datboiroy: AWESOME TRANSHIPPER! UNAUTHORIZED INTERNET SALES!

So now we have something even more interesting going on. There was a report in the Wall Street Journal last week stating that numerous internet based sales companies are going out of business due to rising costs of shipping and smaller margins. They are victims of their own disease!
In theory, more internet sales would mean a boost to the shipping companies, which should help drive costs down, not up. My guess is the recent spike in fuel prices is what lead to those failures. Its no big secret that shipping companies were raising rates during that time.
Your comment on the race to zero is right on the mark. Its happening across many industries, not just audio equipment. MSRP is taking it on the chin. IMO, the internet isn't going away, the genie is out of the bottle... its the industries and sales organizations that need to adapt to the change in the market, not expect to keep the market conforming to its will. Do I have an easy answer? Hell no. But this quasi-dealer/quasi-internet network so many manufacturers have these days feels like a bandaide over a much more serious problem.

 
I'm lazy, plus I want to see if this guy knows his shit..

trying to see if Sean knows his stuff? heck ya he does! and as for that dealer locater it's a sometime worky thing for me. matt blames IE and says i need to get firefox. lol

but i can guarentee that if it's about ID those guys over there know they're stuff. and i know a lil about their stuff too.

//content.invisioncic.com/y282845/emoticons/cool.gif.3bcaf8f141236c00f8044d07150e34f7.gif

 
In theory, more internet sales would mean a boost to the shipping companies, which should help drive costs down, not up. My guess is the recent spike in fuel prices is what lead to those failures. Its no big secret that shipping companies were raising rates during that time.
Your comment on the race to zero is right on the mark. Its happening across many industries, not just audio equipment. MSRP is taking it on the chin. IMO, the internet isn't going away, the genie is out of the bottle... its the industries and sales organizations that need to adapt to the change in the market, not expect to keep the market conforming to its will. Do I have an easy answer? Hell no. But this quasi-dealer network so many manufacturers have these days feels like a bandaide over a much more serious problem.
Agreed, and its not just goods but service and manufacturing as well. I can argue with my company about offshoring labor making for lower quality of service and results but the answer back will be "Its xxx cheaper and we have to compete with company B who offshores".

People want things cheap, that won't change, just as companies need to lower labor costs to compete....thats unfortunately not changing either //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

 
Quoting cuz it's just that **** good.

My replies when I mentioned Crutchfield to someone else and they claimed it is a ripoff and woofersetc is a better place because it is cheaper ..
Crutchfield is Authorized, has Excellent customer service, offers full warranty, all accessories are usually included. They charge (usually, but sometimes lower) the price that the manufacturer requires and theyre a ripoff?

 

Am I crutchfield customer? NO. Am I a dealer for 12V? YES. Does crutchfield sometimes even hurt my sales? Absolutely. When I can only make $10 on a $500 ticket because crutchfield sold it : At sale prices, included all installation hardware and free shipping it cuts me and most other retailers down. So am I a fan? No really. Would I still endorse them though? Yes actually I would.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

HOWEVER, lets roll with the claim of 'over priced' ....

 

How do you think R&D is performed? Is this a free service? Absolutely not. Just to get an amp design on paper can cost an easy $10k, then to production it goes .. testing samples, revisions, cost of materials, shipping, literature, packaging, etc ...ALL cost money.

 

So with your theories here Brick and Mortar retailers should just plain not exist, correct? Let's say dealer cost for a said item is $500, retail is $750 and they sell it for $750. Good profit? That depends on how much time the retailer spent with you. Now picture this .. YOU are a retailer and sell everything at or right about at your cost ... how many months can you pay your building lease? Electricity? Insurance? Employees? Etc .. You would not last more than a month or two unless your in the habit of just tossing money away for no apparent reason.

 

In regards to your example of switching defective for a new one at the retailer ..

 

A: The retailer would not get credit and would be screwed since JL would trace the serial number. Retailer is now at a loss and was an innocent bystander. Did you ever notice most retailers do not offer cash back returns? Why? Because too many people tried this crap in the past. Why should the retailer be hurt because you wanted a replacement?

 

B: It is just plain sh!tty to do such a thing and is borderline illegal, if nothing else it is completely bad morals and tactics.

 

I am all for saving money on things and I try my best to extend discounts when I can. Although at the end of the day I still have bills to pay and a family to feed. Shopping in the manner that you do would leave me (and many other business owners) hungry and homeless.

 

Am I defending ALL retailers? Absolutely not, just in general. There are tons out there that have no work ethic, will mark prices above SRP and give you the 'take it or leave it' speech. Many of them are quite good though. With a retailer you are paying for ..experience, presentation, convenience and of course support/warranty. Many products nowadays can be advance exchanged - over the counter. No downtime for you at all. How many e-tailers do that?

 

Do you realize how these online sites get alot of their products?

 

Theft is a major one. This hurts not only the manufacturer and the retailer, but the economy as well.

 

Refurbed .. yes refurbished and sold as new. Is this ok? You may think so, but if I am paying for a new product, I want a new product.

 

Counterfeit .. This is getting larger and larger by the day. Sub par parts, products, development and then yes you are getting your (cheap) monies worth.

 

I do not think Crutchfield advertises on the forums .. Why? Who knows. Might simply be because they do not want to pay to advertise here.

 

And finally ... What if the popular etailer that your buying from suddenly shuts down? They already have your money, but didnt ship your product. Your screwed. Wont happen? Guess again. Happened several times over the years and I am sure will happen more. "Woofers is so big, it'll never happen" Anyone recall the last place that was down in FL that had a similar reputation and screwed literally hundreds of people? Thezeb.com
 
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