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TheGas Occasional Visitor
Joined: Mar 11, 2005 Posts: 46 Location: Zommerset
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Posted: Thu Jun 30, 2005 4:53 pm Post subject: Substantial Price Reductions |
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I gather that later this year, there is a likelyhood that the prices of new TomTom's will be reduced by up to £100, due to the arrival of compeditors GPS models eminating from the Far East. |
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radavis Regular Visitor
Joined: Mar 27, 2004 Posts: 132 Location: Woodford Green. Essex. UK
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Posted: Fri Jul 01, 2005 1:10 am Post subject: |
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And from where do you gather this? |
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seanm Occasional Visitor
Joined: 17/10/2002 11:42:39 Posts: 49 Location: United Kingdom
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Posted: Fri Jul 01, 2005 9:23 am Post subject: |
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When the TT GO Classic first went on sale last year, they were priced at £499 (although you could source them on the web at around £450)
less than a year on you could get them £100 cheaper than this, so I would imagine thats true as it is for most technology items. |
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michaelh85 Regular Visitor
Joined: Apr 29, 2005 Posts: 73 Location: Leeds
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Posted: Fri Jul 01, 2005 5:19 pm Post subject: |
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Going by that theory, in four years time they'll be free.
Technology can only get so cheap and the fact is, with labour and logistic costs rising, the cost of an individual unit is going to remain steady, if not increase.
Most retailers only make about 20% margin on Tomtom units (certainly the case where I work), so there isn't much scope for further price reductions.
As for the cost drop from the Classic, don't take it at face value.
The TTG300 is £100 cheaper, but it is lower spec'd than the TTG Classic (less maps, no ASN).
The TTG500 is more or less the same spec-wise (with the addition of BT) and is priced around the same as the Classic was. |
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seanm Occasional Visitor
Joined: 17/10/2002 11:42:39 Posts: 49 Location: United Kingdom
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Posted: Fri Jul 01, 2005 5:59 pm Post subject: |
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But the TomTom Classics are now being sold for £399 or less, not the 300 |
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seanm Occasional Visitor
Joined: 17/10/2002 11:42:39 Posts: 49 Location: United Kingdom
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Posted: Fri Jul 01, 2005 6:02 pm Post subject: |
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Its is the same for all technology and that we early adopters must accept. |
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seanm Occasional Visitor
Joined: 17/10/2002 11:42:39 Posts: 49 Location: United Kingdom
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Posted: Fri Jul 01, 2005 6:34 pm Post subject: |
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Quote: | Most retailers only make about 20% margin on Tomtom units (certainly the case where I work) |
£110 quid margin on a Go 700!!!
I don't think thats too bad? |
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michaelh85 Regular Visitor
Joined: Apr 29, 2005 Posts: 73 Location: Leeds
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Posted: Sun Jul 03, 2005 6:18 pm Post subject: |
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seanm wrote: | £110 quid margin on a Go 700!!!
I don't think thats too bad? |
Not exactly, that figure is purely the difference between what the retailer pays for the product and what it sell the unit to you.
Then you have to factor in the other costs.
A %age will go to the salesman
Transport costs
Advertising
Merchandising costs etc
These soon eat into that 20% cost-to-sale margin |
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