Andy@Performance

iTrader: (92)

I have been reading a lot of people's opinions about grey marketed products lately and I just wanted to give you guys an insight on how this all affects our industry, to the consumer as well as the re-seller.

Grey marketing is NOT illegal. To the average consumer, grey marketed products are usually appealing because it may or may not be a cheaper alternative. What people need to understand is that when you purchase a grey marketed product, because the re-seller did not go through authorized channels, there will be no honored manufacturers warranty on the product. Usually a proof of purchase is needed when performing and submitting any warranty work and if the product was not purchased from an authorized dealer, you'll mostly likely be turned away. Another downside to buying grey marketed products is the lead time. You may be waiting months at a time on your product because the re-seller does not have any priority with backorders or they may be trying to stay under the radar if too many vendors are asking questions or conducting an investigation to find sources. There is never a 100% certainty that the product is even genuine when it comes to grey marketed products. Vendors are also selective on who they sell to. They evaluate the the re-seller's ability to serve customers, product knowledge, and enthusiasm of the product itself. Some companies have no other alternative than to resort to grey marketing because they were denied to be authorized.

What you as a consumer should know is that grey marketing is illegitimate. Official U.S distributors, importers, and manufacturers such as NISSAN North America, Mackin Industries, HKS USA, Nukabe Automotive spend hundreds of thousands of dollars on marketing and advertising their imported products. They have full support and cooperation from the Japan operations on grey marketing. All the pictures, ads, events that you see are all funded by the U.S importers and own the rights on the intellectual properties that were created by them. Grey marketers use this to their advantage and make no contribution to the companies that spend the money to promote all these products. Yea, you may or may not be paying a slightly higher mark up than getting it through the grey marketer, but you are making a positive contribution to the industry by purchasing from an authorized dealer. When a grey marketer is using the marketing tools of a U.S importer to sell a product but not purchasing through an authorized source is unethical and illegitimate. It also hurts the vendors that are authorized or buying through authorized channels because they're losing the sale. Purchasing through an authorized dealer will give you peace of mind knowing your product is authentic, your manufacturers warranty will be honored, and will help the cycle of success to the automotive industry and culture.

Your support as a consumer is a lot more important than you think. Your purchases from authorized vendors help support their business which in turn will help support all the marketing companies and publications. Publications like Super Street and JTuned help promote the culture that we all have a passion for here. For the most part, grey marketers are out to make a quick buck. They may claim that they're bringing products in at a lower price to help the market but in the long run, it only hurts our culture and delays us from progressing in a positive movement.

This thread may sound biased to some, but these are the tolls and affects of grey marketers as a whole. I am not trying in any way to tell forum members what to buy from who, your hard earned income is what you want to do with it. I think that it is important for people to know the affect on both ends of the spectrum of what grey marketing does to our culture and it is not a positive one.

DROPPEDIT2WCE

iTrader: (3)

Excellent write up!! this should be a sticky

gimpster621

iTrader: (38)

^ +1

CEO350Z

iTrader: (21)

CaliTouring

iTrader: (5)

So instead of the consumer profiting the vendors should be profiting. I can see where the stick pokes the vendors in this situation but i personaly would rather save money then to spend the extra few hundred just to aquire warranty in which most of the time is worthless because the product always works. it also basicly means that if i want to sell my car i am contrinbuting to the grey market because im selling my Z and making a profit instead of the buyer buying from the dealer. I mean this can go both ways.

dubbzdiggler

so what's Ebay? I biege market? People have been buying selling things to each other forever, it'll never end. It's a risk you take when buying something off someone instead of through an auth dealer. Sometimes it works out great, sometimes it burns you.

Will Pwr

iTrader: (4)

Great write up Andy! Its very informative for consumers.

As being previously from HKS USA, it is an issue that does impact not only the business but also the consumer. In many cases, the consumer is the one that can lose out the most. Warranty and service are one of the key main aspects...more often than not the product will be flawless, but in the cases where it may be a unique issue or technical problem...there well be no after-sale support for it. This is not because of the manufacturer having a power trip, but it has to do with product liability.

If a product is brought into the US via the proper channels, the said company ensures and takes liability for that specific unit sold. If it does not come from that entity, the said entity can not trace or establish accountability of the product. This is not limited to the automotive industry either..for example, electronics... lets say you buy a electronic device from overseas, you take that chance. If something goes wrong, the US division will not warranty it.

