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Price Rise For Lcd/plasmas

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i think that the electrical retailers are just trying to 'scare up ' more sales for xmas......

I've been of the same belief too. But many others do believe the price rise news and are starting to panic.

I think that if a particular manufacturer (or cartel) tries price-gouging in a depressed market, it will lead to their balance sheets having even more red ink than they've got today.

The only positive point of buying over the X'mas/Boxing Day season is that you can get your hands on some freebies that may not be available otherwise e.g. free PS3, Wii, small LCD etc. Some of those promos do get extended into February, so there is hope for those who want to wait.

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A person from work, her husband is the regional sales manager for one of the top brand TV's, and he is saying the same thing.

They (as in wholesalers, importers) cannot get accurate figures on the cost of new stock next year, so apparently this year (the first time in 20-25 years or something) is the first time you will get a bargain pre Christmas and they cant guarantee it post boxing day.

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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'm with you Larry.

What better way to increase sales of a luxury item in a period of financial uncertainty than a bit of consumer fear.

If prices do go up then even less units sold. Not good for anyone. If they do go up people will put of buying and see it for the cynical exercise that it is. Just like petrol prices - up like a bullet, down at a snails pace by comparison.

Pioneer's Australian price for the new 50 inch monitor is $5,899. I don't think it would have been any different if the $AU was still high.

Electonics goods always come down - the technology improves (the camera in your mobile phone probably has as many pixels as a camera that cost $1000.00 5 years ago.) and units become cheaper. Sure you can up the price of a new model but upping the price of something in the market place for a while is not going to wash.

And it's not as if prices were dropping like crazy as the dollar climbed........

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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.

Exactly. People are often misled to believe that price is a function of cost where in fact there is no relation whatsoever. Price is a function of supply and demand. Of you cannot supply your product at the price set by the market AND make a profit then your product will inevtiably fail.

Book sales are a perfect example of this; Hardcover books do not cost much more to make than paperbacks, yet they are sold at a price often twice that of the paperback version. Hard covers are always sold first to meet the demand from people willing to pay $35+ to get a new release ASAP. When this market is saturated, the publisher releases the paperback at $15-ish and this is sold in the market of people who are unwilling to pay $35, but willing to pay $15. The content of the book is the same, the publishers have simply found a way to sell the same thing at different prices to suit different markets.

Panel prices (and car prices and a range of other big ticket items) will soften as the market depresses, and manufacturers who cannot remain profitable will either leave the market or reduce the price of their products to meet the new price expectation. This price reduction can be bought about in two ways, (a) reduce the cost price by laying off staff, reducing R&D, screwing your suppliers a little more, removing features from your product, etc; or (b.) reduce the profit margin.

Also note that transport and raw material costs (esp steel and plastics) are now significantly cheaper as the price of oil has dropped by over 50% in the last 6 months (30% in AUD terms) and raw materials have followed suit. This is one example of a cost reduction that the manufacturers will need to pass onto to consumers post Xmas to prop up demand.

So yes I will eat my hat if there are 30% price rises on panels and electrical goods post xmas in this market. Interestingly if panel makers/distributers are forced leave the market this will reduce supply in the medium term and have a stabilising effect on panel prices meaning a crash in prices is unlikely, but an increase is definitely out of the question.

Edited by evil_josh

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I'm with you Larry.

What better way to increase sales of a luxury item in a period of financial uncertainty than a bit of consumer fear.

If prices do go up then even less units sold. Not good for anyone. If they do go up people will put of buying and see it for the cynical exercise that it is. J

Yes nobody is holding a gun to my head forcing me to buy a new panel. If I can't afford one I just won't buy it. Panel price rises will affect this affordability decision further so retailers have no hope of increasing profit by increasing prices in this climate.

The fact that the average joe can nego a 20%+ discount in the store shows me there is still a lot of fat in the market. I agree with others that the ability to negotiate a discount may become more difficult but we will not see price increases as such and will likely see further reductions to bolster demand.

Also remember that as importers go out of business their stock will be sold at a loss further depressing prices.

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Also remember that as importers go out of business their stock will be sold at a loss further depressing prices.

