Dealers Don’t Fear the Cheaper … 4K UHD TVs
Consumer electronics retailers have long lamented the steep price drops on HD TVs, especially when the declines hit new products they hoped would generate precious premiums and a little extra profit for at least one cycle. But some dealers are actually embracing the new lines of low-priced 4K UHD sets that Chinese manufacturers, particularly those by Seiki, are unleashing on the U.S. market.
"I love it," David Pidgeon, president and CEO of the high-end Starpower chain in Dallas and Phoenix, said of the barebones 50-inch Seiki SE50UY04, which launched last month at $1,500 and is now selling for $1,400. "It's important because of the price point. You can sell it at an affordable price, it's profitable and Seiki is offering one-year replacement."
The roughly 40 points or so dealers say they make on the Seiki sets are one incentive for carrying them. But dealers are also using the sets to draw consumers into their stores, teach them about 4K UHD TV technology and upsell them to more feature-rich and expensive sets, such as Sony's recently released 55- ($4,999) and 65-inch ($6,999) 4K models.