Of course this will not detour everyone, but it is PSA. Many who know that they are buying grey market, will accept that. But its more for the ones that do not know and become surprised and ultimately angry when they can not get the support that normally comes with th product.

Just my added $0.02

Will Pwr

iTrader: (4)

Thats different in the sense that you are selling a used personally consumed product. Plus you are selling it within the same market.

Now, if you were taking new Zs from Japan and selling them to the public in the US, then yes....that would be grey market

CaliTouring

iTrader: (5)

i see. so then i would come with the Japanese warranty correct? i have a feeling im wrong about this part lol.

CEO350Z

iTrader: (21)

i think will meant that if you sold a z from japan, nissa usa won't touch it for any warranty work...even though it's new.

Kit

Will Pwr

iTrader: (4)

haha, yeah you would get the Japanese warranty with it....thus you would have to ship the Z back to Japan to get any warranty work... and if they wanted to check and saw that the car left the country..that warranty may become void too. haha

Im not trying to be an ***....Im just stating it as it is and as how Ive seen it...

Will Pwr

iTrader: (4)

Yups....exactly

CaliTouring

iTrader: (5)

naw your not being an ***. i didnt know your warranty is voided if you take the car out the counrty.

CEO350Z

iTrader: (21)

yeah........you are













haha, just playing bro!
kit

A Spec Products

iTrader: (25)

I think this is a common misconception of all consumers. Keep in mind CaliTouring I am not singling you out, but rather making a general statement, so I mean no offense. I definitely see your point, and in a technical sense it makes sense, but I do not completely agree.

There are GOOD & HONEST vendors who are not just concerned with squeezing every little dime out of your body. Many consumers always have a negative perception of vendors (especially in the automotive industry), which is often not the case. We are not out for your money!

The automotive industry is rough in that way, since consumers always have the perception that there is never a fixed price, and that everything is negotiable. While I'm sure "economists" will chime in about competition, supply and demand, etc, I'm not trying to argue why this is, but just point out the nature of our industry. You can't walk into a supermarket and ask them to price match the creamed corn versus the big bargain store down the street, or go into a burger joint and ask if they can super size the combo for free cause you bought 2 combos...since I'm not getting lettuce or tomato on my sandwich, can you take off 20 cents?

There's just a lot of negative energy and perception when it comes to the consumer's viewpoint of our industry and motives. Although I can't change this, I often wish consumers would try to see our viewpoint and reduce their cynicism of vendors.

So as much as you love getting the cheapest best deal out there, the industry needs to survive. I think until you stand on this side of the fence, you won't completely understand this. A lot of customers often love to use the phrase "I've been in sales so I know what you're doing," but I don't think you can say that without actually working in this industry in particular. There is nothing wrong with giving a business profit so that it may sustain and continue to provide you with great products and great service. I'm not saying that trying to find the best price is wrong, but keep in mind that at the end of the day, you need to give back to your dealer as well. Profit doesn't mean we make more than you save, but there is always a common middle ground where both the consumer and business can be happy from a transaction. We are not all sharks

I could go into a whole other rant about knockoffs and sub par products flooding our industry, but essentially if you always buy cheap and lowball, you will end up having a market that cannot sustain to carry high quality products. After working in this industry, I don't care to lowball, and I will pay for quality and service without hesitation. If someone has something in stock and it costs more, I want it and it's there so I buy it without question.

It's no secret that Ebay has directly hurt the industry in many ways, but has come with the benefit of the consumer. Ebay gives the consumer convenience, endless variety, and price selection among many other positives, but in the long run has damages many businesses and markets. I do not blame consumers for being happy with this, because you should be looking out for yourself and your well being. With that being said, contributing back into the market as a knowledged and appreciative consumer should be something to consider.

Very good post Andy.

Rickdogg

iTrader: (234)

Great post! Definitely falls in the same realm of when I got in to that heated debate about replicas effecting the aftermarket industry. Knowledge and informing consumers is crucial so that those that DO CARE and UNDERSTAND what is going on make their buying decisions with the cards laid out in front of them.


Off-topic...buy authentic! LOL

Will Pwr

iTrader: (4)

yeah, its not a commonly known thing..as mostly because it doesnt really happen too often.....

Will Pwr

iTrader: (4)

There are some good posts here....in fact all of them are..it poses good questions and answers!

Rickdogg

iTrader: (234)

This should be a sticky