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The following page was printed from RemoteCentral.com:
Topic: | MX-850's on Amazon??? This thread has 40 replies. Displaying posts 16 through 30. |
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Post 16 made on Wednesday July 30, 2008 at 06:13 |
dsp81 Advanced Member |
Joined: Posts: | October 2007 782 |
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On July 30, 2008 at 02:50, Joe-CI said...
It severely hurts your credibility. No one is in "panic" mode over a single occurence. It is a consistent pattern over the last couple of years compounded by lots of software issues across the line. There are plenty of Online Sellers and Ebay consistently making any margin seem ridiculous and greedy. No matter how it is spun, it is hurting those who sell their product at or near MSRP. Those people are propping up the price while URC clips them by selling direct to Amazon. This is business, but those installers need to understand that URC is not behind you and this is consistent with their behavior over a long period of time. What does? The fact that I disagree with you on distribution theories? The theater business is not unique in the problems happening with internet sales. There's a countless number of small businesses that are impacted by the changing market. And it's not like URC is unique in this behavior. Selling to large volume outlets at a lower cost happens with virtually every piece of electronics involved in the install business, excepting the highest-end equipment. I'm guessing Amazon has a lower price on the receivers you carry than you do. I will agree the marketing strategy is particularly painful for small business owners, but it is ubiquitous. Claiming that URC is your "Judas" somewhat overstates the issue. So URC sells to everyone and installers are supposed to prey on the clueless. That is a morally repugnant thought and mirrors the view of a hateful customer. Contrary to popular opinion there are lots of competent and ethical dealers out there. They just want a business relationship they can trust. Just to rub some salt in the wound, Harmony can keep track of every single remote sold and can deactivate them. Their distribution methods appear to be something URC is following. No, installers are supposed to create a solution that utilizes the remote. It's a tool for you to create a custom experience. An electrician does not make money off switches and outlets. He makes money because he has specialized knowledge. If I could do it myself, why would I hire a pro? The fact is that 99.9% of consumers could not program these remotes if their life depended on it. That automatically gives you a captive audience. And no one is arguing that you're incompetent because you won't sell at cost. You just may not be able to service a certain segment of the market as well as others. You are right, though, URC is not moving in the direction of exclusivity. In the end, the margin has to come from somewhere. You cannot sell everything at cost and frankly cost is not good enough for many. Take a wild guess why the elitists and the warehouse stores are the ones succeeding. Because they offer the products people want at the price they are willing to pay. Yeah, maybe you'd make a little more money if companies like URC didn't sell to large volume outlets, but then they'd make less money. And Amazon will never steal the CI market. Societies ever-increasing ease with technology might encroach on your business, but the complexity of integrated systems largely precludes the possibility it will completely go away.
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Post 17 made on Wednesday July 30, 2008 at 18:30 |
marcus69 Long Time Member |
Joined: Posts: | March 2005 140 |
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On July 30, 2008 at 01:21, tweeterguy said...
I agree Joe. We sell URC at full MSRP and are definately on the high side for programming fees. It's all about how you present the package and the benefits. Well said. I did 5 years in the trenches at 0107 (I'm thinking tweeterguy will get that) selling URC at full retail + "on the high side" programming. I was just talking to a friend who is considering stepping up to an MX remote, but questioning the price. I told him that I used to put a picture of the remote on the front page of some of my proposals and in bold letters "THIS IS YOUR SYSTEM". That was the only page. Of course that would be based upon the repor I had with the client, but still. When all was said and done, they understood why the remote cost 1K . After all, no matter how big the system is, the only thing you should touch (besides the DVD player to put in a movie) is the remote, and it should be easy and bulletproof. Now put a price on that. Just my $.02
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"People are very open-minded about new things -- as long as they're exactly like the old ones" Kettering |
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Post 18 made on Wednesday July 30, 2008 at 18:35 |
tweeterguy Loyal Member |
Joined: Posts: | June 2005 7,713 |
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Well said. I did 5 years in the trenches at 0107 (I'm thinking tweeterguy will get that) I sure do. Ahhh the good old days. Thank god it's behind me now :-)
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Post 19 made on Wednesday July 30, 2008 at 22:01 |
On July 30, 2008 at 18:30, marcus69 said...
Well said. I did 5 years in the trenches at 0107 (I'm thinking tweeterguy will get that) selling URC at full retail + "on the high side" programming. I did a few years at 0611.
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Post 20 made on Wednesday July 30, 2008 at 22:05 |
tweeterguy Loyal Member |
Joined: Posts: | June 2005 7,713 |
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Post 21 made on Thursday July 31, 2008 at 11:28 |
justarep Long Time Member |
Joined: Posts: | April 2005 252 |
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On July 30, 2008 at 02:50, Joe-CI said...
Those people are propping up the price while URC clips them by selling direct to Amazon. As Amazon isn't an Authorized Reseller for URC Professional products, it carries that they aren't buying URC Professional products direct. Call URC and ask! Distributors have been given guidelines as to who and how they sell. The fact that they ignore them speaks to the distributors ethics, not URC.
