Question for James about Dealers

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jaxwired

Question for James about Dealers
« on: 16 Feb 2012, 01:59 pm »
James,

Does Bryston allow authorized dealers to discount Bryston products from the normal retail price?

Curious what the official policy is.  Thx.

James Tanner

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Re: Question for James about Dealers
« Reply #1 on: 16 Feb 2012, 05:50 pm »
James,

Does Bryston allow authorized dealers to discount Bryston products from the normal retail price?

Curious what the official policy is.  Thx.

Hi,

By law,  we have no say - all we can do is offer a Suggested Retail Price and the dealer can do as he wishes.

james

jaxwired

Re: Question for James about Dealers
« Reply #2 on: 16 Feb 2012, 06:17 pm »
Hi James.   Thanks for the reply.  That's a very diplomatic response, but my understanding is that dealers of most hifi equipment jeopardize their dealer agreement if they discount.  They seem to do the discounts on the down low.  Because of this there is a wide disparity in customer treatment.  Some customers are paying full retail.  Others are getting clandestine deals with a wide variety of discounts.

Based on the lack of response to my poll on this subject I'd say everyone is afraid to discuss the reality openly.  Not sure that's a good thing...

James Tanner

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Re: Question for James about Dealers
« Reply #3 on: 16 Feb 2012, 06:22 pm »
Hi James.   Thanks for the reply.  That's a very diplomatic response, but my understanding is that dealers of most hifi equipment jeopardize their dealer agreement if they discount.  They seem to do the discounts on the down low.  Because of this there is a wide disparity in customer treatment.  Some customers are paying full retail.  Others are getting clandestine deals with a wide variety of discounts.

Hi - no we can not in any way threaten them with cancellation of their Bryston franchise based on selling prices.  We can dissolve the franchise for Transshipping or lack of payment within stated terms.  I have heard of some cases where if a manufacture can prove that a dealer is selling below the price it costs him (dealer) to remain in business also allows for cancellation.

james

jjc1

Re: Question for James about Dealers
« Reply #4 on: 16 Feb 2012, 07:01 pm »
Hi - no we can not in any way threaten them with cancellation of their Bryston franchise based on selling prices.  We can dissolve the franchise for Transshipping or lack of payment within stated terms.  I have heard of some cases where if a manufacture can prove that a dealer is selling below the price it costs him (dealer) to remain in business also allows for cancellation.

james

  How does one stay in business by selling at a loss?  Is that the old quantity theory?

James Tanner

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Re: Question for James about Dealers
« Reply #5 on: 16 Feb 2012, 07:09 pm »
  How does one stay in business by selling at a loss?  Is that the old quantity theory?

Some dealers only stay in business for a very short time :duh:

james

SoundGame

Re: Question for James about Dealers
« Reply #6 on: 16 Feb 2012, 07:43 pm »
Hi James.   Thanks for the reply.  That's a very diplomatic response, but my understanding is that dealers of most hifi equipment jeopardize their dealer agreement if they discount.  They seem to do the discounts on the down low.  Because of this there is a wide disparity in customer treatment.  Some customers are paying full retail.  Others are getting clandestine deals with a wide variety of discounts.

Based on the lack of response to my poll on this subject I'd say everyone is afraid to discuss the reality openly.  Not sure that's a good thing...

Jax,
I've seen local dealers in my area discount Bryston equipment, even in advertised sales.  Sometimes for demo gear but also on new, especially if they have stock already.  I believe depending on the locality and supply and demand as well as the clientele and the dealers business model you will find different responses.  Some people have the money and are just willing to pay full ticket to get it and get it immediately, others are always looking for some sort of discount or throw-in.

All this gives me the feeling that you're shopping for a pair of lucky 7's to go with your OB1i's, am I right, Jax? :?:  Perhaps a BDP?

jaxwired

Re: Question for James about Dealers
« Reply #7 on: 16 Feb 2012, 09:36 pm »
Hi SoundGame,

No 7's I'm afraid.  Though they would like nice on my audio rack.   :)

But you are on the right track.  Looking to buy the new Bryston headphone amp.  Which BTW I take credit for since I suggested it to Bryston a couple years ago.  Pretty sure I'm the only one to ever think of it...  :lol:

SoundGame

Re: Question for James about Dealers
« Reply #8 on: 16 Feb 2012, 09:43 pm »
Hi SoundGame,

No 7's I'm afraid.  Though they would like nice on my audio rack.   :)

But you are on the right track.  Looking to buy the new Bryston headphone amp.  Which BTW I take credit for since I suggested it to Bryston a couple years ago.  Pretty sure I'm the only one to ever think of it...  :lol:

In that case Jax, - would expect Bryston ows you serial number 001 off the production line. :lol:

ec

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Re: Question for James about Dealers
« Reply #9 on: 17 Feb 2012, 01:50 am »
From my understanding there are some manufacturers (not high end but mass consumer Audio Video electronics) that do have a form of "price fixing" where their retailers have to sell for a specific price.  The one that comes to mind is one that has its own stores in shopping malls.  To get around this the smaller independent stores will sell say a TV at the "fixed" price but will throw in extras (stand etc). 

