Overclock.net › Forums › Industry News › Hardware News › [ConsumerReports.org] HDTV, is now the time to buy?
New Posts  All Forums:Forum Nav:

[ConsumerReports.org] HDTV, is now the time to buy? - Page 4

post #31 of 33
Quote:
Originally Posted by guyladouche View Post

This is all-around bad for consumers--all it does is remove the ability for a retailer to discount items--both B&M and etailers, and the manufacturer gets to set their retail price and can punish retailers for selling items below agreed-upon prices. All this does is inhibit competition and competitive prices.

Please get what you are talking about straight, MAP is the current system. Where the retailers can set their discounts. UPP is the model that the MFGs are moving to, which benefits B&M.
Quote:
And you still have to pay tax even if you buy something online--it's just that a lot of places don't assess taxes on you at the time of sale, but you're still legally obligated to pay these taxes when filing your annual tax return. Side-note, I look forward to when sales tax is imposed at the time of purchase for online purchases since no one seems to realize they are obligated to report it at the year-end.


Hence why I said skip. They are supposed to pay the taxes... but who actually does?
Hex'd
(13 items)
 
  
Reply
Hex'd
(13 items)
 
  
Reply
post #32 of 33
Depends wich state .also good luck with some etailer outside america.the sale amount are insanelly. low tho.(.these tx for e would just kill a possibility of e commerce cause plenty of real store pay the tax
post #33 of 33
Quote:
Originally Posted by ivesceneenough View Post

Please get what you are talking about straight, MAP is the current system. Where the retailers can set their discounts. UPP is the model that the MFGs are moving to, which benefits B&M.
Hence why I said skip. They are supposed to pay the taxes... but who actually does?

I understand what the two are and which is going to be the accepted system. Here's the problem with UPP:
Quote:
Originally Posted by Article 
But with UPP, a manufacturer can cut off a retailer's product supplies if the retailer advertises or sells the TV for less than the predetermined minimum price. So basically, the TV's actual selling price is being set by the manufacturer, leaving little wiggle room for dealers to out-discount their competitors.
It promotes non-competitive pricing.

The manufacturer sets the prices for what their items can sell that. This is not etailer or B&M specific. It limits the ability of a retailer--whether physical store or online--to offer sales/incentives to shop based on price reductions independent of the manufacturer. This is bad news for everyone shopping for a TV. I understand that the source discusses that UPP is supposed to help B&M stores, but even B&M stores benefit from ad-hoc price reductions to move merchandise and increase customers patronizing their locations.

What makes no sense out of any of this is if you take the example of Best Buy vs. some online retailer, BB typically has as good if not better prices for TVs than most online retailers. That generates customer interest, getting people to come in and shop, where they'll be more likely to buy the items that BB derives more profit from--like (overpriced) cables, peripherals, etc., simply because they're there and in front of all the merchandise.

The only reason for a manufacturer wanting to set the prices for specific models of TVs they produce is to ensure the highest profit margin for them. Otherwise, why is this pricing scheme only specific to a subset of TVs that one manufacturer makes? Because they don't want their best-and-brightest TVs with all the cool new features to sell at too low of a price before they can eek out their profits on the next and newest features.
Quote:
Originally Posted by Article 
Both Samsung and Sony are imposing UPP on higher-end products with features that benefit from presentations and demos that can be done in showrooms and on sales floors with trained salespeople. These products typically have higher margins for both the manufacturer and retailer.

Manufacturers saying that UPP is good for B&M is only a guise to mask the fact that for each price-reduced item that sells means reduced profit margins for them. That's the only reason why the manufacturer wishes to adopt this pricing model vs. the brick-and-mortar stores initiating this.

If prices for items are fixed across locations, why is someone more likely to go to a B&M store to buy something like a TV when they can just order it online for the same price and have it delivered anyway, without having to leave the comfort of their own chair? The MAP benefited both physical retailers and etailers, allowing them to adjust prices as necessary or desired in order to attract more business. The UPP no longer gives them any room to behave as such.

I understand that it's a domino-effect--one retailer low-balling prices and then everyone else needs to follow-suit to remain competitive, but on the other hand, this method gives no leeway/leniency on pricing. That's no good.

What the discussion does not at all address is the fact that HDTV manufacturers are seeing a drop in profits, and they deem it's because the sale prices for their units are too low. But evaluate the situation a bit more. HDTV sales boomed because they became widely-available, and because of a decent economy. Fast forward a few years, and now they're more ubiquitous in homes, and the economy mostly sucks. A lot of people already have a HDTV, and/or cannot afford a new one anyway--the demographic is mostly spoken for. So it makes sense that sales (and profits) would be down in comparison. The fact of the matter is that other than features offered on smart tvs (which are nice, but not convincing to buy a new TV on them alone), TV tech hasn't progressed enough for people to think they need a new one. Most of the people see 3D as a gimmick (or uneconomical), and the features offered on smart-tv's don't surpass what the user currently has at home. So of course the number of units being moved is lower. That is the source of the lowered-profits for manufacturers and why they want to move to UPP, not because they want B&M stores to be able to be more competitive with etailers.
    
CPUMotherboardGraphicsRAM
i5-2500K Biostar TP67B+ XFX HD5750 1GB 2x4GB DDR3 Corsair 1600 
Hard DriveOSMonitorPower
60GB OCZ SSD, 2x160GB HDD RAID0, 500GB+500GB+1.5TB Windows 7 Ultimate 64-bit Samsung SyncMaster 930B Antec SmartPower 450w 
Case
Antec 900 
  hide details  
Reply
    
CPUMotherboardGraphicsRAM
i5-2500K Biostar TP67B+ XFX HD5750 1GB 2x4GB DDR3 Corsair 1600 
Hard DriveOSMonitorPower
60GB OCZ SSD, 2x160GB HDD RAID0, 500GB+500GB+1.5TB Windows 7 Ultimate 64-bit Samsung SyncMaster 930B Antec SmartPower 450w 
Case
Antec 900 
  hide details  
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Hardware News
Overclock.net › Forums › Industry News › Hardware News › [ConsumerReports.org] HDTV, is now the time to buy?