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Wed 21 Dec, 2005 01:12 am
Has anyone purchased a high dollar television from an online retailer lately? I have spent many frustrating hours educating myself on how these businesses work and have some interesting observations to share.
I intend to purchase Sony's 50 inch Grand Wega LCD rear projection TV (KDS-R50XBR1). My initial internet search (Pricescan.com) netted two dozen online retailers offering this product. The first thing that stood out was the price difference between the mainstream retailers (Crutchfield, Best Buy, and Sony itself) and the more obscure online retailers. The lesser known retailers were offering the item at significantly lower prices (in some cases, over $1000 less). How can they afford to offer such a substantial discount? After speaking with Sony and some of these e-retailers, I have formulated some opinions on how this is done.
I would love to hear from those who have made similar online purchases to get your perspective.
I became aware of gray market merchandise when questioning the various e-retailers. That could explain the lower price. Not many will admit that they are selling gray market merchandise. Some will say on their web sites "not gray market" and "factory sealed" but that's not a guarantee. Another reason for the lower prices and a bigger problem is the manufacturer's warrantee. Sony tells me that they will not honor the warrantee that usually comes with their products (1 year parts and labor) if the product was not purchased from an "Authorized Sony Dealer." Only one online retailer makes a clear statement concerning this point on their web by stating "We are not authorized dealers for the products we carry, we are brokers connecting buyer and sellers together." None of the online dealers who are offering the lower prices display the "Authorized Sony Dealer" icon on their web sites. When I ask point blank, "Are you an Authorized Sony Dealer?" I don't get a straight answer. More importantly, they refuse to acknowledge the fact that the warrantee is void. It was not lost on me however, that prominently displayed on their web sites were their "special deals" on extended warrantee packages (not from the manufacturer but from a third party co.) Bottom line is the consumer must be aware; there is always a reason why things look too good to be true.
The last item to share is the fact that most of these web sites belong to the same company. There were only 5 companies behind the 25 different low cost web sites I found on Pricescan.com. This is something many internet savvy folks are aware of. My point is these dealers think they can mask what they are doing by using the "safety in numbers" theory. Inexperienced internet shoppers might look at the results of one of these so called "shopping bots" and see that that the vast majority of dealers offering this item are selling it for far less than Sony or Best Buy for example. They might think that the norm is the lower price and that the one or two offers that might show up from the big guys (the legitimate retailers) show the same item at a higher price to cover their overhead or some similar reason.
I'm going with Sony or Crutchfield. Both offer a 30 day (after delivery) grace period which will allow me to return the item for any reason at their expense. Both will deliver, unpack, clean, do limited set up and take away the packing materials. If something is wrong with the TV, they will bring me a new one and take the old one away within the grace period. Most importantly, I know I'm getting a genuine Sony product and my warrantee is valid! I hope this helps those who are considering a significant purchase.
You don't have such problems about e.g. the warrant in any of the 25 EU-states: everything sold here gets two years warrant - "normal" retailers usually give you an additional one year (= 3 years for the product) to compete with the online shops.
If anything is wrong with a product, you can resent it, bought online or in a shop, at the seller's expense.
If you are sure you plan on buying a Sony then why wouldn't you go to Sony's WWW site and find the list of authorized on-line retailers from them instead of contacting every on-line seller you run into??
Seems to me that you are taking the hard route to get to your deisred end-point.
http://www.sonystyle.com/intershoproot/eCS/Store/en/lc/authorized_dealers/index.html