+ 1-888-787-5890  
   + 1-302-351-4405  

Essay/Term paper: How do dixons and tandy add value to the products they sell?

Essay, term paper, research paper:  Economics

Free essays available online are good but they will not follow the guidelines of your particular writing assignment. If you need a custom term paper on Economics: How Do Dixons And Tandy Add Value To The Products They Sell?, you can hire a professional writer here to write you a high quality authentic essay. While free essays can be traced by Turnitin (plagiarism detection program), our custom written essays will pass any plagiarism test. Our writing service will save you time and grade.

How Do Dixons and Tandy Add Value To The Products They Sell?

How do Dixons and Tandy add value to the products that they sell, and, in doing
so, what benefits are passed on to the consumer? Do high street consumer
electronics stores offer better value for money than their mail-order

The raw price figures show that, obviously, the high street stores cost more
than the mail-order stores, but are the benefits that the high street stores
bring worth the extra price?

I took the prices of five types of products, a large stereo, a portable system,
a small television, a video recorder, and a computer. The large stereo was an
AIWA NSX-V710, the portable system was a Sanyo MCD 278, the small televisions
that I chose were not available in both stores, and so I had to choose similar
models. The models I chose were the Matsui 14" Remote from Tandy and the Nokia
14" Remote from Dixons. The models were both available from the mail-order
supplier, at the same price. The video recorder that I chose to use was an AKAI
VSG745, and was in fact available from both stores. The computer was the most
difficult part of the system to match, as the Dixons systems came with some
added bonuses such as extra multimedia software and Internet capability. I
therefore reduced the price of the Dixons machine to account for these
differences, by deducting the price that it would cost to upgrade on the Tandy
machine. So, to give the Tandy computer Internet capability would cost £150, so
that was deducted, and the multimedia software would have cost £50, so that was
deducted. The computer specification I aimed to have as a common platform was an
Intel Pentium 120MHz machine, with 8MB RAM, a 14" monitor, at least a 1 GB Hard
Disk and MPC level 2 capability (i.e. be able to use CD-ROM Multimedia titles).
The mail order supplier I chose to match these specifications with was Computer
Trading, as they offered a system which was a close match to the Tandy and
Dixons ones, while having a low price. The common factor with all the products
is that they are all more expensive than their mail-order price counterparts.
This means that the high street stores 'add value'. Adding value is taking one
or more parts or products, combining, changing or adding to them, in such a way
that the perceived value of the product is increased by more than the cost of
the change. For example you might expect to pay £150 more than the cost of the
parts when buying a hi-fi, but the cost of putting the hi-fi together is much
less than £150. The price, however, must not be too high, as the customer has to
perceive the value of the product to be that at which it is priced for a sale to
take place. Within any company there will be some several 'departments', each
adding value in their own particular way.

How much value do Dixons and Tandy add?

The only way in which this question can be answered is by looking at the figures
themselves, and how much items cost from Dixons and Tandy as opposed to the mail
order companies. The figures that I obtained by looking through the stores and
magazines were as follows:

Here we can see that every product is more expensive from the shops than in the
mail-order catalogue. You can see that the products cost very much the same from
both of the high street stores at roughly 125% of the cost of the mail-order
price. This means that the stores make a 25% mark-up on every product that they
sell. The fact that the figures from Tandy and Dixons are very similar show that
there is another factor coming into play. This could be one of two things: The
cost of supplying the services to the customer is a high proportion of the added
cost, therefore meaning that different margins of profit make little or no
difference to the price. There is competition, and each store is trying to match
or beat the other one to attract more custom.

Dixons and Tandy - Adding value in action

Obviously, Dixons and Tandy are very similar in that they do not manufacture
anything. However value is added in several ways, as a perception from the
customer: The products are available instantly, they can be bought and taken
straight out of the shop, as opposed to having to wait for delivery The products
have financing deals available, such as 0% APR (Annual Percentage Rate) on a
loan. For example this would mean that you get the product delivered, but pay by
monthly instalments over two years. The products from Tandy, valued at £299 or
over, come with a free Sky satellite system. You can try a product before you
buy it.

