Founder of Best Buy Speaks to REX staff, first in the series
REX is attracting some of the most innovative and successful people on the globe to its mission of transforming the residential real estate space.
Last week Dick Schulze, Founder of Best Buy, visited REX’s offices outside of Los Angeles. Best Buy disrupted and transformed the consumer electronics space by removing the high-cost commissioned sales person from the buying process, and provided the informed buyer the ability to choose what they wanted at a much-reduced cost.
In investing in REX, Dick noted the many similarities to what REX is accomplishing to what Best Buy had achieved in becoming a company with nearly $50 billion in revenue and a $15 billion market capitalization.
” You are at the forefront of one of the greatest opportunities in business today. You win by empowering people to add value to the mission. Embrace change- it’s inevitable, it’s continual and it’s constant…” – Dick Schulze
Goodbye MLS. Hello REX.
REX was founded to change the way people buy and sell homes. REX takes care of everything both buyers and sellers need, while removing traditional agent commissions of 5-6%.
REX delivers full service, better outcomes, easier customer experiences, and does so with 30% fewer days on market and 80% less cost. REX’s data-driven marketing goes around the MLS to reach buyers directly using technology and proprietary algorithms to target real, live homebuyers on places like Zillow and Google. Learn more at rexhomes.com.
The Titan Of Retail, Dick Schulze.
In 1966, mortgaging his home, Dick Schulze founded an audio equipment store in Saint Paul, Minnesota and called it “Sound of Music”. He quickly reduced the cost of selling consumer electronics by removing the high-commissioned sales person, removing the walls that separated the customer from the inventory, and transforming the sale of consumer electronics.
Under Schulze’s leadership Best Buy went public in 1987, was named “Company of the Year” by Forbes magazine in 2004, ranked in the Top 10 of “America’s Most Generous Corporations” by Forbes in 2005, and made Fortune magazine’s list of “Most Admired Companies” in 2006.
Schulze resigned from the Chairman role in 2012, but still holds the title of Chairman Emeritus. Today, Best Buy employs more than 125,000 people and operates more than 1,000 stores across the globe.
Full Video Transcription:
Dick Schulze is the founder of best buy. I’ve known Dick for 30 years. When I first met him I think he had 12 or 15 stores in the Twin Cities. He had just changed the name of Best Buy a few years prior from Sound Of Music and went from 10 million revenue while I was watching him to 50 billion over the course of the next 20 years. So probably the best retailers, him and Sam Walton, the best retailers of the last 40 or 50 years.
So we couldn’t have better people who care about our company, who’ve done it before and give us good advice along the way as we try to replicate those successes.
This is my 50th year with Best Buy. Big Year for me and I can tell you from a point in which we started with seven or eight employees and at the end of the first year, three stores, two acquisitions and something like 27 or 28 employees.
The rest has been pretty much history. We have 137,000 employees right now. We do just under $137 million. We’ve got 1400 stores and we’re still learning and growing rapidly.
The of what’s important in winning in any business. It’s taking care of the customer, making the customer experience the absolute best you can make it and focusing everything you do and how you think about it, how you act on it for the best interest of the customer.
You could say the client, you could say the student, you could say the patient, you could say anybody and everybody who was in pursuit of a high quality product or service.
It’s this experience that keeps them feeling really good about the relationship and what happened when they came into your office or they came into your store or they made a phone call and they got an answer and believe me, you are absolutely, positively at the forefront right now of one of the greatest opportunities I think that could present itself in business today.
To echo Marty’s point, this is a real creative opportunity within an industry that huge prospects will flow. Over a trillion dollar business is a huge chunk of business even in this country. So number one, I would have to say constantly stay focused on how important building a truly great customer experience is.
Jack understands strongly the importance of empowering people because empowering people is how you win. Building a team. It’s feeling a team that feels empowered, knows that their input is important to winning the game.
And the more you delegate, the more you empower, the more you create higher and greater levels of responsibility, feedback, interchange, interaction, and pay serious attention to what the people around you have to say in response to things you’re doing. The greater, the stronger and the more successful the company will be. You win by empowering people to add value to the mission.
And so I can assure you that Bill and Marty and I did not invest in what’s going on here if we didn’t believe that you have a leadership, you have the mental strength, you have the resilience, you have the energy, you have the passion to win. And I honestly believe based on everything that we just covered in this room, the receptivity was extraordinarily high. People were interested in what was the flow of communication from people who’ve been there, done that.
But staying closely connected to your customer group, listening carefully to the people that know more about what it is you have to do than what you do helps you rethink about what’s important in building your business. You have a huge opportunity here and Jack has a tremendous amount of confidence.
I know in each and every person that’s in this room to help deliver a successful outcome. And the three of us that are three amongst others that have seen fit to step up with some funding to help make sure this lives on, grows fast, does well, obviously have tremendous confidence in the team that’s being built. So keep up the great work.