More details of Best Buy’s Buy Back program revealed

By on Jan 4, 2011 at 4:10 PM
Exclusive January 4, 2011

In case you had any open questions about Best Buy’s upcoming Buy Back program, a trusted source just sent some more information that will clear up any open questions. The new info includes an internal PDF detailing exactly what this new service means to you, the customer, in addition to Best Buy the company, and also employees that work at Best Buy. The program, as we exclusively reported, will offer customers up to 50% of the purchase price on their laptops, netbooks, tablets, TVs, and mobile phones for two years. Best Buy is positioning this internally as a way to continually lock in customers. For instance, “for every Buy Back plan sold, a future customer purchase is locked in.” The document also states “customers will come back to Best Buy when they are ready to upgrade,” and “customers tend to spend more than the amount of the gift cards they receive.” Hit the break for all the details.


Best Buy has an equipment condition scale that can affect the price you’re given for your electronic device, and here is the break down for that:

  • Good: everything is fully functional, and all parts and accessories are included. (minor scratches are OK). No change in Buy Back amount
  • Poor: damaged device but can be reasonably refurbished, missing parts or accessories, significant wear and tear (deep scratches or dents, missing keyboard keys, missing charger) — 50% less of the guaranteed Buy Back amount.
  • Substantially Impaired: non-functioning device and can’t be reasonably refurbished, missing most parts and accessories (cracked LCD screen, water damage, won’t turn on — no Buy Back amount issued, though Best Buy will give you free recycling and an environmental disposal. (Single tear.)

We have the full document loaded up in our gallery for those of you who want to check it out for yourselves!

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28 Comments

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  • Scott

    It’s not a bad idea, and I don’t think any other retailer has tried this. My only problem is that I’m not a BB fan. And I also don’t want to be “locked” into anything. But props to BB if this nets them more customers.

  • Anonymous

    “We are offering now offering…”
    Who the heck proof-reads these documents?

  • Anonymous

    big q for me is if the original device had to be bought at bb….

    • guest

      You do, it is something that will be offered at the time of purchase. If you purchase the BBY buy back program and the GSBTP you’ll actually get a bit of a discount as well…

  • Norm

    This will be great for DROID owns as DROID retention rate is 100%. I’ve never heard of anyone returning a DROID or not returning to DROID.

    • SKINNI

      I cant say “never” but I can say from my eyes, the retention rate is pretty high & more importantly it will def blow up the retention rate for BB, Cashing in on people like myself that want to upgrade about 3 times a year

      • Cer

        Don’t encourage him.

  • SKINNI

    To me this isnt such a bad deal if the 50% is that of MSRP & not purchase price. Generally u could probably sell a 2 month old Android OS phone for more than 50% of MSRP but for those who dont want to play with CL or Ebay, this is a streamline option. With the new 20 month update plan that VZW is moving to, this is right on time (kinda thinking that may have been the plot behind it, so BB capatilizes while VZW rakes in more consumer cash). Im pretty certain that my next upgrade will come from BB along with this program to boot! Im a diehard CL junkie but after soo long u just want to say screw it & this is that backup plan.

    Now just wondering if they will “grandfather” past purchases because i have a few (iPod Touch, video games/accesories, iPad, ect.)?

    • Guest

      For phones it will be will be based off of purchase price + discount, so basically MSRP. But this is done because you’re new phone purchase will have to be at outright pricing since you will probably have already used your upgrade discount. Also you must remember the 50% is a maximum, only available to those upgrading their tech after thirty days and before 6 months of ownership and in good condition. This means that if you are a bit rough on your phone you probably will only get 25% percent back. This program will only apply to new purchases or those purchased within the return policy before the rollout as this will need to be purchased on the same receipt as the product and BBY does not make tech protection retro active.

