CE Pricing, Dealer Margins Remain Under Pressure

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How has pricing held up for CE?

Tom Roper, SED International:

There have been lots of deals in the tier 3 space. Tier 1 TV vendors are looking at increasing rebates. With home audio and cameras there has not been much movement in price.

Brent McCarty, Ingram Micro Consumer Electrobics:

On some of the more expensive products we always face the challenge of declining ASP’s but accessories, headphones and cameras seem to be holding their own. I think the vendors do a great job creating more value by improving functionality while maintaining prices versus the prior year.

Bill Stewart, Petra Industries:

Our industry is constantly changing based on what new innovation is out or what new competition springs up, but overall, we aren’t seeing any out of the ordinary pricing fluctuations.

Mark Gustavson, Wynit:

The competition with online aggregators continues to compress margins. Retailers that add value with bundles, services, or technical expertise seem to be gaining business from consumers who prefer a personal approach. This is especially evident in the camera category.

Dennis Holzer, Powerhouse:

Pricing continues to spiral downward, with profits doing the same in all categories associated. Unfortunately, no category has really been exempt in CE. With everyone from manufacturers, distributors and dealers feeling the pinch, we continuously look for and offer innovative ways to help our dealer’s value add so they can increase their profits. To also help offset the profit deficiencies, we continue to take advantage of and pass along manufacturer sponsored opportunities which help provide some additional profits.

Fred Towns, New Age Electrobics:

Retailers are trying to stimulate customer traffic to their stores through aggressive pricing. While we typically see an uptick in cameras this time of year, results have not been as robust.

Rob Eby, D&H Distributing:

TV displays have continued to see reduced pricing, although new functionality such as Internet-connected television is holding interest in the market. Cameras and headphones have held steady in their pricing.

Michael Flink, ADI Americas:

We are seeing downward pricing pressure across the audio/video receiver market and these products now include more features at lower price points, which is a trend consistent across the video market. Speaker products are continuing to hold their price very well, along with commercial A/V solutions.


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