Colour television is booming in Britain

Press, Volume CXIII, Issue 33230, 21 May 1973, Page 4

Colour television is booming in Britain

The introduction of value-' added tax has given a great boost to the colour television market. The price of some sets is down to about £l5O in some cut-price chain stores. And the revaluation of the yen has done its work; British sets are now clearly

the best bargains. New sets as they arrive from Japan are likely to sell at around their pre-Vat prices, which will make them well over £2O dearer than comparable British receivers, says the “Economist.” The real fall in prices could come if the Americans decided to plunder the European market with sets adapted to receive European systems. Technically this

iwould present no problems,; although it might lift prices slightly’ above those in the American market which are: truly remarkable. The price, range is from £6B for a 10-in. set through £lOO for 16-in. sets to £lBO for a 25-in. set, and on a straight conversion

this does not rightly reflect just how cheap colour television has become in America I where personal incomes are | much higher than in Europe.; Retailers confident Retailers are still confident! of selling just about as many [ colour sets as they can lay; their hands on, although; there are signs of growings competition in credit terms. More people are switching to buying on credit at true interest rates of up to 25 per cent, in order to avoid what has been a six- to 10-week wait for delivery of a rented set. But now some rental companies are offering to deliver immediately. Suppliers outside the large chains give several reasons, the most common being that home' output has at last caught up; with a seasonal drop in de-| mand, Also more people can Jafford now to buy rather than' rent, and are beginning to do j so. This is freeing more sets: I for rent. Some old rented sets; :are also being sold at knock-!

down prices. The more 'aggressive of the credit firms :;could put a big dent into the ! rental business, even though 1 the customer probably still has to take out. a separate maintenance agreement, which can be \quite expensive. \

Buying tenta Laskys, king of thekTotten!ham Court Road elecfrical itrade, is offering Sony, Sanyor land Hitachi sets on a threeyear credit plan. After an 'initial 20 per cent deposit, [which compares with the [rental companies’ three months’ rent in advance, and [is a lot better than the year’s rental demanded by the smaller renting companies, the monthly repayments work out at less than monthly rental charges (maintenance is extra). Many of the discount chains can offer the same sort of terms and with a life expectation of at least seven years for colour sets there could be a switch to this type of trading. Even allow|ing for maintenance, the set [will probably work out quite |a bit cheaper over a seven[year period. ! For the rental companies [to hold their share of the !new business they must ireduce their prices as well las waiting lists.