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How Much Are You Paying For Electronics Labels?

An anonymous reader writes "Interesting article on CNET about different consumer electronics brands selling identical OEM products, often at wildly different price points. The author also examines the phenomenon of manufacturers releasing "consumer" and "industrial" versions of the same product -- with the cheaper version aimed at businesses. Probably old news for the slashdot crowd, but it's worth reading to see how much Middle America is overpaying. Caveat emptor, indeed." And there are also product lines where the expensive version is aimed at business buyers, because a higher price implies greater credibility.

28 of 548 comments (clear)

  1. Old News Indeed by DynaSoar · · Score: 4, Informative

    Old news indeed. I knew this to be the case in TVs when I worked for my father at his TV store in the 60s. It was especially prevalent in home stereo equipment in the 70s and 80s.

    The major manufacturers create their own "competition" to flood the market with at the most popular price ranges, often selling under 4 or 5 labels simultaneously, and not all of them at the same price level, despite identical guts. Three major Japanese manufacturers accounted for 14 brands at a "super-store" I visited on a research jaunt, back when I sold the stuff.

    Want an eye opener? Go find out who obtained the patents on VHS and Beta VCR systems. Not the current patent/license owners; the creator sold the license for one of them to a competitor, so that no matter which format "won" they'd still be making money.

    --
    "I may be synthetic, but I'm not stupid." -- Bishop 341-B
    1. Re:Old News Indeed by Admiral+Llama · · Score: 2, Informative

      If they're anything like Sony, they're all borderline. Sony products have gone to hell. Remember when you used to be able to use a Sony CD player as wheel chocks or a battering ram, and it'd still work peachy? Now they barely survive the 90 day legal minimum warranty.

    2. Re:Old News Indeed by Kurt+Russell · · Score: 3, Informative

      As someone who has worked in a Cadillac-Buick dealership I can tell you "MOST" gm products are the same.
      Look in any professional service manual, you won't find Buick, Olds etc; you'll find "j body" "b body" "F body" and so on.
      The difference is in trim packages.

    3. Re:Old News Indeed by MbM · · Score: 5, Informative
      Adding this to the userContent.css in mozilla or firefox should clean up most of it:
      td[bgcolor="#A69D78"] { background-color: #006666; }
      td[bgcolor="#EBEBE1"] { background-color: #CCCCCC; }

      td[background="//images.slashdot.org/slashcor ner-it.gif"],
      td[background="//images.slashdot.or g/slashbar-it.gif"] {
      background-image: url(//images.slashdot.org/slashbar.gif);
      }

      bod y[link="#A69D78"] a:link,
      font[color="#A69D78"] { color: #006666; }
      (note, due to slashdot lameness you may need to remove extra spaces)
      --
      - MbM
    4. Re:Old News Indeed by ryanwright · · Score: 3, Informative

      If they're anything like Sony, they're all borderline. Sony products have gone to hell.

      Worse than that, the bastards don't honor their warranties. When HDTVs were brand spankin' new, I spent $4,000 on a large Sony set. Came with a "Red Carpet Warranty" that guaranteed repair within a week and replacement with a new one if they couldn't repair it within two weeks.

      Day 2 of ownership, the TV breaks. Diagnostics report a bad circuit board. No problem, so I call Sony. The tech takes 2 weeks to get here. Then he beats the guns on my $4,000 set with the back of a screwdriver, tells me "this tv is too new, the service manual isn't out yet" despite the fact that I had downloaded one the day before (how do you think I knew how to access the diags?!). I tell him this. He says no, he's going to replace one of the guns. Of course now the TV is much worse than before - all three guns are damaged from him hitting them for over an hour. Oh, and parts are going to take another month to arrive.

      So I call Sony to get my replacement TV. "We're sorry sir, we can't do that." Uhm, what? I have a piece of paper right here that says you will. "Sorry sir. We don't have a TV to send you." After half an hour of arguing I called Best Buy up and told them to come get the set. Bought a nice Toshiba instead.

      I haven't required service on my Toshiba, but I did call their warranty department before I bought it and faked like I had a broken set. They answered the phone within a couple of minutes - Sony was over an hour on hold every time. They were polite and promised to fix my TV right away (that's when I confessed I really didn't have one, but that they had just made a sale).

      I will never again buy another big ticket Sony product. Never. If I'd had the time, I would have sued the bastards for not honoring their warranty. But since it happened so soon after purchase, I had Best Buy on my side, so no need.

