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Conference napalm::commusic_v1

Title:* * Computer Music, MIDI, and Related Topics * *
Notice:Conference has been write-locked. Use new version.
Moderator:DYPSS1::SCHAFER
Created:Thu Feb 20 1986
Last Modified:Mon Aug 29 1994
Last Successful Update:Fri Jun 06 1997
Number of topics:2852
Total number of notes:33157

1338.0. "Why Certain Stores Carry Only Certain Products" by --UnknownUser-- () Fri Apr 29 1988 12:45

T.RTitleUserPersonal
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1338.1Restraint of trade and competitionDREGS::BLICKSTEINThe height of MIDIocrityFri Apr 29 1988 14:3716
   > They specifically do not carry Ensoniq or Yamaha (part
   > of the deal with Roland).
    
    Pardon my language, but that's a real shit thing for Roland to do.
    
    It certainly doesn't sit well with me (who's on the verge of buying
    a $2k+ piece of Roland equipment from EUW).
    
    In fact, I might even fault EUW for accepting such a deal.  One wonders
    what they "got for it".
    
    But please, let's not give them any trouble about it.  DECMS is a great
    idea (even if I do say so myself) and I don't want to jeopardize it.
    Only wanted to make a comment.
    
    	db
1338.2EUW-onlyDREGS::BLICKSTEINThe height of MIDIocrityFri Apr 29 1988 14:397
    Note also that Daddy's carries Ensoniq, Yamaha AND Roland.  So this is
    an EU-only thing.
    
    I have a friend who's a VP there.  I can ask him about it
    without causing any trouble.
    
    	db
1338.3DECMS Statistical AbstractDREGS::BLICKSTEINThe height of MIDIocrityFri Apr 29 1988 14:4617
    I seem to be going for the record of most consecutive notes!  ;-)
    
    Y'know Dave (Orin),
    
    It occurred to me that it might be EXTREMELY valuable to be able to
    give a reasonable accounting of the buying power of DECMS.  It could
    provide a lot of leverage in dealing with stores.
    
    I haven't thought about it much, but I might suggest that you ask
    folks to send you a list of everything they bought last year and
    do some kind of simple statistical reduction (like even just a
    total sum).
    
    I'll bet you, between us all, we may account for more than $100,000
    in business EACH YEAR!!!!  That would comand attention, believe me.
    
    	db
1338.4CLULES::SPEEDIf it doesn't rack, it doesn't rollFri Apr 29 1988 15:0025
    < Note 1338.2 by DREGS::BLICKSTEIN "The height of MIDIocrity" >
                                 -< EUW-only >-

>    Note also that Daddy's carries Ensoniq, Yamaha AND Roland.  So this is
>    an EU-only thing.
    
    This is partially true and partially not true.  
    
    While Daddy's does carry Yamaha, they don't sell any of the Yamaha pro
    gear in the Boston store because LaSalles has the Yamaha line for
    Boston.
    
    However, in Salem, NH you can see all three lines.
    
    Kind of a pain.  I bought my KX76 at Daddy's in Boston (used, not
    new), but wasn't able to get the piano type sustain pedal (FC4 I
    think) because that is an accessory carried in the pro line.  Mike,
    the manager (the sax player in my band), said he might be able to
    work something out, but it sounded like it would be a hassle for
    him.  I think I'll just drive to Salem or mail order from someplace
    else.
    
    		Derek 
    

1338.5It's out here in Colorado TooTYFYS::MOLLERVegetation: A way of lifeFri Apr 29 1988 15:078
    This same odd combinations of what can be bought at stores occurs
    out here in Colorado also. Some lines of some products can be bought
    at some stores, but not others. What a confusing Mess. 
    
    Just for statistic purposes, I've spent about $1,200 at music stores
    since January.
    
    								Jens
1338.7Grain of Salt for peppered storyDREGS::BLICKSTEINThe height of MIDIocrityFri Apr 29 1988 18:3428
    I'm planning on buying a Roland S-550 rack-mount sampler.
    
    I'm going to mention DECMS but I'm planning on buying it at the Boston
    store cause that's where my friend works (and Worcestor is way out
    of my way), and there are people there whom I deal with regularly
    who know that I can't be BS'ed about prices.
    
    Regarding what Eddie says about why they don't carry Yamaha and
    Ensoniq, frankly I don't believe that, and I have fairly good
    reason not to either.  At best, he's glossing over the real truth
    
    First, it just doesn't make sense.  The DX7, Mirage and ESQ-1 are 
    high volume, high margin, well supported, excellent products
    and those companies have a reputation of being good to their
    retailers.
    
