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I'm really sick and tired of seeing this, I was on the phone with a dealer today that actually condoned the practice. Basically it was stated that these companies are doing a service to the manufacturers by getting these boxes in areas of the country that do not have a concentration of dealers.

I say bull^&%$, how the heck can manufacturers let a non-authorized dealers get away with selling new units. Especially in a territory where there are authorized dealers that have a service staff?

Here's what will happen to you, if it not has happened already.  You have an existing account, that existing account upgrades every three years and you make a decent payday from upgrading the equipment every three years.  During those three years you also supported that account with follow up phone calls, return phones and maybe even a visit or two because they needed something.

Renewal time comes up, you give them the same pricing you've always gave them, they call you and ask why you've been ripping them off for all these years.  You weren't, but the customer now has the impression that the price they saw on a non-dealers web site is the around the same price they should pay from you.

We've got to call out DSM's and make noise, if we don't were going to see more of these places pop up.

The flip side is that some will say, well now their a price buyer and they don't value service. That's wrong, they were not a price buyer and valued service! 

Anyone have any comments, is this going on in your area, have you been hurt by this practice?

If you like something I've posted please feel free to click the "like" button!

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I appreciate the comment. 

"Most manufactures would need to go after the authorized dealer that sold the unit to the unauthorized dealer, and we all know how that can turn out...."

Manufacturers need to do something right?  The Authorized Dealer is in breach of their contract.  Wow, it still is true, most are just concerned with how many boxes they still move.

There's such a clot of used equipment that I'm surprised there aren't more non-authorized dealers out there. Customers rarely stay with them because the service is terrible and they can't get the parts.

I once tried to start a non-authorized dealership. The day after I put a Canon logo on my website, I started getting notices to cease and desist.

I see people who are calling on customers who only want "X" brand of equipment so they go to their buddy dealer owner in another state and buy that brand of equipment and install it. Then I have seen where they have to find service so they contract the local dealer of that brand to service it for them.....

 

It's actually benefited us so far. We have a company who has 3 high volume machines and a dealer went and bought a brand they didn't carry and had us service the account for them. About 30 minutes after the install the decision maker called me to their office, opened their filing cabinet, and gave me everything I wanted as far as invoices, lease info, service contract info, mps info etc.  and told me they would be replacing the equipment with our equipment the next go around. I am in process of working out about 50-60K worth of hardware and possibly MPS and a software solution. 

Now when it comes to these little guys out of the back of a van they are doing that all over town. Does the manufacturer really care? I doubt it, they moved a box...I don't condone it but I don't know how they could stop it.

 

Last edited by Jason H
Czech posted:

There's such a clot of used equipment that I'm surprised there aren't more non-authorized dealers out there. Customers rarely stay with them because the service is terrible and they can't get the parts.

I once tried to start a non-authorized dealership. The day after I put a Canon logo on my website, I started getting notices to cease and desist.

Canon doesn't play around. We had a company in our market that put the whole canon product line in their product catalog on their website as well as the logos and I reported it and Canon Legal was all over it immediately with letters, threatening legal action etc.

B13555 posted:

You would be surprised. More authorized dealer skate more then you think; especially with parts and supplies. Many of these authorized dealers are very reputable otherwise, and you would never think it. 

B13555, you are correct!  That's how a few of the Mega dealers got to be Mega dealers.  Good for the owners, bad for the reps who have to compete on the streets.

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