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JB Hi-Fi admits breaking its 'Always Cheapest Prices' promise

JB Hi-Fi admits breaking its 'Always Cheapest Prices' promise

Posted: 18 Oct 2011

Open Letter to JB Hi-Fi

JB Hi-Fi’s slogan promises Australians “Always Cheapest Prices.” You have admitted to breaking this promise.

At your Annual General Meeting of shareholders last week, one of JB’s shareholders claimed that Australian consumers were “being screwed” by the likes of JB Hi-Fi, when compared to prices available at online stores. In response, your Chairman and CEO both acknowledged the “challenging conditions” faced by JB due to the cheaper prices available online. The Chairman promised that JB would step-up the pressure on its suppliers to lower their prices, and even threatened to “import directly and bypass suppliers.”

At Kogan, we applaud JB for acknowledging your position. Acknowledging the facts of your situation is one thing, but you then need to act in accordance with those facts. If you choose to ignore the facts, you will have achieved nothing.

Given the acknowledgements by your Chairman and CEO that prices are cheaper online, we call on JB Hi-Fi to remove your slogan, “Always Cheapest Prices” from all advertising material, and to replace it with something honest. How can JB Hi-Fi, in good faith, claim to always offer the cheapest prices, when your Chairman and CEO both acknowledge that cheaper prices are available elsewhere right now?

At Kogan.com, we are proud to have played a role in lowering the prices of consumer electronics, and putting an end to the Australian public being ripped off.

As a result of our hard work, Australians can now avoid the globally uncompetitive prices offered by the likes of JB. Aussies can enjoy the World’s leading prices at the click of a button. The savings available at kogan.com are massive when compared to JB’s prices on products like Canon and Nikon cameras, Apple iPads, iPhones, and Samsung smartphones. But, don’t take it from us - compare for yourself. When we say we have the cheapest prices, we mean it.

Unlike our competitors, at Kogan we have been thinking globally since day one. We are constantly analysing the dynamics of the global consumer electronics market and investing in a global infrastructure designed to ensure we can sell products for the lowest prices in the World.

Millions of Australians are moving to stores like kogan.com. But, there are a lot of Aussies still shopping at stores like JB, in good faith believing that a company like JB Hi-Fi would be honouring its promises.

So, given that we now know JB Hi-Fi are aware of the price savings available online, and given that JB has made the positive step of acknowledging the problem in their pricing, we now call on your CEO to Smarten up. Stop pretending to offer ‘Always Cheapest Prices’ be more honest in your branding, and be more honest with the Australian people.

Australians have had enough broken promises.

Ruslan Kogan           
Founder & CEO
www.kogan.com/au/

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