      --
      -Ryan, with the unoriginal sig
    5. Re:Old News Indeed by Stormgren · · Score: 2, Informative

      I really hate to tell you this, but Dell's laser printer offerings are really rebadged Lexmark units, with the same shitty utilities. This is assuming, of course, that Lexmark printers are not OEM'd from somewhere else.

      We just got done reviewing one. Same shitty printer, same shitty utilities. My boss didn't get it until I was showing him that the NDPS gateway module that needed to be loaded to interface to it was the Lexmark gateway.

      He had been arguing that it was a Dell printer, no matter that it looked just like the two Lexmark printers right next to it.

      Point being, it's still HP competing against Lexmark, even though it says Dell.

      --

      "All those tubes and wires and careful notes!"

  2. Re:Alienware by Anonymous Coward · · Score: 5, Informative

    Wrong.
    Sager resells Clevos, just like Alienware. Although, the latest Area-51m is a Uniwill I believe.

  3. Another dell example by rabtech · · Score: 4, Informative

    If you want to get even cheaper on managed switches, SMC gear is the exact same thing that Dell is selling at half the price.

    You see Accton makes a ton of unmanaged and managed gear. They sell bigtime to the OEM market, and they also make most of Dell's stuff.

    Who owns SMC? Accton.

    Crack the cases and look at them side-by-side and it all becomes clear. Buy Dell and you pay twice as much for the same exact switch. Buy two for the same price as the Dell and you have support that even Dell can't beat - an always available spare!

    --
    Natural != (nontoxic || beneficial)
  4. There is some help available by Anonymous Coward · · Score: 2, Informative

    ConsumerReports.org
    I used to have a subscription to the magazine. It was quite useful. Now, unless something is really a lot of money, I don't research the purchase anymore. I just buy the cheapest thing that will do the job. That usually works fine.

    In Canada, we have a publication called LemonAid. It gives really good information about buying new and used cars. It is published by the Automobile Protective Association. I won't buy a car without checking it.

    The bottom line is that we are not completely helpless in the face of manufacturers' bs.

  5. This is no different by jeffkjo1 · · Score: 3, Informative

    This is no different than the automobile industry

    Ford = Mercury = Lincoln
    Chevy = GM
    Chrysler = Dodge
    Honda = Acura
    Toyota = Lexus = Scion
    Volkswagen = Audi = Porsche

    The automobile family tree runs back over itself in so many different ways. Ford owns part of Mazda, and they both produce an identical SUV... with different name badging.

    1. Re:This is no different by RESPAWN · · Score: 2, Informative

      Volkswagen = Audi = Porsche

      I may be wrong on this one, but I don't think that Vokswagen actually owns a stake (or a major stake, anwyay) in Porsche. I know that they will occasionally partner to develop some vehicles together (Cayenne/Toureg being the most recent) due to Porsche's limited R&D abilities in non-sports car markets, but despite the fact that Ferdinand Porsche created the original Volkswagen, I don't think Volkswagen (the parent company of Audi, which in turn is now the parent company of Lamborghini) owns any major stake in Porsche.

      But I could be wrong...

      --

      If Murphy's Law can go wrong, it will.

    2. Re:This is no different by Osty · · Score: 5, Informative

      Ford = Mercury = Lincoln

      = Mazda = Volvo = Aston Martin = Jaguar


      Chevy = GM

      = Pontiac = Oldsmobile (dead now) = Cadillac = Saab


      Chrysler = Dodge

      = Mitsubishi = Mercedes-Benz


      Toyota = Lexus = Scion

      = Chevy = GM (well, not quite -- Toyota rebrands the Cavalier in Japan, but otherwise there's little sharing between the two companies)


      Volkswagen = Audi = Porsche

      And this one is wrong. Volkswagen = Audi, but not Porsche. While it's true that Dr. Ferdinand Porsche started Volkswagen, and the Pieche and Porsche families have controlling interests in both the VAG (Volkswagen Automotive Group, including Audi, Bentley, and Lamborghini) and the PAG (Porsche Automotive Group, which is just Porsche), the Porsche car company is independently owned and is not part of Volkswagen. Parts and platforms are shared (the original 356 engine was a VW, as was the engine for the 914; the Boxster and 996 share relays and other mechanical parts with VW and Audi models; the Cayenne and the Touareg are built on the same platform; etc), but the companies are not the same. In all of your other examples, the companies are partially or fully owned.


      The automobile family tree runs back over itself in so many different ways. Ford owns part of Mazda, and they both produce an identical SUV... with different name badging.

