Phaseout Inventory and Company Policies
I would like post a reply to Pakev about what Marchon does in regards to phaseout merchandise and who it is sold. First of all NIke and Fendi like all our name brands are sold only to qualified accounts. Accounts who meet the brand qualifications for presentation of product and Marchon requriements which are the highest in the industry. We have always supported the independents and have every checks and balances in place to make sure that our products are only sold with qualified accounts. What happens is that our products which are in high demand are diverted not by Marchon but other accounts to unqualified accounts and this is why you will hear of brands like Nike, Fendi and others being sold in these retail locations which are not authorized by Marchon. We will make every effort to close any account that diverts frames and pursue all legal remedies. Please accept my word that we are very hard on this issue. In regards to pricing phaseout products. We have programs that our reps(ask your rep about these PCO programs) offer to our qualified accounts frames at very attractive prices and these programs are very successful for Marchon. These programs work very well and does not put the pressure on the company to sell product through brokers or closeout artists who are to numberous to count in the industry. Thanks for your support and hopefully this may shed some light as to how we operate.
David Padgett
I would like post a reply to Pakev about what Marchon does in regards to phaseout merchandise and who it is sold. First of all NIke and Fendi like all our name brands are sold only to qualified accounts. Accounts who meet the brand qualifications for presentation of product and Marchon requriements which are the highest in the industry. We have always supported the independents and have every checks and balances in place to make sure that our products are only sold with qualified accounts. What happens is that our products which are in high demand are diverted not by Marchon but other accounts to unqualified accounts and this is why you will hear of brands like Nike, Fendi and others being sold in these retail locations which are not authorized by Marchon. We will make every effort to close any account that diverts frames and pursue all legal remedies. Please accept my word that we are very hard on this issue. In regards to pricing phaseout products. We have programs that our reps(ask your rep about these PCO programs) offer to our qualified accounts frames at very attractive prices and these programs are very successful for Marchon. These programs work very well and does not put the pressure on the company to sell product through brokers or closeout artists who are to numberous to count in the industry. Thanks for your support and hopefully this may shed some light as to how we operate.
David Padgett
PAkev said:
One thing to remember is the fact that every frame will someday be discontinued. The question is what graveyard will they end up at as their final resting place?
While some manufacturers make a conscious effort to maintain the integrity of their product line others find a way to squeeze every penny out of their existing "phaseout" or "closeout" inventory.
I had Fendi, Nike, and Guess removed from my boards because a SAM'S club up the road was selling closeout suwear styles at a prices less than what I paid for my current inventory. I brought this to the attention of my rep who said since they were closeouts there was nothing he could do. Fine, but once I sold through their inventory I replaced my Marchon and Viva designer lines with Silhouette and Tura.
Kevin
One thing to remember is the fact that every frame will someday be discontinued. The question is what graveyard will they end up at as their final resting place?
While some manufacturers make a conscious effort to maintain the integrity of their product line others find a way to squeeze every penny out of their existing "phaseout" or "closeout" inventory.
I had Fendi, Nike, and Guess removed from my boards because a SAM'S club up the road was selling closeout suwear styles at a prices less than what I paid for my current inventory. I brought this to the attention of my rep who said since they were closeouts there was nothing he could do. Fine, but once I sold through their inventory I replaced my Marchon and Viva designer lines with Silhouette and Tura.
Kevin
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