*Radio Shack Store Closing Thread* All posts about Radio Shack closing go here.

[Ronaldski]

A bit off the wall, but IRadio shack made it at least to two monologues by Jimmy Kimmel-

2015 - https://www.youtube.com/watch?v=VmYhWpDK1rI

2017 - https://www.youtube.com/watch?v=RvYvzLHiHro

 

[zzdiesel]

A total lack of respect for an American Icon!

 

[bob550]

It would appear that RadioShack owes Whistler Group a good sum of money, that appears to date back to 2015! This site shows all claims against General Wireless resulting from the bankruptcy filing. https://cases.primeclerk.com/generalwireless/Home-ClaimInfo Go to the Whistler claim, and open the accompanying PDF's to see the invoices that are part of the claim. The smaller of the two claims is for power banks, and the larger is for scanners.

 

[Wackyracer]

It would appear that RadioShack owes Whistler Group a good sum of money, that appears to date back to 2015! This site shows all claims against General Wireless resulting from the bankruptcy filing. https://cases.primeclerk.com/generalwireless/Home-ClaimInfo Go to the Whistler claim, and open the accompanying PDF's to see the invoices that are part of the claim. The smaller of the two claims is for power banks, and the larger is for scanners.

That may explain why whistler doesn't want to work with RS when it comes to software and firmware updates for it's rebadged scanners.

 

[N4GIX]

It was very informative about what RS paid for those scanners: $161 each...

 

[bob550]

It was very informative about what RS paid for those scanners: $161 each...

And $165 for the PRO-651 handheld.

 

[riccom]

That may explain why whistler doesn't want to work with RS when it comes to software and firmware updates for it's rebadged scanners.

But that is not fair for the people who did pay for the scanners and why make the people suffer?
Pretty petty imho.

Sent from my LGMS345 using Tapatalk

 

[hiegtx]

But that is not fair for the people who did pay for the scanners and why make the people suffer?
Pretty petty imho.

Sent from my LGMS345 using Tapatalk

If you recall, the Shack's previous scanner supplier, the now defunct GRE, also had a "hands off" policy when it came to providing support, including repairs and firmware updates, for the Radio Shack badged scanners, such as the Pro-106 & Pro-197. I suspect that specific language regarding those issues was in the licensing agreement where GRE agreed to manufacture those units labeled as 'Radio Shack' instead of 'GRE'.

Likely, Whistler's agreement with them would have contained similar terms. Whistler did not agree to support the GRE manufactured products either, even though that question was asked a number of times when it was first announced that Whistler would be manufacturing scanners using the old GRE IP.

That may explain why whistler doesn't want to work with RS when it comes to software and firmware updates for it's rebadged scanners.

I don't even remotely claim to be a lawyer. But if Whistler started to support the Radio Shack versions, would that serve to reduce the value of their claim to the court as to unpaid invoices, since they would be 'taking over' support of the now orphaned units? Would the court (or another creditor) try to imply that Whistler was a actually a 'partner' with Radio Shack, and try to hold them responsible for part of the bankruptcy estate?

Is this 'fair' to the innocent consumer who purchased a Radio Shack labeled product? Perhaps not, but I can understand Whistler's reluctance to get involved here.

 

[Wackyracer]

But that is not fair for the people who did pay for the scanners and why make the people suffer?
Pretty petty imho.

Sent from my LGMS345 using Tapatalk

Not uncommon in the business world for a manufacture to rebadge a product, add custom firmware and sell 1000"s of units at a discount to a retailer under the terms the manufacturer supplies NO SUPPORT, nor warranty other then repair parts which must be purchased by the retailer who warranties the product. Happens ALL the time.

 

[hiegtx]

Not uncommon in the business world for a manufacture to rebadge a product, add custom firmware and sell 1000"s of units at a discount to a retailer under the terms the manufacturer supplies NO SUPPORT, nor warranty other then repair parts which must be purchased by the retailer who warranties the product. Happens ALL the time.

Exactly.

 

[scosgt]

It was very informative about what RS paid for those scanners: $161 each...

So I would not expect a retailer to buy something for $161 and sell it for $199. Can't pay the rent on that.
HOWEVER
They could have sold them for $299 regular price and owned the scanner market.

 

[bob550]

So I would not expect a retailer to buy something for $161 and sell it for $199. Can't pay the rent on that.
HOWEVER
They could have sold them for $299 regular price and owned the scanner market.

If RadioShack had priced everything else they stocked in the same way as you suggest, they'd be a successful and thriving retailer. While I can tell you that the actual store cost of these scanners is more than the invoice cost, the actual retail price still allowed for a considerable profit on each. So when you see other retailers selling the Whistler version, with a cable and AC adapter included for $90 less, it's no wonder RadioShack failed!

