Pioneer Electronics is shipping a new low cost CD receiver—the DEH-1300MP—with a Minimum Advertised Price (MAP) of only $70 that sets a new price floor for a top brand, given its features.
The device is already available on Amazon at $65 and at Al & Ed’s Autosound Web site at $69.99. It is expected to ship to other retailers within the next 60 days, according to our sources. Pioneer was unavailable for comment.
The Pioneer DEH-1300MP offers MP3/WMA playback and has a front panel auxiliary input jack to plug in an iPod or MP3 player. It comes with a detachable face plate and it has a wireless remote control.
By contrast a similar Kenwood low end piece, the MP-145 sells for $89 on Crutchfield.
Source: CEoutlook
Photo of Pioneer DEH-1300MP via Amazon
I can see this new pricepoint only being bad for Pioneer. Lower the value of the line, lower the profits and take an unsteady company and trash it. For us little guys I will advertise it, get the customer in the door, and sell them up to what is quality by selling: Ipod connectivity, expandability, bluetooth etc. On another note…I hear Sony is releasing a new cheaper lost leader as well. Where will it ever end?
I agree wholeheartedly with Susan. I spent ten plus years in specialty and another ten in the mass channel. The specialty guy\’s biggest problem is getting customers in the door. This product at this price point should help drive incremental customers to their stores…now their key to being successful is how effective they are at stepping customers to more expensive units. If all you do is sell the easy $69 pop then you might as well close the doors. It\’s funny how all the specialty retails complain about BBY. If I was still in the business I\’d open stores in their parking lot. it\’s the small or mid size regionals and .com\’s that are driving free install, free kits/harnesses etc. BBY doesn\’t give anything away. I think you should be overjoyed that you now have a reputable brand to sell to the customer who can\’t extend themselves beyond the entry level products. If you can\’t use this as a means to acquire new customers and SELL them on your service and expertise then bolt the doors and go home.
Susan, I think you fail to see how the prospective client thinks. In the real world, when they are shopping, the first thing that they think “is what meets their goals” with the least hit on the wallet. When I am a consumer shopping for an appliance I use the same method. The salesman are seen as someone who is trying to get more money out of you.
Instead of giving the “change or die” speech, explain to the shop owners how this is going to help them. Further explain to us Pioneers great decision to do this, as they pretty much just devalued their line,name, and reputation.
I am a Pioneer dealer, and surely won’t be bringing in this low end unit. They are so excited about this, the area reps are required to drive to each location and push it to the buyers asap.
Not to worry, Pioneer hasn’t been shipping anything all year. I doubt they will keep up with these either.
let’s see….to pay the rent, I would need to sell…. (working calulator…)… 50 million of these things.
no thank you.
If you are a specialty retailer, that customer is not coming to you because you have a $70.00 radio, if cheap is what they want they could go to Walmart and get the $49.00 special! They are coming to you because you are known for what you do, your customer service, your specialty items! Today\’s Retailers need to go back to selling product, not just being a order taker and learn how to sell yourself! Stop being so negative about the way things are. Things are forever changing, if you do not change you will not be around! There are many different avenues out there that you could get into to add more service to your customers and more money to your pocket! I am in 12volt Distribution and see it everyday, owners, salespeople, installers all want to complain about he way things are, but are so non-willing to listen to new avenues that they could take! The negative attitudes are going to get you NO WHERE! Remember change makes change and a attitude is a little thing that can make a huge difference!
So tell me… I think the 12 initiative didn’t work out
the only thing missing is the free kit and harness… oh wait…Crutchfield! And it even comes with directions also.
you guys crack me up on how you support these manufacturers… you can live without them.
One more thing that needs to be said. Between the profit on the product and the labor, is there a large enough margin to make the shops hourly rate? My shop is 65.00 per hour or set labor rate. at the set rate of 45.00 for the deck install and what ever the mark up is on the deck, can dealers expect to break the 65.00 per hr mark?
Well, between shops giving away installation and Mfg’s on a race to zero, we might as well lock the doors behind us. The whole industry could learn from a German line of tools called Festool. You can’t buy it for a different price anywhere. Our industry needs to wake up and smell the coffee. Between cheaper installs that should be more, products that are less and should be more, adaptivity that is behind the times and the economy tanking, we’re on death row. all it’s going to take is for the auto makers to go to 32 volt and make everything run on data (they already do) and we’re screwed. The aftermarket better get its schmit together and do it now.
If Pioneer does not see the light a change direction soon there will be no more Pioneer! Take a look at Pioneer over the last ten years! A once pround and thriving company selling the lastest technology, now having to pretty much give product away! We use to have customers that would buy only Pioneer because of the quality, technology and status of owning a Pioneer Car Stereo. I guess those days are over.
I just read the article. Even as $70.00 map (with little or no profit margin) the article stil says that the two dealers mentioned are selling them at $65.00 and $69.00. Price them at $20.00MAP and somebody will still be willing to sell them at $15 to say they are the “cheapest”.
I agree with Barry 100%. At what point will manufacturers and vendors learn that there is nothing wrong with selling a good product at good margin and making money. On the rush to be the “cheapest” we have lost out on quality in every case. Every year I see profit margins in our arena continue to erode. The manufacturers aren’t doing anything to help this problem by offering items even cheaper (with no profit left for the stores that sell them). What is the margin on this revolutionary $70.00 pioneer radio–$5.00? Try to pay the overhead for a retail location with $5.00 margin. In the not to distant future there will no longer be such a thing as a “local car audio dealer” as they will be unable to support themselves. We will be left with appliance stores selling low grade junk and no options if this trend contines. Way to go Pioneer. 🙁
I’m wondering if we can get this to the point of ZERO cost for head unit with a satellite radio subscription? Maybe we should seek ways to pay our consumer to partake of the latest technology? Personally, I think that when the kit and the interface cost more than the head unit….. At what point are we just telling our consumer that there is no value in what we sell?