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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.

23 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 Otter · · Score: 5, Funny
      Want an eye opener?

      Yes, I do. This horrific color scheme has caused me to go blind -- I hadn't realized beige could be made so painful.

    2. Re:Old News Indeed by kfg · · Score: 5, Interesting

      Ever notice that competing businesses often locate next to each other? This is not so much to take business away from the other, but it's been found that the appearance of competition drives sales, so they both get more business than if they located seperately. The ultimate example of this is the shopping mall.

      Ever notice "clumps" of shoe stores at the mall? They're often owned by the same company to imply competition between them when there isn't any really.

      The implication of competition drives sales so they set up the implication artificially.

      Proctor & Gamble are masters of working this, many cleaning products advertised as being better than the other are the same except for their packaging and a difference in the food coloring added, and the same as a bargain brand for a fraction the cost.

      And the same as the "house" brand at a fraction of that cost.

      KFG

    3. Re:Old News Indeed by mercuryresearch · · Score: 4, Interesting

      They also do this with multiple product numbers/SKUs within the same brand.

      Those ads in the sunday paper where they promise to give you the product free/10% cash back/whatever if you find the same product at a competitor for less? They can do this because the manufacturers make essentially identical products but sell them with different model numbers to competing electronics stores -- so the models are unique to the chain carrying them. Usually this is called price protection and it's something the supplier will often guarantee in a specific market.

      This stuff doesn't bother me nearly as much as companies that cash in on their brand name with inferior products -- I've had a couple major-label DVD players that barf during playback about 50% of my DVD collection, yet no-name imports (and my PCs) seem to have no problems at all.

    4. Re:Old News Indeed by Anonymous Coward · · Score: 5, Funny

      I dunno, it's kind of an achievement, "Radioactive Beige". Until now, no color scheme had ever acheived simultaneous DayGlo and Drab. By rights, it just shouldn't be possible. Yet there it is, making my eyes scream and my ears bleed. BEIGE BEIGE BEIGE BEIGE BEIGE.

      THE BEIGE OF A DAMNED ELDER GOD YEARNING TO ENFOLD YOU IN THE HORRIBLE CLUTCHES OF ITS CLOYINGLY INSIPID YET AGGRESSIVELY MALEVOLENT TINT.

      Not the merely mortal 70s beige of the hospital waiting room, nor the beige of thick yet laddered tights concealing the varicose veins of the embittered nurse in attendance in the waiting room, nor yet the beige of the liver spots on the back of the crabbed hands of the coughing patient in the waiting room. IT IS THE BEIGE OF THE END TIMES. THE BEIGE THAT CONSUMES ALL.

      All worldly beige is a mere shadow of the HORROR THAT IS SLASHDOT IT SECTION RADIOACTIVE BEIGE.

    5. Re:Old News Indeed by Sergeant+Beavis · · Score: 4, Funny

      They need Queer Eye for the Slashdot Guy.

      --
      There is nothing inherently safe about liberty. That's why so many people died protecting it.
    6. Re:Old News Indeed by Fulcrum+of+Evil · · Score: 4, Interesting

      Maybe the high-end brands are getting the A-grade stuff and the low-end brands are selling the borderline-grade stuff that doesn't score as high at quality inspection time

      If they're anything like Sony, they don't inspect their products at all - the build process is so refined that it costs more to inspect the product than it does to deal with returns.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    7. 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
  2. This has been going on for years... by IOOOOOI · · Score: 4, Interesting

    VCRs were one of the first I heard about to do this... one motherboard, vendors enable the features that they want for each model, depending on their marketing strategy.

  3. Service and Volume are the factors by usefool · · Score: 4, Insightful

    The price difference might be caused by the different level of services attached to a product.

    On the other hand, businesses are more likely to buy in bigger quantity, or at least buying more regularly.

    --
    Uselessful technology (Air-Charged
    1. 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.

