Philip Wong
Senior Writer
CNET Asia
Economies of scale vs. price markups
Sounds familiar? This is one of the most common explanations consumer electronics makers and their distributors use to justify price markups in Asia. While it sounds logical compared with the sheer high shipping volume and demand in key markets such as the US and Europe, there should be a reasonable threshold, too. I feel there's a need to address this "touchy" issue after an all-out flaming war occurred in a forum on a newly launched S$3,999 (US$2,887) A/V product in Singapore, which retails for only US$1,999 in the US.
In this case, there's a 25 percent markup. But in view of a local warranty for peace of mind and other hidden costs such as shipping charges and localized adapters, the increase is relatively acceptable. Do you share the same views, or do you feel prices should reflect US costing more closely? That said, remember that you have a choice not to buy.
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