Sometimes I wish it were Pioneer :D Why they do not sell their clearance through their clearance center <_<

Sometimes you have to divide RRP by 2 or to get closer to market price. So 20% discount from "regular" price (read RRP) offered by saleperson is like a joke.

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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

I don't agree that prices haven't dropped since '07. I've seen TV's dropping quickly in price since May of '07. A 42" HD LCD tv was nearly $3000 and now you can get a Full HD from $1500 to $2000. Prices haven't gone up for quite a few years and does anyone here think retailers will be happy if they do go up anywhere between 10% to 30%??? Fear will hit the market and people won't buy. So what will happen is retailers will have to absorb some of the price rise to get some ground back but the discounts won't be as big so the prices people are getting now won't happen after January, February next year.

I hope I'm wrong about all this and prices either stagnate or go up just a smidge, but I doubt it.

And Evil_josh, the average discount wouldn't be 20% off ticketed prices, maybe off the RRP these idiot companies suggest to the retailers but if anyones ticketing a TV at RRP then they should get their head checked. The prices I've seen on some TV's like the TH-50PZ800A ticketed at $2599 instore is competitve so I doubt you'd get it down to $2079. Even an LA46A650 at $2899, 20% off is not possible. Not being a smart arse here just trying to be realisitic.

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I don't agree that prices haven't dropped since '07. I've seen TV's dropping quickly in price since May of '07. A 42" HD LCD tv was nearly $3000 and now you can get a Full HD from $1500 to $2000. Prices haven't gone up for quite a few years and does anyone here think retailers will be happy if they do go up anywhere between 10% to 30%??? Fear will hit the market and people won't buy. So what will happen is retailers will have to absorb some of the price rise to get some ground back but the discounts won't be as big so the prices people are getting now won't happen after January, February next year.

I hope I'm wrong about all this and prices either stagnate or go up just a smidge, but I doubt it.

And Evil_josh, the average discount wouldn't be 20% off ticketed prices, maybe off the RRP these idiot companies suggest to the retailers but if anyones ticketing a TV at RRP then they should get their head checked. The prices I've seen on some TV's like the TH-50PZ800A ticketed at $2599 instore is competitve so I doubt you'd get it down to $2079. Even an LA46A650 at $2899, 20% off is not possible. Not being a smart arse here just trying to be realisitic.

Retailers have already absorbed enough this winter when AUD$ was strong. I do not remember any significant price drop at that time (Olympic Games promotions is different story).

In my opinion fear of uncertainty (or possible price increase) will get many people buy now. Manufacturers/retailers are also scared about future market uncertainty and Xmas sales results so most price increases are "advertised" since Feb 09.

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Price rises have already hit. I went to buy a Side-by-side fridge (WSE7000SA) today, which I got a quote for $1775 2 weeks ago, a price close to cost due to special priveleges I have. When the junior manager of the store who gave me the quote looked it up today the unit price had gone up by $200 but he had to wear it as the quote was less than a month old. He had to sell at a loss. As I was finished paying for it I overheard him conversing with the senior about the loss they just made and he was told in rather severe tones that it is imperative that they move as much of the stock they have, and not do deals on things they have to order in, due to potentially unaccounted price rises like in my case.

So the price rises are real. However, the effect on whitegoods and applicances may be more marked than with rapidly superceded tech like plasmas/LCDs, where discounting of previous generations/models occur on a regular basis anyway. I think there will be relative price rises like-for-like ie. the latest and greatest models (Samsung Series 7, 8, 9, Sony Z/XBR) will come at a higher price than today, but superceded models like the Samsung 6 series will still drop in price in the new year, but not to the same degree as before. Will a 6 series Samsung LCD be cheaper in the new year? Yes, but not by much, and not with a bonus Blu-ray player. Will the 9 series screens cost more? Perhaps, but also not by a huge margin I suspect.

My view is that you should not be hanging out for massive price drop in the new year, and buy what you can afford at the time that is right for you, be it now, or later.

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another small example of price increases ......

1 TB Western Digital External HDDs were going for $199 in a JB brochure ending the 24 Nov. In the most recent brochure - the same item is now $239. Brochure ending 24 Dec

320 gig Passport - prev $149 - now $178.

