Please explain "gray market"

apc

As you may have noticed in an older thread, I am looking at headphones that retail for $289, but can be had for $161 online. Someone suggested they may be gray market - intended for overseas or different voltage or whatever. How can I tell from the website or otherwise if I'm comparing like items? Advise???

reeltrouble1

grey market is any item not sold buy an authorized factory distributor. generally carries no warranty.

RT1

dorokusai

And most of those folks wear hoods and whisper alot...even in email.

MattN03

Where/how do the sellers obtain "grey market" items? Could it be stolen?

reeltrouble1

yes, it may have been appropriated in an illegal manner or not. It simply the effect of price point driving the market. No way to tell exactly "how" the dealer got the pieces, most likely they bought them from someone, have a supply chain, you will likely see the serial numbers of the gear removed so it cannot be traced back to an authorized source who sold it to a grey market dealer. I tend to avoid these sellers.

sucks2beme

When a dealer goes out of business, quite often these guys swoop in and bid on whatever is in stock. They then EBAY or offer it up on their website. Damaged or unclaimed freight is another. Some also buy refurbs, or do their own refurbs(always trouble!). Do your homework on the guys. I bought a Yamaha receiver from one, it looked like it had been run over by a truck.
I only had bid $15 on it on a whim, and I was able to get it working.
Go over to the "head fi" site. They have used cans for sale by members, and have links to known reliable online vendors.

heiney9

MattN03 wrote:

Where/how do the sellers obtain "grey market" items? Could it be stolen?

Usually items are sold out the back door. The authorized dealer sells stuff out the front door to regular end users (customers) and makes the traditional mark-up. They also sell to the un-authorized outlets out the back door for a smaller margin. Sometimes if they can sell enough volume they get an additional discount from the manufacturer. They are basically working both ends against the middle.

It is possible if you are dealing with a very unsavory person/business on the internet the items could be stolen, but highly unlikely.


H9

Skynut

I knew a guy who had a dealers license but did not like to sell for the recomended retail price. (the price the manufacturer said he had to sell them for) He wanted to sell them for less so he took the numbers off and sold new gear for a considerable discount from retail.
You could get new gear for a used price but you get no warranty.

It's a gamble whether you get a good piece that never gives you problems or a piece of poo that needs to be repaired at your cost.