HDTV Manufacturers may have enjoyed large sums of profits by increasing their prices but one thing they should now look back to is when they implemented price increases. The reason being here is that improper timing of price adjustments may affect consumer demand, an occurrence that may very well reflect in their product sales due to the recession.
According to Retrevo’s index, prices for HDTV products began to rise in mid-January, with the average selling price surging approximately 30% from January to mid-April. During the same time period, Retrevo’s index shows consumer demand for HDTVs continued to weaken, while other electronics product categories remained flat or increased slightly. Retrevo speculates that high prices may have discouraged buyers with a resulting decrease in demand.
“It is typically not a good strategy to increase prices at a time when consumers are hunkering down and trying to save money,” said Vipin Jain, CEO of Retrevo. “Reduced advertising on the part of brands and retailers, as well as some seasonality, has likely also contributed to weak demand. The good news for consumers is that our April data revealed that HDTV prices have leveled off and might even be heading back down. So, if you are in the market for a new HDTV, now is a good time to start tracking prices and looking for deals. Retrevo will continue to track HDTV trends and deals throughout May and report back at the end of the month.”