Best Buy Extends Paid Membership Program With Access to High-Demand Items

Best Buy said Tuesday that it’s expanding its new annual membership program, Totaltech, nationwide, reports CNBC. The retailer is including a perk that may nudge people to sign up: access to hard-to-find items during the holiday season, although Best Buy didn't specify what those items will be. Totaltech costs customers $199.99 per year and members get unlimited, round-the-clock tech support; exclusive member prices on merchandise; up to two years of product protection on most purchases; free shipping and installation; and an extended 60-day window for returns and exchanges, among other features.

Best Buy said in a news release that participants will get access to Member Monday, a special event of exclusive deals that begins Oct. 18 and runs through the holidays. The event will include some deals for customers who are part of Best Buy’s free membership program, My Best Buy, too. With the launch of Totaltech, Best Buy will phase out a similarly named membership program that had fewer perks.

Total Retail's Take: Well-executed membership programs continue to prove beneficial to retailers as loyalty to brands diminishes among consumers. Shoppers are willing to pay for a membership program that provides them with relevant perks, discounts and experiences. Best Buy is timing its new paid program release to take advantage of a holiday shopping season that's being disrupted by pandemic-fueled chip shortages and shipping delays. If the consumer electronics retailer can provide members special access to high-demand items that are out-of-stock at other stores, the program is sure to blossom as consumers look to check items off their lists. How Best Buy is able to execute on these promises will be interesting to watch, as every retailer is vying for these same in-demand products for their shelves.