Thursday, December 14, 2006

Savvy Buyers Look at Total Cost of Ownership, Not Just Purchase Price

While there may be nothing new about sourcing low-cost merchandise overseas and reselling it for higher prices in another market, the Internet has accelerated gray market growth, according to USA Today article, “Some See Red Over Gray-market Goods”.

The surge in online shopping in recent years has spurred the development of lots of e-tailers that resell goods sourced from abroad. The Alliance for Gray Market and Counterfeit Abatement values the tech product gray market at $40 billion

Not surprisingly, technology companies such as Sony despise the practice. Many companies such as Nikon have initiated policies to discourage consumers from turning to them with their gray market gadget woes.

Here are some strategies you can adopt to protect your business.
  • Shop only with reputable merchants
  • Be aware
  • Ask questions
  • Be wary of pricey extras
  • Use a credit card
  • Check your product carefully once it arrives

If you source your products wisely and consider these pointers you can build a stronger, more secure business.

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