Did I get ripped off? Concerto 901 7.1 Surround Sound (1 Viewer)

[Winston T. Boogie]

OK, let's go with Chinese sweatshops paying fractions of a penny per hour to child labor. Fine, OK, so the cost of paying your labor is next to nothing but then on top of everything I listed above now you also have to pay to ship these to another country and then they are distributed all over the country. Having done international shipping as well, the cost for this is high. Then distribution across the USA is going to cost you some serious money too. So, again adding that in to total cost to make, package, and get the product where it is going...I'm even more baffled at how there is money made on this by whoever is doing all the work, providing all the supplies, and shipping them off. I mean there is something just not right in how they could be making money unless it literally is some sort of slave labor that is paid nothing, they own the printing and packaging company and steal all of their materials, they own the shipping company and kill anybody that asks for a paycheck...I mean this does not add up.

 

[RolandL]

Back when I worked for PC Richard & Son, we had a 5.1 system for $49.99.

 

[Alf S]

Per Wikipedia:

Despite the age of the scam and its dubious legality, white van scams often have relatively sophisticated logistics. Distributors rent a warehouse and obtain licenses and distribution rights, then import large quantities of poorly made goods. They ship these goods to local warehouses in major cities and hire 'salesmen' to distribute the shoddy goods.


North American distribution operations are in major cities across the continent. The marketers at each office establish a promotion, benefit, and bonus scale for the speaker sales teams. Bonuses may be paid in cash, checks, fake credit cards or, with some irony, speakers.

In Australia the same tactic is used. Receipts are issued, but the contact details are usually fake so that the goods cannot be returned. As an added measure, vehicles are leased so that they cannot be traced to either the distributor or 'sales person' driving

 

[DaveF]

The $80 retail BestBuy kit I link is presumably $40 to BestBuy, and so $20 cost to manufacture.

 

[Winston T. Boogie]

And so if that is the cost to the end user...again what do the people that make that system get paid? And who is making them? I mean the materials alone including all packaging etc...shipping...where is the profit in this?

 

[Winston T. Boogie]

I guess as a person that has run businesses for over 20 years and dealt with all the costs involved, shipping, manufacturing, printing...not to mention insurance, labor costs, vehicle costs, licensing, materials, taxes...I just do not see how you can get something as involved as a some sort of stereo equipment built, packaged, with branded full color glossy printing, internationally shipped, distributed, and then pay sales people to sell it, renting vehicles, warehouse space, despite however many corners you cut and people you screw to get it there...and turn a profit that makes the effort worthwhile. I mean obviously these are not honest operations, some sort or many sorts of criminal activity would have to be involved, and in the end what does anybody make on each sale? It seems more than stupid...it seems insane.

 

[PhilAR]

Reggie, I'm just as lost. The only way it makes any sense is if they're all stolen.... but I can't imagine they wouldn't be on the retail market somewhere if they are stolen shipments. But as is the case most of the time with these things, even the names are frauds... The Concerto as an example... it rips off the Bose Concerto speaker line name to lend an appearance of legitimacy.

There are plenty of cheapo sets on eBay that don't use this tactic.

 

[Alf S]

What if for say these items are actually items sold in many other third world countries, and they are to other people across the world the same low low end stuff like we see at Wal Mart (maybe to them it's "high end" stuff. To them it's just one of a bunch of random stereo brands they find at some random "electronics store" in their crowded city?

So if they are mass produced and sold at high volumes elsewhere around the world, I can see how a con artist can snag a bunch super cheap, have them routed here, then sold via vans etc.

 

[Winston T. Boogie]

I do not find that likely or a way of making it feasible. You still have all the same costs involved and big brands are in markets all over the world so people in Thailand know "name brands" just as we do. And realistically, because they probably see more knock off junk than we do...they are probably even more adept at spotting it. My cousin kept a residence in Thailand for years and started two businesses there. Cheap labor and materials are available and they also know all the big brands they want to create knock-offs of. And places like Wal-Mart do buy from these people.

 

[Alf S]

But I'd venture to bet these third world places have way more scrappy stores/kiosks packed into their cities and these type of items are stacked up on their shelves and folks buy them on a regular basis to avoid buying what we know and want, "name brands". I don't think a bigger majority of folks there worry about brands, they probably make little money and this type of knock-off stuff fits the bill for them.

 

[Winston T. Boogie]

Here's something funny, Alf, my cousin's Thai girlfriend while he was living there started a "fashion business" which primarily consisted of her flying to Europe and the United States and going shopping. Taking photos of items for sale, from purses to dresses to phones...and then posting them to a Facebook page where Thailand shoppers would purchase them from her. She made more money doing this than both of my cousin's businesses combined there. Everything she posted was big name brand products. They could not get enough of the stuff. They eventually opened their own "fashion" business creating a clothing line that was made locally there in Thailand. Insane stuff.

