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EHX bans eBay auctions!!

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wordsmith4u

wordsmith4u

Apr 13, 2007
123
49
Cincinnati, OH
www.modelbehaviorband.com
#1
Letter from EHX:



March 21, 2008

Subject: Elimination of eBay and other 'auction' site sales of EH effects

Dear Electro-Harmonix Dealer,

As we begin the spring season, our team at EH would first and foremost like to thank you for your continued support of our lines throughout the years. We look forward to working with you to make 2008 the most successful year yet for Electro-Harmonix effects.

We have decided to ELIMINATE all eBay and other 'auction' site sales of Electro-Harmonix pedals. A moratorium on eBay sales will result in a more stable price structure for the consumer and, most importantly, fair and stable margins for our dealers. We also intend to eliminate third party sellers who slash prices and undermine sales for legitimate authorized dealers.

We ask that all dealers complete or remove all eBay transactions of any EH effects by no later than Wednesday, April 30th, 2008. We will be monitoring eBay listings worldwide to ensure compliance.

We are pleased with the dealer responses we have already received.

Mike Matthews
President
 
#4
I should add an addendum to that: They aren't legally able to keep you from selling your used equipment, but eBay being eBay (i.e. a pack of idiots stuffed with marshmallows for brains), they won't bother checking to see if it's used gear that's being sold, they'll just see a listing and say out loud to no one in particular, "Well, duh, gee George. I see another one'a them there EHX pedals is for sale here on eBay. I guess I'll end it and send the seller a nastygram telling him not to do it again...."

"Click"

I've been through this a TON of times with eBay. The worst part is that they send emails to all your bidders and buyers telling them what a terrible seller/person you are and that while they can't say any specifics, you broke rules and were a bad boy. For shame!
 
#6
The other side of this is their dealer reputation. What EHX wants is for the local dealers (i.e. Sam Ash, Willis, GC, etc.) to start stocking their full line, instead of telling the customer that "we can order it and have it here in about a week."

That helps sales from EHX corporate, and makes their bottom line look better. Doesn't help the customer at all!
 
#12
It is interesting how big companies are all for a free market... as far as it doesn't have an impact on their pockets. Capitalism and free market... as far it is good for us.

It says clearly:
“We have decided to ELIMINATE all eBay and other 'auction' site sales of Electro-Harmonix pedals.”
Interesting aggressive uppercase. How are they going to “eliminate” something they have no legal control of? Not selling to resellers that sell on eBay. As if eBay was an illegal organization.

“A moratorium on eBay sales will result in a more stable price structure for the consumer”
How a “more stable price structure” is going to benefit the consumer it is not clear.

“and, most importantly, fair and stable margins for our dealers.”
Translated: the consumer will pay more so our dealers that don’t sell on eBay can make more money. As a consequence, they will sell our products.

I have never been a huge fan of Electro-Harmonix but after this I will do my best to not buy anything with their name on it.
 
#14
Silent Fly said:
It says clearly:
“We have decided to ELIMINATE all eBay and other 'auction' site sales of Electro-Harmonix pedals.”
Interesting aggressive uppercase. How are they going to “eliminate” something they have no legal control of? Not selling to resellers that sell on eBay. As if eBay was an illegal organization.
Click to expand...

I think it's clear that they are only trying to stop NEW sales by dealers on ebay.

This they have control of, as a dealer of their product they have the ability to tell you how much you can sell it for as well as where you can sell it and a host of other things. As a dealer if they catch you selling below MAP or otherwise they can pull your dealership -- this alone should be enough to stop it.

Not sure what's meant by third-party sales, but if I had to guess they are meaning Ebay itself or else the use of a third party by dealers as a "shell" so that they can keep selling on ebay despite the ban.

As for private sellers in the used market, there's no way they can stop that, nor would they try to.

I can't say that it's good, but EHX are one of those lines you don't see in dealers very often -- not that it would make any difference to me. I usually "buy to try" effects and if I don't want it I sell it, and any loss is a cost of doing business.. Usually not much of a loss because I buy used whenever possible.

out,

Col Monk
 
#16
I've sent an email to them demanding an explanation. Given my luck with their customer service, I should hear back from them in a couple of days. At which point, we can dispose of this matter once and for all.
 
#18
Well, EHX is certainly legally entitled to regulate sales of their products (new, not used) however they see fit. Whether or not you agree with their sales policy is a philosophical/political discussion. EHX is doing exactly what Gibson does. It might work out well for them, or it might work out poorly, depending solely on the reactions of their potential customers. We get to vote on the success of their new policy with our credit cards. Sounds like American capitalism to me. DISCLAIMER: But I don't currently own, nor will I be buying, and EHX products myself.
 
#20
scottbass said:
Well, EHX is certainly legally entitled to regulate sales of their products (new, not used) however they see fit.
Click to expand...

Interesting point Scottbass. I don't know USA or international regulations but it would be interesting to know what the Antitrust says about. Not that I will lose my sleep thinking about it but it would be interesting to know.

scottbass said:
Whether or not you agree with their sales policy is a philosophical/political discussion.
Click to expand...

True. There is also the fact that we may decide to buy or not an Electro-Harmonix product based on they attitude towards free commerce but I don't think the majority of their customers care that much about it.
 
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