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Sept. TV Pricing Down 22%

By TWICE Staff -- TWICE, 10/27/2008

Austin, Texas — Global TV internet pricing for television sets declined an average 22 percent at the end of September from the year-ago period, according to the new DisplaySearch Monthly Global TV E-Tail Pricing & Specification Database.

According to the study, average PDP TV e-tail prices fell 27 percent year over year in September 2008. CRT TV e-tail prices, on the other hand, rose 4 percent year over year.

The report tracks e-tail price trends for LCD TVs, PDP TVs and CRT TVs by major screen size in the North America, Europe, Japan and China regions.

DisplaySearch’s research also shows that for LCD TVs, Europe experienced the biggest drop, down 30 percent year over year, followed by China, North America and Japan, down 20 percent, 16 percent and 4 percent, respectively. But for PDP TVs, China had the biggest decline, falling 33 percent, followed by Europe, North America and Japan.

In general, the larger screens had more price erosion, DisplaySearch said. For example, 52 inch LCD TVs fell almost 30 percent year over year, while 20-inch LCD TVs fell only 4 percent.

In North America, the average e-tail price of 52-inch LCD TVs fell 30 percent year over year to $1,951 from $2,791. Meanwhile, 40-inch LCD TVs fell 21 percent year over year, from $1,915 to $1,508.

Table 1: LCD TV E-Tail Average Price by Size and Region

Table 2: PDP TV E-Tail Average Price by Size and Region

Table 3: E-Tail Price Comparison of LCD TV vs. PDP TV in China

Table 4: TV Price Index

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  The pump was primed by vendor trailing credits to drive sales, add in the current state of the economy and there is a disaster brewing.
  
  The Vendors can not continue to use trailing credits to drive their business, it promotes discount as the only way to sell merchandise.
  
  While a certain Korean company says they make merchandise that performs as well as Sony the truth of the matter it does not sell the same as Sony with out a trailing credit driving it!
  
  Maybe the performance of said product is not as good as the company states.
  
  If the performance is the same as Sony, pricing it the same as Sony but rewarding the store with more margin might achieve the good results without eroding ASPs.
  
  Trailing credits to drive discounts to drive sales is not a sustainable business model for either the vendor or the retailer.
  
  Unless of course you want to be the main squeeze for Best Buy.
  
  Remember everything cycles KMart, WalMart, and so will Best Buy sooner or later.
  
  Innovation will be the only way to drive this business not discount. Be a leader not a fast follower.
  
  Dig into some of that old school management that floating around that knows how to run a company...
  
  Like John Briesch, Max Wasinger, Rick Calacci, Bill Manion, John Iacoviello...

  
  

  
  Old School Buyer - 2008-28-10 09:05:00 EDT
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