Q Talk

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Posts: 35,477

Registered: ‎03-20-2010

NOW WE SEE WHY QVC HAS SO MANY ELETRONIC SHOWS

‎11-27-2012 04:22 PM

Keep in mind this article is from 2010 but still interesting.....BEWARE SHOPPERS DO YOUR HOMEWORK TO GET THE BEST DETAILS!

www.centernetworks.com/qvc-sells-electronics-ipod-wii/

Allen - December 15th, 2010

Comment on Here’s How QVC Maximizes Revenue on Electronics Sales" QVC has always done a good job when it comes to the quality of their programming. Their sets and graphics are always improving and their QVC hosts seem a notch ahead of competitors including HSN. QVC pushes their social media efforts and even hired “social media host”

One of the things that is pretty amazing is how well they are QVC is able to take electronics and create “packages” which sell for a much higher price than the item sells for alone. Their packages remind me of my days working at The Wiz in NYC where every salesperson knew that the best spiffs were on accessories and rarely on the main products themselves. That’s why a computer rarely went out the door without a surge protector or mouse pad.

If you are wondering if anyone actually buys the packages QVC offers – they claim to have sold 7,500 of the iPod Touch 8gb packages this month.

I have two examples of how QVC maximizes revenue on their electronics sales — the iPod Touch and the Nintendo Wii.–

QVC vs. Amazon/Apple Store

The 32nd 4th generation iPod Touch launched today as a bundle on QVC for a whopping $426.80. Before we get to what’s included in the QVC bundle, the base device is currently selling for $299 and Amazon is selling the for $244 after $25 gift card. QVC charges a whopping $11 for shipping plus sales tax in all states.

The simple math comparing QVC to Amazon – QVC total price $474, Amazon total price $244. That’s a $230 dollar difference! You could buy a 2nd iPod Touch from Amazon for the same price as the bundle on QVC!

So what does QVC include in their “bundle” to make it a great value? Remember the V in QVC stands for Value!

AC charger
DC car charger
Audio cable and FM transmitter
Stereo splitter and extra earphones
Plastic case and four screen protectors
Silicone case with armband strap

The total for the accessories ranges from about $18-40. You could easily find these items even cheaper on eBay. But if we take Amazon’s price of $244 and add in the accessories for an average of $25, we end up at $269. This is still $200 less than the QVC total price of $474. That $200 sure could buy a lot of iTunes gift cards– QVC vs. Amazon and Newegg

While I won’t go through the item-by-item comparison as I have done for the iPod above, you can see a similar “bundle” deal when you look at the Nintendo Wii. The QVC bundle includes the retail Wii package, an extra game and some plastic pieces you connect to the Wii controller including a tennis racquet, baseball bat, etc. Interestingly, the “Wii expert” doesn’t even use these plastic pieces when he demos the product on tv and I doubt many customers will use the plastic pieces for any amount of time.