Sometimes, the greatest successes can come from what initially can only be considered a complete and utter disaster, Richard M. Schulze however took it to an entirely new level, you see, he thought that disaster was not bad enough, so he harnessed a natural disaster to his benefit.
In 1966 Schulze established “sound of music”, an electronics store that specialized in stereos and related equipment, he was so confident of the success of this venture that he took out a second mortgage on his family’s home in Minnesota to help finance it, it turns out, that was a worthwhile gamble.
Within 3 years of being founded, “sound of music” had 3 store locations throughout Minnesota and even began being listed on the NASDAQ.
Throughout the 70’s the company continued to expand, and by 1981 it had 9 different locations, the largest and most profitable of which was located in Roseville, Minnesota, but that very location was then struck by a tornado.
The tornado tore the store’s roof clean off, destroying hundreds of items in the show room, luckily, the store’s storeroom was only slightly damaged, so Schulze decided to have a “Tornado sale” in the store’s parking lot, pouring practically his entire advertising budget into promotion of the sale, he guaranteed the “best buys” on practically every item on stock in the parking lot.
As you can probably imagine, the event was quite a success; actually, it was a tremendous success, during the 4 day event that one location made more than the other stores in the company managed to make during the previous month!
By 1983 Schulze had officially renamed “sound of music” as Best Buy and began offering a greater diversity of products, such as VCR’s and other home appliances in addition to the always present stereo equipment, by the end of that year, Best Buy topped sales of $10 million, Continued growth in the 80’s helped the company debut on the NYSE in 1987 which only further solidified its financial stability at the time.
Best Buy began making advances into international markets in 2001 with the purchase of a Canadian based chain of stores and rebranding them under the Best Buy logo, and a few years later the launched their first store in the massive Chinese market, followed by stores in Turkey and the UK.
Near the end of that decade however, the global economy had slowed down considerably thanks to the crisis affecting the world, but in addition to that, digital and computer technology had advanced to the point where online retailers such as Amazon and Ebay were able to massively undercut traditional brick & mortar stores such as Best Buy and take over a substantial amount of their business.
While sales in their retail locations are in a decline, Best buy has made an effort to join the online digital sales fray, focusing a lot more resources and advertising into competition within that particular area.
It seems rather likely that Best Buy’s glory days are behind it, however, that is not to say that a binary options investment in the company is not worthwhile.
While sales have declined, in 2013 they were still sufficient for yearly revenue of $42 billion and a net income of $532 million, and the fact that the company is listed as a component of the S&P 500 is further indication that even future declines will not cause a sudden implosion.
Best Buy might not be as great as it once was, but a smart investor in it can still make enough profits from Best Buy binary options to afford some nifty electronics sold in one of its many locations.