I have been getting many emails from my readers about the recent press release from Innokin about Fasttech and other vendors. I would like to explain what is really going on. The only reason I'm addressing this - is due to the level of emails I was getting.
WHAT INNOKIN SAID: http://www.innokin.com/
The dirty little "not so secret"
If you didn't already know this, Innokin, Joyetech, and other companies engage in fixed prices. To be called an "Authorized" reseller you must agree to sell their product at a particular price. If you do not agree to their fixed prices - you will be banned and cut off from buying products from them. Ask any "authorized" vendor and they will tell you this.
They set a limit on how low you can sell a product.
This gives the manufactures leverage. If you break this agreement, you will be branded an unauthorized reseller. This allows them to claim you sell fake products.
Vendors are getting smarter. They are buying large amounts of product using fake front companies and selling them on their websites for REASONABLE prices. Since there is no way to track the purchases - it frustrates the fixed pricing manufacturers.
The manufacturers can only cry and scream FAKE!
Oddly, this price fixing does not put more money in the pockets of the manufacturer; only in the pockets of the vendor. Vendors pay very low prices for products and must resell them at a very high price. Vendors that discount these products are immediately targeted and turned in by other vendors. Competition is silenced.
This is exactly what happened with Fast Tech and many American vendors. Make no mistake, the products sold as "Innokin" products are genuine; they just aren’t bought by Fast Tech FROM Innokin. Another company had to buy them from Innokin and sold them to Fast Tech because they didn't want to deal with these ridiculous fixed price practices.
This is how the free market works.
We have no skin in this game but we WILL promote and point out where to find the best deals. If this pisses vendors and manufacturers off, so be it. I never started this blog to make friends. I started this blog to save people money.
I invite all my readers to send an email to Innokin and Joytech. Tell them what you think.
I also invite people to ask "Authorized" resellers if they are required to sell items at a certain minimum price.
This will be talked about extensively on the next Mod Envy Show - 10pm 6/8