COMMENT: Toshiba TVs Expensive

If you’re looking for a new Toshiba TV, Plasma screen or DVD recorder the chances are that the models you see in store are priced higher than the likes of Samsung, Acer, BenQ or LG.

The reason for this has nothing to do with quality its all about distribution.

In Australia Toshiba’s range of lifestyle technology products spanning rear projection TV’s, DVD recorders, plasma screens, set top boxes and LCD TV’s are not sold by Toshiba. They are sold by a distributor Castel who in turn have a sub licence from a Toshiba distributor in Singapore. As a result this pushes up the price of Toshiba products. What Toshiba Australia wants to do is take over the distribution of Toshiba lifestyle technology products in Australia. This will do two things. Firstly it will lower the price of Toshiba products in Australia. Secondly Australians will have access to a vastly expanded range of Toshiba products.

Why Toshiba Japan is resisting this move is anyone’s guess. Local Toshiba management are keen to do it but it will not happen without the approval of Toshiba Japan or the Toshiba management team in Singapore. Toshiba Australia already distributes notebooks and computer products and are well capable of taking on TV’s and home entertainment products. Castel is a distributor with limited resources and money as a result they can only afford to bring in a select range of Toshiba’s home offerings. Toshiba products that are not sold in Australia include projectors, home appliances, and an expanded range of home theatre kits.

So we come down to price. What LG, Samsung, BenQ and Acer do is deal direct with retailers such as Harvey Norman, Good Guys, and Bing Lee etc? This keeps costs down by cutting out a layer of distribution costs it also allows them to negotiate better trading deals directly with a vendor as opposed to a distributor.