Originally Posted by toor
The issue is the distribution networks. Import costs apply to everyone and are not a reason to have these protections. Rather a distribution network is a method for a monopoly to price discriminate. Which is all well and good. After all a profit maximizing firm should always choose to do this. And generally speaking being allowed to price discriminate maximizes consumers and producer welfare. And I agree that monopoly protection rights will make distributors much more willing to sell Grado. I guess what I am trying to say is: I can understand what Grado is doing, but talking about things like shipping costs and import taxes is misleading.
I agree with this....the underlying motive is simple..the policies are in place to protect the distribution network, plain and simple. Grado is not the only one to do it.
Also one other thing to note, due to the size of the market for the USA, things will likely be cheaper in the USA than most other markets, sometimes even for foreign (to USA) goods. For example, I can buy Canadian owned Energy brand speakers at a Goodguys store for less than I pay at my local Canadian dealer.