CE Pricing Stabilizes Due To TV, Other Shortages

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TWICE:

Pricing reportedly has stabilized in several categories. If true, why is that? What should the second half bring in terms of pricing?

Fred Towns, sales and marketing senior VP, New Age Electronics:

Pricing has stabilized in multiple categories because inventory is being managed tightly and more emphasis is being made to meet consumer demand during peak selling seasons when the consumer is looking for a great deal like a holiday. Many retailers are offering a larger selection of bundled solutions and the consumer has interest in more solution-oriented options.

David Kaplan, executive director, Digital Delivery Group:

There always seems to be a gravitational pull on flatpanel television pricing, even when supply is tight. There may be some stability at MAP or MSRP but the age of the instant rebate … is still with us. We are seeing a new generation of legacy audio products that simply provide better performance and feature sets at established price points. While I believe there may be a slight uptick in ASP in the second half if 3D gets traction, I don’t see big changes in pricing trends or stability.

Mark A. Gustavson, executive director/ marketing and communications, WYNIT:

Manufacturers have made a concerted effort to maintain price integrity, beginning shortly after the 2009 holiday season. Specific categories include flash memory and digital video. While we expect scheduled price reductions in key promotional periods, it seems that supplies are in good alignment with projected demand, which should minimize any major price fluctuations.


Jeff Davis, sales senior VP at D&H Distributing:

Price stabilization is often a direct result of product shortages. From D&H’s perspective, we haven’t seen any significant price drops in a quarter or so, and we don’t anticipate any soon.

Dennis Holzer, executive director, PowerHouse Alliance:

Pricing recently for the most part has begun to stabilize or maybe even increase slightly based on new models and technology. When the economy was hurting early last year, everyone became even more aggressive, from the manufacturer down, simply cutting price, in order to not lose any market share or business. Ultimately, everyone made less and really did not sell that much more. I think the second half will bring more stabilized pricing, more importantly tighter controls from the factories to all resellers so there is not a repeat.

Warren Chaiken, president/COO, Almo:

Similar to 2009 holiday, we’ll be seeing tight controls on quantity of goods manufactured. Therefore pricing will remain more consistent with fewer instant-rebate programs. However, I do think we’ll see a $99 Blu-ray this season.

Doug Robison, president, DSI Systems:

Pricing has stabilized, but that is primarily due to shortages in highdemand goods, as well as the fact that most manufacturers are still transitioning into this year’s product lines. I anticipate pricing to be as competitive as always in the back half, especially as supply improves.

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