Major Appliance Prices in the Chicago Area

A study of major-appliance prices some time ago showed considerable price variations among dealers.' A number of changes over the years may have influenced the degree of variability. Fair-trade laws2 and list prices have almost vanished from the major-appliance scene. The discount house is no longer the dominant force in appliance retailing. A relatively new institution, the discount department store, has become an important factor in appliance sales. The major purpose of this study was to estimate the price variations for a major appliance, the refrigerator. Secondary purposes were to estimate price differences among brands and among various types of retail outlets. Comparisons were to be made based on the appliance sales volume in dealers and among dealers that serviced appliances and dealers that did not provide service. The study was conducted in October 1975. There were considerable price variations on all brands priced and among all types of outlets. The average price for each of the brands studied was approximately the same. Department stores and discount department stores quoted the highest prices, and furniture stores quoted the lowest prices. Stores that sold a large volume of appliances quoted prices below stores that sold a small volume of appliances. The average price at dealers that serviced appliances was below that at nonservicing dealers. Comparisons with a 1955 appliance study showed relatively smaller price variation in 1975.3