    Second, as I recall that EUW lost their Yamaha license.  Don't
    remember exactly why, but EUW was a different place as little as a few
    years ago.  Things are much different (better) now.  In fact, I'm
    pretty much buying everything from them now.
    
    Anyway, Dave, I'd really rather you didn't repeat any of this to him.
    I have no doubt that this guy is capable of giving DECMS some very
    valuable help and it won't help things to seem to question what he has
    said.  You should just take things with a grain of salt.  Including
    what I've said (I could be wrong.)
    
    	db
1338.8Hey, Sugar...JAWS::COTEIs the last peeping frog embarrassed?Mon May 02 1988 09:238
    It's not unusual for a company to offer a franchise owner some sort
    of a "protected area" where, in return for buying the franchise,
    the owner is given the exclusive rights to market the goods in a
    given area without fear of competition.
    
    Dunno if'n it holds true in this case...
    
    Edd
1338.9LEDS::ORSIYa mean yer in here voluntarily?Mon May 02 1988 09:3311
    I betcha the problem about certain stores carrying only certain brands
    has to do with CMA's. 60 Minutes did a story on Coca-cola and Pepsi
    distibutors who get the grocery store chains to carry only *their*
    product by paying them BIG Money up front. Sort of Payola-Cola.
    Apparently other Big Co.'s are squeezing the smaller and sometimes
    the bigger competitors out by having the store sign a contract (CMA,
    I forget what it means) agreeing to prominently display only *their*
    product. This practice is becoming more common, but is now being
    investigated by the Justice Dept.
    
    Neal
1338.10JAWS::COTEIs the last peeping frog embarrassed?Mon May 02 1988 09:493
    CMA:== Calendar Marketing Agreement
    
    Edd
1338.11Me and my RDDREGS::BLICKSTEINThe height of MIDIocrityMon May 02 1988 10:5220
    re: .9
    
    Ya beat me to it Neal.  That was a very enlightening piece.
    
    Let's hope the justice department starts going after Roland if that's
    what's REALLY going on at EUW.  However, as I've said, I'm not sure
    that's exactly the case.
    
    BTW, the justice department is doing more than "investigating" this.
    There are some cases in which they've already handed down indictments.
    And Pepsi was scared enough either by the bad publicity or the fear
    that they might lose (it's a shame that we'll never know which) to
    agree to a settlement which involved paying millions of dollars to
    their competitors!
    
    This is why I try to avoid buying Coke and Pepsi products.  As much
    as those companies battle each other, we still see all the effects
    of an oligopoly.  Gimme a Dr. Pepper over a "Coke-SI" anyday.
    
    	db
1338.12Yeah, Yeah, Bring in the FEDs!DRUMS::FEHSKENSMon May 02 1988 11:3017
    re .10 - "Calendar" marketing agreement?  I thought it was
    "Cooperative" Marketing Agreement.  What would the calendar have
    to do with it?
    
    I doubt very much that it's Roland who's telling EUW they can't
    sell Yamaha or Ensoniq.  Some time back the guys *I* know at EUW
    said they didn't carry Yamaha because their stuff was too expensive
    for what it does.  Now, I doubt that EUW really has that much of
    a concern about our wallets that they'd decline the opportunity
    to carry a profitable line.  I think it rather more likely that
    Yamaha and Ensoniq had something to say about EUW carrying their
    products.  For a while EUW wasn't paying its bills on time, and
    that does wonders for a creditor's willingness to do business with
    you.
    
    len.
    
1338.13I'm not making this up...JAWS::COTEIs the last peeping frog embarrassed?Mon May 02 1988 11:365
    Yep, "Calendar". ... and damned if I know why.
    
    Edd
    
    
1338.14MTBLUE::BOTTOM_DAVIDComing soon on a node near youMon May 02 1988 13:445
    According to the fellow at Sam Ash I talked to Roland won't let them
    mail order any roland gear, persumably due to the discounts that Sam
    Ash offers...
     
    db2
1338.156-month whacks...MELANG::MAEZIllegal fun, under the sun boys...Wed May 04 1988 17:265
It's Calender 'cause in the Coke-Pepsi instance, Coke would buy this 
exclusivity for 6-month at a time whacks, Pepsi would in turn buy the 
remaining 6-months. 

�Rick�
1338.16comparisionCTCVAX::NICKERSONThu May 05 1988 08:459
It maybe that selling synths is similar to selling PC CAD software which my
wife did for a few years.  First she had to qualify for as a dealer and
then she was given a "territory".  She could only sell to people in her
territory. The PC CAD companies would not accept an order for a product that
was outside her territory.  This was supposedly good for the dealers because
it reduced competition and kept prices high. (High is only relative in that
you can't making a living selling PC CAD software)  

Dana