Sony dumping current reader stock?

[Pinecone]

Originally Posted by Hellmark

But they do control how many they can buy. If they're offered 500,000 but only buy 100,000 and sell all devices made with 100k, while their competitor then buys the remaining 400,000 and sells those, what can you say about that? Sony had the ability to buy, but didn't buy as many as they were capable of. If eInk was going to offer Sony first crack at the Pearl displays, before Kobo and nook, why limit the number of displays to a number less than the competition?

Also, eLink? Don't you mean eInk? No "L".

Do you know why they are limited? Is it all they want to buy or how many eInk will sell them?

Either way, Sony is selling all the readers they make. AT THEIR PRICE.

Basic business, if you sell all your product at your price, why lower your price?

[tubemonkey]

Originally Posted by Pinecone

Basic business, if you sell all your product at your price, why lower your price?

If I make and sell 2000 widgets at $10 above the price of the competition, my business will thrive?

[murraypaul]

Originally Posted by Pinecone

Basic business, if you sell all your product at your price, why lower your price?

Because you aren't selling in enough volume to cover your fixed costs and development?
Because you want to be more than an irrelevant bit player?

[Hellmark]

Originally Posted by Pinecone

Do you know why they are limited? Is it all they want to buy or how many eInk will sell them?

Either way, Sony is selling all the readers they make. AT THEIR PRICE.

Basic business, if you sell all your product at your price, why lower your price?

If you've had to reduce production because of slipping sales. In 2009, Sony sold 1.1 million Readers, in 2010, they sold 800,000. (For 2011, they've refused to give any numbers) Would you rather make 1.1mil items, and have 300k sitting on shelves, or make 800k and sell all 800k? This way, you're not over producing and can say you're selling out. It's basic Hand and Mouth production, make however many you need when you need it. If you end up needing more, you make more.

When ebook readers were hundreds of dollars, they were on par with most of their competition, and they had a head start, so their name was out there. Now, however, their competition has severely undercut them on price, . When I bought my reader, the Kindle was $289, and my 505 cost me $249.95, on sale from $299.95. If I had not got the sale price, $10 wasn't a big deal, since we're talking $300 here for either. However, this past year, Sony was selling the PRS-350 (cheapest model) for $179, and Kindle for $139. $40 at those prices is a huge difference. For the average person, they see that kindle is coming with wifi, and other things that the Sony didn't. Hmm, tough choice, pay less for Kindle or nook, and get more, or go with Sony.... Yeah right. And that is not even taking the Kindle Special offer into account at $114.

[Pinecone]

Originally Posted by murraypaul

Because you aren't selling in enough volume to cover your fixed costs and development?
Because you want to be more than an irrelevant bit player?

And lowering you price will cover you fixed costs and development how? If you aren't covering those costs, RAISE your price, IF you are selling all you are making. Or make more and increase volume. At which point, you may consider lowering the price to increase volume.

But if you have a fixed supply, you CANNOT INCREASE VOLUME.

[Pinecone]

Whatever the reason Sony made less, there was a limited supply, that were selling out.

But yes, I would rather make 800,000 units and sell them at $300 each, than to make 1.1 million and sell 800,000 at $300 and eat 300,000 of them.

But would YOU rather sell 800,000 units at $300 each, or 1.5 million units at $150 each?

[Hellmark]

Originally Posted by Pinecone

..have a fixed supply.

And you know this how?

[murraypaul]

Originally Posted by Pinecone

But if you have a fixed supply, you CANNOT INCREASE VOLUME.

The entire basis of your argument is that Sony is unable to buy any more screens, for which you have presented no evidence whatsoever. Given that many other manufactures seem to be able to produce in volume, it seems implausible.

[Sil_liS]

Originally Posted by Pinecone

But yes, I would rather make 800,000 units and sell them at $300 each, than to make 1.1 million and sell 800,000 at $300 and eat 300,000 of them.

OM NOM NOM NOM

[tubemonkey]

Originally Posted by Sil_liS

OM NOM NOM NOM

Spoiler:

[Hellmark]

Originally Posted by murraypaul

The entire basis of your argument is that Sony is unable to buy any more screens, for which you have presented no evidence whatsoever. Given that many other manufactures seem to be able to produce in volume, it seems implausible.

I've mentioned this before, but they've seemed to ignore that and keep insisting that it is a supply issue. Like I've said before, why would eInk give Sony and Amazon six month exclusivity over the competition on Pearl displays (while they were ending production of the older style Vizplex displays), only to sell fewer displays to Sony than any of its competition (including those who did not have the exclusivity, like Kobo and B&N). It just is simply illogical.

[carpetmojo]

I remember elcreative [I think it was elcreative anyway, sorry if I' wrong! ]
telling how one could hardly get in the door of the Brummy Waterstones for PRS's - how's it looking now ?
Cos the more I see of the T1 the more I feel like buying another "set" of 'em, to be honest.......

[Arrghus]

Originally Posted by carpetmojo

I remember elcreative [I think it was elcreative anyway, sorry if I' wrong! ]
telling how one could hardly get in the door of the Brummy Waterstones for PRS's - how's it looking now ?
Cos the more I see of the T1 the more I feel like buying another "set" of 'em, to be honest.......

You can still find the Sony PRS-350 available widely in Waterstones stores. I was in one branch earlier today, and they had loads of silvers left. I didn't spot any PRS-650s however. The Sonys aren't on display any more either. They seem to have switched in all the stores I've been to recently to Bookeen and Onex (at least I think that was what they were called) devices. The Bookeen has a nice display, but little else going for it as far as I could discern, and the other is an LCD reader much in the vein of the Nook Colour.

If you do want a PRS-650, the red version is currently on sale on the Waterstones website:

http://www.waterstones.com/waterston...eader/8559723/

The silver PRS-650 is still full price, and the smaller Readers are unavailable online.

Hope this helps!

[HansTWN]

Originally Posted by tubemonkey

If I make and sell 2000 widgets at $10 above the price of the competition, my business will thrive?

Some day even you will discover that price isn't everything . And in business you will also find out that someone will always be cheaper than you. Trying to be the cheapest is not a way to make money unless you make Chinese junk quality products. And as I know first hand, those that do sell super-cheap lousy quality items are going out of business in droves these days. They just can't handle the 30% wage increases each year and labor shortages. And they neither have the know-how nor the resources to upgrade. Competing on price is a dangerous game. With low margins one misstep may mean you are gone.

And a lot of people think differently than you do. I choose what I want and then I try to get the best price for it. I may not buy it if it is very expensive and I feel it isn't worth it. But I would never settle for some substitute item that I think is not as good or nice just because it is cheaper. Even if the substitute is a lot cheaper and I think it might be good enough.

[carpetmojo]

[QUOTE=Arrghus - ............Hope this helps![/QUOTE]

Thanks Arrghus, just 't job....