People seem to be very confused when Brammo was announced to be distributed through Best Buy. Best Buy is an electronic store. They are known for leading the pack in innovation and standing on the edge of cutting technology. If someone is looking for the latest and greatest… where do they go? Best Buy.
“But Best Buy Chief Executive Brian Dunn defended the biker excursion as just the type of venture the company needs to test as it retunes its retail formula amid changing technological trends.” Stated the Wall Street Journal.
The Brammo Enertia is an electronic. Moreover, how many people visit the most prominent motorcycle shop? Now compare their BEST day to the amount of foot traffic a Best Buy has. The number of people who stroll through motorcycle shops doesn’t even come close to comparing to the number of people who visit Best Buy.
How does Brammo “justify” the price? The same way Apple did when they released the first iPod at $600.00, or the astronomical pricing of the first plasma screen TV’s. Leading technology is expensive. It has to be. Eventually the price will come down and better models and upgrades will be available… just like everything else. What about the recession?
“Best Buy has been weathering the recession better than some retailers, and said last month that it boosted its already leading market share in the U.S. by two percentage points during the three months ending in April, as it picked up business from its former rival, Circuit City Stores Inc., which closed in March.”
Yes ‘times’ are tough, yes Best Buy seems like they are taking on huge ‘unusual‘ addition. Best Buy has a history of sharp turns that have kept it ahead of competitors.