Re: A word of 'Shed' caution

["K. C. Li" <lbs@xxxxxxx>]

> While I totally agree with you Andy, it's very hard to ask someone to
pay 60
> quid extra just to "do the right thing".

One would have to bear in mind that yesterday's Homebase prices were
heavily discounted (Introductory Offer + 10% off). After the offers are
finished, their prices would be similar to, say, ours.

> Surely if these companies are selling below your cost then it's time
the
> independents in the UK got together and had a meeting with X10 Hong
Kong.

Response Electronics/Homebase was said to have placed the order with the
UK Distributor (Home Control) worth 250,000 Pounds. That would command a
lot of discounts whereas all the X-10 home automation related companies'
business in the UK added together wouldn't even make a quarter of that
sum. The combined buying power is just not there.

It is a fact that if it wasn't for companies like us who have kept the
UK X-10 distributor afloat during the past few lean years, Home Control
(Home Tech then) would have pulled out of the X-10 market similar to
Celtel before them. There would have been no UK X-10 for a while longer!

> As you rightly say UK prices are high due to the low volumes (compared
with
> the US).  If HomeBase and the like are now selling modules then surely
the
> volumes should rise, and costs fall.

Sure, but the savings might be passed on to the few companies with big
orders instead of eveyone. Don't forget that, with the Introductory Offers
finished on 12 October, Homebase is not planning on passing much big-order
savings on to the consumer as their prices then would be similar to ours.

With their multi-million Pounds budget, these companies can afford to sell
selected products as 'loss leaders' anytime they wish. However, it doesn't
mean that other companies are selling the same products at vastly inflated
prices with big profit margins.

Enjoy the sale!

Regards,

Kwong Li
li@xxxxxxx
Laser Business Systems Ltd.
http://www.laser.com


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