General > Beating a dead horse

Factory Direct:  What does it mean?

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wmccall:
So maybe you could spend 5 minutes of your day contacing the Texas Attorney's office and find out if a law has been broken here?  I'll bet they even have a form on their website.  I know ours does, and I've used it quite a few times.

HotTubMan:

--- Quote ---Please someone help me out here...but aren't we all "Factory direct dealers" here....I mean raise your hand if anyone is buying their spas from a distributor of some sorts....I think it is misleading but I guess we could all make the same claim of being Factory direct since we all buy direct from the factory.....Please do not think I am a advocate for making this claim but I just suppose we all could and as it was already said it does not mean much....
--- End quote ---

Mendo, I am with you here. Anyone who buys from the factory, not a distributor, is factory direct.

In this country I live in (Canada) there are many spas that a dealer buys from a distributor who buys from the factory (Catalina, Marquis, FreeFlow and I am sure more). This is less common than a dealer that buys directly from the factory.

What I guess could be deemed as dishonest is the implication that this is better or different than everyone else.

This marketing angle is pretty common. There are many spa features that dealers and manufacturers alike claim as their advantage. This same feature may be on many if not most brands, but this manufacturer claims it is their feature. Some brands claim they are the only :
"Ozone system that is UL approved"
"4 wall insulation"
"Self Cleaning"
"No By-pass filtration"
"Heat recovery system"
I could go on...

My 2.2 cents

Chas:
Well, we're all entitled to opinions, but facts are harder to dispute. When somebody tells me they are cutting out the middleman, and I find out they ARE the middleman, that is a lie.

Do we really have to discuss the symantics of it: "Factory Direct" always implies that a customer has somehow stumbled into a factory-owned store, an outlet, or some kind of factory clearance in which the factory is making a rare venture into the retail realm. And if that is the case, you should STILL check the prices, because if a manufacturer takes the exact same product and sells it for less in a factory-owned store, the dealers have a right to get upset - so you will most likely find the same or higher prices, or you will find blems and seconds.

Any other set up in which a dealer buys a product at wholesale and sells it at retail is not factory direct. Yes, there may be dealers who buy from a distributer, but those folks are usually reaping the savings on shipping and storage as the distributer assumes some of those burdens.

Steve:
Any "factory direct deal" would have to be sold to the consumer at dealers cost as that's the implication. As soon as it's shipped and there are costs associated to it such as advertising and marketing and every other overhead of a retail space, anyone selling it would be loosing money.

I'd love to go into one of these and grill the sh*t out of them!

I agree with what you're saying guys about EVERY dealer being factory direct. Unless the truck driver stops for lunch maybe...  ;)

Steve

Mendocino101:
Chas,

I guess it is just the perception of things....I have always thought of factory direct and factory owned as two distinctively different things. but I can clearly see how one can easily lump them together.

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