What do you expect in terms of quality in a Dvd box and is this the end of the inexpensive product from China?

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In the last 12 months profit greedy distributors in the Uk just became far too greedy! Many people now are at last starting to see the variance in quality when buying Dvd cases. Its a matter of 'you get what you pay for' and has been stable for the last 9 months. Why the last few months, well last winter oil and gas barrel prices went through the roof and with that raise consignment costs also sky-rocketed - with 92 % of the United kingdom's supply of Dvd-r cases coming from China this obviously meant the average shipping cost of a 20ft container doubled in a very short period of time.

In 2008 with discounted consignment charges wholesale Dvd box prices were roughly 5p a box for the economical but acceptable quality boxes, 1.6 cents of this cost relating to the cost of shipment from China to the Uk ports - so what happened in the last 12 months and how come public now have come to buy the higher quality cases? - Let me tell you, In spring 2009 with oil and gas prices still elevated companies had no choice but to inflate the prices of the inferior cases, so much so that a low-priced box went from roughly 5 p to 7.7p in a matter of weeks - but what happened next was the final nail in the coffin for those discounted cases which contain a large percentage of recycled material (you can smell the class of Dvd boxes - literally you can! The more cost effective the cases the more they smell!) - anyway in the end oil prices dropped and so did the consignment prices, but the companies in the Uk chose to form a cartel and not drop the price of their cases, effectively fixing the pricing for a number of months between 6.5 and 7.5 pence a unit.

It was this profiteering that was to be the downfall of these poor quality cases, the differential between the poor quality cases and quality products like Amaray or Coral was now tiny and bit by bit consumers moved en mass toward the much better products. Now that the businesses continue to operate their fixed prices Far Eastern manufacturers took the chance to also leisurely multiply their price for the Dvd boxes and caught the companies at their own game.

Our recent investigation of the clients of Dvd-and-Media UK (with over 60 ,000 customers for Dvd cases in the Uk) revealed some figures that totally confirmed my suspicions regarding quality versus price - of the 645 people questioned an overwhelming 93% said they would select a quality Dvd-r box like Amaray over a inexpensive Chinese copy based on current price levels and when asked at which point would they change back to the discounted product and shown a range of price differentials 47 % said they would not change regardless of price and 32 % expressed that the quality DVD case price would have to be more than double than that of the cheap prices for them to change.

Article Source: http://depositarticles.com/

Simon Young - Managing partner Cases and DVDs

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