Yes - they are only small examples - and probably items that fluctuate - or it would pay to shop around a little - but - there is evidence of prices rising.

(added - it PAYS to keep copies of old brochures for price comparisons as well - START COLLECTING !!!!)

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So the price rises are real. However, the effect on whitegoods and applicances may be more marked than with rapidly superceded tech like plasmas/LCDs, where discounting of previous generations/models occur on a regular basis anyway. I think there will be relative price rises like-for-like ie. the latest and greatest models (Samsung Series 7, 8, 9, Sony Z/XBR) will come at a higher price than today, but superceded models like the Samsung 6 series will still drop in price in the new year, but not to the same degree as before. Will a 6 series Samsung LCD be cheaper in the new year? Yes, but not by much, and not with a bonus Blu-ray player. Will the 9 series screens cost more? Perhaps, but also not by a huge margin I suspect.

My view is that you should not be hanging out for massive price drop in the new year, and buy what you can afford at the time that is right for you, be it now, or later.

Whitegoods are a slightly different market, some could argue they are more of a necessity than a luxury item therefore demand is more likely to hold up (although for a side-by-side with ice maker this could be a bit of a stretch but I hope you get my point!).

I priced new tires for my car in July, Goodyear Assurance, were $154 ea back then pretty much everywhere. I finally bought them last week. When I rang around all the usual retailers had them at $175 however I found K-mart auto had them at $158 and discounted them to $150 as I was buying 4.

I am not suggesting there is no upward pressure on costs, there most certainly is. However as big screen panels are a luxury item people will simply stop buying them if the prices are too high and this will depress prices. This is different to imported items which could be classed more as necessities like whitegoods, auto parts etc.

Lastly remember that the panel cost only represents a small % of the price. Many years ago (15+) I worked at DSE. Back then I was told that 30% of the ticked price was local costs (rent, staff, local shipping, warehousing, head office, etc). To use a simple example, if a retailer has a 20% profit margin, the price breakdown on a panel will be 50% panel cost, 30% overheads, 20% profit. Thus for a 30% increase in panel price the retailer only has to increase their price by 15% to hold their margin as their overheads remain unchanged. This is yet another reason why I strongly doubt the 30% figure.

Josh.

Edited by evil_josh

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I received a email from Sony stating that most of their goods would go up in the new year. I sent them a email back

saying that if prices go I won't be buying Sony.

The best tool we have as consumers is the power of choice and patience, sure a tv migh go up 30% but in 6 months time it will come down by that anyway. If the Aus is heading into a recession I bet raising prices will have a big impact on sales, ie none.

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another small example of price increases ......

1 TB Western Digital External HDDs were going for $199 in a JB brochure ending the 24 Nov. In the most recent brochure - the same item is now $239. Brochure ending 24 Dec

320 gig Passport - prev $149 - now $178.

Yes - they are only small examples - and probably items that fluctuate - or it would pay to shop around a little - but - there is evidence of prices rising.

(added - it PAYS to keep copies of old brochures for price comparisons as well - START COLLECTING !!!!)

Compueter hardware went up almost immediately as the dollar started to tmble. But to be honest i havent seen a huge jump. Prices rose early in the AU$ drop but did really keep rising. For example a 1 TB WD drive from MSY only went up about $10 to $175 odd and has stayed that way since. Intel CPU's jumped greatly but that was due to a shortage. Guess all we can do is wait until next year and if prices do rise then the nly ones to suffer wil lbe retail outlets as people just wont buy. As i've stated before, sales are only as they are now due to pre-christmas puurchasing and bonus deals going on. And probably partly due to the government stimulus package. Once thats all gone what will encourage people...nothing. Price hikes certainly wont help things either. But if they have to do they have to do it..I can wait.

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It's not a question of whether it's marketing hype or it's really going to happen, IMO it's both. Two points: first, the only reason for them publicising the price rise is to get people to rush out and panic buy. If the price was rising today they sure as hell wouldn't be sending out press releases and spam crowing about it.

Second, if they're really intent on raising the cost to retailers, then all they're doing is proposing to sell fewer units at a higher price, sliding back down the supply-demand curve. I'm sure they've done their research on this, but it's pretty easy to be wrong.

