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Article: Stores fill the dish with add-on sales. (retailers of satellite television systems seek profits by selling related equipment)(includes related article on discount stores' marketing of satellite TV systems)
- Article from:
- HFN The Weekly Newspaper for the Home Furnishing Network
- Article date:
- March 17, 1997
- Author:
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Copyright informationCOPYRIGHT 1997 Fairchild Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK -- Retailers of satellite TV systems are combatting margin erosion by emphasizing sales of the total package: programming, large screen TVs, hi-fi VCRs and furniture.
Satellite TV systems -- the pizza-sized dishes that can deliver up to 200 channels of digital picture and sound -- had retail sales of $1 billion in 1995. Last year however, retail sales volume dropped to $750 million even as unit sales to dealers continued to grow reaching 3.31 million units in 1996 compared to 2.35 million in 1995. Fierce competition in the category has caused margin erosion, as average retail prices have dropped from about $700 a year ago to as low as $149 today.
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