Digital Drive

This may be an unpopular post about this subject...

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Prior to the late nineties, transferrable warranties were common for many high end manufacturers. They provided this policy to add value and tangible evidence that their products were built to last. Then Audiogon and eBay happened. Dealers started seeing their customers purchasing more used gear instead of new. Gray market products started popping up online from overseas distributors as well as domestic dealers. Also, a new breed (maybe not so new) of customer started appearing more frequently in stores who did not value the time, effort and money required to properly retail high end goods. These customers would go into a store and ask for a demo of a particular item or even arrange an in home demo and if they liked it, they would then buy the item used. Dealers grew very upset about this and demanded that manufacturers change their warranty policies to non-transferrable unless the dealer took an item back in trade and resold it.

Frankly, the industry was as much to blame for the changes that occurred with the advent of online selling. An example of this was incomplete training; many of the salespeople in high end stores were not very good. The experience they were offering to their customers was poor, so potential buyers began seeking other means to enjoy their hobby. Once exposed to the enormous savings that could be had online, there was no turning back.



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