The source of gray market products is easy. As lewm has written, "
I bought it in Tokyo. There is no advantage to buying in Tokyo; price was about the same as eBay. 2juki has a good reputation; I would not hesitate to buy from him."
So a dealer in Japan gets them at a low wholesale price and sells at low retail price. The US distributor buys at the low wholesale price and marks it up considerably and sells at a high retail price. He can get the high retail price because he provides service of various kinds and some people feel that is of value.
The Japanese retailer can also buy extra quantity at a low wholesale price and sell it through his gray market distributor friend to US consumers, like through ebay, for a low retail price. Simple.
So a dealer in Japan gets them at a low wholesale price and sells at low retail price. The US distributor buys at the low wholesale price and marks it up considerably and sells at a high retail price. He can get the high retail price because he provides service of various kinds and some people feel that is of value.
The Japanese retailer can also buy extra quantity at a low wholesale price and sell it through his gray market distributor friend to US consumers, like through ebay, for a low retail price. Simple.