Recently I'm receiving many feedbacks about your approach to the Chinese LED Screens, in response to this article.

The most interesting and noteworthy is the letter from a start-up company the middle of a feasibility study, with all its related considerations and doubts.

I found the letter so interesting when I first received it, that I decided to publish it after a few lines, long before I read the last paragraph. And I'd like to join Frederic in his final request: Any and all comments to this letter are strongly encouraged!!!

LETTER STARTS HERE:

Did You Buy A Chinese LED Screen?

No, I haven't. I am seriously looking at my options, however.

Chinese manufacturers offer various degrees of quality and price that are surely something any start-ups will consider prior to making a purchasing decision.

Sure, most European or North American manufacturers will usually offer the greater quality, coupled with a true customer service, but is the price difference really worth it?

The other day, I had an impromptu visit from [Big Multinational Name] quoting me a 12.5 sq. meter screen for 145,000 Euros for the screen, 15,000 Euros for the frame and another 30,000 Euros for the servicing and other "Benefits" totaling close to 200,000 Euros "before" all other related expenses (placing the screen on the street, running costs etc); another Bulgarian manufacturer quoted me about 5,000 Euros per square meter...

Chinese manufacturers (CE certified etc) that I have shortlisted after a couple of months investigating would offer the same size for circa $40,000 without installation and/or frame...

As my concluding words with the [Big Multinational Name] guys, I said: "Should your prices be 2 to 3 times more than the Chinese', I would think about it; at close to 5 times and above of the Chinese' (prices), you need to think about it"...

The simple fact is that Western manufacturers who provide high-end quality will need to market to deep pocket customers, the Chinese will do as they have done in many other sectors and that is to market to the masses - thing that they have proved they can do quite well, and quite successfully.

Another thing to consider for us, the buyers. Should we be willing to invest that much money into a relatively small LED display (12.5 sq meters), it is safe to make the following assumptions in that:
a) Finding big brands willing to advertise on such a small screen will be harder as big name corporations will look for premium location, and premium advertising space (size of screen) along with other factors.
b) Amortization will take a lot longer.

There are many more factors to consider, but both a) and b) will simply equate in way more risks than most start-ups are willing to take.

The price difference between Western and Asian made screens also allow a start-up to purchase more displays for the price of one Western made display... Again, an advantage especially in start-ups located in new markets where competition is low...

For the record, I'm not Asian, not a manufacturer of LED displays, nor am I getting any type of profits for  leaning with the Chinese companies - I am just a start-up, that is in the middle of a feasibility study...

I hope my quick answer above will be published, just to keep as much variety and unbiased points to fuel the discussion.

Any and all comments to the above are strongly encouraged!!!

Cheers,
Frederic A.