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d00dz

Price Rise For Lcd/plasmas

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30% price rise ....I'd like to see that.

Wait until the traditional Feb/March slow season hits on top of the GFC, I think they'll have to drop the prices by 30% if they want to move any stock.

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I agree with Lyle, Foggy and will.

nothing more than marketing hype trying to get people to part with their cash before christmas.

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Agreed...cant see them jacking up prices in an already soft market and thats pre christmas when sales should strong. Wait until after the sales and see where things are...I'll believe it when i see it.

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Sounds like marketing hype to me.
30% price rise ....I'd like to see that.

Wait until the traditional Feb/March slow season hits on top of the GFC, I think they'll have to drop the prices by 30% if they want to move any stock.

As an importer, this is no bull. Almost all international trade is in US$. Since the AU$ has dropped from 95cents to 65cents, this effectively means that all replacement stock now costs Australian distributors 30% more. That is, where 4 months ago for every US$ an item cost we had to cough up about AU$1.06, now it will cost AU$1.54. That my friends needs to come from us poor old consumers. Now I don't think that will equate to those sort of rises effectively, because the manufacturers will be adjusting prices where they can, but don't hold out for too much. Most Asian currencies (including China) are centrally controlled and these have not devalued against the US$, so it will still cost as much to manufacture a good except that raw material costs have come back so this is where some savings will be made.

Guys, the AU$ is expected to drop even further in the first half of 2009 and this adds more pressure on retail prices. If you want to buy any pricy imported products, don't wait too long. Once the sales of existing stocks are gone, they'll all rise and by big amounts.

My qualification to make these comments is based on my management position in a large automotive related importer and distributor and we've just hedged $10 million at 66.9c to try to hold off raising prices by no more than 15-20% in the new year.

Believe me this is NOT marketing hype. It is fact!

Pfeff

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Maybe, but I'm sceptical.

That argument should have already filtered into the market as it has for speakers etc,

Yet we are not seeing it in the price of displays.

If anything they have come down even more.

Plus if sellers have a bad Xmas there will be lots of sales in January.

Post again in mid-January if you are right and say "I told you so".

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From the article: "Sony have flagged price increases of up to 30 per cent "

Funny that, the sales guy I spoke to on the weekend said exactly the same thing about Sony prices. Coincidence?

I personally think it's no bull.

As the shops are forced to buy new product at current prices (as their forward cover runs out) of course the prices will go up.

I think you would be ignorant not to think that they wouldn't go up - the dollar has copped a beating and will continue to do so.

It costs retailers more to buy the stuff... so they up the prices to cover. Pretty simple...

Not sure if 30% is an accurate number of not, I'm expecting some sort of price rise but I reckon the sellers will try and absorb some to still be able to shift units so might not be as bad as the article suggests.

Edited by dlcx

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I have no doubt that you are correct Pfeff, but I don't think the importers have the power in this market. They will need to find innovative ways of reducing their costs to meet the market.

Also, it's the buying power of the Gerry Harvey's and the like that dictates pricing to the importers, which is why Hitachi, Fujitsu, Philips and a few others no longer want to participate in the Australian flat screen market.

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Not sure if 30% is an accurate number of not, I'm expecting some sort of price rise but I reckon the sellers will try and absorb some to still be able to shift units so might not be as bad as the article suggests.

Yes, I think that is more realistic. Maybe the good deal sales will diminish. But a 30% increase on RRP is a big jump.

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Guest EZYHD

As I have to pay my OS supplier in USD, was getting USD85c to each AUD$1 now its USD64c to each AUD$1 so my latest buy price has risen 32%.

I'd guess most of the majors buy forward money, but it doesn't last forever and may be about to run out, if this is the case then prices will certainly rise big time in 1st Q of 2009.

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yeah i personally think the price of tvs here is pretty good unless you look at pioneers etc, which if u compared them when the aussie dollar was almost 1:1 with US, the plasmas still cost 3K more here for an equivalent panel. 60" was 9K AU, could get in states for $5.5K US

the only problem i see is that, the price of tvs has always lowered with newer generations. it happened when i was in NZ and i noticed it happening here. but none of these price drops seemed to be related directly to a strong economic dollar, more the cost of purchasing hardware was less as manufacturing costs went down (typical example is pioneer as they did not drop in manufacturing costs, hence moving to panasonic for gen 10 panels, yet sony and samsung panels did come down in price each new gen).

i think lots of people were weary of that, and so not dropping the prices considerably at that time you might find it bites importers in the bum. milk the economy when its doing well, get owned by it when it really drops and no one wants your products for the price you you charge :P

it's quite obvious when you look now and say tvs were imported on a strong aussie dollar, advertised at say 2.5K. now that same stock is 1.8K. they must not be selling it at a loss now, they just realise the milking they were trying to do didnt work soo well :P

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On basis this being true, what are the chances of another PS3 deal do you think?

