Tablet Sales: Pulling Profits from Tablets
Wringing profits from a margin-challenged category isn't a new problem for CE dealers. It recently hit a tipping point with TVs where vendors had to institute MAP and unilateral pricing policies to stem the ticket-slide tide. Tablets are just as margin-challenged, but there is no such vendor strategy on the horizon. Dealers are left on their own to extract as much profit as they can from the category.
Some dealers, such as Rife's TV & Furniture, see merit in featuring entry-level Android tablets as traffic drivers. The single-store appliance and CE retailer Grundy, Va., currently stocks Coby's Kyros line, which range from $149 to $199. About one-fourth of the store's business is done in CE, including computers and tablets. "We stock more tablets at Christmastime, and in spring and summer, drop our inventory down," said Ricky Owens, sales manager.
While Rife's sells tablets mainly to prevent customers from shopping elsewhere, the retailer is planning to add Asus's line of Eee tablets, priced in the $399 range, to generate some margin and accessory attachment sales.