Quote Originally Posted by DEVO
Is this "deja vu"... anyone remember last years Panasonic plasma that Wally World priced at $999.99 and everyone had to price match. Only thing...they had limited amounts, but everyone else was crushed and nobody made any money. This was great for the consumer, but terrible for the electronic economy. Many businesses were destroyed because of this. It sounds very attractive, but when it is over...nobody wins! I hope that I'm wrong, and that the software is the place that margin is gained.

Wow, where to begin.

1. No one "Had to match Wal-Mart". Retailers that stocked the same model had the option to match, but no one was forced to match. I guess that margins on that product were squeezed, but that 1 specific model didn't affect the entire market.

2. As a consumer I don't give a rats ass about the "electronic economy". I will pay what I feel is fair. I don't shop at Wal-Mart, nor do I shop at boutique electroic shops. If I had the money I probably would shop the latter, but only for speakers and higher end gear not sold at mass retailers. But then again, maybe not. I was kinda soured on the "boutique" idea when I solicited a bid to wire up my home under construction. No drywall up, just sticks. Needed 3 rooms wired up, less than 500' of wire for the total job. Nothing fancy, no equipment. Just labor, and wire for hanging. $3000 for the bid. I passed.

If this is the reason small shops are going out of business then perhaps they SHOULD go away.

3. Business' are not "destroyed" by Wal-Mart. There are plenty of ways to beat the giant. If you want to do it on price, you probably will lose. If you do it on service, and don't expect triple digit margins, you will probably be ok. No one HAS to stock the same models as everyone else.

Downward price pressue IS good for consumers. It's the American Way.