[zred]

If you want to see how consumer electronics can still be sold in retail locations, just spend ten minutes in an Apple store. They are selling some of the same products as Best Buy, but the two experiences couldn’t be more different.

I think the comparison to the Apple Store is unfair. Apple doesn't have to compete on price. A MacBook Pro costs the same regardless of where one purchases it and so Apple can create a store that's a joy to be in and know that customers will purchase there. If you're going to be paying the same price, why not shop where the experience is the best.

On the other hand, most of what Best Buy sells can be bought in a competitive market. If I go to Best Buy to buy an Asus computer, I might find better prices elsewhere. I'm going to buy it at Best Buy if they have the lowest price. As such, if Best Buy spends money to make that experience of buying an Asus a joy and has to charge a bit more because of it, I might browse there and buy elsewhere.

It's Apple's tight control of the pricing of their products that allows the Apple Store to be a viable business model. Apple doesn't have to worry about MacMall or Target or Best Buy undercutting them.* They don't have to worry about a customer asking their trained staff all of the questions and then going to Best Buy to actually make the purchase. Best Buy does need to worry about that on the majority of their products. If Best Buy puts money into smart staff members to explain my different laptop options, I can easily go elsewhere to make the purchase cheaper should those staff costs appear in the price.

It's a lot easier to provide a great experience when you don't have to compete on price.

*Yes, Amazon and B&H do offer discounts on Apple computers, but those discounts are usually small compared to the overall price and small compared to the variation in PC pricing.