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Date:         Fri, 13 Jun 1997 10:24:47 +0000
Sender:       Vanagon Mailing List <vanagon@vanagon.com>
From:         vwbus@netbiz.net
Subject:      Re: re price fixing  (NO VW CONTENT)

> Actually, the courts have upheld the right of retailers to sell "gray > market" products. Even Kmart sells gray market watches, etc. For those > who don't know, a gray market products is a product that the retailer > brings here from overseas himself, rather than getting it from the > manufacturer's authorized US distributor. By bypassing the US distributor > and buying at the right price overseas, he can often buy it much cheaper. > One of the gripes of the manufacturers, though (and perhaps a legitimate > one), is that the US distributor (or US arm of the foreign manufacturer) is

> honor product warranties on those products that they didn't distribute. > (i.e. if the gray marketeer got that product directly from XYZ Co. of Japan > rather than from XYZ's US distributor, when it breaks, the US branch has > the right to tell the consumer that he must go to XYZ Co. of Japan, in > Japan, for warranty service, since they were the ones who distributed that > unit. Not that they would neccessarily excersize that right.) I like gray > market products because they help keep the "authorized" US distributors > from gouging too much, although it wouldn't be a bad idea to require the

Interesting thing is this all started with camera and video gear in the late 80's. In about '86 or so the year the Minolta Maxxum came out (dad bought one cheap) I bought a Nikon FM2, at that time with a US warranty card but delivered grey market it cost body alone $159 US from the best source in Pop Photo. Litterally WEEKS later after some ongoing battling between the trade commission and the mail order places the price on that same camera body was over $350. Dad bought the Maxxum and a top of the line video camera at the same time for about $1200 total investment that went over $3000 rapidly. The funny thing is camera prices have held regardless. They grey market stuff stayed out till just recently and even now has not driven the market to any where near the prices it had once settled to. And the real funny thing like I said was that you COULD back then pay for a grey market US warranty, price on the Nikon would be like this $139 Nikon warranty Japan, $159 US warranty card, $219 competing US warranty from US distribution. Then overnight $329 everybody. Didn't do the consumer to well then.

John vwbus@netbiz.net


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