Its surprising to see Sony so quiet when all of their competitors are showering consumers with freebies and bonuses.

edit: and when should we aim to buy our TVs before? I have seen a few articles mention the end of Jan 09 as when the price rise will hit... can we expect significant savings in early January as compared to what is out there now as retailers try to make some sales before it all dries up, or will the current prices be as good as it gets?

Edited by andrew81

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I also approached this news with some skepticism. However, whether its 10, 20 or 30% I think we can conclude that price drops are not in our near future - we've become so used to wait 3 months and buy it for less.

Lyle mentions the need to come up with innovative ways to sell at lower prices next year. IME such innovation usually involves:

1) Ordering much less stock.

2) Sacking (now) redundant staff and otherwise trying to reduce overheads.

Regards

Peter Gillespie

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If only there was an oracle for those questions :D

I'm REALLY close to buying at the moment... the freebies at present certainly helps.

If I knew that Sony was going to do a PS3 deal next month tho, I'd definitely hold off.

But who knows?

If prices go up as much as suggested in post above, you might as well buy now and then buy a PS3 - will probably work out the same :P

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If prices go up as much as suggested in post above, you might as well buy now and then buy a PS3 - will probably work out the same :P

that's really been bothering me too.... although a 20% price rise on a $2500 TV is still less than a $699 PS3...

Should we assume the fact that Sony have been quiet so far means they are saving up their bonuses for after the price rise?

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Maybe, but I'm sceptical.

<snip>

Post again in mid-January if you are right and say "I told you so".

Lyle,

I hope you and the rest of the optimists are right!

I and many other importers didn't think the dollar would keep going down like it did and remained an optimist. Well it did go down and now I have to pay the price. And so will the rest of us to differing degrees.

I wrote my warning as I would not like to see my friends miss out now and if I am wrong, the worst case I can think of is someone is going to buy soemthing they want a little earlier than they might otherwise have done. If everyone else is prepared to take the gamble that prices will stay this low, then it will indicate that there is a s**tload more margin in electronics than a lot of other industries and we've all been paying too much for too long.

Cheers

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I have heard that Sony won't be doing a PS3 deal because they are doing the Quantum of Solace promo.

I asked quite a few retailers including Sony Central and they all said the same thing.

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Sony NZ are currently doing a PS3 for $99 by redemption

with the purchase of any LCD over 40"

Got my redemption PS3 today!

Mark

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Most car importers (eg Toyota, Honda Mazda etc) have also indicated via their marketing in the Carsguide and Drive like press that they will be increasing prices in January. Toyota is spruiking rises along the lines of 5% - not anything like the 30% being touted here for electronic goods.

I think it'll be smaller discounting so the RRP will be closer to what you pay for your new TV, not the 20-30% discount that can be negotiated ATM.

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Yes, I think that is more realistic. Maybe the good deal sales will diminish. But a 30% increase on RRP is a big jump.

I doubt the 30% number too. 30% cost rise doesn't enecessarily quate to 30% at retail. As I said we are trying to hold around 15% (which will happen in two jumps, one last month and one around Feb).

I think Sharp's 10% is more the number initially but if a leader like Sony goes up more then so will the others.

The thing is all the advice is the AUD is not going back up anytime soon and in fact drop further in 2009. If that is correct it will just add to the price pressures.

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I have heard that Sony won't be doing a PS3 deal because they are doing the Quantum of Solace promo.

I asked quite a few retailers including Sony Central and they all said the same thing.

this promo expires 24th Dec so fingers crossed we get the NZ deal come January!

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There is a lot more margin in electronics than we think. Players like Sony have been ripping us all for a long time. Prices of stuff in US is much cheaper after the exchange conversion, so Aussie wholesalers and the US/Japanese parents make a huge margin here. To make things even better for them. The products are costing less to manufacture in low cost geographies because their currencies have also depreciated against US$. Material costs are lower too. A good e.g. of what I am saying is a product made in Korea is cheaper for a US company to make therefore the cheaper cost should flow on to the Aussie market to offset the deteriorating exchange rate. These things should balance out exactly the same and result in no price increase here, regardless of the fact that the product is bought and sold in US$. If the US/Japanese parent puts up prices here its only to increase profits. They do it at their own peril, because the market will implode in Q2 of next year after Kevin’s Christmas presents have been spent.

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one thing, when the AUD$ rose up to the 95c mark in 2007, we didn't see tv prices drop

however prices do drop on tv models as newer models come out....

so i don't think that big price rises are going to happen, i think that the electrical retailers are just trying to 'scare up ' more sales for xmas, and they will worry about next year later......

I think that consumer sales in australia will really drop next year, and that once the xmas/dec/jan/$1000 bonus sales are over that sales of higher priced consumer items will really slump in feb/march...... and that this will really hit retailers hard......

As gerry harvey said-a lot of smaller retailers in electrical and other areas will go under.....

I would not want to be a retailer of non-essential items in 2009.... look at what is happening to car sales right now....

this slump in sales will also be influenced by all the bad news that will continue to come out from the usa and overseas...

plus job juts in mining companies will hurt consumer confidence even in WA

Edited by larry

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