‘Majority of PC indies are getting their pricing wrong’ – Target Components

Distributor Target Components has published its fourth ShopTalk National Retail Price Comparison report, and has found that independent PC retailers are still getting their pricing wrong.

Two thirds of indies under-price by 15 per cent on average, compared to the free market.

Paul Cubbage, MD of Target, says indies do this to compete, but suggests that low pricing actually fails to improve sales.

“Indies overlook the link between price and quality”, he said.

“Our data proves consumers value quality. They choose indies because of their expertise and trustworthiness – and are prepared to pay.

"By pricing below the free market, indies are devaluing their position as specialist, niche players.”

The report found that average indie prices are lower than those of their multiple rivals, but are most resilient on higher priced lines.

2014 also saw a notable increase in sales satisfaction – up some 3.5 per cent on 2013 – but in 2015 overall satisfaction fell back to 3.28.

In addition, the report found that 50 per cent of indies offer as broad a range (or greater than) PC World.

171 retailers contributed to the report, which can be found in full here.

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