Re: Sage and Simms at Costco

[Bulletin Board]

Posted by Mark on 2011-04-02 11:11:52 in reply to Sage and Simms at Costco posted by Woody on 2011-04-01 18:00:11

If this turns out to be profitable for Costco, expect it to happen over and again. Costco is not an authorized dealer for North Face, Casio, Crocs or Channel, yet these product show up routinely. There are unscrupulous people out there making a living brokering merchandise between manufacture and POS and diverting them to unauthorized outlets. Camera companies have been doing this forever. Ebay thrives in this environment.

Manufactures turn a blind eye because they often make a few extra points by leaking product into the gray market. If caught, they hold up their hands and claim innocence. Almost impossible to track.

It is in same the realm of manufacturers selling overstocked product to outlets such as Sierra Trading Post and Red Truck. It is nearly impossible to tell what is "overstocked" and what has purposefully been manufactured for this market. Manufacturer may win in the short term, but as they squeeze the specialty shops from all sides, something has to give.

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