Information / News And now Samsung dealers threaten boycott over price difference.

Discussion in 'Gadgets and Consumer Electronics' started by JD666, Aug 5, 2014.

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  1. JD666

    JD666 RAID Leader Staff Member

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    Something that I used to wonder would come to an impasse someday.

    My local faithful mobile dealer. Must've bought over 50 phones from him over the last 15-16 years. However of late, my last 2-3 purchases in India were online. Because a) the phone was cheaper and b) it was easier to wait for home delivery.

    Sure there was a worry of the item being lost in transit, but this was FlipKart so I was comfortable with the idea. Check out a phone at one of the big retailers, and then order it online.

    Anyhow, this has now reached the point where dealers have formed an association and have openly threatened Samsung. The margin they get is around 5.5% per phone, while e-tailers are selling them for as much as 20% discount.

    The deadline given to Samsung by them is 15th August. However this comes at a bad time for Samsung, since their sales have dropped as well.

    Interesting. Let's see how it pans out.

    Samsung dealers threaten boycott over e-pricing - The Times of India
     
  2. JD666

    JD666 RAID Leader Staff Member

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  3. RajaPraveen

    RajaPraveen Black Jeebus Staff Member

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  4. JD666

    JD666 RAID Leader Staff Member

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    Whats crucially important is are they selling it at street price or cheaper (which was the main issue in the first place).
     
  5. MOZ

    MOZ RAID Leader Staff Member

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    Wow, way to move backwards.

    I remember last month just before coming to South Africa, I went to a brick-n-mortar store to pickup a micro-sd, since I was lazy and didn't order it online,. and this was the day before my flight, so I went to the store, the guy tells me a price, and I tell him it is this much cheaper on FlipKart, and he says, "Flipkart ko to chhod tab saab, uske chakar mai to hum lut gaye" ("Please don't mention Flipkart, because of it we are going Bankrupt)
     
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  6. RajaPraveen

    RajaPraveen Black Jeebus Staff Member

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    I don't think they can stop online retailers because that is the future,these multi billion dollar companies should price their products differently when they supply to online retailers and normal stores considering the additional expense incurred, that way the stores can also sell for competitive prices and there can be some balance.

    Online retailers also incur different types of expenses like shipping (specially when they provide free shipping and returns) and they have a dedicated customer care.
     
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  7. JD666

    JD666 RAID Leader Staff Member

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    However while your local store can only cater to the population living within 3-5 kms of them, and hence having a smaller buyer base, online retailers can sell to the whole country, anywhere that can receive a parcel (And anyone willing to take the first plunge by ordering online). This differentiates the volumes substantially for them.

    Add online discounts and coupons and the local shopkeeper goes for a toss.

    I see this on a daily basis. The whole mobile market is a 100 feet from where I stay. It's like Gaffar in New Delhi, or Ritchie Street from Chennai, only cleaner and much more spaced out.

    Everyone buys their mobiles from the big shopping centers since they offer better pricing. If they want to sell them, or buy cheap accessories (which are way overpriced in the supermarkets) they come here.
     
  8. BANHAMMER

    BANHAMMER Teh Almighty BanHammer Staff Member

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    It is future, embrace it. Don't ?#@*&%!^$~ing live in stone ages.
     
  9. JD666

    JD666 RAID Leader Staff Member

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    It's a discussion, not predicting the future.
     
  10. ViKiD

    ViKiD RAID Rookie

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    Just offer the same margin. Brick and mortar stores offer to match the online prices abroad, because most companies offer the exact same margins to everyone.
     
    Last edited: Aug 8, 2014
  11. MOZ

    MOZ RAID Leader Staff Member

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    Genius!

    But seriously, this is the solution, but I'm guessing there much be an issue with giving the brick and mortar stores to Indian stores at the same price.
     
  12. ViKiD

    ViKiD RAID Rookie

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    The only issue i see is that the online market caught up pretty late, and some firms with a good amount of starting capital started offering great discount to establish themselves. Now that has turned into a competition which in turn has ?#@*&%!^$~ed over the brick and mortar business because their overall costs for running the store are exponentially higher.

    The TV which i bought recently, was originally selling for 62k at the stores. I asked the Jumbo store people to match the online price and they somewhat agreed, plus they threw in one more year of warranty for free. In the end i got a way better deal, even got it 500 bucks cheaper than the online prices. :p
     
  13. BANHAMMER

    BANHAMMER Teh Almighty BanHammer Staff Member

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    [​IMG]
     
  14. ViKiD

    ViKiD RAID Rookie

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    GIF JIF.
     
  15. Acroback

    Acroback RAID Rookie

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    @ViKiD , you got a TV for (62000 - 5) $? USD? :banghead:
     
  16. ViKiD

    ViKiD RAID Rookie

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    Lolol no. Store pricing was 62k .. Got it matched to the 54k online pricing - rs500 + free extended warranty.
    I'm in India right now... Going back end of august.
     
    Last edited: Aug 8, 2014
  17. Acroback

    Acroback RAID Rookie

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    Oh, I thought what TV costs 64K $ over here. Must be coated with Diamond and gold dust :D.
     
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  18. JD666

    JD666 RAID Leader Staff Member

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    84 incher?
     
  19. ViKiD

    ViKiD RAID Rookie

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    Damn, that one would be a worth a kidney.
     
  20. JD666

    JD666 RAID Leader Staff Member

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    Not really, they were giving away a BMW 3 series free with the TV last year (First 22 buyers).

    Current price is around 22-25,000$ for an LG or Samsung.
     
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