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Rip Off Britain......Again.
Former Member
Posts: 1,876,323 The Mix Honorary Guru
As usual, were getting the royal shaft job when it comes to electrical products.
The Times
I particularly like the bit where they interview Julian Richer of Richer Sounds. That's the same Richer sounds who's London store is in the Guinness Book of Records for having the highest profits per square foot.
For people who can't be bothered reading, it's basically Sony (plus Sharp, Panasonic and a few others) deciding to increase the prices they charge to internet retailers, therefore forcing the prices to fall into line (increase) with retailers. Of course, they claim that they are actually offering a discount to those who showcase their products and offer good after-sales service.
I'll be very interested to see whether it is independant retailers that get these special discounts, or whether it's stores like Currys and Comet, most of whose staff don't know their arse from their elbow, nevermind anything about electrical products. It wouldn't surprise me if stores like Argos will get the same treatment, despite not actually showcasing their products at all.
Surely it's up to the consumer to decide whether they feel that the extra 'service' is worth the extra money. If you want technology explained in a shop, then fair enough, go into Currys and pay a bit extra. I know what I'm buying, so I'd rather just buy it cheaper off the internet thank you.
As a side note, I've always found websites to be a lot more knowledgable about their products when you ring them up. Maybe Sony aren't happy that they aren't reading directly from the 'Aren't Sony Great' PR manual. But allow me to be really cynical and say that its a combination of Sony wanting to artificially inflate their profits, and a back-hander from the superstore because they're currently losing business to the websites.
The Times
I particularly like the bit where they interview Julian Richer of Richer Sounds. That's the same Richer sounds who's London store is in the Guinness Book of Records for having the highest profits per square foot.
For people who can't be bothered reading, it's basically Sony (plus Sharp, Panasonic and a few others) deciding to increase the prices they charge to internet retailers, therefore forcing the prices to fall into line (increase) with retailers. Of course, they claim that they are actually offering a discount to those who showcase their products and offer good after-sales service.
I'll be very interested to see whether it is independant retailers that get these special discounts, or whether it's stores like Currys and Comet, most of whose staff don't know their arse from their elbow, nevermind anything about electrical products. It wouldn't surprise me if stores like Argos will get the same treatment, despite not actually showcasing their products at all.
Surely it's up to the consumer to decide whether they feel that the extra 'service' is worth the extra money. If you want technology explained in a shop, then fair enough, go into Currys and pay a bit extra. I know what I'm buying, so I'd rather just buy it cheaper off the internet thank you.
As a side note, I've always found websites to be a lot more knowledgable about their products when you ring them up. Maybe Sony aren't happy that they aren't reading directly from the 'Aren't Sony Great' PR manual. But allow me to be really cynical and say that its a combination of Sony wanting to artificially inflate their profits, and a back-hander from the superstore because they're currently losing business to the websites.
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Comments
Corporate companies exist purely to rip off their staff, and rip off the consumer. That is how profit is obtained. There's no money in paying a fair wage, and selling at a fair price using moral business practises.
That is why people who say that capitalism is the best way of looking after people in the world are absolutely wrong. It is the best way of making money.
But the article says:
So the online retailers cry about
Then the idiots wail about
because consumers can now (potentially) buy as cheaply in retail shops as online?!?!
lol!
A company should not decide which companies it sells to cheaply, and which companies it sells to at full value. That is price-fixing, and anti-competitive.
What, you think that they're levelling the playing field by reducing the prices in high street stores? I wouldn't have a problem with the high street coming into line with the prices of the internet, but that's not what they're doing. They're increasing the price they're charging to internet retailers. The only reason they claim to offer a "discount" to bricks and morter retailers is to avoid getting on the wrong side of competition laws.
If the high street shops can't compete with the internet retailers, then tough shit. That's the nature of the free market. If they feel they offer additional services worth charging extra for, then that's fine, but don't go crying when the consumer decides they'd rather not pay for this extra service.
