I find this discussion interesting. But what I would like to know, what is the correct understanding of the gray market in audio. It seems implied that the ‘gray market’ in audio seems to ‘just happen’, or perhaps are counterfeit goods?
As a person who likes mechanical watches as well, I was always told that the vast majority of the gray market for watches were actually received/were sold their merchandise via actual *distributors*, who for a variety of reasons, could not sell a volume of ‘excess’ merchandise to retailers, thus cut their losses by selling them cheap to a gray market seller. Some distributors , as I understand, are forced to buy a certain quantity of product from manufacturers knowing they don’t have the retail market to support their overall inventory, and much of that is earmarked for gray market sellers. They essentially make their profit on the retail market they have relationships with and ‘dump the rest’.
I’ve purchased a gray market watch, but not one of incredibly high value, but one from a very reputable manufacturer, which is actually my daily watch. I took a chance knowing that any problems I may have would probably be minor, and was worth the risk.
I’m not sure I would take the same risk on a multi-thousand dollar piece of audio equipment, (or watch for that matter), as a warranty and factory authorized service of that piece may be necessary. That said, I do understand the risk one might take to obtain an actual trusted and reputable manufactured item at a fraction of the cost of retail. Again, it is a risk, but one a buyer may be willing to take. ‘We’ do it with used gear all the time.
I was just curious if the audio selling/distribution chain in similar to that of watches.
As a person who likes mechanical watches as well, I was always told that the vast majority of the gray market for watches were actually received/were sold their merchandise via actual *distributors*, who for a variety of reasons, could not sell a volume of ‘excess’ merchandise to retailers, thus cut their losses by selling them cheap to a gray market seller. Some distributors , as I understand, are forced to buy a certain quantity of product from manufacturers knowing they don’t have the retail market to support their overall inventory, and much of that is earmarked for gray market sellers. They essentially make their profit on the retail market they have relationships with and ‘dump the rest’.
I’ve purchased a gray market watch, but not one of incredibly high value, but one from a very reputable manufacturer, which is actually my daily watch. I took a chance knowing that any problems I may have would probably be minor, and was worth the risk.
I’m not sure I would take the same risk on a multi-thousand dollar piece of audio equipment, (or watch for that matter), as a warranty and factory authorized service of that piece may be necessary. That said, I do understand the risk one might take to obtain an actual trusted and reputable manufactured item at a fraction of the cost of retail. Again, it is a risk, but one a buyer may be willing to take. ‘We’ do it with used gear all the time.
I was just curious if the audio selling/distribution chain in similar to that of watches.