Sony & Samsung Enforce Minimum Price on Their HDTVs
Sony has now joined Samsung in enforcing minimum advertised prices (MAP) on their HDTVs on sale in all American retailers, both online and in traditional “Brick and mortar” stores.
In a reports recently published by the Wall Street Journal the new policies, which came into effect last month will restrict retailers from selling their HDTVs below this MAP price.
For example the manufacture recommended price might be $1,999, but the minimum price which the retailer can not go below could be $1,600.
We first heard rumors about Samsung enforcing this new policy back in January, but now it seems like the idea is catching on with Sony joining in.
This policy has been created to try and stop the consistent decline in prices and to protect their profit margins, but also to help brick and mortar stores such as Best Buy and Target in the game ahead of ecommerce websites such as Amazon. These stores have been loosing out on sales by buyers viewing the TV in the physical store, and then buying online for a cheaper price.
Even with this restriction in place, for most states it would still be cheaper to buy online from Amazon etc, as you wouldn’t have to pay tax on the device.
Sony and Samsung say that if a retailer is seen selling their products at a price lower than the MAP, they would pull the plug on their supply. But it seems that some retailers are already getting around this restriction by offering instant rebates.
I can’t help but wonder what other HDTV manufactures such as LG, and Panasonic are thinking. I was assume they are hoping more customers will turn to their products, as retailers aren’t limited to a minimum price. Everyone likes a great deal right?
Watch the video report at the Wall Street Journal.