Monday, September 01, 2008

Wall Street Journal: Shopping for a TV -- and Staying Sane by Charles Passy

Shopping for a TV -- and Staying Sane
by Charles Passy
Monday, September 1, 2008 provided byWSJ

So you're finally ready to buy that jumbo flat-screen high-def television of your dreams. But are you also prepared for the potential shopping nightmare that lies ahead?

It's not just that television sets have gotten so complicated in recent years, with competing formats (LCD vs. plasma), myriad "must have" accessories (surround sound systems, Blu-ray players) and even choices involving installation and setup (do you really need to have your set "calibrated"?). It's also that electronics retailers don't always have the best record when it comes to guiding consumers through the process. At the same time, salespeople aren't exactly hurting for buyers, particularly as prices of many of these once-costly sets drop well below the $2,000 mark: Shipments of flat-screen models surged 28% in the second quarter of 2008 compared with the year-earlier period, according to DisplaySearch, an Austin, Texas, company that tracks the industry.

More from WSJ.com:

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• Cranky Consumer: For Novice Shoppers, a Little Wine 101

With a new fall television and football season upon us, we decided to put the issue to the test. We shopped at four national retailers for a flat-screen high-def set. We were hoping not to replay our last TV-buying mistake: We've long regretted our previous purchase of a lesser-quality 46-inch set. And we've been fairly clueless about what to buy in its place.

Before we hit the stores, we got a crash course in television technology -- and in electronics retailing -- from Rohan Q. Stewart, a technology expert and partner in Associates Interactive, a Buffalo, N.Y., company that provides sales training to retailers. Mr. Stewart warned us about salespeople who push sets that go beyond a customer's current demands. Another concern for Mr. Stewart: Salespeople who keep "adding to the basket," hawking one accessory or service after another as a way to "create bigger sales."

Sure enough, Mr. Stewart's warnings came to mind when we shopped at Circuit City Stores Inc., the popular electronics chain based in Richmond, Va. (We visited one in our home state of Florida, as was the case with the other retailers we surveyed.) Here, an enthusiastic and knowledgeable salesman gave us a 58-minute tutorial in all things television-related, making his the longest and most detailed sales pitch of them all. At times, it was almost too much information to take in. But he was also upfront about the fact that he was going to sell us far more than a television, since he considered a surround-sound system essential. "It adds to the experience," he said, before he sat us down in a comfy display area, replete with a massage chair, that showcased the sonic technology. We admit we were impressed, but we were not quite as convinced when he went on to mention other extras, including a "power cleaner" (essentially, a better version of a surge protector) and a service fee for calibrating (adjusting color, brightness and other settings to your liking), the Sony 46-inch 1080p LCD set he recommended. (Mr. Rohan said that the cleaner, sometimes also referred to as a "power conditioner," is not a bad idea, but he was more skeptical about the need for the calibration service.)

The total bill for our $1,800 television? A suddenly not-as-affordable $3,600, including an extended warranty and even a bottle of solution to clean the screen, plus the physical installation of the system in our home. (As television sets have gotten bigger and more complex, retailers have increasingly gone from just delivering the sets to offering a full range of installation services.) But the salesperson did give us a 0% financing option and also indicated he could likely shave $200 off the package price. And just when we thought he was going to morph into one of those cartoonishly pushy salespeople most associated with car dealerships, he surprised us by politely letting us walk away.

At Sound Advice, a high-end electronics retailer that's a division of Canton, Mass.-based Tweeter Opco LLC, a salesman offered a more compact 38-minute pitch. That meant that while he suggested some of the same extras, he didn't go into as much detail explaining them. We were especially surprised he didn't demonstrate surround-sound technology, given that Sound Advice had the nicest showrooms of any retailer we visited. More disconcerting: His grasp of gaming systems -- and their various cable requirements -- wasn't as finely honed as salespeople at other retailers. Pricing was also somewhat vague: Perhaps sensing that we weren't ready to make a purchase that day, he ended his presentation by talking in general terms, saying that we should be prepared to spend between $4,000 to $5,000 for a system, including a Sony 46-inch 1080p LCD set.

