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Best Buy for Business To End SMB IT Consultants?
Posted: 2:09 am
February 28th, 2006
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IT Business, SMB

That got your attention. A friend of mine, John B. Holmblad of Televerage International, went to Best Buy this week and did some digging about the Best Buy for Business. Many ignored the Geek Squad and dismissed it as a disorganized bunch of rookies that will never be able to understand SMB. John's investigation clearly dismisses this notion: . . . I spent about 30 minutes at a BB store in by area that has a BB for Business section. This store is the one located in Fairfax, Va and according to the person with whom I spoke it is the 6th largest store in the country in terms of volume. My take away is that this is a very serious program that is still quite new but starting to get a grip while extending the Best Buy Brand into the SMB market. If it is successful it will definitely help BB for B move "product" which in this case includes the services, here are some things I learned: * The store has a full time Business Technology Consultant (BTC) who spends 80-90% of his/her time meeting at client sites gathering customer info and requirements in order to prepare a business proposal for the customer. I was not able to speak directly with the individual who serves this particular store although I got his business card. He is an MCSE. Only some of the stores in my area that have BB for B inside, have a full time BTC. In fact this BTC supports another store near me that is smaller and does not have their own BTC even though they also have BB for B. Each BTC drives a Blue Honda Element, presumably with the Best Buy logo on it. * The person to whom I spoke (a floor rep) carries the title of Business Technology Professional (BTP) and he has been trained on SBS 2003 and said he has his SBSC. He also claims that all of the other BTP reps like him have some kind of Microsoft certification. He also said that they have received lots of training on the BB for B program since it is so new * The customer signs one contract with BB for B for hw, sw and installation service. In other words there is not a separate contract with Geek Squad for the installation services. Thus BB for B is serving as the "prime" contractor. * The Geek Squadders do all of the install and break/fix work. Each is equipped with a VW with the GS logo, a UTS 6700 WM 5.0 phone/pda (in fact, they had them before they were broadly available). * The store I was at has a total of 11 Geek Squadders, one of whom is full time on SBS and 2 of whom are part time. The rest are, I assume, non-server specialists (e.g. general PC HW, Client OS, etc.). * The store has a "lab" type SBS server on which the geek squadders can train. I did not learn whether these individuals receive formalized training on Microsoft products. * Prices for Installation and commissioning services are determined and fixed, as opposed to simply quoting an hourly rate. We did not get into specifics of how much they would charge for a standard SBS 2003 install. * The store did not have a live SBS system for customer demo. * The BTP was not certain if/when BB for B would supply pre-installed SBS from, say HP. It would appear that as of now, Geek Squadders do the SBS install manually at the customer site or at the BB store, I am not certain. * For projects that require cabling they can draw on installers that support A/V cabling to perform cabling work * BB for B is planning to expand the range of bundled offerings by means of negotiated deals with other business service providers like Kinkos, etc. * BB for B is staffed on weekends to catch small business owners who may be out shopping for personal items * Currently BB for B does not have any managed network service offering such as the kind available with, say, the Level Platforms technology or one of the MSP's, whose names I have mentioned previously on this list * A customer can Enroll in the BB for B program at no charge. So even if they do not use any of the above services the customer can enjoy some savings over MSRP without having to shop online at Newegg, etc. * With respect to some of Microsoft's more specific products aside from SBS, Windows XP, etc, The BTP to whom I spoke said that BB for B first attempts to find the necessary implementation skillset (let's say Microsoft on CRM) from within the local "network of BTP's but if can't find it inside then they will look for outside consultants. I plan to check this out further when I speak to the BTC for this store. * Because of Best Buy's purchasing power and supplier relationships, they can help BB for B customers get fast turnaround on rush orders. * BB for B does not currently have a regular business seminar program to pull in business customers. It is very ad hoc. This week I will make a point to a) speak to the BTC from this store to get a deeper understanding of their network design capabilities and also b) visit the other store which he services to see what they have setup in the way of BB for B support.

6 Comments

Anonymous |

I’m speachless.



CharlesM |

This is certainly more than any of us expected them to do and it clearly cuts into the SMB consulting teritory.

Their original teenagers doing break/fix and wifi installation was not a problem.. but the SBS pitch and MCSE on staff I have to admit I’m concerned.

This could signal the end of IT consulting earning the premium rate it has enjoyed for over a decade.



Anonymous |

Quick - name one industry where small consultants have lost all market share to a big player? Accountants? Plumbers? Carpenters? Who?

Frankly, if your competition really is an ass-monkey in a VW with a fancy cell phone, you have bigger things to worry about than another competitor in your market (although an admitedly well-funded competitor). Rather than all this “the sky is falling” talk, why not ask yourself “why are these potential customers buying servers on impulse buy on Saturday mornings at a retail outlet? Why don’t they know about me?”



gwilliams |

I wouldn’t woory too much - we’re a 12-man shop in chicago, and just beat these morons out for a new client a few weeks ago. They came in, handed the client a proposal, and left. No follow up, and they did not address the client’s issues, because they never listened to what the client was saying. They are fine if all you need is a tech-monkey, but they will not be able to compete with real consultants.



Anonymous |

I agree with gwilliams. I actually went on an interview with BB to check out what they had. The manager in charge was very excited but was obviously incompetent in technology. He didn’t even seem to have good business sense.

I am actually glad that they are getting into the market because I hope they put all the $25-75/hr techs out of business.

If you are worried about this you are probably one of the weekend warriors or tech kiddies that shouldn’t be in the business anyway, because you just create problems and make it hard for real consultants.



Anonymous |

This is somewhat serious. I am a SBS consultant / reseller. I just visited a potential client, who had just met w/ the BB-GS and they are pushing hard. They have what looked like a nice proposal package and likely the cost will be less than what I propose. I have 20 yrs exp. in IT/Tech. The potential client likes that and my approach. It looks like I may have the business, but BB-GS has resources that most of us smaller shops do not, so we will see how this plays out. A definate threat.
When I sarted there where maybe 4 local PC fixers - Now 50+ and the Geek squad. The market is getting saturated with techs-Not good for us any way you cut it. Have you also notice Microsoft trying to horn in on the residential accounts with “One-Touch”? I remember those surveys they sent out to the partners. I NEVER answer such surveys, and that is why, they are just trying to fiure out how to steal our business and customers - hence MS CRM -



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