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(Marketwatch)   Radio Shack stock is now cheaper than their batteries   (marketwatch.com) divider line 26
    More: Fail, Radioshack Corp., ETFs, FactSet, CEO Dorvin Lively  
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1216 clicks; posted to Business » on 23 Oct 2012 at 11:47 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



26 Comments   (+0 »)
   
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2012-10-23 12:10:49 PM
Obligatory

"Overall, our business performed below expectations," interim CEO Dorvin Lively said.

Keen analysis like that is why they pay him the big bucks.
 
2012-10-23 12:19:27 PM
Actually that is an interesting measure: the market cap of a company vs the selling price of one of their products.
 
2012-10-23 12:22:24 PM
If it weren't for their cell phone business, the only reasonable explanation for their continued existence is that they are a money laundering operation for the mafia. I'm sure electronic components have pretty good profit margins, but they can't be doing THAT much volume, and most everything else they carry is either crap or is overpriced.
 
2012-10-23 12:34:04 PM

oh_please: Obligatory

"Overall, our business performed below expectations," interim CEO Dorvin Lively said.

Keen analysis like that is why they pay him the big bucks.


Always makes me chuckle out loud.

"Even the name 'RadioShack'-can you imagine two less appealing words placed next to one another?" Day said. "What is that, some kind of World War II terminology? Are ham radio operators still around, even? Aren't we in the digital age?"

One of their best (neckbelts to me will always be top).
 
2012-10-23 12:37:43 PM
sad times we are living in.

people love to pile on but i'd still rather see BB go before radio shack. at least you can (or used to be able to) build something from scratch at radio shack.

i hope no one ever needs anything quickly anymore, online orders can only ship so fast.
 
2012-10-23 01:02:24 PM
I walked through a Radio Shack a few weeks ago, thinking they might be a great target for a hostile takeover and makeover.

The thing that got me, really made me want to yell "That's why you're losing" was the fact they had four models of low end laptop tucked behind the counter where customers would never buy them. The cost of stocking that sort of crap might be what's holding the company down.

Then I turn a corner and there's a surprising variety of Arundino and STAMP controllers. Holy shiat, I didn't know they would carry that sort of stuff. Of course, they didn't have any sensors or motors, so I'd still have to go online, where I'd buy the damned things anyway.

If they want to be here next Christmas they need ditch those non-performing sections. Stick with things that are radio, cellphones and HDTV antennas and satellite packages, especially if it's a matter of selling a service. The accessories have a good mark up, and there's a reason to have a good variety of cables on hand to sell.

I'd like to take apart RS and see if we can turn it into turnkey franchises.
 
2012-10-23 01:11:12 PM
RadioShack

wildcardjack: I walked through a Radio Shack a few weeks ago, thinking they might be a great target for a hostile takeover and makeover.

The thing that got me, really made me want to yell "That's why you're losing" was the fact they had four models of low end laptop tucked behind the counter where customers would never buy them. The cost of stocking that sort of crap might be what's holding the company down.

Then I turn a corner and there's a surprising variety of Arundino and STAMP controllers. Holy shiat, I didn't know they would carry that sort of stuff. Of course, they didn't have any sensors or motors, so I'd still have to go online, where I'd buy the damned things anyway.

If they want to be here next Christmas they need ditch those non-performing sections. Stick with things that are radio, cellphones and HDTV antennas and satellite packages, especially if it's a matter of selling a service. The accessories have a good mark up, and there's a reason to have a good variety of cables on hand to sell.

I'd like to take apart RS and see if we can turn it into turnkey franchises.


RadioShack already does franchises. I owned two of them.
 
2012-10-23 01:17:30 PM

Wobble: RadioShack wildcardjack: I walked through a Radio Shack a few weeks ago, thinking they might be a great target for a hostile takeover and makeover.

The thing that got me, really made me want to yell "That's why you're losing" was the fact they had four models of low end laptop tucked behind the counter where customers would never buy them. The cost of stocking that sort of crap might be what's holding the company down.

Then I turn a corner and there's a surprising variety of Arundino and STAMP controllers. Holy shiat, I didn't know they would carry that sort of stuff. Of course, they didn't have any sensors or motors, so I'd still have to go online, where I'd buy the damned things anyway.

If they want to be here next Christmas they need ditch those non-performing sections. Stick with things that are radio, cellphones and HDTV antennas and satellite packages, especially if it's a matter of selling a service. The accessories have a good mark up, and there's a reason to have a good variety of cables on hand to sell.

I'd like to take apart RS and see if we can turn it into turnkey franchises.

RadioShack already does franchises. I owned two of them.


Were you clueless as to how it made money?
 
2012-10-23 01:27:08 PM
The late 90's were great. But after Len Roberts left RS as CEO, everything went to hell.
 
