Authorized audio dealers vs. grey-market resellers
You may ask, why when I visit a shop the price is higher then prices online?
Or, why do most audio/visual resellers set the same prices (especially if there are two in one city).
The answer is that there is a fine line between "authorized" resellers and "grey-market" resellers.
Authorized dealers
Authorized dealers have been authorized by car audio brand name companies to resell their products, but the brand name company sets the price the reseller sets on the product. If the reseller wants to change the price of the product in their shop, they first have to contact the brand name company before they can do so. This way, the brand name company makes the most money out of their product, and they can calculate exactly how much money they will make per shipment.
Grey-area or grey-market resellers
Grey area resellers get their products from anywhere and set all their own prices. This way, grey-area resellers will always undercut authorized dealers, but how much money they make is entirely up to the company in question. There are some products grey-areas simply can't get because some companies only sell their product to authorized dealers and no wholesalers. However, grey-area resellers are innovative and adaptive by nature, and many have found ways to overcome these boundaries.
Which one is best? Grey area or authorized
When it comes right down to it; whichever one will give you a better deal. Nine times out of ten it'll likely be the grey-area reseller as they can drop their prices below that of the authorized dealer.
EuroEnclosures is a grey market reseller. |