transshipping is the evil of the future. It will be the downfall of aftermarket electronics.
All the knowledgeable, trained, and hard working shops and installers will begin to cease to exist because they can't keep the doors open by matching transhipped online prices.
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I think that one of the things people who buy from unauthorized transhippers don't see is that some of the major unauthorized internet sellers have the ability to purchase a hundred thousand dollars and sometimes even much more at a time and they are willing to sell that in high volume for only a couple of dollars profit per item in order to make money fast. If you only make $2.00 per item but you sell 20,000 of them in a month then that was still a pretty good investment to them.
They don't realize or care that they are destroying countless businesses who operate on much smaller scales. Most dealers can't buy a product and ship it for the prices often found on the internet. I don't mean that as a euphamism - I mean it literally.
Trans-shipping has always been a problem, but it never had the impact on retail sales that unauthorized selling on the internet (by the same people or same type people as the trans-shippers were) that the internet has had.
It's great for customers to be able to get a good deal on product. But not to the detriment of the company who builds the product, and their business partners who stock, sell, install, and promote those products - only for someone else to ride their coat-tails and make a quick profit. Manufacturers still rely on brick and mortar shops throughout the US and the rest of the world for the vast majority of their total sales. The internet pricing drives the cost of the product down to a point that it is not logical for a dealer to stock or carry it in many instances - and the net result is that the manufacturers total sales begin to Drop - making said company less profitable and with time can jeopardize their ability to continue operating.
There are a lot of factors that play into it, but there is no question about it that people selling for insanely low profit margins are hurting our industry. People wonder why the shows aren't as big as they used to be, not as many people compete, manufacturers don't give out product and free stuff like they used to, and the list goes on and on. All of it has been on a downward trend which believe it or not has corresponded with profit margins over the years. If you as a consumer want a thriving industry with all of the shows, manufacturer support, and all the other fun stuff that we used to have in this business - then you need to think about who you are doing business with and why.
To an extent I'll agree and say that yes, dealers have to plan their business model around these market conditions in order to stay in business and stay profitable. But a lot of us in this business are here to make a little money and enjoy what we do. But there is no fun having your balls cut off by someone willing to sell an amplifier for $427.00 online that costs the dealer $415.00 to purchase then having the "internet savvy" customer rub your face in what other people are doing.
Just my 2 cents - take them for what they are worth.
Originally posted by:
Chris Dilbeck
Premier Marketing