Critic's Corner

Not true

24.0.115.113

In Reply to: RE: retail pricing today is complete fiction posted by jdouglas51 on March 21, 2008 at 07:26:48

Many of the biggest box movers sell their product at or near MSRP. Look at Best Buy and Circuit City. True, they do have their sales like most others, but that's usually on product that is nearing the end of it's run and will soon be replaced.

With new product, not only do they sell at or near MSRP, there's typically no negotiating. The same goes for PC's, Laptop's and the software is hardly discounted. The appliances are hardly discounted because there's not much of a mark-up on mass produced white goods to begin with.

Taking into consideration the massive amount of near-free financing, the plummet on the profitability on most flat panels which drove the business for so long and continues to, and these two companies have no choice but to sell what they can at close to MSRP.

At my company, we hardly felt Circuit or Best Buy was a threat regarding low price. In fact, the reality is they hold the line on MSRP better than anyone. The best thing that can happen to a Custom A/V company is to have a Best Buy or Circuit City open up across the street from them. The increase in floor traffic that comes from being seen across THAT street, coupled with the ability for the average "independant" sales person or systems designer to beat BB/CC prices while still keeping things profitable means very good business for competitors like myself.

The internet on the other hand, well....that's a different story.

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