Image Property of Robert Scoble – link
Sony and Samsung cheap TVs you will find no more. Apparently, 3rd party retailers’ heavy handed price slashing has gotten both consumer electronic giants hot under the collar. So much so, in fact, that both manufacturers are reportedly beginning to enforce minimum pricing. The new minimum pricing scheme will allegedly “protect both the manufacturers’ margins and the retailers’ profits from ‘showrooming’” — showrooming is the act of checking gear out in-store and then purchasing online for a lesser price. Admit it. We’ve all done that. (And why not?)
But no more. Sony in particular drastically wants to get their TV business out of the red ink and returning to a profit earning giant. That said, simply slapping a higher price tag on your products doesn’t add additional value. That comes from actual performance of the hardware, support network, software related goodies, etc.
Will the move pay off for Sony and Samsung in the long run? We’ll see…