When we shopped at an electronics department at Sears, a division of Hoffman Estates, Ill.-based retail giant Sears Holdings Corp., we discovered the true meaning of low-key. Our salesman offered a 40-minute pitch that was devoid of the slightest hint of pressure, but that covered lots of ground in easy-to-understand terms, beginning with the differences between LCD and plasma and moving all the way through to the advent of televisions with USB ports for accommodating flash drives. If anything, the salesman may have been too low-key: We nearly had to goad him into explaining surround-sound technology to us, since he indicated it was an option he didn't like to push. ("I'm a thrifty guy," he said.) When we finally succeeded in getting him to include surround sound into a package with a Samsung 46-inch 1080p LCD set, we ended up at around $3,500 -- very similar to Circuit City. The good part: There was no haggling involved since Sears maintains a no-negotiation policy.

If there was a retailer that stood above the rest, it was Best Buy Co., the Minneapolis-based industry sales leader. The difference? It wasn't so much that the tech-savvy salesman at the store we visited gave us more of his time (his presentation clocked in at 37 minutes) or offered better pricing (he indicated a system could easily run us $4,000). It's that he seemed to best grasp the concept of selling us the right television as opposed to the most feature-rich or popular one. He was the only salesman to make a convincing case for plasma, which many experts prefer for its warmer, more realistic colors. When he started talking about surround sound, he mentioned that Best Buy offers an in-home service to better assess what kind of speakers a buyer might want and where to place them. (The price of the consultation -- $100 -- is deducted if you go ahead and purchase a system.) He thought the latter might make sense given certain particulars of our home, such as the fact it has cathedral ceilings -- something he garnered by asking question after question. (No other salesperson mentioned ceiling heights and the role they play in acoustics.)

We didn't leave Best Buy with a new set that day. But we'll likely be back.

RETAILER LENGTH OF PITCH SALES PERSON'S APPROACH PRICING BOTTOM LINE
Best Buy 37 minutes Tech-savvy and customer-oriented. In other words, he asked enough questions to better determine the best kind of television for our needs. $3,100 to $4,250 for a home-theater system with 46-inch plasma television and surround sound, plus installation, extended warranty and accessories. The range was fairly wide since a lot would depend on the quality of the surround-sound components and the type of installation we chose after further consultation, the salesman explained. Apart from the fact the salesman may have suggested one too many extras -- lots of consumer experts warn against the need for extended warranties -- we left Best Buy feeling confident we'd end up with the right television.
Circuit City 58 minutes Extraordinarily thorough, but we were a bit overwhelmed with the extensive tech talk. Plus, he applied slightly more buy-it-today pressure than the rest. $3,600 for a home-theater system with 46-inch LCD television and surround sound, plus installation, extended warranty and accessories. Salesman indicated we could opt for a three-year 0% financing offer, plus he could likely shave $200 off the package price. There's no doubt that Circuit City gave us the information we needed. But between the television specs and the pricing info -- the salesman also quoted us a monthly figure if we took advantage of the financing -- we left the store with too many numbers in our head.
Sears 40 minutes Almost too low-key. Salesman was great at explaining the technology in a measured, step-by-step manner. But did we really have to talk him into selling us surround sound? $3,500 for a home-theater system with 46-inch LCD television and surround sound, plus installation, extended warranty and accessories. No negotiating on price, but salesman told us there's almost always a special offer advertised in the periodic store circulars. Sears might be the place to head if you want a television, but aren't as concerned about all the bells and whistles. The store sells some accessories, but don't be surprised if you have to ask about them.
Sound Advice 38 minutes Good-natured and gentlemanly, befitting the store's more upscale orientation. But salesman's knowledge on gaming systems definitely wasn't as strong as others and he neglected to offer us a demonstration of surround sound. $4,000 to $5,000 for a home theater system with 46-inch LCD television and surround sound, plus installation, extended warranty and accessories. The salesman didn't break down the particulars as much as some others, but did indicate that he would definitely give us a discount. If you're looking for a super high-end system, Sound Advice may be the way to go. Our salesman indicated he could easily sell us a system for more than $20,000. But we left wondering if bottom-shelf shoppers are taken as seriously.
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