By Stephen Paczkowski, Expert Warehouse
Most of us would agree that bigger is usually better. But when it comes to TV ownership, it’s more than true – it’s gospel. Expert Warehouse is seeing a big resurgence in consumer spending, and buying habits are changing as it pertains to people’s primary entertainment purchases. This is a trend we can all benefit from.
What once was considered an extravagantly large TV is now just the starting point. Indeed, a 65-inch display is now the most popular size across the board, with 70-inches or more following. We knew this would happen once 4K entered the marketplace; the consumer realized there is a major upgrade available from 1080p, and cost vs. size has come down somewhat.
We are now going through a similar transition towards 8K Ultra HD. Let’s start off by explaining what 8K really is.
Simply put, 8K means you are buying the best picture quality and highest resolution available in the marketplace. The pixel count is double that of 4K standards, increasing from 3840×2160 to 7680×4320. Streaming 8K video is now available on YouTube, broadcasters are already testing 8K content in Asia, and chances are the 2020 Summer Olympics Games in Tokyo will be broadcast in 8K, so the transition has clearly begun.
But that is a timetable we don’t need to worry about. These TVs will upscale currently available content to close to 8K quality, so there is nothing to lose and only better picture quality to gain by purchasing an 8K display now.
It took almost five years after the industry introduced 4K in 2013 to reach the point where it is now a viable category. As we all know, even though broadcast content is limited, consumer acceptance of 4K translates to a higher price point on the sales floor. The introduction of 8K will mean the same thing for your stores. We as dealers need this boost, and with Samsung introducing 8K product into the marketplace now and 8K LG OLED coming this quarter, it means better sales opportunities for AVB members. It also means better TV, sports and movie viewing for your customers, as the upscaling capabilities of these sets give you the greatest picture in the market. Isn’t that what we want for our clients?
Profit margins on these models are appealing too. The 8K Samsung sets average 35 points for the TV alone, and if you build the basket with installation and product add-ons, you can grow this exponentially.
And realize this: the next biggest benefit of the shift to larger screen sizes is delivery services. Most consumer-owned vehicles do not have the cargo capacity to transport a big TV back home. Consider the added profit margin opportunities that can be realized due to this fact, and how building the sales basket here can really boost profits:
- Home delivery at the minimum becomes a necessity;
- Home unboxing, setup and packaging removal is an additional charge opportunity;
- Mounting hardware, cabling and setup purchases are high-margin add-ons (you can even keep popular gear in trucks for on-the-spot purchases);
- New TVs can be further enhanced with soundbars/audio systems and home theater furniture;
- Consumers will want to protect their investment with monitoring and service plans; and
- The TV installation could lead to other jobs in the home (lighting, automation, bedding, furniture – the list goes on).
At the end of the day, 8K is not only a viable new display technology, it also opens the door to greater sales possibilities. Besides offering a quantum leap in picture quality, it provides myriad other opportunities to benefit your business and your customers. As we say at Expert Warehouse, it literally pays to be an early tech-seller adopter!
Stephen Paczkowski is a Buyer/Channel Manager at Expert Warehouse.
YSN is published by BrandSource parent company AVB Inc.