No, it is price discriminating and is not anti competitive by definition as the sellers have found two distinct markets.
No they are not.
Think about this. Dixon's keeps prices level, despite its discount. It continues to lose sales but gets a higher profit on existing (but declining) sales.
Ebuyer's nominal costs are the same, but compared to dixon's are higher. Its prices therefore remain the same but it now has less profit.
Is this a feasible situation? No. If Dixon's want its sales to increase it must use its decrease in costs to lower prices. This will allow retailers and etailers to be able to compete better with each other, actually improving competition.
Yeah, it would be tough shit and i wouldn't care less, exept a move with someone with market power is actually going to benefit the consumer.
Fucking rules and regulations...
Yeah, but this is assuming that Dixons actually gets a decrease in costs. From what I've read, it's actually an increase in costs to the internet suppliers. Therefore, Dixons won't be able to decrease its prices (since it's buying costs will be exactly the same) and the internet retailers will have to increase theirs in line with Dixons, due to their higher buying price.
Won't work, but good luck to the luddites.
The only reason we have large corporations is because tax levels are so high that smaller businesses can't compete.
Capitalism is definitely the best and most just way of running a human society. Society is a lot more equal now than say, 700 years ago under feudalism.
Capitalism is responsible for pretty much all the progress mankind has made in the last century.
Contrastingly, state run command economies (Nazi Germany, Soviet Russia, Mao's China) have been responsible for the greatest toll in human life and misery in history.
:yes:
Add in pointless legislation and small businesses can't compete. It's the collectivists grand scheme - to have huge state run firms control eveything. And the state does control everything, either directly or through legislation telling them how to operate.
Small scale, anti-monopolistic free markets with no inheritance and full responsibility held by individuals would be the ideal. What we have now is....still feudalism, just by another name, another method.
No mate, individuals are. Capitalism is just an idea, it can't do anything. All the best things have been come up with by people largely left to their own devices, free from market and state pressures. Hobbyists changed the world in the last century, nothing else.
We don't have true capitalism, anymore than we have had true communism, because those who want to rule always get in the way. We are still feudal, only now the titles are manager, director, operator etc rather than serf, baron etc.
Do you really believe every bit of PR crap sent your way? Do you honestly believe that Sony are going to start discounting their products out of the goodness of their heart? Of course they're not, they'll push up the prices charged to internet retailers. They're only talking about a 'discount' so that it sounds better to the consumer. Looks like they already have one fooled.
Despite their lawyers and all that crap, i just don't think they could really get away with this. Well at least i'd like to believe they couldn't. And anyway, i've always found i get a great deal better service with web based businesses.
Totally irrevelant, but some Argos stores do display electrical goods, I know ours does, because I sit and look at them while waiting for my items, and I know the one in a local town (can't remember which town, sorry, Hanley I think) because I chose what I wanted from the display.
How is that totally irrelivent? I'm making the point that I suspect it has nothing to do with them offering information, and more to do with the big shops (i.e. the ones with the money to do so) sulking that they are getting undercut by smaller internet retailers and making a special deal with Sony (to raise the internet retailers prices).
As for Argos, yes they do display the products, but I dare you to go in there, and ask them whether a DVD player has an optical or an electrical digital output, or how to set up your progressive scan, as an example, and I guarantee they wouldn't be able to tell you. How is this offering the customer a good level of support in their purchases? Especially compared to the specialist shop, which I suspect will not be given the 'discounts.' I used to work in Currys, and the level on knowledge among staff is shocking. The only reason I can think of Argos and other shops getting the 'discount' is because they are willing to spout word for word the bull thought up by the Sony's (and others) marketing department.
Bear in mind that nothing I'm saying is hard fact, it's just what I expect to happen. When you have anything (not Sony's press release) showing that internet retailers costs have remained the same, whilst Dixons, Argos et al have had their costs cut, feel free to prove me wrong, but I expect you will find that the opposite has happened.