Costco “Pin Action”

You probably have heard the news that Costco is abandoning its policy to allow full returns on electronics forever. It apparently cost them hundreds of millions of dollars in “fraud” like returns when people would return “broken” tv’s and replace them with newer ones. I know a lot of people who buy electronics exclusively from Costco for this reason, and I think that more and more people are not only going to be buying more from Circuit City, Best Buy and Staples, but also buy the extremely high margin warranties! Staples just reported a great quarter and fell with the rest of the 498 or so S&P 500 members who also fell this week, and is now attractively priced. Best Buy and Circuit City should continue to do well, especcially after this Costco announcement.

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2 Responses to Costco “Pin Action”

  1. Pro Costco says:

    How about the poeple who upgrade TV’s every 6 months to a year sometimes two years. your still buying the same TV dumbass. Now your paying more at circuit city and Best Buy. Besides the warranty usually does not cover whats wrong with the TV.

  2. loslobos71 says:

    Thats fine but the question is is whether people are going to go to Best Buy for TV’s now that Costco doesnt offer warranties because Best Buy has much better service and technical help. If the prices are the same at both, where will people buy from? Thats the question that remains to be answered and I think that more and more people will be buying from BB or CC. Having said that, I think that Costco is a great company and stock.

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