Flat Screen Mounts, AV Furniture, Stands & Trolleys Sales & Consultancy
Well, perhaps that’s a little bit of an exaggeration, however the cost of a good quality TV wall bracket can be equivalent to a significant portion of the cost of a new TV.
We try briefly to explain in the following document a little bit of the history of mounting brackets, and the way pricing has changed over the last few years.
5 years ago, when perhaps a new flat panel TV cost £1500, a decent commercial-grade flush to the wall mount would cost somewhere in the region of £120. Hence the bracket would cost around 8% of the cost of the TV.
Now, if a new flat panel TV costs in the region of £700, an equivalent commercial-grade wall mount costs in the region of £35. Hence the cost of the bracket now represents around 5% of the cost of the TV.
As you can see from the above, broadly the cost of the FLUSH brackets versus the cost of the TV has not changed a great deal, however it’s the more complex brackets that highlight the issue.
CANTILEVER of WALL ARM BRACKETS.
5 years ago, when perhaps a new flat panel TV cost £1500, a heavy duty cantilever wall mount bracket cost in the region of £345. Hence the bracket would cost in the region of around 23% of the cost of the TV.
Now, if a new flat panel TV costs in the region of £700, an equivalent heavy duty cantilever wall mount bracket costs in the region of £250, Hence the bracket costs in the region of around 36% of the cost of the TV.
So, what can be deduced from the above?
Well, it’s pretty obvious that just like every other technology, early adopters are willing to pay more to take advantage of new technology, and to be fair, Manufacturers are more than willing to exploit this. Earlier in a technology life-cycle, manufacturers do make more margin, they have to, this enables them to spend more money marketing the new technology. They know that when the mass-market accepts the technology, then margins will be squeezed as the market becomes saturated. It’s a basic sales and marketing model.
No matter what the market demands, and how much ‘buyers’ want or demand a deal, the immovable factors are the costs of raw materials, the cost of manufacturing and the cost of shipping.
Production costs of high technology and electronics products have been kept relatively low by moving production to regions with lower labour costs, and by investing in super efficient manufacturing plants, many even running in total darkness to save power.
Effectively the wall mounting bracket factories are lower-technology ‘metal-bashing’ operations, once a production facility is efficient, there can’t be quantum leaps in efficiency, lowering production costs. Eventually, the price the end-consumer pays, actually reflects the cost of production, with margins along the line squeezed.
Cost of steel
As can been seen from the graph below, the cost of slab steel, which is then processed has risen considerably over the last few years, and although it has dropped-back since the highs of 2008, the trend is still indicating higher future pricing.
To view the SteelOnTheNet website, please CLICK HERE
Cost of Shipping
As we all know, over the last few years the cost of diesel, petrol and aircraft fuel has risen dramatically, causing pain for industry and consumers. Of course fuel costs affect all products, however as mounting brackets have a higher weight per cm2, the relative costs are higher.
Having very close relationships with 2 of the very best LCD, LED & Plasma mounting hardware manufacturers, we honestly don’t believe mounting hardware will become any cheaper. What we do suspect is that eventually, companies that don’t necessarily specialise in brackets, will withdrawer from the market. Of course there will also be specialist manufacturers who become casualties.
Once the speculative importers decide that the margins that be attained, just aren’t worth the risk of bringing the odd container-full of brackets, then some price stability will be experienced by the specialist manufacturers and suppliers.
We just cannot see the costs of steel and fuel reducing greatly over the next few years, we’re pretty sure that what we’ve got we’re going to have to live with.
All we can promise it that we will always be as competitive as we possibly can be, however at the end of the day, we’re a business and we’re here to make money. We will never sell sub-standard products, just to hit a price point, we will only ever sell commercial grade products, which are insurance approved for use in public access environments.
For more information, please contact 0845 835 0266