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Post 22 made on Thursday July 31, 2008 at 12:52 |
Brad Humphrey Super Member |
Joined: Posts: | February 2004 2,599 |
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On July 31, 2008 at 11:28, justarep said...
As Amazon isn't an Authorized Reseller for URC Professional products, it carries that they aren't buying URC Professional products direct. Call URC and ask! Distributors have been given guidelines as to who and how they sell. The fact that they ignore them speaks to the distributors ethics, not URC. So.... we are to believe a distributor is getting such a good price, that they can sell to amazon and make a little money, amazon can sell it and make a little money, and STILL be below dealer cost?!?! I smell BULL S%^# !!! You should have said "We have a lot of product that goes missing off of trucks". Or "Sometimes large unauthorized deals go out the door. By the time someone realizes, it's to late" I would/could believe any of these, but not the above B.S. If it's true, no wonder ever distributor wants to sell URC. They're making as much margin as dealers on every sale - WAY more margin than any other catagory. Maybe the dealer accommodation pricing, is an indication of what distributors costs are - that's still some slim margins split to 2 sellers.
Last edited by Brad Humphrey
on July 31, 2008 13:02.
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Post 23 made on Thursday July 31, 2008 at 13:30 |
justarep Long Time Member |
Joined: Posts: | April 2005 252 |
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As this is a public forum, I do not believe this isn't the place to discuss margins and such. I would go to the dealer forum that URC supports if you want to air these issues.
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Post 24 made on Thursday July 31, 2008 at 15:34 |
tweeterguy Loyal Member |
Joined: Posts: | June 2005 7,713 |
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Brad, it all comes down to purchasing power and the ability to move large quantities of a certain product. Amazon is not all that different than Walmart.
I don't know the margins of my distributors and frankly I don't care. Furthermore it is nobody elses business what I pay for my products.
All we care about is maintaining our internal margin per unit and per job. If a deal doesn't meet our internal margin requirements, the customer is walked, it's that simple. As stated many times before we don't match or beat or even attempt to compete on price with anyone other than similar local CI firms and surely not a website, auction or big box discount store. I don't care if Walmart is advertising the exact same model for 75 percent less, it still means nothing unless your business model revolves around competing with those types of retailers. I can cite several businesses that failed for attempting just that.
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Post 25 made on Friday August 1, 2008 at 18:06 |
henryld Long Time Member |
Joined: Posts: | March 2004 78 |
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Whats it been, nearly two years now, since URC made their much debated moves to eliminate unauthorized sales and I still see one of the same vendors on eBay and now Amazon. I'm not a CI, a hobbyist user, but I have to wonder how some of you people deal with this and still remain loyal to URC?
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Post 26 made on Friday August 1, 2008 at 18:59 |
tweeterguy Loyal Member |
Joined: Posts: | June 2005 7,713 |
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Hi Henry, good to hear from you again. Re-read post 13 and 24, that's how :-)
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Post 27 made on Friday August 1, 2008 at 19:23 |
Intecon Long Time Member |
Joined: Posts: | November 2007 202 |
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Just a thought, but could it be that the new 880 is replacing the 850 and they are getting rid of all remaining 850's
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Post 28 made on Friday August 1, 2008 at 19:33 |
henryld Long Time Member |
Joined: Posts: | March 2004 78 |
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Your bussiness model obviously excludes you concerning my comments and thank you for the warm welcome. I find this site an invaluable resource because of people like you.
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Post 29 made on Wednesday August 6, 2008 at 15:52 |
Fehr Long Time Member |
Joined: Posts: | December 2007 13 |
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I don't mind them selling the 850 much, because I don't use those remotes anymore. What pisses me off more is the MRF-350 they're selling for close to cost. I mean, when I bid an MRF, it's always $249. But if they do an internet search, they'll find the Amazon page...
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Post 30 made on Wednesday August 6, 2008 at 15:59 |
Fehr Long Time Member |
Joined: Posts: | December 2007 13 |
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On July 31, 2008 at 15:34, tweeterguy said...
Brad, it all comes down to purchasing power and the ability to move large quantities of a certain product. Amazon is not all that different than Walmart.
I don't know the margins of my distributors and frankly I don't care. Furthermore it is nobody elses business what I pay for my products.
All we care about is maintaining our internal margin per unit and per job. If a deal doesn't meet our internal margin requirements, the customer is walked, it's that simple. As stated many times before we don't match or beat or even attempt to compete on price with anyone other than similar local CI firms and surely not a website, auction or big box discount store. I don't care if Walmart is advertising the exact same model for 75 percent less, it still means nothing unless your business model revolves around competing with those types of retailers. I can cite several businesses that failed for attempting just that. Very, very true. But there are some CIs who do not have that confidence in their prices. We should stand firm and never apologize for our prices on equipment and even more important, our prices on labor.
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