      And it's only getting smaller. Gone are the days of many different manufacturers (for example, the single company Audi, which is now only a part of a larger company, started life as four independent companies -- thus the four interlocked circles of the Audi badge), but even back in the early days of automotive development there was a lot of "cross-polination". For example, Dr. Ferdinand Porsche helped built a number of early cars long before he built the first Volkswagen (and even longer before the first 356). Among others, he did plenty of work for Mercedes-Benz and the German military (the Panzer Tiger was designed by Porsche). Porsche still does non-Porsche design work today, such as the engine on the Harley-Davidson V-Rod (this by the Porsche car company, and not the independent Porsche industrial design company).


      That's not to say that the different badges don't bring something more to the table. I doubt you'd object that a Lexus ES500 is more luxurious than a corresponding Toyota Camry, or an Acura TSX compared to a Honda Acura. The platforms may be shared, but in many cases the "up-market" brand model will have a larger engine, better suspension (either tigher or softer, depending on the goal -- sports car or luxury car), fancier interiors (leather, woods, metals instead of plastics and vinyls), more options (navigation, sound options), etc. That's not always the case, since many Chevy and Pontiac cars are exact matches minus body cladding (Grand Prix and Monte Carlo, especially before the late-90s/early-00s body redesigns of the cars; Camaro and Firebird prior to the cancellation of the F-body line; Cavalier and Sunfire; etc), but Cadillac is GM's upscale brand, and it shows. The Cadillac CTS (not CTS-V) may be nearly identical to a Chevy Impala, but the CTS is going to be more luxuriously appointed. Perhaps not enough to justify the $10,000+ price difference, but enough to justify some increase in price.

    3. Re:This is no different by Anonymous Coward · · Score: 1, Informative

      Porsche != Volkswagen. If you refer to this pathetic SUV Cayenne, well that is a different story. But SUV != Porsche anyway ...

      Also, Audi may belong to VW but operates its own R&D. Typically things trickle down from Audi into VW products, so if you want i.e. next generation motor engines you'll buy Audi.

      For the rest you seem to be correct. GM is the worst offender in that respect anyway.

    4. Re:This is no different by MarcQuadra · · Score: 2, Informative

      That has to do with the kind of driving people with different amounts of money tend to do.

      Kids in the ghetto tend to be in inner-city traffic more, they get the prizm, and they can't pay for every brake-job and oil-change they need. Young professionals get the corolla, commute on the freeway, and take their car to the dealer until they learn better.

      It's no wonder the corollas were going farther and longer. Hell, I'd take better care of a more expensive car thean the cheap-o model!

      --
      "Sometimes, I think Trent just needs a cup of hot chocolate and a blankie." -Tori Amos on Nine Inch Nails
  6. also with gasoline, for the most part by LighthouseJ · · Score: 2, Informative

    I saw a great show on the History Channel about the history of the gasoline. Long story short, there are two types of gasoline pipes used to transport, dedicated and community. Dedicated transport pipes transport only one brand gasoline, and I believe Texaco and someone else has their own dedicated lines.

    The rest use a pipe network that takes 14 days to send gasoline from one end to another. The system is setup that you can put in X gallons at one end and extract X gallons the same day from the other end, in effect it shares gas.

    The caveat I alluded to is when gas companies extract the gasoline from the pipeline, they do add in additives to improve performance, help maintain seals, et al. However, the additives are for the most part the same too.

    They don't have 3 gas pipes for each grade, 87, 89 (91 if you have it), or 93. They have one pipe, and they have to send all different octanes through. The gas does mix and when the transition gas (there's a proper name for it) is extracted (it doesn't go in the tanker truck), it's sold to other companies that don't care about octane ratings, that just want gas for industrial purposes.

    1. Re:also with gasoline, for the most part by pipingguy · · Score: 2, Informative
  7. 3rd degree price discrimination by Harpua22 · · Score: 2, Informative

    This practice is called third degree price discrimination. Basically it indicates that an economist working for the company has separated the market into two or more segments. Through studies, they have determined that the price elasticity of demand is different in each of these segments. (this means that a 1 percent change in price in each of these markets will produce different changes in demand for the product). Because of this, it is possible to maximize profits by selling the product in the two different markets for different prices. (since firms sell at the price where marginal revenue is equal to the marginal cost of producing one more unit of the good, it is to their benefit to separate this marginal revenue for the two different markets, as the market that will accept the higher price will increase profits significantly.) An example economists like to give is selling goods at an airport. People are willing to pay more for the equivalent good at an airport for the convenience of having that good now, while they wait for their plane.

  8. Re:I just have to say this by reidconti · · Score: 2, Informative

    Yup, guess the 20gb ipod for $299 is a huge scam over the $270 dell DJ.

