPU from an AIB with a not so great RMA policy, instead of having to deal with the company trying to screw you out of a replacement, or shipping it back. All you have to do is exchange the product at Bestbuy.

14 minutes ago, mr moose said:

So you are paying $200 a year for the privilege of not only buying from them but to have your product's warranted for what should already be a reasonable period? 

 

 

You guys can convince yourself you are paying for something of value all you like.   You're getting ripped absolutely blindly and you are defending it.

I would consider the $200 membership for a hard to find product, but I wouldn't renew it, getting a standard extended warranty is much cheaper.

And Bestbuy isn't forcing you to buy the membership, also I don't see how warranty policies in Austrailia apply, as electronics are significantly more expensive there anyway.

1 hour ago, SansVarnic said:

Absolutley.

I see this backfiring though, give it time. Or, people will accept it as another new norm for the times and that is not right, dont let yourself be run over folks, ever heard of the man who became a rug? Got walked all over. 

 

BestBuy just lost this customer. 

You're seriously going to avoid Bestbuy for an optional membership?

No one criticizes Newegg for their ridiculous shuffle system for hard to find electronics, so only scalpers and miners can buy items as everything is overpriced to scalper levels and you have to check the site everyday to see if you have a chance at "winning" the privilege of buying something.

[SansVarnic]

12 minutes ago, Blademaster91 said:

You're seriously going to avoid Bestbuy for an optional membership?

No one criticizes Newegg for their ridiculous shuffle system for hard to find electronics, so only scalpers and miners can buy items as everything is overpriced to scalper levels and you have to check the site everyday to see if you have a chance at "winning" the privilege of buying something.

Poor business ethics = poor business practice, why should I support this? it will only validate the move and show other companies it is ok to do the same, increasing prices for no logical reason. Think about it a bit and you will understand.

I do criticize Newegg, haven't used them in years now because of what they started doing. 

I vote with my wallet; I will support businesses that will conduct themselves appropriately. This has worked out well for me thus far.

 

What Isaid in my last comment stands.

Ever heard of the man who became a rug? Got walked all over. <--- was not meant as a joke.

[mr moose]

10 minutes ago, Blademaster91 said:

The insurance might be nice if you could for example only get a GPU from an AIB with a not so great RMA policy, instead of having to deal with the company trying to screw you out of a replacement, or shipping it back. All you have to do is exchange the product at Bestbuy.

You shouldn't have to pay to avoid bad product support.

 

10 minutes ago, Blademaster91 said:

I would consider the $200 membership for a hard to find product, but I wouldn't renew it, getting a standard extended warranty is much cheaper.

I would consider it an insane premium to pay in order to buy a product.   Bloody hell, we are already being gouged with the prices as they are without paying a premium on top of that just for the ability to buy. 

 

10 minutes ago, Blademaster91 said:

And Bestbuy isn't forcing you to buy the membership, also I don't see how warranty policies in Austrailia apply, as electronics are significantly more expensive there anyway.

You're seriously going to avoid Bestbuy for an optional membership?

 

Everything is more expensive here because we have higher wages and compulsory super, sick leave, family leave and paid holidays.    Very little if any of it has to do with product warranty.   Besides, the ony reason I mentioned Aussie warranties is because these products should be supported with good warranties in the first place not something you have to buy as well and I am glad that it is enshrined in our law preventing arse hole companies form using "support" as another way to increase the cost of the product.

 

10 minutes ago, Blademaster91 said:

No one criticizes Newegg for their ridiculous shuffle system for hard to find electronics, so only scalpers and miners can buy items as everything is overpriced to scalper levels and you have to check the site everyday to see if you have a chance at "winning" the privilege of buying something.

I'll criticize them if it's anti consumer behavior.   But the issue is not them in this thread it's BB.