Appliances Online CEO hits out at discounting rivals

Published on Thu, 03/05/2012, 09:37:18

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By Patrick Avenell

John Winning, the founder of Appliances Online and the CEO of Winning Appliances and BigBrownBox, has hit out at the discounting strategy of his rival retailers, including several NARTA stablemates.

In the latest post on his Winning.com.au blog, John Winning said it should come as no surprise that JB Hi-Fi’s performance has tailed off considering the company’s price-centric strategy.

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“It has been widely reported that electronics retailer JB Hi-Fi has slumped to a 3-year low, after the chain cut its full-year profit outlook because rampant discounting has damaged margins,” Winning wrote.

“Are you honestly shocked?

“When your tag line is ‘Always Cheapest Prices’, it should be no surprise they would continue to discount against other retailers to the point of not being profitable. Price has become the only trick left as many businesses swap knowledgeable sales personnel for a cheapest price guarantee.

“JB Hi Fi is not the only store with this cheap pricing mentality: other reputable brands stand by similar slogans and fellow online retailers even use words such as ‘cheap’, ‘discount’, ‘cash’, ‘negotiate’ and ‘price’ in their taglines.

“I find these kinds of promises troubling, particularly those that incentivise negotiating or paying cash. They suggest a consumer will pay too much if they don’t negotiate, and many shoppers would rather not.”

Click here to read the full post at Winning.com.au




That is a big call from john winning -anyone looked at his sell prices since day one-like i said BIG CALL
Posted by Stewart Carruthers. 03/05/2012 02:09:52 PM
So, John Winning has a problem with competitor retailers discounting? Well, John perhaps if you company wasn't so aggressive with its discounting policy, maybe your competitors may not feel the need to match your stupid prices. Why don't you raise AOL pricing to SRP, and watch your market share and turnover slide. If you're complaining about pricing being too low, then why don't YOU lead by example and raise yours? Checking on Appliances Online on a regular basis, I find that your pricing strategy leaves a lot to be desired, and then you have the gall to complain that your competitors are discounting? Are you serious or just delusional?
Posted by Paul. 03/05/2012 05:45:42 PM
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