The grey market problem (long)
Posted: Mon Dec 19, 2005 8:11 pm
There is something that I have been wanting to discuss lately - and now that I have some time to sit here and type my thoughts, I thought I'd vent just a little bit.
This all ties directly back to Nick Deulca / Harold Pick and the other guys who have gotten twisted around M's axle in the last few years.
Some of us have other hobbies other than M products. A new one of mine is collecting high end watches. Nowhere else have I seen the rampant rip offs similar to our current predicament with high end M radios.
Granted, there are more people dealing in high end watches - and therefore, more fakes entering the marketplace... but that's sorta redundant - what's important are the similarities involved in the high-end merchandise market.
Of course, when someone spends $8,000.00 on a high end rolex daytona and it turns out to be a built-from-parts POS... the "pain" is merely monetary....
When a firefighter is hurt because the radio he purchased on ebay was sold by someone (nick?) who didn't bother installing a gasket on the radio chassis...and it failed when it got wet.... we have an entire different ball game - LIABILITY... which, regardless of where you THINK it will end up - will come right back into Motorola's lap. Why sue some poor guy on ebay when you can go after a billion dollar conglomerate... who has a public image to uphold?
There are many ways to verify the authenticiy of a high end watch - usually one takes it to a master jeweler where a proper appraisal can be accomplished... which usually includes a complete disassembly... only then can the sum of the parts be validated to be original.
This leads us to the wonderful "grey" market.... where everything may, or may not be - as it seems. just as there are a handful of second-hand high-end watch dealers on greedbay, there are 100 times that number who sell built from parts, mix matched junkers and pass them off as originals. while M has done a pretty good job getting the "mass quantities" radios-built-from-parts dealers out of the picture (don't see nick selling radios anymore do you?) - it makes you wonder where it all ends.
I've recommended that M set up an official, no BS depot program for the Nick radios. The exact status of this I'm not sure about - but I think it's in place - assuming that most of the parts in your radio meet spec, you can get Moto to "buy off" on your franken-flashed deluca special and have a legit product in your hands. Of course, I would also expect that M send letters to the same people that they sent the "return our radios" letter to... but I doubt they'll do that. Imagine the response you would have gotten (M) had you said... "pay us $400 and we'll certify your franken-flash" instead of "return your radio to us and get nothing" ???
the judgement against harold seems to be more of a personal vendetta against him rather than something tangible for M. The facts of the case, as I understand them - were that he sold some radios to a division of something or another in LA... and M got PO'd about it.... rightfully so - if you were GM, and you had a guy who won a small contract to supply GM vehicles to a local business.... wouldn't it upset you if this guy wasn't even a GM dealer?
you bet it would.
however, the implications of the purported actions that harold took can be akin to buying some *USED* GM cars, putting some new body panels on them, cleaning the seats... and selling them... AS USED... *NOT* new.
This is apparently where we stand now.
The jury (?) has ruled that what he did was not illegal. Assembling used radios and selling them as USED... is not a crime. however, the software used to create said franken-radios.... leads to another entirely different discussion that I don't want to go into at this time.
---------------------part 2----------------------
just like stolen watches, there are LOTS of stolen radios out there.
i have bought and sold a number of radios over the years... and never have I had a problem with a radio coming back to bite me in the ass.
part of this are some common sense rules that some of you may not agree with.
- the addage that "you had to know it was stolen because you only paid $50 for it"
is completely ignorant of a free market economy. the true value or worth of ANYTHING ... is simple. Something is WORTH what someone else is willing to PAY FOR IT... nothing more - nothing less.
- "but that's a current issue model - no way it can be on the used market already!"
is another one that cracks me up. how about a military base that buys BOATLOADS of VHF radios...only to switch to a UHF trunking system 6 months later? where do these radios end up? Search around on the web - the auction sites are out there! go punch in "MOTOROLA ASTRO" into google and see what comes up.
