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Is the recent price hikes on PS5 fair?
« on: November 21, 2020, 04:23:12 pm »
Mods, posting this here as there is no PS5 forum yet. So majority of the local sellers (Chelsey, New Leeds, Tryaksh) were allowing for pre-orders of PS5s for around 125-130K. However, with the reduced supply of consoles, they have jacked up the price to 250K!!

I understand if scalpers are doing this, but is it fair for a retailer to price these items in this way? Is it against the Sri Lankan consumer rights?

Would like to know your thoughts.
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Re: Is the recent price hikes on PS5 fair?
« Reply #1 on: November 21, 2020, 08:01:24 pm »
Supply and demand. You can't get a PS5 anywhere in the region under 200k.
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Re: Is the recent price hikes on PS5 fair?
« Reply #2 on: November 25, 2020, 04:26:59 pm »
Still. A max retail price is there for a reason. The shops have since then taken the price off their websites, which is an indication that it's a completely outrageous ask. As a retailer, if you have loyal customers who come to you continuously, I guess then you shouldn't be looking to exploit your customers to make a quick buck.
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Re: Is the recent price hikes on PS5 fair?
« Reply #3 on: November 25, 2020, 09:13:00 pm »
I hardly doubt any exploitation is happening. Knowing the cost of importing a PS5 right now, 250k will barely make you enough of a margin to make the product worthwhile. If a product is scare worldwide, just because it's a store don't expect it to sell at MSRP, especially if it's not in a preferential market like ours. Be thankful that someone is offering it in your market so that you can make a purchase.
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Re: Is the recent price hikes on PS5 fair?
« Reply #4 on: November 28, 2020, 04:13:19 pm »
Seriously? No exploitation? Come on man.

The retail price is USD 499. These shops have special agreements with overseas shops who have guaranteed stock from Sony. They get their units at the retail price max. These guys are not buying these consoles from scalpers. They are taking advantage of the situation to charge a much higher price. The Series X (Same price, currently sold out) sells for 125K. How is it possible that the price of the PS5 magically doubled?

I've checked shops in Qatar, Dubai, Singapore, Italy and the UK. The price is roughly LKR 110K. There is only PAL and NBT for importing PS5s in Sri Lanka. A price of 250K is simply absurd and is scalper level. The fact that you think that it is ok to charge this kind of prices is pretty baffling. But I am sure you are going ahead with the same kind of price exploitation so find the need to justify it.
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Re: Is the recent price hikes on PS5 fair?
« Reply #5 on: Yesterday at 09:26:01 am »
Only because I know the exact cost to bring down a PS5 right now, even through an official channel. The 'MSRP' is just that, maximum suggested retail price, and anywhere that has marked 'MSRP' is conveniently out of stock. The product is in short supply, and high demand, so allocation is only given to those who are willing to bid more for available stocks. "Here's the product, we know the MSRP, but your FOB price is MSRP + $200 because low supply, you think that's too high? Cool, we'll allocate stocks to this other market". That's pretty much the only 'special agreement' there is. If you want proof, I have dozens of email threads with manufacturers at every product launch.

Manufacturers aren't these goody-two-shoes entities that are out to protect market prices and do the best for the customer. If there's an opportunity to make extra money, they will, knowing very well that there will be people like this taking the shit out of the vendors stuck in the difficult position of having to choose between either paying inflated prices or not having supply. I know exactly how bad that position is.

Do I think the pricing is OK? Of course not. There's something fundamentally wrong with how the market works. MSRPs are set as marketing devices, and do not reflect supply and demand. It looks nice if your product has a $499 sticker price, but they are in no position to sell enough quantity at that price. This price will only come into effect a year down the line when supply matures and the market settles.

Do I think that the price is fair considering the cost to source and stock the product? Absolutely.

EDIT: Prices have dropped since the launch weekend, check with the same guys again if you want, and they'll quote around Rs 200-220k
« Last Edit: Yesterday at 09:32:14 am by Zer0 »
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Re: Is the recent price hikes on PS5 fair?
« Reply #6 on: Yesterday at 09:37:35 am »
Derp. Double post