  • ThatGuy

    Am I missing something here because everyone iPhone and Android phone I see that is less than 6mo olds sells for way more than 50% of the purchase price…not to mention you have to put $60 initially. Can you imagine buying an iPad for $499 +$59 and when the iPad 2 comes out returning the iPad for $250. That doesn’t seem like a good deal at all essentially getting $190 for it.

    • travon802

      What some people are missing is that this will be a win-win when it comes to mobile phones. It’s not 50% of the purchase price, it’s 50% of the

      • travon802

        What some people are missing is that this will be a win-win when it comes to mobile phones. It’s not 50% of the purchase price, it’s 50% of the MSRP.

        If you bought the Nexus S (MSRP = $530) at $200 with contract and paid the $60, after 6 months you’d get back $265. Best Buy actually owes you $5 if you trade the phone in.

      • Cer

        Except you’ve used up your upgrade, which is valuable in itself.

  • Cer

    This deal is so good for Sprint premier customers, even better than what I had originally thought. Check it:

    Buy the EVO2 on the day it’s released: $199 plus $59.99 for the Buy Back: $260 total.

    Unlike the Sprint retail price, Best Buy retail prices are higher. With the EVO, for instance, Sprint.com’s retail price is $449.99, while BB’s is $599.99.

    So, after 12 months (which is actually 13 since BB Buyback doesn’t start until 31 days after), you’re eligible for an upgrade, and Best Buy gives you a $240 gift card (40% of 600).

    The EVO3 will likely have an upgrade price of $199.99. So you can buy the EVO3, and have $40 left. Spend $20 of cash to get the Buyback policy. Rinse and repeat.

    In short, $20 annual upgrades to Sprint’s flagship devices forever.

    • Anonymous

      In regards to your Nexus S hypothetical situation, it wouldn’t matter if you were eligible for an upgrade or not. If they were giving you $265, it would only cost $235 out of pocket for a new unsubsidized phone. (If I’m understanding it correctly)

      • Cer

        I think this is right, if you do this over and over again every 6 months you may never end up paying anything except the $60 Buyback plan every 6 months. (plus the accessories needed to keep the phone in good condition, a small but nontrivial cost)

        Let’s assume phones retail for $550 and on upgrade they’re $199.99

        Time 1: Pay $260 (199 + Buy back)

        Time 1 + 6 months: Get back $275. Use $275 to buy off contract for $275 and pay the $60

        Time 1 + 12 months: Get $275 back. Use $275 to buy off contract for $275 and pay the $60

        This would seem to go on forever. You always get $275 back, which is always half of BB’s MSRP. This wouldn’t be accurate if you want a phone with a higher or lower MSRP, but we’re talking no more than $50 variations, which is relatively insignificant.

        The cool thing for Sprint premier customers is that it goes like this:

        Time 1: Pay $260

        Time 1 + 6 months: Get back $275. Use $275 to buy off contract for $275 and pay the $60

        Time 1 + 12 months: Get $275 back, use $275 on 199 upgrade plus $60, and you walk away with $15 in your pocket.

        One thing to note, though is the ETF on the phone you buy at Time 1. So you’d be locked in for 2 years on one carrier. I don’t think most carriers put out a phone every 6 months that you’d always want to upgrade to; phone cycles are usually one year. So the question is whether the Buyback plan makes it worthwhile to buy your first phone at MSRP instead of on contract, and then you can just jump around to the new hotness whenever you want. Definitely something to consider.

        Another thing to consider: will BB change/manipulate it’s MSRP to be more in line with carrier’s MSRPs once it institutes this program, or once it realizes that people are taking advantage because of their overly high MSRPs?

  • bobc74

    Regardless of how you spin this new program, you are still REQUIRED to buy your gear from Best Buy. Unlike the name says, a Best Buy price might not always be the best price available on the identical or similar model item if you did all the research, especially if you are looking at TV’s, audio components, computer products or large appliances. Within 5 miles of my local Best Buy is Sears, Home Depot, Lowe’s, HH Gregg, Staples, OfficeMax, Wal-mart, RadioShack, Target, Kmart and four local companies that sell similar products plus all the online possibillites. Why would you not want to do price and feature comparisions?

