Some prices are too good to be true. As an authorized reseller and repair center for many major manufactures of presentation, professional and broadcast video we hear a lot about gray market purchase fiascoes from our manufacturers and unsuspecting customers. This article explains what to look for, the risks, and how to protect yourself.

Gray Market Goods are most generally defined as products not intended for sale in the United States and can be counterfeit products, illegally imported goods, and/ or those imported outside distribution channels. These products are often much, much lower than the Manufacturer's Suggested Retail Price, but are not coming from authorized resellers.

Because these products are not coming from authorized dealers they do not carry a warranty in the United States. Any problems carried under normal warranty terms are not applicable to local and statewide service centers. The only way to get the product repaired is to ship the product back to the manufacturer's headquarters, which can be quite costly. (For example shipping alone, not including applicable insurance from San Jose, CA to Japan would be well over $100.)

Manufacturers spend time and money on service centers both their own and those privately operated. Manufacturer authorized service centers attend on going training on the latest products and repair methods.

Gray market goods, often sold online also come with other precautions. Because these products were not intended for sale in the United States their quality cannot be confirmed and may be counterfeit. Sony recently had this problem with counterfeit InfoLithium batteries coming out of China, Malaysia, and other areas. Due to poor workmanship, these batteries may not hold acceptable levels of charge to power Sony digital imaging products, may produce inaccurate readouts of time remaining on Sony Accupower meters and/or worse may pose a fire or other safety danger to consumers. These batteries look much like the real thing. Sony is currently working with officials to prevent further distribution of the counterfeit product. If you believe you may have impostor batteries please contact Sony.

Manufacturers often have a page on their website that lists authorized resellers by state or branch office. If you do not see a retailer listed check with the manufacturer's website and send them an email asking about the party in question. There are many online retailers that will claim to be authorized when they are not. Also, many gray market goods resellers generally will not replace products damaged in shipping.

The best way to ensure that purchased products come with a warranty and arrive unharmed is to purchase from local authorized dealers. Local dealers pricing may not be as low as the national box houses, but there are many benefits to purchasing from local dealers. Local dealers take care of products damaged in shipping and will aid in returning defective products to the manufacturer's service center. Also, local dealers, such as VMI, have in house authorized service centers for many of the manufactures they represent. Authorized dealers with certified service centers are able to take care of their customers needs more immediately without the shipping expenses or lengthy repair times.

Saving costs upfront may seem like there is a substantial savings, but at what cost? The risk often out weights the initial savings. Ask anyone who has purchased a product online that was a gray market good or that was damaged in shipping.

If you would like more information or would like to talk with a salesperson please contact the office nearest you or email sales@vmivideo.com with your request (please include the article name, and your contact information).