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Is now your last chance to get an HDTV deal?


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Initial post: Mar 18, 2012, 4:48:04 AM PDT
Last edited by the author on Mar 18, 2012, 4:59:15 AM PDT
KT says:
Don't Sony and Samsung believe in free markets?

>One reason is that this is normally the time of year (March and early April) when the new 2012 TV models start to arrive in stores, so many retailers may be looking to sell off any inventory of older 2011 sets to make room for the newer models.

But this year there's another compelling reason: Several major manufacturers are moving away from MAP (or Minimum Advertised Pricing) to something called Unilateral Pricing Policy (UPP), which penalizes retailers for selling a TV below the manufacturer's preset price.

Our friends at HD Guru first reported that both Samsung and then Sony are moving to UPP-style policies with step-up 2012 models. Apparently, the new policies go into effect on April 1st of this year.

Here's the big difference between the two pricing policies: With MAP pricing, a manufacturer can cut off co-op advertising funds if a retailer advertised a TV below a minimum price, which is why you often have to actually go through an online retailer's checkout before the price become visible. If the retailer is willing to lose those funds, it can sell the TV for whatever price it wants.

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.<

http://shopping.yahoo.com/articles/yshoppingarticles/844/is-now-your-last-chance-to-get-an-hdtv-deal/

In reply to an earlier post on Mar 18, 2012, 10:50:09 AM PDT
JMM says:
Nice post, and interesting story. It will be interesting to see how retailers react to the new policy.

Posted on Mar 18, 2012, 6:31:48 PM PDT
Gin says:
Another reason I don't buy sony or samsung =\.

Posted on Mar 19, 2012, 1:43:02 PM PDT
Doog37 says:
Apple has been doing this with their products for a while and it has worked out very well. The BIG difference is that there is a lot more competition in flat screens. This is good for Best Buy types and bad for Amazon types. One of the main reasons people buy online is to save money. If you can not get a better price online with a TV I know I like being able to go and see it for myself before I buy. If a majority of the HDTV manufacturers adopt this it might even reverse the current trend of people going to a brink-n-mortar store and using it to decide what they want to buy online to a situation where someone gets a lot of information online before going to the store and checking out the finalist products.
I just hope Vizio stays away from this.

Posted on Mar 20, 2012, 3:47:57 AM PDT
MikeT says:
Bose and other audio/video equipment mfrs have done this for decades. Some also specifically prohibit sales outside of that resellers designated territory including prohibiting internet sales.
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Discussion in:  Blu-ray forum
Participants:  5
Total posts:  5
Initial post:  Mar 18, 2012
Latest post:  Mar 20, 2012

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