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whistonman
Posts: 2
Registered: 02-05-2012

PRICING POLICY

One way HDTV's are priced is: Price-Per-Inch (the overall price is divided by screen size....e.g., $600 / 42" =$14.29/per inch). I recently purchased the LG 42LK520 on sale for $559 (Best Buy's online sale price) which breaks down to $13.31 per inch. It is a little too small but, I love the T.V.. It so happens that LG makes a big-brother (the LG 47LK520...exactly the same, just 5 inch larger screen (I've checked the specs. with LG)). My question is this:

 

  • Why is the price for the 47 inch w-a-a-y out of proportion with the PPI....it's PPI is $17 per inch ( recall, the only difference is 5 inches of screen size)?
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Best Buy Employee
SlimJim77
Posts: 2,494
Registered: 11-23-2008

Re: PRICING POLICY

Hope you have a prescription for such powerful medication.

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I am currently employed at Best Buy. All post in these forums are of my own volition and in no way reflect the views of my employer.
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Recognized Member
rwillen
Posts: 166
Registered: 05-29-2010

Re: PRICING POLICY


whistonman wrote:

One way HDTV's are priced is: Price-Per-Inch (the overall price is divided by screen size....e.g., $600 / 42" =$14.29/per inch). I recently purchased the LG 42LK520 on sale for $559 (Best Buy's online sale price) which breaks down to $13.31 per inch. It is a little too small but, I love the T.V.. It so happens that LG makes a big-brother (the LG 47LK520...exactly the same, just 5 inch larger screen (I've checked the specs. with LG)). My question is this:

 

  • Why is the price for the 47 inch w-a-a-y out of proportion with the PPI....it's PPI is $17 per inch ( recall, the only difference is 5 inches of screen size)?

Pricing is about margin for the producer and the seller, it's not like buying fish per pound at the market

 

1) Production yields are lower on the larger screens, so larger screens mean more waste. More waste == it costs more to produce larger screens.

2) Sales volumes are higher on smaller screens, so margins can be lower for the seller.

 

The 55LK520 is at $29.00 per inch right now, just over twice the cost per inch of the 42" model.

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