[vwinter]

Quote:

So it's similar with RRP (recommended retail price) and MSRP (Manufacturer ... S. recommended price)?

 
Not exactly, the difference is that It's contractually required.

 

[jgray91]

Ahh I see.

 

[veyrongatti]

Totally here this evening, just spent the day with some friends getting some first impressions of the new Sennheiser Momentum On - Ear. Video will be up soon... but. Not so positive. *sigh*

Well on the upside the momentum might be on sale like the amperior soon because of the "replacement"

 

[billybob_jcv]

In the US, a manufacturer can't specify the price at which a retailer will sell the unit (that's called price fixing). However, they can, through the contract the retailer signs to be an authorized reseller for that that brand, specify that an *authorized* retailer can't advertise below a certain price. Of course, an unauthorized reseller can do whatever the heck they want - as long as they (or their customers) don't try to get support from the manufacturer. That's the gray market items. The authorized reseller can still sell it for any price he wants - which is why some web sites have the whole "put it in the cart to see the low price" BS. If you put it in the cart, then the reseller can claim you are actually intending to buy it - so then they can show you the actual price. Less sophisticated web sites just say "call for price"

 

[a_recording]

Ah. This is so enlightening...

 

[vwinter]

So the manufacturer still sells to the unauthorized dealers. Ok the terminology is what always confused me then. Thanks for the much more detailed answer.

 

[veyrongatti]

Ah. This is so enlightening...

What is?

 

[lee730]

Quote:

So the manufacturer still sells to the unauthorized dealers. Ok the terminology is what always confused me then. Thanks for the much more detailed answer.

 
But it's not right when they deny you warranty support if that is the case. If they are indeed knowingly selling these products to anyone they need to cover the damn warranties....

 

[billybob_jcv]

So the manufacturer still sells to the unauthorized dealers. Ok the terminology is what always confused me then. Thanks for the much more detailed answer.

No - the manufacturer sells to an authorized distributor, who back doors product to unauthorized resellers - usually through several intermediaries so that the manufacturer has a harder time tracking the channel.

There are also other ways product gets into the channel - a failing dealer might dump product to anyone that will buy it right before he goes bankrupt (usually still owing the manufacturer or distributor for that shipment!)

A unscrupulous contract manufacturer that has an order for 100,000 units from a brand might "accidentally" make 120,000 units - then backdoor the extra 20K to the gray market (when you see stuff that is in "OEM packaging" or "bulk packaging" - it might have come from this method)

With camera gear, the most common is "export only" product that is intended for one market, but ends up in the US or European markets. It might have been priced much differently because the mfr might not offer support in that country - it was sold with the understanding that a local distributor would provide support. Instead, he shuffles it off to the gray market.

etc, etc...

 

[veyrongatti]

But it's not right when they deny you warranty support if that is the case. If they are indeed knowingly selling these products to anyone they need to cover the damn warranties....

Well that sucks..... Apparently thats what happened to the UE900 in China....

 

[DigitalFreak]

Quote:

 
But it's not right when they deny you warranty support if that is the case. If they are indeed knowingly selling these products to anyone they need to cover the damn warranties....

Agreed, but that's the problem when you decide to buy from the gray market, you take your chances. I wish there was a law where gray market sites had to openly state whether they were authorized dealers or not. If you're not careful you can wind up with faulty gear and get screwed.

 

[lee730]

Quote:

Well that sucks..... Apparently thats what happened to the UE900 in China....

That makes sense. I think it should be illegal because it's not fair.

 

[lee730]

Quote:

Agreed, but that's the problem when you decide to buy from the gray market, you take your chances. I wish there was a law where gray market sites had to openly state whether they were authorized dealers or not. If you're not careful you can wind up with faulty gear and get screwed.

Well in this case DigitalFreak I'd be more concerned whether or not if the item is indeed genuine (not fake). If it was real and you got a hefty discount on it then the risk would be possibly worth it IMO. Just buy a side warranty for it and you have even better coverage (Square trade).

 

[vwinter]

Sigh, It's never simple is it?

I don't see how any manufacturer with any reasonable effort couldn't find out which distributor was doing it.

And how would that work with a serial numbered product like the IE800?

 

[lee730]

Quote:

Sigh, It's never simple is it?

I don't see how any manufacturer with any reasonable effort couldn't find out which distributor was doing it.

And how would that work with a serial numbered product like the IE800?

True if they kept track of the Serial number then they should be able know.