MITSUBISHI CUTTING DTV SET PRICING ACROSS BOARD
Mitsubishi is cutting DTV set prices across board, including $1,000 and $2,000 reductions, respectively, on 73” ($5,999) and 50W plasma ($15,000) DTV models as it readies derivative shipments to Best Buy and seeks to keep ties with independent regional and specialty CE retail accounts, according to dealers knowledgeable about changes. We're told price cuts cover dozen models, with most taking effect this month.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Price moves are said to cover sets in Mitsubishi’s 311 and 411 series of TVs including 55311 to $2,499 from $2,899 and 65311, $2,999 from $3,199. Others include 55411, $2,699 (from $2,999); 65411, $3,199 ($3,499); 65W and 55W integrated HDTV sets, $3,799 and $2,999 ($4,199 and $3,199, respectively); 65819, $3,099 ($3,299); 50” and 60” analog TVs, $1,499 and $1,799 ($1,699 and $1,999). Dealers we polled generally were supportive of price moves but many expressed puzzlement at Mitsubishi’s motivation. One retail executive echoed others when he said Mitsubishi typically “chases” Sony and, to lesser extent, Hitachi, and those vendors “haven’t done anything radical” recently in pricing area to justify action. We were awaiting comment from Mitsubishi executives at our deadline.
As Mitsubishi imposed its price cuts, dealers we canvassed still were trying to gauge potential impact of its deal to supply Best Buy with derivative line of 42-65” TVs to be sold starting in Sept. Despite resentment expressed by many independents in wake of Best Buy decision, Mark Shaw, video buyer at Nebraska Furniture Mart, said his chain would continue to support Mitsubishi largely in belief that its marriage with Best Buy would be “short-lived.” Moreover, Shaw said Nebraska Furniture Mart believed it would reap benefits from Mitsubishi brand exposure in Best Buy advertising.
However, other independents were reported to have expressed outrage in most tangible business means possible -- trimming some Mitsubishi models from their merchandise assortments. For example, H.H. Gregg was reported to have cut 5 Mitsubishi models from its mix, but later restored 3 of them after Mitsubishi responded with improved terms. H.H. Gregg COO Dennis May denied his chain had retaliated but said its fall TV merchandise assortment hadn’t been set yet. May said of Mitsubishi: “They're going to have a difficult time maintaining their level of market share with the regional accounts based on this decision. For us, it’s a work in progress and we're trying to figure out where it’s all going to land. There are certainly going to be some changes, but we haven’t finalized those because this happened late in the [buying] season and a lot of things were put to bed and now they're not.”