You receive sales and after sales support, and advice is not really given over
the phone. Also the shop is close to the home, so it is easy to get the product
repaired or serviced. Free gifts are often supplied, or complementary products
discounted when a product is purchased. There is a range of products available
because the people who would order from a mail order catalogue are likely to
know what they want, whereas those who go into a shop may need advice on which
product is best for them. If we split these perceptions into categories, we can
see that each perception is a product of different type of adding value: Points
1, 5 & 7 are because of the company moving all the products into one place,
ready for sale. Points 2, 3, 4 & 6 are because of the company's marketing
strategy and how the sell the products. This should therefore show where the
value is added. In theory, this would show that value was added mainly in
marketing, then in relocating the products. Also, shop staff will have to be
paid, so some value would be added there.


From the evidence shown, we can state that high street stores, such as Dixons
and Tandy add value in two main ways. These two ways are 'convenience options'
and Marketing. Of these two, Marketing is approximately twice the size of
Consolidation. Therefore we can say that Dixons and Tandy add value primarily
through 'convenience options' and marketing. Also, in answer to the question
'are the benefits that the high street stores bring worth the extra price?' we
can say that, apart from quicker delivery and financing options available, all
of the services given are pre-sales services. This means in theory you could go
into a Dixons or Tandy, receive advice from them, then buy the product from a
mail-order company. Thus the answer to this question is probably 'no', in most


Other sample model essays:

How Employees Affect Consumer Behavior Summary I am going to discuss how employees affect consumer behavior and what I believe are the best ways to improve their effectiveness. I will be ...
How To Make Sandblasted Signs I am going to tell you how you can make a sandblasted sign. The only necessary tools you need are: bass wood, or red wood, rubber masking, spray glue, e...
Import Substitution Describe import substitution (Inward looking) developmental strategy, clearly outlining the differences between the first and second stage. Assess its effectiveness in pro...
Inaccuracies of the Consumer Price Index(CPI) Aman Aggarwal Sept. 28, 1996 The Consumer Price Index is a measure of the prices of a fixed market basket of some 300 consumer goods and serv...
The Investment Industry The investment industry is composed of a wide variety of firms. The main players include independent full line brokerage firms, investment bank subsidiaries of cha...
Information Technology Outsourcing "Information Technology outsourcing is the contracting out of part or all of an organization's IT activities." New trends have included operations, prog...
Increasing Shareholder Wealth INTRODUCTION The goal of all corporations is to increase shareholder wealth. Shareholder wealth is increased is by increasing the corporation's profit. In ...
In Search of Excellence: Review In Search of Excellence is a book dealing with many different principles of economics and what makes big business' excellent. The first idea that Pete...
Economics / Intel
Intel Results of operations. Intel broke a record in net revenues in 1995, for the ninth consecutive year, rising by 41% from 1994 to 1995 and by 31% from 1993 to 1994. Higher volumes of the ...
International Economic Policy: Book Review The book reviewed in this essay, International Economic Policy in the 1990s, was to focus on some of the most recent concerns about intern...
Experience with Dream Essay - Reliable and great customer service. Quality of work - High quality of work.
, ,
Dream Essay - Very reliable and great customer service. Encourage other to try their service. Writer 91463 - Provided a well written Annotated Bibliography with great deal of detail per th
, ,
it is always perfect
, ,
The experience with Dream Essay is stress free. Service is excellent and forms various forms of communication all help with customer service. Dream Essay is customer oriented. Writer 17663
, ,
Only competent & proven writers
Original writing — no plagiarism
Our papers are never resold or reused, period
Satisfaction guarantee — free unlimited revisions
Client-friendly money back guarantee
Total confidentiality & privacy
Guaranteed deadlines
Live Chat & 24/7 customer support
All academic and professional subjects
All difficulty levels
12pt Times New Roman font, double spaced, 1 inch margins
The fastest turnaround in the industry
Fully documented research — free bibliography guaranteed
Fax (additional info): 866-332-0244
Fax (additional info): 866-308-7123
Live Chat Support
Need order related assistance?—Click here to submit a inquiry
© Dreamessays.com. All Rights Reserved.
Dreamessays.com is the property of MEDIATECH LTD