ByrdmanFL
Well-Known Member
- Joined
- Feb 21, 2024
- Messages
- 340
- Reaction score
- 738
I have no idea if this is what actually happened, but large multi-year distribution agreements sometimes have protections built in to the contract so that neither party is hurt financially if/when the agreement comes to an end. And these types of protections are iron-clad, highly enforceable agreements with guaranteed damages.It seems that retailers were alerted something, which is why they quickly seemingly liquidated all their remaining stock, just before end of year, last year.
You figure, they sold stuff at the new price scheme, while they purchased under the old scheme, presumably to sell everything out, while the old distributor contract was still in effect.
Not sure why they'd have to clear house before any new contract settled, but, it seems the case.
I'm sure, everybody took a loss, on the clearance sales (even though they weren't marketed as such), but, there had to be a reason for them to do it, rather than simply letting the items sell & still retain stock.
But, even ebay is pretty scarce for parts, when, in the past, you could find an abundance of any & everything current on there...
What I mean here is that it could have been in the contract that the existing distributor has a certain period of time to sell warehoused inventory before new product can be sold. It looks like the old distributor did not drop prices so it may have taken up the entire time period allotted to either liquidate it's inventory and/or try to disrupt the market in spite since they lost the Marshall line.
DISCLAIMER: Pure speculation, but I have been involved in such contracts when I was a purchasing manager over 30+ years ago for manufacturing company and these types of agreements take quite a while to unwind.