One thing I have always wondered about in my 30 plus years of this hobby is just how all the unauthorized, mail order dealers get their stock. They are able to sell at incredibly low prices[ie. Yamaha 2500 less than $650.00]which the authorized dealers can't come close to matching. Is is possible that some of this stuff is hot or is stolen right off the boat or plane and becomes kind of a black market situation. No one has ever been able to tell me just how this happens. If you have some knowledge about this I'd love to hear it.
Yes, the product is called grey market. It can be diverted from sales in another country or from a dealer who is closing down shop. An unscrupulous distributor can create grey market. How product becomes grey market has vexed audio companies for decades.
As far as the wholesaler (the manufacturer too) is concerned, it is about the bottom line. They aren't going to sit on excess inventory. Depending on the arrangements they have with retailers, they may also get returned merchandise which can also be sold through these off price retailers. Think of it as something like the Ross or TJMaxx (if you have those where you are from) of the audio world.
DA - That depends a lot on the company. Companies that tend to hold fast to the number of authorized dealers in one area or internet sales tend not to mess with their good dealerships. Of course, this is usually restriced to high end compnaies and products such as Yamaha and Denon can still find their way into unauthorized retail outlets.
True enough. There are plenty of manufacturers that value their dealers, as they are an intricate part of the distribution network. But as you say, these aren't the type that end up in an unauthorized retailers hands.
The reputable 'non' authorized dealers buy directly from the manufacturers. Nothing they are doing is shady or unscrupulous. There will always be someone out there with a scam, but the big operators are all legit.
They offer a service for a price. For those willing to 'self insure' their components by not purchasing a manufacturers warranty, it's a great service to have available. Not everyone thinks a manufacturers warranty is worth adding an extra 30% to the purchase price.
Not all manufacturers will use that route to move product. That's why some brand names are never found on sites like pricegrabber.com.