Manufacturers selling their own parts...

[Caleb]

I put this in Chit Chat because I've seen this in all sorts of areas and not just 4x4 but recently in the 4x4 world. It drives me insane when manufacturers, who sell their own parts, undercut their dealers. I see this all the time and it's why I quit selling paintball parts and partly why I haven't done anything more with my motorcycle parts business. They expect you to abide by their pricing rules, but then go and sell (and advertise) for less than what they allow their dealers to sell or advertise for. I recently saw this with an un-named coilover manufacturer. My buddy ordered some coilovers and bumps and was told by the manufacturer when he called to get advice on what sizes to buy, that they would sell him the parts for cheaper than any dealer around here could. How are businesses suppose to be competitive or even make any money when they are being undercut at the source?

Sorry, just a rant that's always drove me insane.

 

[JL Rockies]

JL Audio started selling their own products on their website but they list it at MSRP.

 

[Caleb]

JL Audio started selling their own products on their website but they list it at MSRP.

That's exactly what I would expect if they sell their own stuff. That's their suggested price...they should sell for that.

 

[sixstringsteve]

yeah, that's pretty messed up. Trail-gear does the opposite. They tell people to contact a dealer, rather than buying direct, to get the best price.

 

[mesha]

I have a few manufacturers that undercut me. It bugs the crap out of me. So much so that we are dropping them.

 

[Gravy]

I had a mfg use dealers to set up a client base then pulled all their dealerships and only sold and serviced direct...

They went out of business 3 years later...

Good business practices are the only way to have a long term business.

 

[cruiseroutfit]

I'm pretty selective about the lines I carry, and in most cases if XYZ company sells direct to customers (regardless of price), I'm not interested in stocking their parts. I might drop-ship one here and there or bring one in on special order but if they are a source and a competitor I'm not going to floor my money on inventory. On the flip side there are companies like ARB that list all the products for full MSRP on their website, if you click through to buy it will ask for your ZIP code and pass you along to your local dealer, which I totally dig. I can understand small businesses needing to get some product out there but I get lots of inquiries for new product offerings and one of the first questions I have is whether or not they sell direct or plan to in the future.

 

[Tacoma]

^^^ this is why people like Cruiser Outfitters.

 

[Cody]

I appreciate that my suppliers not only will not sell direct, but will not sell to online-only retailers.

 

[TeraFlex]

TeraFlex makes a point to not compete with our vendors. It doesn't make sense to hurt a company that is trying to sell your product line.