Prices are becoming ridiculously low, and if you know what to look for, you can score yourself an unbelievable bargain.
TV prices are getting smashed, and in just one year they’ve plummeted 25 per cent because of a price war.
However, the Retailers Association's Russell Zimmerman says these low prices are pushing some retailers over the edge.
More stories from Today Tonight“It is a great time for the consumer. The consumer can buy these products very, very cheaply however, it takes a lot more TV sets to sell now to make the same amount of dollar margin.”
So what's making retailers squeeze their profits so much? The rise of internet shopping is one factor.
Last year Australians bought 2.4 million TVs, and Gerry Harvey has a large slice of that market. But his big brand business is under threat from cheap Chinese imports like Kogan TVs.
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“The prices have come down so much because these Chinese imports are so cheap. The brands have come down to meet the price, and consequently there's no profit margin,” Harvey said.
“We're selling TVs now for half the price we were one and two years ago.”So how do the prices compare?
A 32 inch full HD Samsung LCD from the Good Guys will cost you $517.The Chinese Kogan Brand equivalent smashes that price at just $240.
In the 42 inch, Samsung comes in at $594 dollars. But it is not Full HD. Kogan's equivalent is $389.
And for the large 46 inch Samsung Series 6 Full HD - the Good Guys have it at $1,349 dollars. Kogan sells it for $549.
According to Harvey “this is making it very difficult for electronic shops to survive.”
And if they can't beat them, they join them. Retailers Dick Smith import their own Chinese home brand called DSE. JB HI FI have Soniq. The Good Guys have a house brand called GVA from China, and Bing Lee have Palsonic.
Viewsonic from Taiwan can be bought online, and their effect on the market has devastated the big names.However Harvey says that “the brands have come to such a low price now that there is no point in buying unbranded Chinese TVs.”
A decade ago you would have paid $10,000 for a top-of-the-range television. A couple of years ago it would’ve been $3,500. TODAY it’d be JUST $800 or $900.
There is no doubt that the Chinese imports and the strength of our dollar are impacting on the price of TVs. But just be careful - if you are focussed on price, make sure you don't pay a price in terms of quality.
Gadget Guy, Peter Blasina says cheaper Chinese imports are not as good as the more expensive brands
“There is certainly quality issues,” Blasina said.“The reason for that the name manufacturers spend an enormous amount on research and development - time and money - in developing, and that is what gives you the cleanest, best quality, richest colour picture.”
Blasina says the cheaper TVs will also wear out faster.
“The Chinese panels would deliver you, we think, about two to three years. The major brands’ panels deliver you anywhere between five to six years.”
And if you struggle with HD versus Full HD; LED versus LCD; and Chinese versus Korean versus Japanese, the Gadget Guy says ‘use your eyes’.
“The best thing is to come in with your own disc - something that you've looked at at home, and you want that disc to compare to different panels with.”
And as for the must-have for 2012, Blasina says “the big feature, far and away, is going to be connectivity - connectivity to the internet, delivering smart television functionality.”And with prices going the way they are, it seems what was once a luxury item is now essential viewing for everybody.
Contact details- Gadget Guy - www.gadgetguy.com.au
- Kogan - www.kogan.com.au
- Dick Smith - www.dicksmith.com.au
- JB Hi-Fi - www.jbhifi.com.au
- The Good Guys - www.thegoodguys.com.au
- Bing Lee - www.binglee.com.au
- ViewSonic - www.viewsonic.com.au
