Sidebar: An Eye On the Market
“Look at how long it took DVD players to drop in price versus the VCR,” said Warren Chaiken, president and COO of Almo. “Obviously, manufacturers need to continue to run their factories, which is the cause. Dealers get hurt.”
But those price drops also present opportunities for distributors and their customers. Dave Robison, CEO of DSI, anticipates a 40 percent decline in flat panel pricing this year. All the more reason, he said, for retailers and custom installers to form closer relationships with distributors. “That plays to the strengths of buying from somebody like us, because if you are a dealer and follow the ‘one to show, one to go’ policy, you can’t get hurt,” he said.
Another flip side to the price drops is that they are driving more foot traffic through stores and increasing opportunities for add-on sales, distributors said.