We had some issues with yesterday's Marketnews Gadget Talk guest blog:
So, for your reading pleasure, here's the original post, in all it's glory:
And They're Off!
So it begins. The calendar has ticked over to October 1st, and the first television manufacturer to fire a shot across the bow of their competitors is Sharp, who announced the first markdowns of the Holiday Selling Season (if you define the Holiday Selling Season as being a respectful distance from Labor Day, but well in advance of Canadian Thanksgiving).
TWICE: Sharp To Cut Prices On 6 Aquos Models
TWICE: Sharp To Cut Prices On 6 Aquos Models
by Greg Tarr -- TWICE, 9/28/2007 10:10:00
AMMahwah, N.J. — Sharp is the first among several manufacturers to make pre-holiday flat-panel price cuts, confirming that it has dropped suggested retail pricing by $300 on three 52-inch Aquos LCD TVs and by $100 on three 37-inch models, effective Oct. 1.
Models receiving new lower prices include the 52-inch LC-52D92U (which drops $4,499 to $4,199), LC-52D82U (drops from $4,099 to $3,799); and the LC-52D64U (drops from $3,799 to $3,499).
Affected 37-inch models include the LC-37GP1U (drops from $1,999 to $1,899), LC-37D62U (drops from $1,899 to$1,799) and the LC-37D43U (drops from $1,599 to $1,499).
Representatives of the NATM buying group said Samsung, Sony and LG also recently announced price decreases on select flat-panel SKUs. Representatives of those companies did not respond to requests for details as this was posted.
Notice that according to the item from TWICE, other major brands are not far behind. I expect that we’ll find out shortly what Samsung, Sony, and LG have up their sleeves for Christmas. Markdowns from the Canadian offices of the same should be communicated before the week’s end.
For all the hand wringing and finger pointing that we in the industry do about declining margins and the so-called “race to zero,” collectively we keep engaging in the same behaviors. What’s that line about what it means when you maintain the same process, and expect a different outcome?
Granted, there are some brands, and some retailers who make an effort to sell the value that their products deliver, and try to offer quality and support, rather than just the lowest possible price, but looking at the industry as a whole, such efforts are like trying to sweep the ocean back off the beach.
On the other hand, on a smaller scale, building your own value and presenting yourself and your brand as something of value and not a commodity pays off for the companies that choose to play that way. Ultimately, if you and your boutique firm are successful and profitable, why should you be concerned if the big box stores insist on cutting their own throats?
1 comment:
I'm sure the lemmings at the front of the pack know what they are doing
- or are totally insane and don't care. The ones several rows back are probably thinking, "I wonder how much further it is to the buffet?"
My favorite quote on this subject is, "Quality doesn't cost. It pays." And remember children, "quality" is a characteristic that can apply to more than how well a product is made.
Bought my big screen (rhymes with "sly catchy") from the BIG BOX STORE (rhymes with "zest fry"). It blew up in less than 6 months. The service experience was less than satisfying - but adequate. The only saving grace was I bought the "extended warranty" so if my unit turns out to be a lemon I'll get some lemon-aide out of the deal.
And I should know better, too.
Another victim of a "great deal".
Price ain't everything brother.
(Sigh)
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