  4. Dell is a big example by Stonent1 · · Score: 4, Interesting

    The poweredge 400sc is the same as their top of the line Dimension model bit in a less flashy case. The Poweredge in a minimum configuration costs about 349$ The Dimension you can't get for cheaper than about $1000. They do the same (or at least did) with their laptops. My Inspiron 4100 has been reflashed (by me) with the Latituce C610 bios so I can use the docking stations (with pci slots). Dells precision line is the same as well. Their precision notebooks are latitudes and inspirons but with a FireGL or Quadro card (which you can order separately from dell and stick in your laptop yourself) The desktop precision systems are the same as well. Just a Optiplex or Dimension with a good video card.

  5. 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.

  6. Not just electronics by k4_pacific · · Score: 5, Interesting

    A friend of mine worked in a factory that made liquid soap. She ran a bottling machine. She said there would be batches of hundreds of bottles at a time. Each batch would have a different label, and would sell at a different price in the store. But they were filling them with the same slop from the same tank.

    --
    Unknown host pong.
    1. Re:Not just electronics by JanneM · · Score: 5, Interesting

      A high-school friend worked in a similar place, making shampoo, when she was interning as a chemist. At the plant they added "profitone" - which was their internal joke name for water. They would have exactly the same soap base, but then add different batches of coloring, jelling agents, odorants, and, of course, "profitone".

      Make the product more "luxurious": more jelling agent - "Ohh, look how rich and creamy it is!". Make a "sport-type" shampoo: more water and an odor that is more acidic and less flowery.

      --
      Trust the Computer. The Computer is your friend.
    2. Re:Not just electronics by MBCook · · Score: 4, Interesting
      The battery companies do the same things. They manufacture batteries for 3rd parties. When you Wal-Mart or Safeway batteries, there is a good chance you are actually buying an Energizer or Duracel. The companies admit that they do this, but the last time I saw a report on it they wouldn't admit who they manufactured batteries for, and gave some doubletalk about how their batteries were better quality for some reason (higher testing, higher standards, whatever).

      I suspect that this is common in all industries. There is a decent chance that there is a reason you can't tell the difference between the namebrand and the knockoff sometimes.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
  7. how much ? by Anonymous Coward · · Score: 5, Insightful

    about the same as those Nike trainers,starbucks coffee,Gap Shirt,Armani Trousers

    its called branding, the selling of dreams

  8. 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)
  9. Interesting, but some of the price is justified... by Joffrey · · Score: 5, Insightful

    For example, the Panasonic 42" plasma had a "consumer" and an "industrial" version. However, the article pointed out that the industrial version was $350 lower than the consumer version while glossing over the fact that the industrial version lacked an HDTV tuner, and built-in speakers. Clearly, the addition of those items justifies some increase, and 2-400 is reasonable given the cost of HDTV tuners as separate components.

    In addition, he neglected to mention the difference in warranty duration (and the difference in customer service you might expect between a "name" brand such as RCA and a "generic" such as Coby).

    --
    No, really! I'm one of the *good* lawyers!
  10. Customer Expectations by hudsucker · · Score: 5, Interesting
    (sorry if too far off topic...)

    In the 80's I worked in a commercial photo finishing lab -- the place your film gets processed when you drop it off at a grocery store.

    They charged more to develop ISO 400 film than ISO 100 film. The explanation was that the customers thought that since ISO 400 film was more expensive, it would be harder or more costly to process it.

    But the fact was that all C-41 films went through exactlythe same process. In fact, it costs less to process ISO 400, because more silver is recovered for recycling during the process.

    So the conclusion is, they charge what people are willing to pay.

  11. 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.

  12. 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.)
  13. Rebranded Girlfriends by Spackler · · Score: 4, Funny

    This also applies to rebranded girlfriends. I have had more than a few, and have found that there are not too many manufacturers. What happens is the get built in groups at 3 factories in holland. The only thing they change is the trim level.

    I tested out the slick trim package, but it lacked a little in performance (and was quite expensive to repair).

    I then tested some budget models. Some performed well, but I was embarrased to be in them.

    Finally, there was a brand called "Wife". The trim was pleasing, but not flashy. Fairly low maintenance costs (buying beats leasing, because of the higher milage). I only wish I could point you to a dealer that carries them. Unfortunately, they go out of business as soon as the first deal in done. Sometimes they open up shop again, but who wants a used one?