Sony set to rape and pillage UK retailers
From the files of That Makes Less Sense Than A Thatched Hen and I Must Be Thicker Than A Hind Of Sow Because I Don't Understand, we bring you the news that due to the global economic crisis, Sony are to increase the price of their products.
By a up to a third.
Whether or not we'll be affected by the decision is unknown, as it's the retailers that'll be forced to fork out the extra cash. Sony are gambling that shops are so desperate for business, they'll still take Sony stock at the vastly increased price but sell it at similar prices to those available now, absorbing the decrease in profits by cutting costs elsewhere.
The Japanese company announced the decision just days after the pound fell to its lowest level against the euro, meaning the company will make far less from UK sales. A spokesman said:
"Sony UK can confirm that in the past 48 hours it has communicated to its trade channel that due to adverse changes in the Yen/Euro & Euro/Pound exchange rate over the last six months, and with this uncertainty set to continue into 2009, Sony will increase the trade price of a number of products over the coming months.
"The precise level of price increases has not yet been agreed, but it is likely that the vast majority of products affected will see increases of significantly less than 33 per cent."
So it's all about the Japanese company protecting its returns rather than charging customers more. But is that scenario really going to play out? Retailers are already exposed to the double whammy of an increase in operating costs and a downturn in sales - not unlike arriving home to find all your worldly goods set on fire, and then receiving an unexpectedly high gas bill. Will the price of Sony products remain the same or will prices increase to match? Or will stores decide to drop Sony altogether?