Originally Posted by kcgreg
Brilliant Economics lesson.
Yes and no.
I, for one, certainly wasn't decrying the legality
of Vass's distribution methods. Rather, I was questioning its common sense.
As shoefan points out, this is done all the time. Car manufacturers tell dealers they can't sell over MSRP. Or, worse yet, they can't sell to people who live outside of their geographic region. Imagine visiting BG from out of town and being told you can't buy Vass from them becasue you don't live in the tri-state area!
But such strategies only makes sense when your product is in high demand, when there's a huge buzz, and when people simply can't wait to get their hands on your products without 1) paying over retail; or 2) waiting on a waiting list in order to pay retail.
This only works when 1) global
demand exceeds global
supply (in the case of items easily shipped from one country to an end user in another); or 2) when the product is such that shipping from a lower demand to a higher demand country is impracticable or impossible (cars).
Vass fits into neither of these categories. As a result, they are artificially trying to create a restricted distribution model when the circumstances do not logically permit one. Global demand does not
exceed global supply. Shoes are
easily shipped across borders.
They can restrict all they please the extra-national dealers from shipping to the United States, and they can charge a 5000% surchage for Vass sold in the United States for all I care. But why they think this will stop private parties
from arbitraging the two markets is beyond me. And, moreover, why they think there are enough consumers in the United States who are big enough suckers to buy into the model is, to me, an even greater mystery.
Perhaps they don't want to expand capacity and are happy being a small market niche producer. It's certainly possible. Indeed, it had better be, because if they're banking on selling these shoes at these prices in the United States to the small number of either a) unsophisticated consumers who don't know any better or b) those who do know better but who have such much money that they don't care, then Vass is never going to be an Edward Green or John Lobb, period.
Originally Posted by edmorel
Mr. Vass and Halmos can do as they please with their product. As a customer, I can do as I please with my money.