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  #1  
Old 06-17-2010, 11:39 AM
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AL & EDs Asks 12V Retailers Petition Suppliers


Sonic Responds to Al & Eds Proposal


What do you think? I think the slow destruction of the 12V retailer is due in part to the allowance of the gray market (the selling of goods below any listed MAP) by manufacturers just to move product and those unethical retailers (we all can name a few!). That is just my $0.02.

What are your thoughts?
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Old 06-18-2010, 03:55 AM
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Where will we go next?
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Old 06-18-2010, 04:06 AM
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Sonic is no where near MAP pricing! Not sure how they are able to sell below dealer cost most of the time? As long as most manufacturers that are internet based continue their way of selling direct, that should eliminate the gray market.
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Old 06-18-2010, 04:13 AM
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Originally Posted by 98GMC View Post
Sonic is no where near MAP pricing! Not sure how they are able to sell below dealer cost most of the time? As long as most manufacturers that are internet based continue their way of selling direct, that should eliminate the gray market.
Sonic can sell below dealer pricing because they get the product from wholesalers and manufacturers who have overstock. I think the gray market could be slowed if local retailers stopped supporting brands that are sold within the gray market.
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Old 06-18-2010, 05:03 AM
Car audio classifieds, stereo sales, subwoofer amps mids classified caraudio, BANNED!!
 
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Good luck with that.
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Old 06-18-2010, 10:59 AM
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Old 06-20-2010, 06:32 PM
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Read the current comments! Very interesting for all.
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Old 06-22-2010, 03:11 PM
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This is essentially the Wal Mart effect. This same thing has played out in every small town in America when the giant Wal Mart moves in with cheap goods and puts all the Mom and Pops out of business. Now it happens in the car stereo world. Sonic is moving a ton of product at cheap prices, whether it's gray market or not and this is running the little guys out, and now the little guys are crying foul. This is America and that's how it works here. It's sad in a way but that's the way it will always be.

This "Wal Mart effect" was just delayed in the car audio world because internet commerce didn't get going in a huge way until the last several years. Now it has and people are no longer limited to what their local shops carry and are no longer held hostage to pay the price the local shop sets. They can now just run to the big guy and buy it cheaper.
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Old 06-22-2010, 03:21 PM
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Quote:
Originally Posted by IMADreamer View Post
This is essentially the Wal Mart effect. This same thing has played out in every small town in America when the giant Wal Mart moves in with cheap goods and puts all the Mom and Pops out of business. Now it happens in the car stereo world. Sonic is moving a ton of product at cheap prices, whether it's gray market or not and this is running the little guys out, and now the little guys are crying foul. This is America and that's how it works here. It's sad in a way but that's the way it will always be.

This "Wal Mart effect" was just delayed in the car audio world because internet commerce didn't get going in a huge way until the last several years. Now it has and people are no longer limited to what their local shops carry and are no longer held hostage to pay the price the local shop sets. They can now just run to the big guy and buy it cheaper.
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Old 06-22-2010, 03:46 PM
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Quote:
Originally Posted by IMADreamer View Post
This is essentially the Wal Mart effect. This same thing has played out in every small town in America when the giant Wal Mart moves in with cheap goods and puts all the Mom and Pops out of business. Now it happens in the car stereo world. Sonic is moving a ton of product at cheap prices, whether it's gray market or not and this is running the little guys out, and now the little guys are crying foul. This is America and that's how it works here. It's sad in a way but that's the way it will always be.

This "Wal Mart effect" was just delayed in the car audio world because internet commerce didn't get going in a huge way until the last several years. Now it has and people are no longer limited to what their local shops carry and are no longer held hostage to pay the price the local shop sets. They can now just run to the big guy and buy it cheaper.

that's not actually what's going on here. Manufacturers actually sell their product to walmart, and have a business relationship with them. Manufacturers are not selling their products to sonicelectronix.

The manufacturers of ca merchandise are intentionally trying to keep the price point high by *NOT* allowing stores like walmart to sell their product at deep discounts. What's happening is that online stores, free from those contracts, are disregarding those wishes and dragging the prices down where the market naturally wants them to be.

Companies like Sundown, and others are the way to go - just sell direct. It avoids this whole nonsense argument. It's going to be the future, and it gives the customer a better product at a better price, with better customer service. It's win/ win / win. The days of big audio companies like Kicker and JL protecting their price point are almost over.

EDIT: This isn't a bad thing for anyone. It just means the business model has to change. Instead of "mom and pop" stores making profit on markups, they need to charge money for a design and planing session with the customer - like a consultant. They can then order what they need - direct from the online storefronts (and thus keep prices down) and can pass on the savings to the customer. They will then make the $ for the install.
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Last edited by Wheres The Butta; 06-22-2010 at 03:49 PM.
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