Video Games Tutorials and News - We Bought The Cheapest Oled Tv. How Bad Could It Be. Skyworth Xc9000
Intro
Well, come on down to Skyworth Electronics. We've got LG OLED panel TVs for hundreds of dollars cheaper than the competition. You can fit so much TV in here. The only question is, how's that even possible? What's the catch and who's our sponsor? Are you running into poor quality article meetings?
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Skyworth 55xc9000
The TV retails for anywhere between 1400 and 1800 US dollars, which is actually more than LG's base tier A1 OLED TV. The difference, though, is that we've seen the Skyworth 55xc 9000 on sale for as low as 950 US dollars, which is considerably cheaper than an LG, even though it contains, as far as we can tell exactly.
It has the same OLED display panel as an LG1, but how could that happen? How could a third party buy Well, a panel from LG Display, who manufactures literally all large format OLED panels right now, and then undercuts LG Electronics on the price. There are a few factors at play here.
How so cheap?
One is that while LG Display and LG Electronics are obviously related companies, they are not the same company and they have very different goals. LG Electronics is in the business of selling premium consumer goods for high margins, which means they don't necessarily want to compete in the lowest price brackets.
LG Display, on the other hand, is focused on high-volume manufacturing and will happily sell to non-LG brands if it helps keep the manufacturing facilities running at Full Tilt. The second major factor is politics. Going back to my days as a product manager for an electronics retailer, my goals were twofold.
One was to make money, obviously. But the second was to generate hype and excitement around our store, and one of the best ways to achieve that is to heavily discount a popular product, but believe it or not, it's not as simple as just marking down whatever you want. Most people have heard of the manufacturer's suggested retail price, or MSRP, but what you probably didn't know is that many major brands, at least in the U. S., also have a second lower price called the "MAP", or minimum advertised price, and this exists for a number of reasons, but the most relevant one right now is that it protects the manufacturer's brand.
Linus business tips
You see, in the long term, nobody wants to be RCA, a once popular electronics brand that now scrapes by selling cheap Android tablets and refurb projectors, but it's a snowball effect that can happen very easily, much more than you'd think.
Consider this scenario: without your knowledge, your partner retailer sends out a customer newsletter on a Saturday with your product discounted to an unprecedented level. 2 sees this and immediately reacts by matching that price to ensure that they're not going to lose valuable weekend foot traffic.
When you get into the office on Monday, you've got two things to deal with. One is the big restocking orders from your two major accounts. Well, that's fine on the surface, but the second is the email from retailer 2's owner to your boss complaining about the unfair advantage that you gave to retailer one.
I mean, you didn't do anything wrong, but retailer one hit that crazy price on their own, but retailer two won't care and they'll be looking for you to make it right in some way, and they'll demand anything from an after the fact rebate on the units they sold over the weekend to a lower price on their restock order to a special deal on a different product so they can hit back at retailer one on the following weekend.
Often, they'll ask for all three. You can refuse, but you'll probably miss out on that order that's sitting in your inbox, and, in the longer term, you're going to risk damaging that relationship, which could incentivize the retailer to give up prime shelf or promotional space to your competitors.
So, you give in to their demands even though it means that you've lost money on the transaction. The good news is that, as a one-off, it's not the end of the world. Businesses lose money all the time. The bad news is that now that customers have seen that price once, many of them are going to hold off on their purchase until they see that price again.
So now your retail partners are putting pressure on you to discount again, to help them sell the slow-moving inventory on their shelves. And then the really bad news is that you don't really have a choice because you've got somewhere between three and six months' worth of inventory, you've got a ship ready to hit the port and you've got to sell it, so your choices are to suck it up and sell it at a small loss now to generate the cash flow that you need to operate your business, or wait for people to hopefully forget about the promo and risk not being able to sell it at all because maybe one of your competitors is going to come up with a killer product that totally blows it up the water, so you strike a deal with retailers one and two.
You say, take the darn things at the promo price, but don't expect to make a ton of margin on these things because it's your fault we're in this mess in the first place. They take the deal, and they're happy. They've got a wonderful promo item that they can use for the next few months, and you've solved your cash flow and your inventory problems, but now you have an even bigger problem.
If your products can't really be sold at a profit, you're going to have a really hard time attracting new top-tier partners to carry them, which means you're stuck with those idiots at retailers one and two, which means that this whole mess is probably going to happen again eventually. The only way to return to profitability is to cut costs on your products, which usually means that your quality suffers, which reduces the desirability of your products, which forces you to cut prices, which forces you to cut costs, and so on and so forth.
death, spiral one that will never come, by the way, to the LTT store because our products are great and our pricing is consistent. Buy a beanie or a water bottle today anyway coming back to TVs, you know what this article is about.
Who is skyworth?
Let's talk about who these guys are for a moment. Founded in 1988. LG, and Vizio, and their intention is to eventually raise their pricing and their brand perception later. Right out of the gate, I was really happy to see that it runs Android TV natively. It's not the most responsive Android TV experience I've ever had.
You really have got to point that boy out. Another unusual thing is that, out of the box, the TV seems to be configured to go into screen saver mode after just one minute and then go into a power saving mode where the screen turns off entirely after about another minute. That's extremely aggressive, and we have to assume that Skyworth is trying to preserve the lifespan of the panel now.
