Glad you could join us.
Don my question is to do with the Stewart Marketing system in the UK.
While I know and understand that there is a premium to pay for all top notch goods throughout the world, we are, it seems, particularly hard done by in the UK.
Local dealers in London for example quoted me more than twice the general usa rrp price.
Whilst I am an agent myself (fashion), and understand that there are shiping costs, taxs, and retail margins, to consider, it still leaves people feeling very dissapointed, as they maybe could have bought at the USA price but doubling up has put the product out of reach.
I myself chose not to import, for various reasons, but to squint and suffer the ouch price, get the best, and be done with anymore upgrading costs. (I bought a Studiotek 130 electric 16x9,....87x49 I think was the size)
Is there not a way, as Denon seems to have achieved for example, that prices can be fairly equal throughout the markets.
Denon example, 5800 in USA rrp $3800 in the UK Â£2500 around the same.
I realize the implications of such a move would be very difficult to implement due to different dutys, shipping rates, retail and agent profit margins, and many other variables throught the world.
Looking at Denon again, I can only assume that they have managed to do this by actually varying their profit margins according to the above fluctuations.
Don, with respect, if this, or perhaps another way, were possible, your overseas sales would sky rocket.
Thank you for the tough question.......I will try to answer it to the best of my ability.
I am glad that you used an example in your post, in the case Denon, because it will make it easier to answer your question.
Large consumer corporations such as Sony, Denon, Panasonic, etc. have a huge advantage in the supply chain over small and midsize companies. Their local distribution infrastructure are owned and controlled by the Parent company. Example: In the states its "Sony of America". They can set local policy because the management reports the the parent company. In the U.K. we use a local privately owned distributor. That same distributor may also distribute for 5 or 6 other small companies with AV related products such as speakers, cables, remote control systems etc. It is the distributor that calls and services the local dealers and systems integrators. We do not have control nor can we legally set the local pricing. The only leverage that we have on a distributor is: "If they are not doing a good job then we will find someone else".
I do know that some overseas customers do beat the system by ordering products via the internet from North American dealers. We see at least 2 or 3 units going out a day to American Dealers with the tell-tell sign on the box: "220 Volt-50Hz only"
Thank you for taking the time to answer my post. Yes you are quite right regarding people beating the system and ordering directly from the usa.
I know many friends who have indeed gone this way.
Whilst I am sure that your UK distributer Anders Kern are doing a good job, perhaps in the not to distant future, they will, due to what is now becoming a "Global Market", change their pricing policy and or margins in order to maintain what will logicaly be falling sales.
I understand how the Mega size companys control their price structures in varying markets, and I am sure, do to your unique and enviable position at the top of the screen market, your company will also be in this position one day soon.
All the best
I must concur with you regarding screen pricing, and not just with Stewart. We are supplied by Anders and Kern and I must say in there defence that those guys offer great back up and service.
The quality of construction and design of Stewart in comparison to others over here is marked. I'd love all our customers to have a Stewart but when faced with the huge costs it is all too often impossible. Many choose lesser designs and usually then remark that they wished they hadn't!
I'm sure thoug that with the change to "glaobal" markets these things will change. Distributors and manufacturers will have to work in co-operation or their customers are going to go elsewhere. Just like end-users, dealers in the UK are constantly trying ot find ways to import product for less. In many cases probably yti make larger profits but in our "specialist" field I think it's more to grow the market by supplying superior products at affordable prices.
All the best,
Don: Love the screens!
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