Manufacturer Restrictions Question

Discussion in 'AV Receivers' started by Robert.CB, Jul 4, 2004.

  1. Robert.CB

    Robert.CB Agent

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    Hello All,

    After researching possible receivers to buy, I had narrowed my choice down to the Yamaha RX-Z9. I was in the process of looking for on-line retailers, to find the best price, and found that the authorized dealers that carry the RX-Z9 can't ship the receiver out of their local area. On top of that Yamaha won't honor their warranty if the product is not purchased from an authorized dealer.[​IMG]

    My question to you on the forum is why would a manufacturer place such a restricion on their products? The logic doesn't make sense to me that they would limit their and the resellers market. I have emailed Yamaha, but have not received a response. If anyone could shed some light on this subject I would be extremely grateful.

    Thanks,
    Robert
     
  2. Carl Johnson

    Carl Johnson Cinematographer

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    I'd be willing to bet Yamaha restricts online sales of their products to protect retailers. They probably make more money selling products to brick and mortar stores than online stores so they're doing everything within their power to get you to buy from a b&m.
     
  3. StephenHa

    StephenHa Second Unit

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    one big reason to restrict sales is so the manufacturer knows the customer will get the best training on how to work the product lowering returns for "defective" working products. I see it most in appliances Ge and Maytag are regretting letting the lumber yards sell appliances because service calls went up 500% (and most are customer education) the other reason to not do the on line thing is many are working from home have no overhead so they cut the price so low the place that is down the road can't compete then we all complain that their's no knowledgeable people around, and then there's the warranty thing it seems some on line retailers will resort to theft, or fraud to get a product, or my favorite (saw this with a denon) a scrap unit from repair gets taken out of the trash and sold as new (the transformer was missing)
     
  4. Lee Distad

    Lee Distad Stunt Coordinator

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    Yamaha is one of the best vendors when it comes to protecting the smaller dealers. That's why they ship the RXV skus to small indies, and the HTR skus to big box stores. That way price matching and undercutting is minimalized.

    Another example, MusicCast is locked off and only available to 1-off High End shops. Despite doing huge numbers for Yamaha, I cannot order a MusicCast system for clients. Having been on the recieving end of a big box dealer trying to snipe my pricing on front projectors, I have some sympathy for small 1-offs. But quite frankly, business is business, and if I had access to the MusicCast, I would bury the small indie here in town that sells it.

    Another reason for exclusivity is Brand Awareness. Yamaha is justifiably proud of the Z9. It is a flagship product. And they don't want to see their flagship prostituted all over the net at retarded price points. Say what you like, that approach automatically devalues their Brand Image.

    Besides Robert, if you've got that kind of money to spend, why aren't you considering a pre/pro and block power????
     
  5. Robert.CB

    Robert.CB Agent

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    I appreciate your repsonses. I can see that by giving the RX-Z9 free reign to be sold wherever on the net (by people who don't care about the people or product that their selling) could devalue their brand image. I would think though that Yamaha's restriction of not honoring their warranty unless the product is bought from an authorized dealer would protect against some of that and ensure that the customer is getting a more knowledgable sales person.

    I can see how their approach of limiting the marketing area could protect the smaller dealers because limiting the market reach of any dealer would minimize the competition.

    What I don't understand is the real benefit to Yamaha by restricting the shipping area of these companies? I just got emailed back from Yamaha where a local dealer was that could help me with the RX-Z9, and they are over 5 hours away. I may be wrong, but I am sure that when I call tomorrow, the company will tell me that they can't ship it to me. So, my only option, if I'm completely determined to buy the RX-Z9, is to driver over 5 hours to get it.

    So, me the customer, concerning Yamaha can't gain easy access to buy their higher end products. What benefit does that hold for Yamaha?

    Lee, are you suggesting buying a pre-processor and a seperate amplifier? Sorry, I'm still in diapers concerning home theater. What products would you suggest?

    Thanks,
    Robert
     

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