    • Cer

      Yes, BB prices generally suck, but 1) new smartphones are usually the same price anywhere (unless you agree to an additional ETF from a place like Wirefly), and 2) TVs and appliances are expensive, and getting 40% back on an overpriced TV after 1 year can make that original high price irrelevant.

      Generally, though, this is really only for smartphones, TVs, and perhaps laptops. You can hold onto other appliances, like washers/dryers and refrigerators, for 5+ years, in which case you wouldn’t spend the $60 (or buy from BB) in the first place.

      • Guest

        This new policy does not actually apply to appliances; only TV’s under $5000, computers, and non prepaid phones…

      • Cer

        Ok, big deal. Glad you’re responding to the most pertinent section of my comment.

    • JJ

      Best Buy Price Matches all local competitors as a matter of policy.
      I don’t see why other area stores having different prices would make you loath to buy from Best Buy.

      • Cer

        Do they match internet prices, like Amazon? I don’t think they do, but I’d be happy to be wrong.

    • Guest

      Firstly you are not required to buy anything from BBY, we are giving you the opportunity that, if you like, you can come back and upgrade your tech sooner and at a lower cost to you. If you end up finding something else that we do not carry than great, go ahead and go for it. The cost to the customer for this opportunity is very low in the long run considering the benefit. Also go for it, shop other places to find features you really want, BBY likes educated customers. The more you know what you want, the easier it makes the employee’s jobs to help you get the right product for you. All those places you mentioned carry most of the same products BBY does. So if you find something there, more than likely BBY will have it too and unlike you assume, will probably have it cheaper. On 80% of comparable skus (and no BBY does not get special Best Buy only products from the name brands) BBY is actually cheaper. If that isn’t the case BBY has a price match guarantee that extends after the time of sale and after to the end of the return policy, even sometimes beyond.

  • Bringit

    The Best Buy Buy Buy Buy Back Program is internally known as the:

    “yes we know Android is a messy fragmented world that releases new phones much faster than it gets all the different phones upgraded so we’ll at least try and get you a new phone in the meantime” program.

  • Havok6927

    Sorry that the iphone hardware isn’t open and evolving as the rapid pace that android is!!! As the single software and hardware manufacturer, apple hardware will fall behind fast. Android being free has and will continue to allow the other manufacturers to put most of their money into hardware and a little into customizing the software to their look (if they want). You might not like fragmentation but I do!! That has allowed android be able to do some of the coolest s***. I also think its forcing openness cause if we can’t do or have something another android phone or os has we can get it. Hell Im playing resident evil 3 on my captivate and hopefully soon dreamcast games.

  • Phone fan

    Target already does this! Cell phones, IPods and video games! They also have cell phones for sale like the iPhone. I got my iphone4 for 50 bucks after trading in my iPhone3gs. Sorry BB your a little late in the game.

    • JJ

      Best Buy already has a standard “Trade-In” program as well where you can take your working electronics in and get giftcard/cash value.
      I think you are missing the point that this new program guarantees you set values on your product at set times. No other trade in program I’m aware of does this.

  • fr3d0

    even better if you combine with the Best Buy card. get 6 months no interest for one EVO/Epic or 18 mos if you buy 2.

    on sprint the main line on an premier account get an upgrade at 1 year. 2 evos are $400 + 1st month of GSBTP for each $20 + $60 for the buy back on both = $480 + tax. This would be about $45 per month to pay off the phones at the 12 month point. The first phone would get a giftcard for $240 and be eligible for a $199 upgrade on the next smartphone. The second line can get a phone on an early upgrade for $399 and get credit of $240 to bring the cost down to $160. This is less than they would have paid for the 2 year upgrade without the plan.

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