 

[CycleSycho]

:wink: We all know 'marketing' and 'markup (should know anyway). Factored in also, the investors and (most important) what the consumer will pay. We individuals have no idea what is negotiated, or the bottom line cost of an item AFTER all the variables are added in (per 'unit'). Back in 1973 I purchased a stereo receiver/amp at a cost of $299.99, when I got to know the manager/owner, he showed me (months later) the cost HIS franchise paid for the receiver I bought. That receiver on his band printed invoice was $59.99. I was floored! When he showed me that printout, seeing my shock, he told me all the costs he had to pay to be able to sell in the RS world. Sure, I would have loved to buy that receiver for less BUT that isn't how the globe rotates. Bottom line, the bean counters paid more to the investors/decisionmakers in the company (who made bad decisions) and the company folded. Goodbye RS! :wink:

 

[bob550]

:wink: We all know 'marketing' and 'markup (should know anyway). Factored in also, the investors and (most important) what the consumer will pay.

RadioShack has, for years, practiced "price optimization", or pricing products at whatever the market will bear. Of course, this "optimization" always only had the effect of raising prices, and not reducing them. Admittedly, RS stocked numerous products that no other national brick-and-mortar retailer did. Those were the items most often affected by this pricing practice. That, and RS always felt that convenience carried a premium as well.

 

[scosgt]

If RadioShack had priced everything else they stocked in the same way as you suggest, they'd be a successful and thriving retailer. While I can tell you that the actual store cost of these scanners is more than the invoice cost, the actual retail price still allowed for a considerable profit on each. So when you see other retailers selling the Whistler version, with a cable and AC adapter included for $90 less, it's no wonder RadioShack failed!

Selling an item that costs $161 for $499 insures that it will sit on the shelf forever.
The only time they sold any in quantity was when they put it on sale. And when they went out of business.

 

[bob550]

Selling an item that costs $161 for $499 insures that it will sit on the shelf forever.
The only time they sold any in quantity was when they put it on sale. And when they went out of business.

The ongoing retail price for the PRO-651/652 was always $399. However, there was always sticker shock on the part of customers who were expecting a scanner for $119. It never seemed to matter that everything they were interested in monitoring was Phase 1 P25. Honestly, it wouldn't have mattered if the retail was $299. Most of our customers just weren't ready to pay that kind of money.

 

[bob550]

A very revealing financial report, Docket #245, posted yesterday at https://cases.primeclerk.com/generalwireless/Home-DocketInfo. The projection is for only 99 stores to be remaining open as of June 1st!

 

[Hamradiostuffing]

agreed

If RadioShack had priced everything else they stocked in the same way as you suggest, they'd be a successful and thriving retailer. While I can tell you that the actual store cost of these scanners is more than the invoice cost, the actual retail price still allowed for a considerable profit on each. So when you see other retailers selling the Whistler version, with a cable and AC adapter included for $90 less, it's no wonder RadioShack failed!

I totally agree.

 

[garys]

A friend of mine went to Radio Shack the other day to buy a 6 foot HDMI cable. It was tagged at $35.00 dollars. He thought that was ridiculous and left. He went to Amazon and found a 6 foot cable for about $8.00, including tax and shipping. Two days later he had it in hand.

That, in a nutshell is why RS is going out of business. It's also why Sears is likely to be just a name by the end of the year. It was one thing to have prices like that when there was little or no competition to your business model. It's not sustainable in today's market.

From what I saw when I was in their stores over the years, RS also made a lot of money by overselling low knowledge customers products at exorbitant prices. Another unsustainable business practice in the 21st century.

Maybe they'll survive as an on line retailer, but not if they insist on maintaining an unreasonable price structure.

RadioShack has, for years, practiced "price optimization", or pricing products at whatever the market will bear. Of course, this "optimization" always only had the effect of raising prices, and not reducing them. Admittedly, RS stocked numerous products that no other national brick-and-mortar retailer did. Those were the items most often affected by this pricing practice. That, and RS always felt that convenience carried a premium as well.

 

[bob550]

Maybe they'll survive as an on line retailer, but not if they insist on maintaining an unreasonable price structure.

There is no life online for RadioShack. First, RS never truly embraced online selling, probably for fear of cannibalizing revenue from their stores. Second, their online presence came long after everyone else's websites were built-out, and continued to suffer from a lack of maturity for years. Third, a successful website requires a warehouse for fulfillment, which RadioShack lacks. Lastly, their website just plain sucks! While there's been some improvement in the last few years, most of us that worked there found it just plain painful to negotiate.