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Forums - Sales - Sony pissed off at MediaWorld underpricing PS3

coolbeans said:
drkohler said:
coolbeans said:
Okay Sony, you guys already sold them to that retailer. Whether he sells them for less/or not is none of your concern.

Duh.. I think there is a movie called "The Walmartization of America" or something similar that shows the effect of what happens to a town when a 3000lb Gorilla takes over and ruins all the small shops by undercutting prices until they are bancrupt. In Europe, we (used to?) have product price bindings  which (were?) are intended to protect the small guy from being driven out of business by ruinous prices from said gorilla. So Sony (or any manufacturer still holding to those rules) will try to prevent any such large scale sales.

That is such an bad comparison.........I truly don't know where to begin.  MediaWorld=/= Wal Mart,  Selling 5000 PS3's at a lower price will not force small businesses to go bankrupt,  and Sony shouldn't need to get involved with this because if Europe has product price bindings they'll find a way to regulate MediaWorld's PS3 price for the future anyway.

A single chain selling 5k in one day when total weekly sales for PS3 were around 20k in Italy the whole week ending 12 Dec is not a little amount, letting people think the offer lasts a lot longer than it could be possible given the stock, may damage other shops sales, common people doesn't know sales numbers, reading 5k available may make them think they'll find one at that price even after the first day and this will prevent them from searching elsewhere until they actually go to MediaWorld and find the offer is sold out.

And as I wrote in previous posts, MediaMarket makes it not easy to find local Media World and Saturn phone numbers.



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Y is sony pissed? Media worlds absorbing the loss not Sony.



starterman1989 said:
numonex said:
Lower price = more system sales. Who cares what price Sony wants the PS3 to be sold for? The retailers can sell the systems at whatever price they see fit.
Under pricing the PS3 by what 10 measly dollars? Sheeh. Selling it for US $290 instead of US $300. Sony must be a Xmas grinch.

You don't even look at the article, do you?

he is a bot.



drkohler said:

Duh.. I think there is a movie called "The Walmartization of America" or something similar that shows the effect of what happens to a town when a 3000lb Gorilla takes over and ruins all the small shops by undercutting prices until they are bancrupt. In Europe, we (used to?) have product price bindings  which (were?) are intended to protect the small guy from being driven out of business by ruinous prices from said gorilla. So Sony (or any manufacturer still holding to those rules) will try to prevent any such large scale sales.

Isn't it the opposite in Europe, where price fixing is regulated against and manufacturers can only suggest/recommend a retail price but can't force a retailer to sell an item at that price?



Is that really any on Sony's buisness.



 

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Media Markt is big I always thought that its mainly a german chain. But it seems they expanded a long time ago.

But what I dont understand why the hell Italy gets PS3 for 199 Euro. (Even if extremly limited) And we are not. If here mediamarkt or saturn makes a special offer its normally available everwhere. They should really make it walmart style and give a giftcard of 100 Euro to each PS3 their shops would explode everywhere in Europe.





Zlejedi said:
numonex said:
Lower price = more system sales. Who cares what price Sony wants the PS3 to be sold for? The retailers can sell the systems at whatever price they see fit.
Under pricing the PS3 by what 10 measly dollars? Sheeh. Selling it for US $290 instead of US $300. Sony must be a Xmas grinch.

If you haven't noticed not whole world uses US dollars.

indeed i mean ps3 slim cost $498 here in australia and the fat ps3 is a little more cheaper... i kinda regret getting a slim because i could have got the fat 1 for 60 dollars cheaper even if the fat one only had 80gb built in... i wont use the harddrive much anyway lol




come on Sony you don't see nintendo or Microsoft complaining because retails do different deals or prices in different stores




coolbeans said:
Alby_da_Wolf said:
coolbeans said:
drkohler said:
coolbeans said:
Okay Sony, you guys already sold them to that retailer. Whether he sells them for less/or not is none of your concern.

Duh.. I think there is a movie called "The Walmartization of America" or something similar that shows the effect of what happens to a town when a 3000lb Gorilla takes over and ruins all the small shops by undercutting prices until they are bancrupt. In Europe, we (used to?) have product price bindings  which (were?) are intended to protect the small guy from being driven out of business by ruinous prices from said gorilla. So Sony (or any manufacturer still holding to those rules) will try to prevent any such large scale sales.

That is such an bad comparison.........I truly don't know where to begin.  MediaWorld=/= Wal Mart,  Selling 5000 PS3's at a lower price will not force small businesses to go bankrupt,  and Sony shouldn't need to get involved with this because if Europe has product price bindings they'll find a way to regulate MediaWorld's PS3 price for the future anyway.

A single chain selling 5k in one day when total weekly sales for PS3 were around 20k in Italy the whole week ending 12 Dec is not a little amount, letting people think the offer lasts a lot longer than it could be possible given the stock, may damage other shops sales, common people doesn't know sales numbers, reading 5k available may make them think they'll find one at that price even after the first day and this will prevent them from searching elsewhere until they actually go to MediaWorld and find the offer is sold out.

And as I wrote in previous posts, MediaMarket makes it not easy to find local Media World and Saturn phone numbers.

Okay sure, I'm not saying what MediaMarket is doing isn't fiscally foolish or using a play on words (because it seems like they are).  I'm only saying Sony shouldn't be pissed for this store chain doing this since they've already sold their consoles to that retailer already.  If MediaMarket wants to ask for trouble from an alotted sort of people whether it'd be the general customers or some type of fair-pricing regulators located wherever MediaMarket may be is that company's problem.  Unless there's some kind of backlash at Sony for this (which I don't see how that's possible), I don't see the reason to be pissed at a retail chain. 

From what I understand both from Sony words and the situation itself, and it must be added that MediaWorld prints and distributes tens thousand leaflets in each major town where it's present, Sony fears that people that received the leaflet will refrain from buying a PS3 elsewhere until they go to MediaWorld and find the offer is sold out, then a share of them could refrain even after hoping for similar offers from other chains. Had MediaWorld had enough stock to satisfy the requests for all the duration of the offer, Sony could have been happy, I guess, as sales would have skyrocketed at MediaWorld expenses, but as things stand it fears they can only trouble the market.

BTW, some sources erroneously reported the undercost offer as ending on 31 Dec, it ends on 21 Dec actually, but then after it there are only 3 possible shopping days before Xmas, so the potential damage is only a little smaller.

Anyway, despite MediaWorld+Saturn being probably the biggest electronics and appliances resellers, they haven't on our market the strength Wal-Mart has in USA, so both positive or negative effects will have a smaller scale.



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW! 
 


mega-chris said:
correct me if im wrong but isnt that like $414.00 US dollars????


The normal price of PS3 in Europe is 299 € which is 415,34 USD by today's rate. The price in the Mediamarket campaign was 199,00 € = 276,43 $



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