DJL,
Me too.
For the record, and partly in response to a couple of posts that were in a way "critical" of SP pricing policies here.............
General Observations;
There are laws which make it "illegal" for an o/seas supplier/manufacturer to even attempt to control what an Aust. importer does in regard to pricing. A manufacturer can "suggest" to their Aust., importer/distributor that having parity throughout the various markets is in everones' best interests, but legally, that is all they can do. The only other real alternative is to consider changing distributors.
This option is probably not a viable solution, as to have dealers (stores) actively promoting and selling a product, they will want to have a fair (or more than fair) margin on their buy price, as this gives them the necessary latitude to discount to “street” price while still making a worthwhile profit. Remember that any efficiently managed store has to take into consideration how long an item will sit in stock before it sells……….the longer they have it on the shelf, the more it costs, (this concept may be hard to figure, but it is a fact in business), consequently cutting into the profit margin. The better an item’s profit margin, the more staff will be encouraged to sell that particular item, etc, etc.
Essentially, the same principles apply to the distributors. They need adequate margins on the original buy price from the manufacurer, to cover shipping, import duties, etc before determining the dealers cost and potential profits, etc. Also, someone, somewhere in the chain has to establish access to tech support for service and warranty work……..this can be an additional cost.
For this structure to be truly successful and fair for all parties, there needs to be clear distinctions between the role or functions of; the manufacturer, the importer/distributor and the dealer/retailer. Any of these parties dealing outside of their specific role, are going to undermine the “whole”.
A significant difference between the US and Aust., is that as I understand things, in the US, dealers frequently buy straight from the manufacturer……..there is NO middle man, and this is essentially where the problems with pricing parity start.
SP specific:
What Alan Hyatt has recently achieved with Aust., pricing is admirable, as his distributor could have declined to cooperate. The end result, while not levelling the pricing playing field, has prices generally better than they were a week ago.
Any further improvement would require potentially major restructuring which may not be supported by current sales figures. There are some local factors (potentially slanderous) which make this a Catch 22 situation, and which I cannot raise here without breaking my word to certain people.
So, can there be further improvements?……..Definitely!
Do I expect to see them?………Probably not!