    Not to mention the overpriced iPod mini -- $250 for a unit that contains drives that retail for $449 according to the lowest price Hitachi will point you to (J&R Music world).

    Yes, I'm aware the Creative MuVo is cheaper, but honestly not that much. And clearly not the same product with the same great support and return policies, and...

  9. Re:consumer versus industrial electronics by Kiryat+Malachi · · Score: 5, Informative

    Usually industrial parts are bin-sorted, because suppliers get it through the nose if their parts fail during a QA run (I've watched a Fortune 50 company refuse to do business with a chip house until they fixed some issues with one of their processes - Wal-Mart tactics get used all over). As a result, if the manufacturer can't guarantee the spec by design, they'll bin-sort.

    On the other hand, at least for chips its unusual for there to be any difference between the parts other than the guaranteed temperature ranges (consumer is usually 0-70c, industrial is usually -40 to 125c, and military is usually -50 to 150c). Industrial parts come at a minor premium over consumer, while milspec parts come at a major premium over industrial.

    So, to make it short - 90% of the time, ICs are bin-sorted and sold as binned. Every once in a while, you'll come across a consumer part that runs like an industrial, but its rare.

    --

    ---
    Mod me down, you fucking twits. Go ahead. I dare you.
    (I read with sigs off.)
  10. Re:Dell is a big example by tsangc · · Score: 2, Informative

    The desktop precision systems are the same as well. Just a Optiplex or Dimension with a good video card.


    The difference between Precision Workstation (and similar products from Compaq and IBM) and other systems, are that they are qualified platforms for specialized applications. So if you want to run a specific MCAD/CAE suite, nonlinear editing tool or scientific visualization system, the fact that your application vendor has already qualified the machine is a major benefit, since the platform has already been integrated and tested and incompatibilties have been ruled out. Especially with vertical market applications.


    You may be able to buy Dimension cheaper (though I found the Precisions in fact were cheaper because you could unbundle the home/small office items like speakers and "internet" keyboards) but you'll pay for it in the time you spend sourcing the video card, installing the driverset, and explaining to the support engineer from your app vendor what system you have and why you're not running a qualified platform.

  11. Even in network gear!!! by Ayanami+Rei · · Score: 2, Informative

    Compare:
    SMC TigerSwitch 8624T
    Dell PowerConnect 5224
    NetGear GSM7324
    DLink DGS-3324SR
    Well, that's all of them, except for Linksys, which is just rebranded Cisco equipment.
    And of course, they all use COMPLETELY DIFFERENT firmware. Lovely.

    --
    THIS THING CAN TURN ON A DIME, MACROSSZERO STYLE ALSO FUCK BETA, ~NYORON
  12. Re:Service and Volume are the factors by seanadams.com · · Score: 5, Informative

    I'll comment on this since I've reverse-engineered both products.

    They accomplish EXACTLY the same thing but the two products run completely different hardware AND software. Linksys does this so that they can pit one vendor against another until neither makes any money.

    The wireless gaming adaptor uses a MIPS clone from SiliconData with integrated PCI and ethernet interfaces and a Mini-PCI 802.11g card.

    The WET54G uses a Ubicom processor (same as what's in the WET-11 except 160MHz instead of 120MHz. It has a Davicom 10/100 MAC and a Cardbus 802.11g card.

    Both probably cost exactly the same to produce, but having two designs gives leverage on the supply side and the ability to justify two vastly different price points on the shelf.

  13. Re:Service and Volume are the factors by wolfemi1 · · Score: 2, Informative

    There is a similar situation with the "Disk Doctor", "DVD Doctor", "Game Doctor", etc. These products, once you read the manual, readily admit that they are all identical CD cleaning kits. I guess that people will pay more money for a product that they feel is specialized to their exact needs, than for one that is general-purpose and might work just as well.

  14. DEC's $27.000 disk drive by rfc1394 · · Score: 3, Informative
    Back in the 1970s, Digital Equipment Corporation (DEC) sold mainframes, minicomputers and various components to go with them. One of which was a 100 MB disk drive, which was about the size of a washing machine. It also cost (then) $27,000. It was also possible to purchase disk drives that would work the same as DEC's from the company that was considered the best disk drive maker in the world, Control Data Corporation (CDC), for about $7,000, plus you had to spend about $700 for a controller card (DEC's drives had the controller built in.)

    It was commonly said about DEC equipment was that it was good stuff, high reliability and well built, but expensive. One oft-repeated comment was "We'd love to be an all-DEC shop but we can't afford it."

