Originally Posted by bob2:
The problem with hobbyist- dealers (and I have been one) is that they typically enter an agreement so they can get dealer net for their own models, then sell a few to friends for not much markup. So it is in the importer's interest to not publicize these folks, and simply sell retail to those without a friend with a dealer agreement. As pointed out, the difference is not much, percentage- wise. The product is often shipped directly to the end customer, and the dealer makes his hundred bucks or whatever from a telephone call or two. It is not a good business model if you want to make a living at it.
I used my "dealership" to do product reviews - something I found entertaining. Not terribly profitable. I don't do it any more - I do product reviews when asked.
Opinion.
If the Importer makes the same amount from a sale regardless of what price the Dealer sells for, seems to me it would be to his (the Importer) benefit to have all dealers known. The more sales, the more the Importer makes. (read on please)
I understand that if the Importer sells directly to the customer at retail, (which I assume to be a markup over dealer price) then the Importer would make the extra profit usually taken by the dealer.
The flaw in that scenario in this particular case is that Key Model Imports does NOT do direct sales.......or am I mistaken? Do some select modelers enjoy the privilege of buying direct?
Based on what is stated above, seems like it would be to the benefit of the Importer to have all dealer outlets known, because the more he sells the more he makes (assuming he is NOT selling direct to the consumer or below cost).
Opinion
Simon