Hi - control in what way as you start to get into legal issues if you go down that path.
james
Hi James!
It has nothing to do with legal rights. The "control" is a set of rules imposed by the manufacturer that any given distributor and/or dealer in a given market must follow. These rules may apply to one particular segment of the market or the entire market where the products are sold. It is quite common with industrial equipment manufacturers.
I will give you a clear example. If I were to buy let's say a BCD-3 CD player, it would cost me less to buy it in California for 2400 USD, have it shipped across the Atlantic, pay 25% VAT and 8% import duty than to buy it here for 4500 €. Even if I wanted to buy it at these terms, the dealer would first try to convince me to buy something else. I wouldn't spend any less - it would still cost me 4500 € - but they would make a whole lot more from the trade if I bought an equivalent product from a brand the dealer shouldn't even be carrying and selling "under the counter".
A friend of mine is a distributor and a dealer for a famous headphone brand. He has been given a specific set of rules what he is allowed to sell alongside that brand. If he wishes to remain their distributor, this is precisely what he must do. So, apart from a small selection of other headphone brands that do not represent competition for this brand, you will not find any other headphones in his store. Also, a pricelist he's been given is a good guideline for him to form his own prices upon but there are limits to what he is allowed to charge, at both ends of the spectrum. Then there are other rules concerning service etc. but we are not talking about that here.
This "squabbling" isn't doing any of us any good. The prices are too high and the service is substandard.
Please do not think I am speaking generally because I am not. I am being very specific, as usual, and this does not apply to all distributors or dealers. It is something to think about.
Cheers,
Antun