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Beware Unethical Dealers

(16 posts) (10 voices)

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Beso

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Recently a post was started where people could post the name of camera shops where they had good experiences. After reading and confirming information about an unetical Nikon dealer I thought a cautionary post was in order.

I read a post on Nikon Rumors' Facebook page about a dealer who had taken pre-orders for D4 cameras but rather than fulfilling the orders he was selling the D4s on eBay at an additional profit of some $1200. I decided to determine if this information was factual so I logged onto eBay, checked the D4 postings and emailed Gary Camera regarding their D4 item for sale. Here is how the email exchange went:

My query:
Dear gary_camera,
Apparently you are a dealer that has been able to fulfill all their pre-orders?

Gary Camera Response:
No. But when you have 6 cameras selling at 7K to 7400.00 last week via EBAY by non dealers and are just reselling these cameras at a 1000.00 profit, it makes no sense for me to fulfill cameras to people I have no idea who I'm selling to on my list. It's a supply & demand product. I sold 2 locally several weeks ago but these were people who I knew would not resell and I sold them at normal prices.

My reply:
Thanks for your reply. I really just wanted to verify the Internet rumors regarding Gary Camera and their complete lack of ethics. You have done so magnificently.

Some people may want to be apprised of this situation; particularly if you ordered or are considering ordering through Gary Camera.

Posted 1 year ago #
El_Pickerel

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That's a pretty jerkish move right there. =/

Posted 1 year ago #
Geoff_K

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While I would not like to be one on his list, can you blame him ? Small store (maybe), thin margins. Chance to make some serious margins on the ones he received.

Posted 1 year ago #
tsy

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my only problem with that situation is the fact that they even took preorders... A store should honor preorders first, beside that its fair game.

If they didn't take any preorders and sold their allotment on ebay for 1k over msrp I would have no issues.

Posted 1 year ago #
PB PM

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I would report them to Nikon, I don't think Nikon USA allows dealers to sell at any price other than MSRP.

Posted 1 year ago #
TaoTeJared

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PB PM said:
I would report them to Nikon, I don't think Nikon USA allows dealers to sell at any price other than MSRP.

+1 With all the new dealer relationships contracts (that so many loathed) included restrictions on this type of behavior from what was reported. Send the e-mail to Nikon - let them see what experience he is providing to High-end Nikon buyers.

Posted 1 year ago #
Beso

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I think some people are missing the point here. When a retailer accepts pre-orders, there is an expectation that those pre-orders will be filled in the order accepted. The retailer creates the expectation by accepting the pre-orders. Gary Camera is behaving unscrupulously having created an expectation and then refusing to meet that expectation simply because they can make a greater profit selling somewhere else.

In this case the retailer could have simply said "There is huge demand for this camera and a limited supply and we are going to take advantage of the situation by maximizing our profits. Therefore we are not going to be taking pre-orders but encourage you to participate in our auction on eBay." That is not what Gary Camera did. Instead they let people think that there was a priority order by creating and maintaining a list. They also created an expectation of an ordered delivery of the camera, which they have chosen not to satisfy in favor of higher profits. They have also made gross assumptions that potential buyers on their list that they don't know personally are simply looking to flip the cameras on eBay for a hadsome profit and they are pre-empting those actions.

I am not opposed to capitalism, or maximizing profits for that matter. What I am opposed to is businesses that deliberately create an expectation and then choose not to honor their commitment because somebody else is willing to pay more. I personally would never knowingly do business with a retailer who behaved in such a manner toward their customers and potential customers.

Posted 1 year ago #
PB PM

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I understand that, and yes it is unethical. My point was that in addition dealers are under a contract with Nikon, and selling at any price (on eBay or otherwise) above or below the set price is in volition of that contract.

Posted 1 year ago #
SheerPhoto

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Joined: Apr '12
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Wow, I had a pre-order with them for a D4....with supposedly only one person in front of me. I have never heard a word. I even called on three occasions to availability, and was advised that no cameras have been receieved yet.
This leaves a pretty sour taste in my mouth concerning future purchases with this company. Especially since they feel the need to gouge folks in times of short supply. I will take my order fo a D4, 70-200 VR ll, 105 VR, and R1C1 Macro Flash Kit somewhere else. This is not a fake order either. I did spend about $4,000.00 last year with this company, but will no longer do so from here on out. And they don't even seem to be trying to hide the fact of what they are doing ?? Maybe they do not care to be a reputable Nikon dealer any more ?? This is sad.

Posted 1 year ago #
msmoto

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Joined: Mar '10
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Oh, my, another place to share my complaints.... a local dealer who took my money and did not deliver, blaming NIKON for not having the goods when he was actually using my money to keep his business afloat. Well, there are many good local dealers. Make certain you know yours very well. And if delays are reported by the dealer, contact NIKON.

NIKON, while not the best at customer service in answering questions, is still a company that wants to be the premier camera manufacturer in the world. They protect the prices of their goods from discounts and will attempt to protect from gouging as well.

Posted 1 year ago #
rburgett

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Just a couple of months ago when D7Ks were in short supply, there were several of the biggest camera shops that were listing them for $100-300 over list price.

I understand it's not the same as selling for $1K over, and there were no obligations to pre-orders involved. Aside from the obligation to fulfill pre-orders, where's the line between supply & demand, and what would be deemed unethical?

Posted 1 year ago #
TaoTeJared

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I think it would be good for people to include the country the dealer stories reside in. The understanding of the degree of "Unethical" practices varies from country to country. In the USA anything that is over MSRP is considered Unethical. In other countries, small amounts over MSRP are expected.

I'm with MSmoto - There are many good local shops around the country (usa) but there are twice as many who no longer fit in that category. Many's business are failing miserably. The gouging first started with used equipment and moved into new stuff years ago. No one likes seeing local shops go down, but all do because of their own making and refusal to change bad business practices that have just compounded over the years.

Posted 1 year ago #
rburgett

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I was speaking about some major retailers here in the USA.

Now that the supply seems to have been replenished, they've all marked the prices back to MSRP.

Posted 1 year ago #
tcole1983

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rburgett said:
I was speaking about some major retailers here in the USA.

Now that the supply seems to have been replenished, they've all marked the prices back to MSRP.

None were over MSRP. Places like Amazon might have had stuff that was over MSRP, but they were private people selling and not Amazon. When they had products come back into availability, it was always back to MSRP. This only applies to new equipment though and used prices vary a bit. I should have bought the 300 f4 6 months ago when it was around $900...now I haven't seen one for less than $1100 and most are more.

Posted 1 year ago #
rburgett

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Sorry, but that's incorrect.

I was in the market for a D7000 and saw that there were several places that were selling them for 1299.95. One even had them marked up to $1400.

These were new, and I'm not referring to private sellers on Amazon.

Posted 1 year ago #
TaoTeJared

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Tcole I'm on your thought process as well. I hear the gouging comments enough not to dismiss it. I just don't know where people find these sites that do gouge. I have auto searches set up, auto Price notifications and triggers all over the place. I never run across any store that is more than $20 over msrp. (Usually due to a lag in currency changes.) Almost all of them are 100-200 below.

It makes me believe that internet cookies are to blame by redirecting people to the shady sites that are out there. And there are millions. I have software that cleans those up so maybe that is why I just never see those sites.

Posted 1 year ago #