 

[PhilAR]

Like back in the 80s, after the fall of the Soviet Union, when you could go to Russia with a few of suitcases full of Levi's and make a killing selling them on the street.

 

[Mike Frezon]

I've wondered the same thing for all these white van scams.

How is it profitable?

Someone's got to pony up the cost of manufacturing and packaging.

 

[ChromeJob]

...

How is that possible? I mean that just does not seem realistic. Who is making and packaging these things?

You ought to have taken them home and cracked them open to see what was inside. It might've been an even bigger laugh than your parking lot "conning the con artists" shenanigans.

Thanks for an awesome story, though.

 

[questrider]

Yeah, this not only seems extremely sketchy but economically unfeasible for all the reasons mentioned here.

About five years ago I was at home when the doorbell rang. It was two guys selling frozen steaks and hamburgers door-to-door who claimed they had just sold some to my neighbor who then recommended me. And when I looked out into my driveway, there it was: a white van. I smiled, if not chuckled, and responded with an as-polite-as-I-could-muster "No thanks." I mean, who buys—let alone sells—meat from two guys out of the back of a white van? I'm sure I missed out on some quality U.S. Prime cuts with that deal!

 

[Clone1]

I just got one of those for $100 hence why I ended up here. It's actually not bad I made sure the guy opened the box and tested it with my phone On my dc converted out of my truck. It worked I had just gotten rid of my mine and I missed having the surround so I chose to buy and not disappointed yet. Still trying to find out why it won't pair to my PS3 though. I guess I can always hard wire it to it. But I do enjoy my tunes from my phone. Lol

 

[Mike Frezon]

Cesar:

Glad you found the Home Theater Forum.

We'd love an update from you down-the-road as to what's right/wrong with the unit.

If you're interested in the home theater hobby at all...you've come to the right place.

 

[Neely]

Well, gulp, I have an updated version of this same story as much as it pains me to admit. I too have just bought a Concerto Surround Sound with bluetooth, "Multimedia System" new in the box. It happened minutes ago in Miami, not surprising, and while different pitch, very similar.

Scene: A friend who is a GC called me to ask if I want to come over to his job site because he has a couple of AV guys who have some "extra" gear that the homeowner (different house but in the neighborhood) didn't approve.

I raced over. Two big guys wearing plastic name tags stated the value of everything was $6k but they'd let it go for $600 because they were about to meet their boss and he'd take it back if they went to the meeting with the gear still in the truck. I asked why they couldn't return it, it is in the box, and they said it had already been paid for and they didn't want to deal with selling it online and they already have so much extra gear their wives would kill them. Besides, one said, they really wanted to go to the "titty bar" and drink some beers. Jovial sales guy talk and male bonding over the "we are just regular working joe's" was the strategy.

I told them I didn't need it and the more aggressive guy launched into the specs on the Concerto, rattling off the power, opening the box and showing me the speakers. I knew there was something not right but I also didn't know what.With my friend looking on and my ego on the line I offered them $200. Included was a Concerto (also has MSRP of $2,499 on the box which seemed strange), a Locus LED 4k Projector and L72" Locus Automated Projector Screen. All the stuff is in the box and they opened it up. My thinking was I would flip it on eBay or craigslist or give it to my brother or girlfriend. All this new stuff had to be worth something even if it obviously wasn't $6k.

In the end I told them $200, he countered $400 and we settled at $300. The larger more aggressive guy threw it in the back of my car and then asked for $20 for gas money. I (proudly) said no, a deal was a deal, because wasn't I a shrewd negotiator. They moved faster than two large guys have ever moved and got in their truck and peeled away. My friend laughed and congratulated me on my negotiating skills and I stayed a few minutes to soak it up, basking in the glow of how street savvy I am.

I feel a little ill now but also bemused. How the F do they make money on all of this stuff and is it easier to do than working a real job? Granted they made $300 in 15 minutes but there is real packaging here of some sort, jury is out on whether it turns on and does anything. Is it such a massive scam that the margins on this stuff allow them to sell it for $100 and make money?

I am new to this forum and obviously to this scam. They pulled up an Ebay listing for the Locus projector which I am guessing is someone else who got scammed or, more likely, someone in on the scam who posts it as a point of reference during the hustle. What a world we live in.

 

[daryl133]

Thanks everyone for their replies. I know I'm a little late here, but I was just randomly notified I had replies to this. It was totally a white van scam! Ended up throwing the speakers out. I took them to goodwill they said they didn't even want them!
Anyway, thanks again!