Another partner came from the refrigeration arena. One of its early plastic suppliers was actually a toy car manufacturer, said Sollitto. Syntax, which started in 2003, can be seen as a conglomerate of convenience. Retailers have asked other manufacturers to come out with a similar guide, according to Vizio. After it started including the quick-start posters, support calls declined by around 60 percent. The TVs come with things such as full-color, life-size shots of the remote as well as poster-sized quick-start guides. White pixels are faulty pixels that become a pinpoint of light on a TV's display. It also has a 'no bright pixel' guarantee for these TVs for the life of the product. The company offers free in-home support during the warranty period for consumers who bought a TV measuring 30 inches or more across. Wang also adds that the company has put an emphasis on quality and customer support in an effort to build a brand. 'They (Vizio) don't have any channel conflicts.' 'Best Buy probably wouldn't carry you if you were going to sell a TV for $1,499 at Costco and sell the same one there (Best Buy) for $2,499,' Young said. For Vizio, that's a two-way benefit: the price of its TVs are comparatively lower than those from major manufacturers at electronics stores and major manufacturers can't participate as fully as they'd like to at places like Costco. Electronics retailers are looking for 25 percent or more. These retailers, which are selling an increasing number of TVs, typically are looking for gross margins on their products only in the 10 percent range, said Young. Second, Vizio sold TVs through Costco and Sam's Club, although it now sells some models in Circuit City. 'We like to keep it really lean,' Wang said. There are a few additional employees overseas. and most of them work the customer support desk, according to Wang. Vizio employs only about 55 people in the U.S. 'When the larger-sized TVs become cost-effective, they are the first out with a great price,' said Ross Young, president of DisplaySearch.Ĭosts are kept low due to the company's structure. The vast majority of TVs in this class sell for $2,500 and above. In late 2006, for instance, the company announced it would release a sub-$2,000 47-inch LCD TV with 1080p resolution.

First, Vizio tries to have the cheapest TVs in the mid- to high-price bands. The company's current strategy revolves around three points.

'They sold over 4,000 in the first month.

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