Orracle and Family

Orracle and Family

Monday, June 22, 2009

Slip Sliding Away

I do not think I am any kind of Nostradomus but I would like to be the first to go on record to say that Ultimate Electronics is about to start with the "Everything must go" signs. They are running unprecedented radio ads and have kids standing near their stores with signs saying "We shop Best Buy and Wal-Mart every day!".

For those of you that are not familiar with this store, it is Minnesota based and was formerly known as Audio King. If I want something high-end, it would be the first place I'd look to see and compare but I'd still most likely buy on the internet. I personally would have never changed the name from Audio King as "sound" was and still is their forte.

I used to shop Audio King and have shopped Ultimate Electronics from time to time. Why are they tanking (in my opinion)?

  1. They tend to lean to high end. This economy does not support that.
  2. On most occasions when I have been there, their sales staff has been very stuck up / cocky towards me. They very much have a "too good for you" attitude.
  3. They are trying to compete with Best Buy and Wal-Mart. People go to those stores for something small all the time...ink, CDs, games, memory cards, etc. That gets you in the store where you see the big ticket items. When it comes time to buy those, you find yourself back to the big stores, not deciding to look and see what UE has.
  4. Back on December 26, I mentioned their lack of brands in mp3 players. I see now that they have 35 (cr)apple models and 7 others. At least they are expanding a little. Still, I think they are painted into a very small corner and that is hurting them.
  5. They are trying to win by mentioning the competition....FAIL!

Bottom line is that I hope they succeed since they are Minnesota based and are really the only place to get higher end sound gear. Like #5 says, they are to the point of pointing out how they are better than the competition. That is one step above bad mouthing the competition. What UE needs is to find the place where they are different than the competition.

Like in any business, 99% of what competetors do is the same. Live with it. To succeed you need to find the 1% that sets you apart from your competetors and you NEVER bring them into the conversation. If you do that 1% well, people notice and you don't need to worry about the competition. They need to worry about you!

1 comment:

Anonymous said...

You realize that if being MN based is a positive attribute that this doesn't differentiate them from one of the competitors you mention, right?

At one time there was a chain called Ultimate Electronics that had monster stores not unlike a Best Buy or Circuit City. Not sure how many locations they had, but I'm aware of locations in Salt Lake and Dallas. This is a different company than that, isn't it?


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