2012-10-23 02:08:27 PM

Wobble: The late 90's were great. But after Len Roberts left RS as CEO, everything went to hell.


I think the market changed on them. And Walmart happened.
 
2012-10-23 02:09:04 PM
And you have to give them your name, address, phone number and social security number to buy either one.
 
2012-10-23 02:15:37 PM
Very, very poor upper management.
 
2012-10-23 03:02:44 PM

Wobble: The late 90's were great. But after Len Roberts left RS as CEO, everything went to hell.


So, as a franchisee, what major changes happened? I'm interested.
 
2012-10-23 03:44:10 PM

Mad_Radhu: If it weren't for their cell phone business, the only reasonable explanation for their continued existence is that they are a money laundering operation for the mafia. I'm sure electronic components have pretty good profit margins, but they can't be doing THAT much volume, and most everything else they carry is either crap or is overpriced.


As far as electronic components go, its way over priced. I was building a pulse width modulator to drive a solid state relay to use as a resistance heater throttle. 555 timers were like $2.49 each at RS. I found them online for pennies.

Radio Shack is about twice the price of Fry's and 10 times of the price of online retailers.

I can't believe anyone would buy components there.
 
2012-10-23 05:13:58 PM
Whar "Spiffy" tag?
 
2012-10-23 05:59:27 PM
If your customer base is tech savvy enough to know how to shop for specific electronic components, they're savvy enough to know how to go online and buy them from online wholesalers a lot cheaper than your overhead-heavy brick and mortar stores.
 
2012-10-23 07:50:34 PM
"Radio Shack: You've got Questions. We've got cellphones."
 
2012-10-23 10:55:11 PM

Epicanis: "Radio Shack: You've got Questions. We've got cellphones."


Exactly. If they still focused on radio and electronics parts, they'd be doing a lot better. All they need to do is sell cables, connectors, adapters, and parts cheaper than the other big box stores (but still over margin, of course). That's it. If people could go to Radio Shack to get a decent HDMI cable for $5.00, then Radio Shack would steal a lot of Best Buy's business, and Radio Shack would STILL be profiting on the sale of those items (wholesale cost on a 6' HDMI cable is under a buck when you're buying in volume).

If people could go to Radio Shack to get help setting up their home theater-- Ask questions about how to do it, get suggestions about what parts and pieces to purchase, and generally treat Radio Shack like they used to-- as a place where electronics nerds hang out-- Radio Shack would be doing a lot better.

Instead, they decided they'd compete with the billion-and-one cell phone kiosks and retail stores. If you walk into a Radio Shack today, they seem to only care about cell phones. Ask for a particular cable, and they might have it (if they even understand what you're asking for) but they charge twice as much as the local Kmart for the same damn thing.

It doesn't take a genius to fix Radio Shack. It just takes an electronics geek who has worked retail long enough to know what people are looking for. HINT: It's not cell phone contracts.
 
2012-10-23 10:57:40 PM

max_pooper: Mad_Radhu: If it weren't for their cell phone business, the only reasonable explanation for their continued existence is that they are a money laundering operation for the mafia. I'm sure electronic components have pretty good profit margins, but they can't be doing THAT much volume, and most everything else they carry is either crap or is overpriced.

As far as electronic components go, its way over priced. I was building a pulse width modulator to drive a solid state relay to use as a resistance heater throttle. 555 timers were like $2.49 each at RS. I found them online for pennies.

Radio Shack is about twice the price of Fry's and 10 times of the price of online retailers.

I can't believe anyone would buy components there.


I can't believe you FOUND components there!!!

The last time I went into a Radio Shack, they had cell phones, cell phone accessories, a few TVs, a couple stereos, some iPod accessories, and a few different TV accessories (cables, remote controls, antennas, etc.) but ALL of it was overpriced and the salesnerds didn't know anything about anything that wasn't a cell phone on contract.
 
2012-10-23 10:57:46 PM

oh_please: Wobble: The late 90's were great. But after Len Roberts left RS as CEO, everything went to hell.

So, as a franchisee, what major changes happened? I'm interested.


I'm interested as well
 
2012-10-24 07:28:52 AM

ZeroCorpse: Epicanis: "Radio Shack: You've got Questions. We've got cellphones."

Exactly. If they still focused on radio and electronics parts, they'd be doing a lot better. All they need to do is sell cables, connectors, adapters, and parts cheaper than the other big box stores (but still over margin, of course). That's it. If people could go to Radio Shack to get a decent HDMI cable for $5.00, then Radio Shack would steal a lot of Best Buy's business, and Radio Shack would STILL be profiting on the sale of those items (wholesale cost on a 6' HDMI cable is under a buck when you're buying in volume).