Years ago, there was one *former* Bryston Dealer that sold some demo amps to someone I knew that had to be below cost as it was riduculously cheap (around or less than used prices at that time).

James Tanner

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Re: Question for James about Dealers
« Reply #10 on: 17 Feb 2012, 01:53 am »
Well as I said before when this subject came up  ...... as soon as the price becomes unprofitable for the dealer or distrbutor the company goes away.

James

Laundrew

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Re: Question for James about Dealers
« Reply #11 on: 17 Feb 2012, 12:05 pm »
Well as I said before when this subject came up  ...... as soon as the price becomes unprofitable for the dealer or distrbutor the company goes away.

James

I thought that they just move production overseas when this happened...

 :wink:

Be well....

James Tanner

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Re: Question for James about Dealers
« Reply #12 on: 17 Feb 2012, 12:14 pm »
I thought that they just move production overseas when this happened...

 :wink:

Be well....

Good point Laundrew

James

mkaiser

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Re: Question for James about Dealers
« Reply #13 on: 17 Feb 2012, 12:38 pm »
Quote
But you are on the right track.  Looking to buy the new Bryston headphone amp.  Which BTW I take credit for since I suggested it to Bryston a couple years ago.  Pretty sure I'm the only one to ever think of it... 

I don't think so..... i suggested a headphone amp to James back in 2007 along with a DVD player.  :thumb:

Mark

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Re: Question for James about Dealers
« Reply #14 on: 17 Feb 2012, 02:26 pm »
Good point Laundrew

James

Lady Laundrew experienced this situation a few years ago. She came home from work one afternoon and told me that they had a group of individuals visiting their plant for a couple of weeks, which were interviewing workers, taking photographs and inspecting production machinery. I told her that they must be planning on closing your plant. "Oh no," she told me and that management informed them that their guests were only there on a "fact finding" mission. Approximately 6 months later, 70% of production was shipped offshore. We were very fortunate as Lady Laundrew was able to transfer to a nearby factory with the lines that were remaining in Canada.

Talk about a possible "trickle down effect," as this was around the same time frame that I was getting ready to purchase the 28/26 combination and if she would of lost her job it would of either delayed my purchase or put them out of reach and I would still be using my Marantz gear today.

Just under 100 individuals lost their jobs with good wages and benefits. It was a non-union plant and the upper end pay-scale was the Automation/Robotic Technologists @$25/hr and the production workers were paid much less. What was really sad was that Lady Laundrew met one of her friends a year later who had lost her job and although she did find work at minimum wage, she said that she no longer had any "fun money" to enjoy as she was having a hard time keeping up with expenses. 

Be well...   

JfTM

Re: Question for James about Dealers
« Reply #15 on: 17 Feb 2012, 03:49 pm »
Lady Laundrew experienced this situation a few years ago. She came home from work one afternoon and told me that they had a group of individuals visiting their plant for a couple of weeks, which were interviewing workers, taking photographs and inspecting production machinery. I told her that they must be planning on closing your plant. "Oh no," she told me and that management informed them that their guests were only there on a "fact finding" mission. Approximately 6 months later, 70% of production was shipped offshore. We were very fortunate as Lady Laundrew was able to transfer to a nearby factory with the lines that were remaining in Canada.

Talk about a possible "trickle down effect," as this was around the same time frame that I was getting ready to purchase the 28/26 combination and if she would of lost her job it would of either delayed my purchase or put them out of reach and I would still be using my Marantz gear today.

Just under 100 individuals lost their jobs with good wages and benefits. It was a non-union plant and the upper end pay-scale was the Automation/Robotic Technologists @$25/hr and the production workers were paid much less. What was really sad was that Lady Laundrew met one of her friends a year later who had lost her job and although she did find work at minimum wage, she said that she no longer had any "fun money" to enjoy as she was having a hard time keeping up with expenses. 

Be well...

Getting a bit off topic, but one aspect of offshore outsourcing that never made sense to me (and I was involved in an industry that did lots of offshore outsourcing) is chasing a lower wage rate.

In “higher food chain” manufacturing like automotive, automotive suppliers, machinery, etc; capital (automation) intensive manufacturing labour is generally anywhere from 4 – 8% of cost.  Not price; cost.

Now take the labour savings and balance off the cost increases (which, btw, is generally not done) like increased transportation, increase inventory (for lengthened supply chain if nothing else), increased overhead for communication, etc.

It is really hard to see where wholesale offshoring makes sense.