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AUD up to 70 US cents this morning, further proof no one knows wtf is going on in the world economy.

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AUD up to 70 US cents this morning, further proof no one knows wtf is going on in the world economy.

you beat me to it ... and as has been said, considering there wasn't a 50% drop in prices when the dollar went from 60c to 98c, I still think this is mainly scaremongering to bolster sales leading up to christmas.

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AUD up to 70 US cents this morning, further proof no one knows wtf is going on in the world economy.

Never has a truer word been spoken :lol:

Economist: Someone who can tell you tomorrow, why what they predicted yesterday, didn't happen today.

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AUD up to 70 US cents this morning, further proof no one knows wtf is going on in the world economy.

It hit 69.8c this morning because the US Fed has dropped interest rates again. This is the expected reaction to a rate movement. When we drop our rates, it'll go back down. But it will go back before the next RBA announcement anyway. Reality sets in quickly. BUT THERE IS NO MORE ROOM FOR THE US TO DROP RATES FURTHER! The US is now at 0%!!! Can't see them giving us money to borrow money.

The Aussie will be back to 67c in a day or so and will be around 60-65 by the end of the month. It is predicted to trade down in the high 50's, until June after which it will see some growth. Naturally, we live in a global economy and other countries may take actions that will either help or exacerbate this view, but there is strong evidence this is the scenario for 2009.

The other thing is, for a whole host of reasons, the dollar may recover a little earlier than predicted and that will be good. The RBA has already shown that it does not want the dollar to be below 60c (where it traded in November), but it is not all bad for the economy that it does trade down lower. Our exports are more competitive at these rates and that should stimulate some sales. But like anything including the subject here, TVs, if there are no buyers, then the prices may remain flat. But remember, if the darn cost of a thing rises above the sell price, the price just has to rise. It will all depend on how much reserves the manufacturers, distributors and retailers have and how much pain they can absorb. My industry has little more room for the pain and belt tightening... prices will have to rise. It is as simple as that.

Sony is shedding somewhere between 8-16,000 workers (I've seen both). Manufacturers are shedding workforces worldwide, car plants are too, and not just the crippled US auto makers, Toyota is and so is everyone else in the auto business. There is going to be forced holidays on workers while business reduces inventories over the next few months and the prices and giveaways now are a good way of helping them move excess units.

Yes, prices do have a relationship to supply and demand. That's Keynsian economic theory. But Keynes is not well regarded these days. Keynesian theory does not always work. What we have at the moment is an unprecedented drop in worldwide confidence. With good reason I should add. Bush and his bunch were so fixated with Bin Laden and Iraq they all took their eye's off the financial controls... spent money like water... and the wolves in finance industries took complete advantage.

A lot of 'wishful' commentary is what many 'hope' will happen based on the recent history of prices in this business sector. It seems to me that a lot of you may not have experienced a 'real' recession nor the impacts before. Unfortunately I am old enough to have been though a couple. The drop in the currency is still yet to have reached full impact and it won't for 3 months or more. When (and I'll add IF) the dollar does drop to the mid 50's or below, there will be just plain financial reasons why prices will rise, just like the computer gear is already going and so on. Tyres for example are already having rises of 10% to 30% including some of the big guys. That is called "cost push inflation" and if that occurs during a recessionary period it is called stagflation. That is cost is pushing up prices despite there being little demand and a contracting economy.

Demand for big screen TV's has been bolting along for a couple years now. If demand were the sole factor, prices would not have dropped. Some of the drop is because supply is strong, meaning cost per unit is lower, but also because the recent strength of the Aussie dollar has enabled imports to be sold at lower prices too, and competition is strong being a third. As supply diminishes, the inventories reduce, and forward cover runs out, prices will rise like night follows day.

In the end, if you don't want to buy a new telly, that's fine, but if, like me, you were ready to purchase, now is most likely a good time. If you think it is just retailer scare-mongering, that's fine... it does happen of course... "beat the price rise" is even older than me as a legitimate sales pitch. Trouble is if you think that is all it is then there will be a few who might just be eating their hats next year.