    Apparently someone who owned both the expensive DEC drives and the less expensive - but still extremely reliable - CDC drives decided to take a look and see why the DEC drives were so much more expensive. They had to do some preventative maintenance on one anyway so they decided to look at both of them. So they disassembled both and checked them out.

    Apparently what it was, was that DEC put together a high quality drive, added some electronics to it, and built their own from that. And what did DEC use for the high quality drive that they sold for $27,000? The very same $7,000 drive from Control Data!

    --
    The lessons of history teach us - if they teach us anything - that nobody learns the lessons that history teaches us.
    1. Re:DEC's $27.000 disk drive by scharkalvin · · Score: 2, Informative

      I worked for DEC in the late 70's so I can comment on this one:

      DEC's RK02 and RK03 disk drives were side loading cartridge drives that were OEM versions of third party drives. But DEC added their own electronics and changed the formating. It WAS possible to use the third party drives, with some user installed mods. The DEC RK05 disk drive was built from the ground up by DEC. It was a vastly improved version of the OEM drive (IE: voice coil head movement vs stepper motor). The RK05 DID use the same heads, and cartridge though it doubled the capacity. The RK05D doubled the capacity again.

      DEC's RL01 and RL02 were top loading drives based on a third party drive. These used some of the parts from that drive, but most of the design was totally DEC's

      The DEC designed drives were almost always vastly improved over the original units, had increased capacity, and better performance. What DEC did was to avoid re-inventing the wheel, they just improved it.

  15. Re:Paint too by nelsonal · · Score: 3, Informative

    A friend worked at LambWeston (a potato processor) who sold fries to most fast food stores. McDonald's picked the most rotten spuds, while Arby's and BurgerKing had the best spuds. The translucent crispy part of a McDonalds fry is rotten potato. The current secret to McDonald's fries is a bit of sugar mixed with the salt. If you don't believe me add some to the next batch of fries you get, they will taste just like McDonald's with a bit of sugar.

    --
    Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
  16. Re:Dell is a big example by jayteedee · · Score: 2, Informative

    Slight correction: The Poweredge 400SC can cost as low as $250 with the Celeron processor and $300 with the Pentium 4 (2.4Ghz) with Hyper Threading (HT) after rebates which are common on these units (just watch techbargains.com). Well worth the upgrade to the Pentium with HT because of the dual-port RAM (800 Mhz) as well as HT, and of course, the faster Pentium processor over the Celeron. I have one with the Pentium chip and two PC3200 RAM chips and this system just screams. Plus it is built like a tank, particularly the power supply. The motherboard is the I875 from Intel and it has gigabit ethernet and SATA. One of my drives, a 250 gig Hitachi is on the SATA and the other is on the regular EIDE. I can copy a DVD movie (4 GB) is about 2 minutes and 30 seconds. Whisper quiet unless you are really pushing the processor hard, then you might hear a little bit of fan noise. Comes standard with a 7200 RPM 40 Gig drive. Only complaint is the cover they put on the front blocks the USB 2.0 ports that are ALREADY INSTALLED ON THE FRONT!!! - wierd. Quick Dremel job fixes the problem, but it isn't as pretty as a correctly designed case. They do have 6 USB 2.0 ports on the back, so you could just run a hub or a few extension cables to the rear of the case to get easy front access. Nice, Nice, Nice. I highly recommend these machines. Oh, one more thing, these machines don't come with an operating system (no MS tax, yeah). I've installed win2000, Mandrake 9.2, and win2000 server(only $50 through non-profit routes), all with no problems. If someone can show me a better machine than these for the money, I would love to hear about it (after I call BS first).

    --
    Religion and science are both 90% crap..but that doesn't negate the other 10%.
  17. Re:Not just electronics by anticypher · · Score: 3, Informative

    Although the batteries may come from the same manufacturer, and probably all from the same batches, there is a difference. At the end of the manufacturing step, the batteries are carefully tested using some precision electronics to measure things like internal resistance and impulse current. The subtle differences at that stage reveal whether a battery will die earlier or last longer. That is what determines which reseller label gets applied. The higher margin, well known brands will take bin 1 or bin 2 cells, lower margin store brands like to buy bin 5 or bin 6, which have a slightly lesser capacity. At the low end are the cells from bins 8 or 9, which will have a shorter shelf life, and die after a small amount of use. Those low quality cells tend to end up included with toys and other cheap consumer goods sporting a generic label.

    The differences between the best and medium quality is not much, but the reject cells can be pretty bad.

    the AC

    --
    Hemos is like...sci-fi fans;he thinks technology is cool, but he hasn't bothered to understand the science it's based on