Video prices drop $300

Press, 14 December 1985, Page 1

Video prices drop $300

By

SARAH SANDS

Christchurch video and microwave oven retailers have reduced prices on their stock by up to $350 after the Government’s announcement of the drop in import tariffs. A video that earlier this week sold for $1699 is now $1399; a $1799 microwave is now $1449. Tariff reductions were not due to come in to effect until January 1 but retailers all agreed that if stock was not reduced now, people would not buy until the New Year. . “We cannot wait until January 1 because people will not buy till then so what is the point in waiting?” said Mr Noel Leeming, manager of Noel Leeming T.V., Stereo and Appliance stores.

Leeming’s dropped prices from last evening and are absorbing the loss. “We have $1 million worth of stock that we are dropping about 25 per cent,” said Mr Leeming. . Videos were already the subject of a price war because of slow sales as people held off buying until the introduction of GST, said Mr Leeming. This meant that his stores were selling one model that usually retailed for $1799 at $1099.

“Customers are getting the benefits because of the price war on at the moment, and now this. “There could never be a bonanza like this. It is incredible that the Government could do this a week before Christmas."

Mr Leeming said that there would probably now be a period of boom-buying followed by a shortage of stock as suppliers held off importing more until after January 1. ' Mr Joh Mells, themanaging .. director. bf Microwave Specialists, who sells only microwave ovens through two shops in Christchprch, said last ' evening that the cut in tariffs was “the most dramatic thing that has happened in New Zealand retailing."

The price of the top-of-the-line microwave which yesterday retailed at $1799 would now cost $1499. The cheapest model, which yesterday cost $599, would today cost $479. Over all, microwaves had gone down 20 per cent and videos 30 per cent. The To page 8