Righto.. that's all from me... I'm going back to my crystal ball! :ninja:

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Here is my take on the price rise issue. Look at the US street price of the display your are interested in and compare it to the price you can get here (after currency conversion), if the price is about the same you have a top price so I recon it’s a good idea to buy now.

Typically we pay a significant premium over US price for electronic goods, but at the moment there are some good deals on offer.

I was looking to purchase new digital SLR camera, first I looked at the best price I could get on line from well known US discount houses and Ebay, I then walked into a major Sydney retailer and asked if they could match the online price, to my surprise they said yes. I know a deal when I see it so I said “done, hook me up”.

Only 6 months ago I would have been able to save over $500 on a similar purchase by purchasing from the US even after paying fright, the price differential was so great.

The salesman said the price would go up in the new year, and under the circumstances I believe him. Existing stock was obviously obtained when the AU dollar was high and new shipments of stock will obviously cost more, hence a price rise is almost a certainty.

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Here is my take on the price rise issue. Look at the US street price of the display your are interested in and compare it to the price you can get here (after currency conversion), if the price is about the same you have a top price so I recon it's a good idea to buy now.

Typically we pay a significant premium over US price for electronic goods, but at the moment there are some good deals on offer.

I was looking to purchase new digital SLR camera, first I looked at the best price I could get on line from well known US discount houses and Ebay, I then walked into a major Sydney retailer and asked if they could match the online price, to my surprise they said yes. I know a deal when I see it so I said "done, hook me up".

Only 6 months ago I would have been able to save over $500 on a similar purchase by purchasing from the US even after paying fright, the price differential was so great.

The salesman said the price would go up in the new year, and under the circumstances I believe him. Existing stock was obviously obtained when the AU dollar was high and new shipments of stock will obviously cost more, hence a price rise is almost a certainty.

Hi

Just curious what camera were you looking at and what price did they match and which retailer?

Thanks in advance

Jelliemillie

Edited by jelliemillie

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Hi

Just curious what camera were you looking at and what price did they match and which retailer?

Thanks in advance

Jelliemillie

Nikon D90, cheaper then adorama.com in the US from HN Auburn

Edited by Owen

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Here is my take on the price rise issue. Look at the US street price of the display your are interested in and compare it to the price you can get here (after currency conversion), if the price is about the same you have a top price so I recon it’s a good idea to buy now.

Typically we pay a significant premium over US price for electronic goods, but at the moment there are some good deals on offer.

I was looking to purchase new digital SLR camera, first I looked at the best price I could get on line from well known US discount houses and Ebay, I then walked into a major Sydney retailer and asked if they could match the online price, to my surprise they said yes. I know a deal when I see it so I said “done, hook me up”.

Only 6 months ago I would have been able to save over $500 on a similar purchase by purchasing from the US even after paying fright, the price differential was so great.

The salesman said the price would go up in the new year, and under the circumstances I believe him. Existing stock was obviously obtained when the AU dollar was high and new shipments of stock will obviously cost more, hence a price rise is almost a certainty.

I've been doing the online price matching thing with brick and mortar stores for years now, it's great - search online, go to one store for a pricematch, then to another store to pricematch or beat the other store. Last time I did this was a few days ago actually - grabbed 2 Canon IXUS 870s at 'below cost' to the retailer this way.

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Nikon D90, cheaper then adorama.com in the US from HN Auburn

Owen,

I went to HN Auburn on Tuesday looking for the same exact camera The Nikon D90. They had a big sale on that day but the prices they offered werent great and they werent willing to budge on the price.

Can I ask what lens kit you got and how much you paid?

You can PM me if youre not happy to post it on the forum.

Cheers

Sunil.

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On a similar topic -

I'm looking at buying an AV Amp.

On phoning around today I was told, by more than one source, that both Yamaha

and Pioneer are increasing their prices by on January 1.

In fact some retailers have already increased their prices e.g.

Yamaha RXV-1900 and 2900 have increased approx. 10% already

So it looks like increases are on the way, but more likely in the vicinity of 10 - 15%

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I see Steve in the Eastwood newsletter is announcing pretty much across the boards prices rises in the order of the OP.

So maybe there is some merit in thinking there will be display price increases too.

But I still think stores will try to be competitive especially with the downturn, and will try to absorb cost rises.

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