14th Dec Pixelk.e$S:Layout 1 10/12/2009 23:11 Page 25
> > F E A T U R E
G R E Y P R I C I N G
GREY PRICING: A MENACE TO THE TRADE
GRAHAM ARMITAGE, GENERAL MANAGER OF SIGMA IMAGING UK, TALKS OPENLY TO PIXEL ABOUT
ONE OF THE BIGGEST THREATS TO OUR INDUSTRY.
"We do not “flog cheap gear”. We either manufacturer or retailer. He industry. I'm glad that PMA and
supply a high quality package, a takes no risks, nor does he make any PIC have been making a stand
recognised brand which is heavily commitment. He is a parasite who and we're trying to educate
supported by our own company in only understands a quick killing. He consumers about grey pricing
the UK. This company incurs large offers no service, support or backup. with a series of easy-to-
costs maintaining support services He drives a wedge between long- understand materials.
for the retail trade; a substantial standing business relationships, "What do retailers really
advertising program, promotional erodes trust and drives prices and want? To maintain a
and PR activities, a sales team, businesses into the ground. When responsible and respectable
technical support and a fully circumstances no longer favour his industry offering service and
equipped Service Dept. Next day activities he will move on and leave support or to join the race in
delivery is the norm. us to try and re-build relationships. the downward spiral to
There is no extra charge for full "We have also, especially recently, oblivion.
colour literature; catalogues, encountered a lot of companies If you decide on the latter, logically law! In addition, by avoiding paying
brochures and leaflets, lens stands, which pose as British, maybe even there will only be one winner - the tax, the International Warranty
posters etc or our advice, support, with a postal address set up retailer with the lowest price. Winner becomes null and void and if the
training, demonstrations and our somewhere in the UK. However, takes all. If you`re confident that badly transported product proves to
attendance at exhibitions. communications are then directed to, you`re the one, then fine, go ahead. be faulty, as many do, the
"Our relationship with our retail and the product sent from, China or If you`re concerned about covering inconvenience and cost to the end
customers is based on trust, loyalty somewhere else entirely. The your overheads then don`t open user becomes truly horrendous.
and mutual support. We constantly products are not shipped well, they Pandora`s Box. This example clearly shows that the
refuse to deal directly with the public are quite often damaged in transit Don’t allow our industry to be Royal Mail does intercept some
despite the fact that the internet offers and then when the consumer tries to irrevocably damaged by parcels. Let`s hope they get their act
so many opportunities so to do. We get support or repairs, they find the unprincipled individuals. together and intercept all such
redirect end users to our retail company doesn't respond. "Successful relationships rely on trust parcels. If the public think there`s
customer base and resist the requests "The consumer themselves is partly to and mutual respect. If you get little chance of them being taxed then
to “deal direct”. blame here, as they frequently don't something “on the cheap”, it means they`ll take the risk, but they may
"As traditional retailers, you will see the harm in dodging taxes or just that! Don`t allow the temptation think twice and support a local
appreciate the high costs and buying from potentially suspicious for short-term gain to ruin your long retailer if they feel there`s a high
overheads involved in running a sellers as long as they get the term future." chance of them being caught. Of
responsible business: premises and product cheaper than the prices they "Shown here is a copy of the type of course virtually every one of our
staff are particularly expensive! have seen in shops. These are the sticker that should be attached to all lenses would be sold at a price that
"Over a long period of time a very same members of the public parcels imported to the UK from would attract import duty at 6.7%
relationship involving loyalty and who rant and rave about issues like outside the EU. This particular parcel and VAT (soon to be back to 17.5%)
trust has developed between benefit fraud but don't mind bending was impounded by the Post Office plus the handling charge.
manufacturer/importer and retailer. the rules for themselves because they until the Royal Mail Handling Charge Whilst on this subject, Sigma
A grey importer has no loyalty to don't see how it damages the and VAT were paid. The rules and Imaging (UK) Ltd now has a
charges are clearly specialist member of staff whose
displayed on the specific responsibility is to defend
sticker as is the date Sigma from grey imports both on the
Grey imports,
showing that these B2B and B2C front.
before you buy
regulations are We are taking the grey threat very
current. In this specific seriously and are becoming very
What seems attractive at case the goods proactive in protecting our
first glance often hides a very
imported were only trademark and intellectual rights in
different story underneath.
valued at £34.52 so the UK.
So it is when it comes to grey imports.
the VAT and Handling We are working closely with our
Buying goods cheaply doesn’t always
mean you’re getting great value.
Charge were about legal advisors and our sister
32% of the purchase companies throughout the world and
There are hidden pitfalls many of us
are unaware of. And unfortunately,
price! are particularly targeting the foreign
if the truth is revealed, the penalties
You might find this websites masquerading as UK
can be rather more serious than
mere personal embarrassment…
example useful to companies on Ebay and Amazon
SIGMA Imaging (UK) Ltd.
counter any and within the price comparison
13 Little Mundells
Welwyn Garden City
arguments concerning sites. Fighting off these parasites is
Hertfordshire, AL7 1EW THINKING ABOUT
United Kingdom
GOING
cheaper foreign not easy nor cheap and our
Tel: 01707 329999 goods. They are only
Fax: 01707 327822
E-Mail: sales@sigma-imaging-uk.com
GREY?
customers should be aware that our
cheaper if the activities are intended to protect their
Web: www.sigma-imaging-uk.com
importer breaks the future as well as our own."
PIXEL 025
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32