Good work, Anonymous!!

Let me just say that I thoroughly enjoy reading your comments, Anonymous. Very well thought out and they always make great points. This is exactly the kind of discourse that I was hoping that this blog would start. I'd like to respond to your comment...

I believe in this day and age, more and more products are becoming commoditized. Technology is helping this conversion. Products that were never meant to be a commodity are becoming so, and I believe that grey markets contribute to this. Perhaps I should clarify a bit more... The rise in grey markets is changing the mindsets of consumers. The everyday consumer has easier access to grey markets like never before, and I think this plays a part in the commoditization of products. I'll go back to the playstation example... Some people joined the rush to Best Buy to get a playstation 3 for the kids. However, others wanted to purchase as many as possible, in order to resell them. There are in fact two different types of playstations. These people who wanted to get as many ps3's as possible didn't care which of the two models they got, they just wanted to get as many as possible. In this case, they were purchasing a commodity. The ps3 became a commodity because the buyer wanted to purchase as cheaply as possible and resell for as much as possible in a readily accessible grey marketplace (eBay).

I do agree with the fact that the original manufacturer makes a sale when their product is purchased. What happens to that product after the sale doesn't negate the profits made by the manufacturer. What I am saying is that, if you are a manufacturer, if you freely allow your products to be sold on a grey market, yes you do get the sale, but sometimes you cut off your nose despite your face. This is especially the case in a franchise business model. Allowing your products to be sold on a grey market hurts your franchisees because the eBay seller can sell the product cheaper than they can, for many reasons, one of which being the low overhead. If the franchisee is paying me a royalty or license fee, they are not going to be too happy if I condone this practice. However, if selling on eBay is part of your business model, then you are correct, selling on eBay would be a great way to raise sales.