Quote:
Originally Posted by bahamaman
To elaborate further on jjcha's excellent post:
The answer is a simple one. Shure has appointed an exclusive distributor in Canada. Manufacturers want to protect their distributors. By prohibiting a sale from a retailer in the U.S. to a Canadian purchaser, it ensures that Canadian buyers will only be able to purchase from the Canadian distributor (or through Canadian retailers it designates as authorized retailers). Ultimately, exclusive distributorships such as these cause prices to rise, as they reduce availability from alternate sources. OTOH, exclusive distributorships are useful in the sense that they provide some price protection to the distributor and thereby encourage it to invest the requisite money in developing an effective distribution system that will generate a profit and provide consumers with service after the sale.
You are merely a witness to one of the great tensions that exists in international business - the struggle between the borderless internet and the dogged attempt of manufactures to "wall off" markets from one another and prevent the sale of gray market goods.
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Thats exactly it. Shure has a distributor in Canada, SF Marketing. They have been appointed the exclusive distributor for Shure products in the territory of Canada.
According to their contract (if it is at all similar to mine with Ultrasone), they can ONLY sell Shure products in Canada, and they probably also have an agreement with their resellers that THEY can only sell to Canadians.
And the same goes for SHURE USA. In order not to compete with SF Marketing, they must also have an agreement not to sell to Canadian resellers/individuals, and also their own resellers in the US must agree not to sell to markets other than the US.
It is to protect the distributors market...otherwise, all Canadians will start buying from the US, and put SF out of business. Same goes for other markets.
If a product is $60 US stateside, and 100 EUR in Germany, and all the Germans started buying from the US, then their German distribution will be losing business.
Granted, with all that said, it should be up to the distributor to keep their retail prices similar to their competing markets.
For instance, in the US, an Ultrasone HFI-15G retails for $99.00 USD. In Canada, we have it listed at $115.00 CAD.
According to current exchange rates, these prices are roughly even and Canadians dont have much of a reason to buy from the US, and vice versa. Because of this price structure, we dont have to impose that type of agreement with our resellers, restricting who they can sell to.
If you would like to contact the Canadian distributor for SHURE, their info is at
www.sfm.ca (consumer section).