TV prices are highest since 2012 - what will Black Friday look like?
posted Sunday Oct 31, 2021 by Scott Ertz
2021 has seen a variety of issues to the supply chain, and they are all affecting the price of a lot of products. One of those product categories being hit in price is televisions, a traditional staple of Black Friday sales. As we approach Black Friday 2021, fears over the availability of TV sales have begun to emerge.
Because of the intersection of chip shortages and shipping issues at California ports, TV prices have hit their highest since 2012. But, in 2012, many of the television technologies that were on the cutting edge, causing higher prices, in 2021, all of those elements have become commonplace and are actually part of the lower costs. According to Stephen Baker, vice president of industry analysis at NPD group, which keeps track of pricing and sales trends,
Pricing right now on TVs is the highest since at least 2012. Holiday pricing overall is likely to be at least $100 above normal. Last year the average price of a TV was $363 during the fourth quarter, which is fairly typical over the last few years. This year our forecast is for the average price to be approximately $500.
Overall, a $500 television isn't terribly bad, but remember - that is not the price of a television, it's the average price. When you factor in small televisions, like 32" screens, that will bring the average price down significantly - or so we would hope. Lower resolution televisions, such as 720p and 1080p are also going to lower the average selling price.
The important statistic here is the $100 above 2020 prices. From a percentage standpoint, the less expensive televisions are likely to see a larger price increase than the larger and more expensive models. Adding $50 to a $180 40" 1080p television is a 28% increase, while adding $100 to a $2500 65" 8K television is nearly indistinguishable at only 4%. So, those looking for a great deal on small televisions will be the hardest hit.
But, there is some good news. There will still be some deals on televisions. Retailers often make special purchases specifically for Black Friday sales, so the wholesale prices are specifically set for these sales. In addition, we have seen the beginning of the port shortage issue being resolved, with ships starting to head to ports in Florida that are not in complete chaos. The first ships have arrived at Florida ports this week, with more headed in that direction.
In addition, Florida has availability of truck drivers, which California does not. They recently created situations that took thousands of trucks off the road, while Florida has continued to encourage people to get trained on existing trucks. So, no need to trade out tractors at the border of the state, making deliveries faster and more direct.
The important takeaway here is that, if you are looking for a cheap television, you'll be able to find them - but they will be more expensive than they would have been in 2020.