Pioneer opens second US retail store in Phoenix, Arizona

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chuckdaly @ Nov 16th 2008 10:52PM

If Pioneer can manufacture a 50" HDTV for $1000 and put a MSRP on it for $4000, Bestbuy may pay about $2000 for the TV and sell it for $2500. Clearly, Pioneer can the sell the same set for the same price and make a larger profit. Pioneer wants other retailers to sell its products so it abstains from discounting its products at its own stores. Pioneer's goal is to display their products in a non hostil retail environment, where consumers will feel more open to ask questions. Pioneer then hopes consumers will search for cheaper prices and buy from other retailers. If they sell the products themselves, then this is just a bonus. This retail model applies to Apple, Bose, and Sony Style stores. In these stores, they are selling a brand rather than a particular product. Many times, they will display configured systems, showing how nicely their products work together. Big box stores often have a particular brand's products scattered throughout the store.

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chuckdaly @ Nov 16th 2008 10:52PM

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