For what it’s worth, I think the term "gray market" was coined in the USA in the late 1970s, to describe a market for certain exotic automobiles that could be purchased in the US through normal dealer channels but which in that case would be loaded down by emission control devices and huge ugly bumpers which were then mandated by the US DOT. In those days, those cars if sold in the European country of origin, usually Germany or Italy, were unhampered by such devices, looked a lot better, were a lot faster. (I remember test driving a legal 1976 Porsche 911S; it was a joke on the Porsche reputation. From 1975 to maybe the mid- to late 1980s, "legal" Porsches were no fun.) In response to a demand in the US for unfettered performance from these expensive cars, there was a business associated with illegally importing Euro versions and modifying them to comply with US standards for emissions and etc. Such emission controls could often be removed by owners, once having passed inspection. Problem was that the workmanship performed and the add-on gizmos installed in order to pass inspection were often shoddy. Those cars were not warranted except possibly by the shady companies that marketed them, and that was the "gray market". If something went terribly wrong, you were stuck. Re-sale value was poor.
How much will you pay for an exotic cartridge....
I noticed on another forum that there is an interesting point brought up by a US distributor/dealer about his perception that one of his potential customers bought a top end cartridge ( that he reps) from an off-shore dealer/source...and how he intends to try and stop the practice of ’grey market’ sales. ( At least for the lines that he carries).
This gent seems to believe that because he signed some paperwork somewhere that may ( or may not) give him exclusive rights to distribute the gear in the US, that he has the right to try and prevent anyone abroad from selling to US customers! To that, he wants to have the manufacturer try and enforce his right to do the above. Now, one could ask, what’s the issue with this, right? And here’s the rub, the dear distributor is adding over $8K to this product for the simple task of ordering and having shipped a cartridge from Japan ( Yes, i know the shipping of such a large and heavy item is expensive...and the dealer has to stand by the product...whatever that means when we are talking of a cartridge!) The profit motive is high here, and the opportunity to fleece some of the US consumers is also...so i get that, but to come on an open forum and complain about the practice that one of his potential customers did such a thing....is an interesting marketing tactic, IMO.
So, my question is this..how much will you pay for that exotic cartridge to insure that you are buying it from a "legit" US rep, and not from a grey market...or in this case out of area dealer....what’s fair to you...a few $$s- or the sky’s the limit??
This gent seems to believe that because he signed some paperwork somewhere that may ( or may not) give him exclusive rights to distribute the gear in the US, that he has the right to try and prevent anyone abroad from selling to US customers! To that, he wants to have the manufacturer try and enforce his right to do the above. Now, one could ask, what’s the issue with this, right? And here’s the rub, the dear distributor is adding over $8K to this product for the simple task of ordering and having shipped a cartridge from Japan ( Yes, i know the shipping of such a large and heavy item is expensive...and the dealer has to stand by the product...whatever that means when we are talking of a cartridge!) The profit motive is high here, and the opportunity to fleece some of the US consumers is also...so i get that, but to come on an open forum and complain about the practice that one of his potential customers did such a thing....is an interesting marketing tactic, IMO.
So, my question is this..how much will you pay for that exotic cartridge to insure that you are buying it from a "legit" US rep, and not from a grey market...or in this case out of area dealer....what’s fair to you...a few $$s- or the sky’s the limit??
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- 67 posts total
- 67 posts total