Kogan's throws gauntlet at rising prices

Alex Zaharov-Reutt
Thursday, 29 January 2009 04:52

Opinion and Analysis

Kogan says its “aggressive pricing strategy aims to build on the success of Kogan’s business model in Australia and New Zealand, which has achieved 20 per cent month-on-month growth for the last three years.

“Australian consumers waiting for post-Christmas sales to buy a big screen TV are in for a rude shock.

“With only several major manufacturers left in the television industry in Australia and New Zealand, prices are set to rise.

“Most vendors have announced price hikes of between 15 and 30 per cent in February 2009.

“Some of these companies have been caught out for price fixing overseas”, concluded Kogan.

Kogan says its price cuts include, but are not limited to:

-    47” 1080p LCD TV from $1899 to $1699
-    Blu-ray player from $349 to $249
-    42” 1080p LCD TV from $1499 to $1299

Price cuts are a way to stimulate sales, too, so perhaps Kogan has stock himself he’d like to move, to make way for new models – turnover is important for all businesses, after all – online or offline!

So… if you’re looking for consumer electronics goods, shop around. If prices are higher in one store, see what deal you can get in another, as retailers will be fighting hard for every dollar.

Consumers with cash (or access to diminishing levels of credit) now have the power over retailers, especially in the face of rising prices.

The big question is if anyone really needs to buy anything new, or if the existing TV or other CE item can last a year, two or even a few years more before being replaced, saving hard earned cash for more important purchases.