Retailers Aim to Keep HDTV Prices Up
The holiday season may see less discounting than in 2006.
By Swanni
That's according to an article in the New York Times.
Many CE retailers experienced smaller profits last holiday season due to plunging prices on high-def sets, particularly LCD and Plasma flat-screen TVs. But the Times reports that some stores this year will carry fewer "second-tier" TV brands that offer lower prices.
Instead, they will push more expensive, larger-screen sets with new features, such as 1080p, and extended warranties and professional installation. The goal is to generate more revenue per customer.
"We're abandoning the entry-level price point," Joe McGuire, Tweeter's CEO, told the newspaper. "Compared to last year, we'll be very much focused on models with superior picture quality and large sizes."
The Times notes that research firms, such as iSuppli, have said that some HDTVs have fallen roughly 25 percent in price since last holiday season. Consequently, they say they need to begin steering customers to more expensive sets to keep profits up.
The move by CE retailers to eliminate entry-level models could provide an opportunity to discount stores such as Costco and Wal-Mart which experienced booming HDTV sales last holiday season.
But even Costco is wary of falling high-def prices, saying it encourages customers to return sets soon after they purchase them to get an even less expensive one. The retailer has a liberal return policy.
"I spoke to one customer who had bought four TVs and returned three of them for lower prices," Richard Galanti, Costco's CFO, told the Times.
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Swanni (Phillip Swann) is
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