Mridul,
Is this part swapping universal practice?
Cause I keep on checking US & UK audio mags and sometimes discounts in clerance sale are mindboggling!
So today I understand how they can manage it!
Now as a member earlier mentionedthere must be a market for "removed & replaced parts' right??
Of course sometimes I do not understand the markup ... OPPO DVD was available at 3 times US price. Now I was product head ead for DVD in Onida. We used to procure from china - not dissassembled pieces but - CBU- completly built BOX Packed Ready to sell DVD's. Paying all the duties we were managed to sell @ RS 3K...
Now oppo is in different leaugue but i beleive custom duties are the same . and we never used to jack up price 3 times the chinese price!! ( Of course we were in volume game!)
My point is there is good scope for likes of Vijay Sale & Croma for legal buying and manipulating prices!
In process of looking for LCD/Plasma I realised that for the uncomman brands like Hitachi, Sharp etc. HI Fi retailers quotes were too-too high.
WD TV ( Amazon price -100 USD ) was quoted as high as Rs 10 K on lamington road ....
Members your comments please...
Hemant
Yes one can agree that volume game matters...
But, if you must have observed these are the places who degrade the brand image...
I understand tht as a individual 99% of you will not agree to it, but providing discounts just to make sales is not the correct way to deal with...
When you talk about people like Croma, Reliance, Vijay Sales, Pai, and bla bla blas...Believe me or not they make there working profits including salaries, rent and everything from the corporate sales and in commissioning for high end customers like ministers and all...where they just work in as a middle agent and earn commission...
Now, when these guyz purchase bulk quantities like 100pcs per product, they are liable to get extra discounts from what dealers get, as they make the central purchase for all of there branches...
But, when they reduce the prices to put up a card rate below MRP, then the customer is attracted towards the big area, and tht force the dealers to sell @ the least margin...but again, when dealers reduces the price then these big giants reduce it further below the Dealer Price, just to make sales, and in this process finally wins the big giant as in many cases they dont even avoid selling below there cost...This is a bitter truth...
And that forces dealers to quit the brands...
And now, do you guyz think, that these big giants are good enough to do sales...NO...!!!
All those who are present as the sales guyz, and even there managers, 90% of them are from a place or category who dont even knw, wt they are selling...and in last what material they pick in bulk, makes it difficult for them to sell, and then they try to liquidate in watever way they can...
And this process, leads to demotivating the brand image, in the end consumers mind...
Now just think over and tell me, in all this fight whu ultimately suffers.. its no one else then the Brand & the Product...
I know, many of you wont agree to me, but, guyz whu knw me, i was in Hitachi earlier, supplied a lot of Hitachi to these guyz, and apart from Hitachi gt a lot of cases from some famous and quality brands, taking back the products from these biggies...
Because these biggies, do anything for price, then comes the dealers who mix n match the grey n original product, then comes in the customers, who want the best, but want to pay the price of a local equipment...
Tell me how does a brand grow...???
Now, Hemant your second point of Oppo and Onida...
See OPPO is an american brand...and according to american policies, they offer distributor hardly any margins...and the same margin they provide to there local bulk buyers like amazon and all...
Now, after this as u guyz knw, the freight, customs, taxes, and margins... the product price comes to double of the market value in US...but yes with service and warranty...
But, i dont understand y are u comparing the a material sourced from China local manufacturer, and company in US...
Yes every US company manufacturing in China/HK gets 10% more discounts, then wt they get from company origin location, and as India is next to China, the transportation, goes almost 50% less, and so do the customs and all...
so in all you save 20-25% on the cost, but yes you need to get things in bulk...
OPPO even today has got products that are highly rated...
so they just want to ensure tht until there is constant demand for the products, and the quantity is nt incresed then they are able to market the product properly and earn sufficient margins...
And when you are talking about brands like Hitachi and Sharp, so to tell you buddy, there base price is too much, and even the master distributors play on least margins...and even the retailers or big giants make least money, as for them they have to sell products, they dont care for quality...and they are priced high as none of them is directly sourced from China, they are all sourced from Singapore...
So there are many things which makes a difference, as a end user or a retailer its very difficult to understand these kind of things...