Retailers To Reject Pebble Smart Watch That Dick Smith Flogs For $103 Over US Direct Sell Price

Currently the product is being sold exclusively via Dick
Smith despite the fact that Pebble US is selling direct to Australians at
prices considerably cheaper than what Dick Smith is offering the Pebble Steel
smartwatch for in their stores.

At Dick Smith the Pebble Steel Smartwatch is selling for
$289, direct from Pebble the same watch is US$149 or $186 taking into account
the Aussie dollar Vs the US dollar, shipping is free to Australia and there is
no 10% GST. This is a saving of $103.

The Pebble Black smartwatch is selling for $149 at Dick
Smith and US89 direct from Pebble.

Pebble smart watches being sold direct at prices significantly cheaper than what Dick Smith is selling the same brand smart watch.

The Pebble Company was initial launched following a massive
crowd-funding exercise that raised US$10 million, they become the most-backed
Kickstarter ever back in 2012.

Then there were long-delays shipping the first Pebble
models.

Last week in the USA Pebble CFO Marin Tchakarov admitted
that the Company is now looking to expand their retail operation in Australia.
What they have not confirmed is whether they will continue direct selling at
significantly cheaper prices than what their product is currently being sold
for in Australia.

Tchakarov said of the Australian market “We think it is an
amazing marketplace for us to grow. We love the culture, we love the opportunity
and we just need to pull the freight as quickly as we can,” Tchakarov said.

The Company has admitted that they are banking on the fallout
from Apple marketing for their Watch range.

Pebble believe that their cheap smart watches will appeal to
certain markets who are not prepared to pay the premium price that Apple  has placed on their watches.

Tchakarov told Australian journalist Tess Bennet last week
“Apple, as everybody knows, is joining the party but we are actually looking
forward to them joining the party.

“They are bringing awareness and interest in this space, in
this frankly very new wearable category. It’s validating the market. It’s
growing the pie with tremendous pace.”

Tchakarov said in the last 45 days he has been approached
about a dozen times by people asking if his new Pebble Time was the Apple
Watch. Tchakarov, an iPhone user, admits to being mildly annoyed the first few
times, but then began to relish the opportunity to talk about the differences
between the brands.

Two major retail groups that ChannelNews has spoken to have
said that they will not stock the Pebble smart watch brand in Australia while
the Company is undercutting Australian retailers by direct selling from their
own web site.

The head of merchandising for one national retailer said
“Why would we want to stock a product that can be purchased online for
$100 plus cheaper than what we can sell the same brand for”.

Dick Smith has not commented on why they are charging over
$100 mark-up on the Pebble Steel smartwatch.