If people could go to Radio Shack to get help setting up their home theater-- Ask questions about how to do it, get suggestions about what parts and pieces to purchase, and generally treat Radio Shack like they used to-- as a place where electronics nerds hang out-- Radio Shack would be doing a lot better.

Instead, they decided they'd compete with the billion-and-one cell phone kiosks and retail stores. If you walk into a Radio Shack today, they seem to only care about cell phones. Ask for a particular cable, and they might have it (if they even understand what you're asking for) but they charge twice as much as the local Kmart for the same damn thing.

It doesn't take a genius to fix Radio Shack. It just takes an electronics geek who has worked retail long enough to know what people are looking for. HINT: It's not cell phone contracts.


Radio Shack should make you CEO.
 
2012-10-24 08:23:23 AM
ZeroCorpse sounds like he has owned a store before as well. He has damned near hit the nail on the head. For those asking what happened, freaking cell phones. Dealer cost started getting so high I couldn't compete with the cellular companies in the area on selection. Example, a Blackberry cost my business around $400.00. If I stocked 3 different Blackberrys, I tie up $1200.00. Plus, I have bought that product. No returns to Shack or Sprint or US Cellular. If defective, it was a repair issue. I can't imagine what my previous fellow store owners are going through today with the huge inventory of smart phones on the market, and profit margins dropping on those phones.

Computers were another huge issue. Margins went from 25% to 8 or 9%. Again, another high cost unit eating up dollars that could be devoted to MUCH higher margin AHP (accessories, hookup, and parts).

We added to our RadioShack business to try and offset the ever decreasing profit margin from Shack. Had Clarion, Orion, Pioneer, and other brands of car audio. Got into the custom home audio/video business as well. Was a class B Virginia contractor. Sold Toshiba, Onkyo, JBL.........the good stuff Shack never looked into. Our biggest job was the Wytheville rec facility, around $110,000. Hell, at the end I was selling Oreck floor sweepers.

The last straw was Christmas, 2009. At my Wytheville store, a typical December sales total would be around $90,000 for the month. My Abingdon store would hit around $50,000. In '09 I think we did a combined $70,000. Had already purchased all the Christmas inventory....no take backsies from Shack, couldn't pay for the merch as we didn't even cover inventory COST with our sales, lost my shares of the company to my business partner in agreement for a "bailout" that never happened. He closed the Wytheville store, kept the Abingdon store. Was still responsible for 2 $3000.00 per month leases for 2 and 3 years, was responsible for several months of back taxes covering the time I was forced out till he restructured the business under a new corp. Had to file bankruptcy, lost our house, credit, and savings.

If there are any business savy folks that catch this rant I'm sure they will say "Something just doesn't add up with this guy's story." They would be right. I left out the part about my lying, Christian, second cousin who was my business partner. Blamed this ass for quite some time. Looking back I only have myself to blame. Should have been smarter and not near as trusting of others. Lesson well learned.
 
2012-10-25 02:16:20 PM
Every time I think about driving the one mile to the Radio Shack to buy some electrical component I need immediately, I usually change my mind when I remember that the odds are about 50/50 they even have the basic thing I need, the hassle of saying no to giving them my name and address, and then listening and saying no to the cell phone pitch, the TV pitch, and the battery pitch. So I usually say fark it and wait the 3-4 days to get exactly what I want delivered to my door from Mouser, et al.

The fact that Radio Shack changes nothing tells me a CEO hasn't been into an actual store in 10+ years. Or they just don't give a fark.
 
2012-10-26 02:41:34 AM
So, still overpriced and underperforming, then?
 
2012-10-26 02:44:34 AM

max_pooper: I can't believe anyone would buy components there.


Good, beause they no longer sell components there. I recently asked, and got a curt, "No." I'm honestly not sure where their money comes from. I guess a lot of people lose their remotes, want a cheap universal, and.. don't know where Walmart is, and... I honestly have no idea at all.
 
2012-10-26 02:52:12 AM

ColSanders: And you have to give them your name, address, phone number and social security number to buy either one.


Not if you're an obstinate biatch like me who's perfectly ready to walk away, and doesn't care if they hate me for it. And I'll be right back another time to give to them again, too. It's not like high school, where it might matter to me how they feel about it or what they think of me. I've got cash, they've got stuff. A sale can be made, on the right terms: mine. Or, you know, I can just go to Staples next door, or Walgreens across the street, or.. ah, that's better. Have a nice day yourself, Mr. Shak. What's that? No, you don't need my name, heh. And no, I didn't ask for yours, either. It's a transaction, not a date.

The first time this happened, the kid was pretty steamed, but didn't say anything. He handed me my receipt. When I got back to my workplace, I looked at it and saw it had someone's name on it. And their address. And phone number. I made a call. It never happened again.
 
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