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Major video manufacturers work to put margin back into their product lines
I knew that Samsung would be announcing a UMRP (unilateral pricing) strategy during CES, but I was pleasantly surprised that Sony did the same.
With the most recent news, Panasonic and LG have announced MAP strategies and a policies which forbid sellers to put items on 'marketplace sites' (which means Amazon and eBay).
The mid sized independent retailers who buy through group deals from HTSA, HES/BrandSource just got a massive break here.
I think that the smaller dealers and the CIs who buy though distro may have also caught a break here too, although the distros may just take a deeper slice for themselves.
http://www.dealerscope.com/article/l...ign=2012-02-27
Originally Posted by Dealerscope Article
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02-28-2012, 07:12 PM #2
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Re: Major video manufacturers work to put margin back into their product lines
Here is the announcement from Sony and Samsung.
http://www.dealerscope.com/article/s...nt-retailers/1
Originally Posted by Dealerscope ArticleRick Murphy
Tandem Marketing - Michigan
248-376-8315 cell/text
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02-29-2012, 01:18 AM #3
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0Re: Major video manufacturers work to put margin back into their product lines
Thumbs up to this. Just my speculation, but I think it's finally hit a threshold that matters to the manufacturers -- the big box stores and major brick-and-mortar retailers.
As anyone who gets the trade emails has seen, there have been numerous articles about Best Buy's race to obsolescence, and how consumers are going there for a product demo, then whipping out their mobile devices and ordering online.
Also, it would seem that the race to the bottom might finally be catching up with the manufacturers. Just a guess, reading between the lines of the latest press release from Panasonic.
Seems like things might be stabilizing from the top down for little guys like us getting profit margin from displays. Here's to hoping.Ryan Posner
Frog AV
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02-29-2012, 08:43 AM #4
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0Re: Major video manufacturers work to put margin back into their product lines
I'm staying optimistic...will believe it when I see it.
I still wish the manufacturers and disty's would understand the way sales tax works (despite volume of sales). If they move a TV to a vendor that they've given permission to sell it online...that vendor should immediately be charged at least 5-7% more than the CI dealers. Heck, those same vendors are already moving thousands of units (probably each month), where we might only do a thousand or a hundred a year. The can stomach staying competitive and the 5% increase shouldn't make a difference to them.
But it certainly makes a difference to us.
Disty reps...you listening ! ?Chris Linthicum
HiTech Upgrades
Severna Park, MD
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09-10-2012, 07:36 AM #5
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0Re: Major video manufacturers work to put margin back into their product lines
Looks good on paper but personally I think its rubbish and will never be enforced. Didnt sharp claim the same on their higher end models and what happened? You can get them online for cost of below. Same with Samsung ES series. For now, customers can source their own TV's as far as Im concerned.
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09-12-2012, 07:26 AM #6
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0Re: Major video manufacturers work to put margin back into their product lines
We stopped selling TVs in 2009, customer sources there own display, with the condition that if we cant make it work, they have to source another and another. They accept this and we charge on a cost + basis. If the client is not interested in sourcing there display as do most of the upper end we give them MSRP. Of course in the long run it works out more economical for the client and us in the first option. However in the second option they get a lot more value for a small % our markup, win win both ways
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