- "THAT RADIO IS STOLEN." How often have you heard that one? My fav is when that is whispered between two people browsing tables at a hamfest!
for something to be stolen, it has to have a POLICE REPORT. There is a big difference between "missing" and "stolen" - and this leads us to a big problem in the used radio market....if something is missing - it's not necessarily stolen.... if it's stolen, and not noticed... is it stolen? (i need some imitrex after thinking about that one) ...
- "THAT RADIO HAS NO SERIAL TAG - IT MUST BE ILLEGAL"
Illegal? I doubt it. Built from parts? Perhaps. This is just one of those things that you have to educate yourself on! Too bad Rolex's don't have electronic serial numbers....
Let me digress.
I once had a college professor... ethics course... and he made sure we all had one point very clear before we passed his class. His words...
"THE DIFFERENCE BETWEEN UNETHICAL, IMMORAL AND ILLEGAL IS A JAIL CELL"
In other words - in business... there is no penalty for being unethical or immoral.... if you can sleep at night knowning you screwed someone without breaking the law - that's your cross to bear - not mine.
end of digression....
I've seen radios sold on the free market with "PROPERTY OF HOUSTON FIRE DEPARTMENT" engraved on the front of them. XTS 3500's in UHF to be exact. Guess what? PERFECTLY LEGAL SURPLUS.
Scenario day.
You go to the local flea market. Sitting there, brand new in the shipping box.. is an XTS 5000 radio in UHF, complete with all tags, warranty booklet and paperwork. Seller says... "I'll take $100 for that there CB radio". You choke (and instead of offering $50) dole out one fresh benjamin for your new toy.
Background... local air force base just went to UHF trunking. You know this. Radio is flashed with an Astro25 trunking flashcode.
Now ask yourself a question.
Is this radio stolen?
Perhaps.
To what end and with what resources can you use to verify that the radio is ok for sale / resale?
you have a buddy at the local PD who will run the radio's serial number through NCIC. you dole out the number and he runs it... comes back with no hits.
so you call the local base ... and after 4 hours of trying ... get the number to the land mobile shop... they refuse to give you any information ... and next thing you know - they want to know who you are and why you are calling requesting this information (i.e. - they go on the offensive!)
bottom line - they won't tell you squat. (not that they know anything in the first place - most minor property systems are broken anyway)
so you sell the radio on ebay. you make a tidy profit.
new owner of the radio does the same thing you did - runs the radio through NCIC... no hits (go figure, right?)
but the local shop goes a step further.
they call motorola.
motorola identifies the original purchaser of the radio... and contacts them... OH NOOOOOOO! "that radio is missing from our warehouse" they say.
now - is it stolen? (better get paid advice for that answer)
What I'm getting at here - and I've tried my resources...
is to get a honest to god LIST from M of the radio serial numbers that are "missing" or "lost" - or have "problems". I don't expect motorola to tell me if something is stolen - stolen means police report and NCIC entry.
I also don't expect them to tell me WHO / WHERE / WHEN it was stolen from.... I just want to find out if I am selling something smokin' hot.
Two fold solution.
1st.....An all-MSS alert that details what is to be done in the case of "lost" "missing" or "stolen" radios. This would include an entry into an internal motorola database (probably already exists) - and a request to have the radio serial number entered into NCIC. This information should also be passed on to all of M's major account holders - even adding a pop up on MOL when customers log in.
How many radios are lost in the field by firemen fighting fires? Or left on the back bumper of the patrol car and dumped into the street?
Probably HUNDREDS.... wouldn't it be nice to have a recovery method in place???
2nd....An open phone # at motorola where individuals can call and request the status of a particular radio serial #. I'm not after customer information - but any entry of a lost/missing radio into the database should include a phone number of someone at the entity that lost the radio... easy contact data for M.... Entities who "lose" products could even offer a reward if the radio is returned... paying $500 to get your $5000 radio back isn't such a bad deal in the long run!
I dunno guys - I guess i'm just waaaay too far out of the box anymore.
Feel free to respond - but if you are gonna flame me, stuff it.
Merry Xmas...and my buddy Adam Sandler sez "happy hannukah"
Doug
This all ties directly back to Nick Deulca / Harold Pick and the other guys who have gotten twisted around M's axle in the last few years.
Some of us have other hobbies other than M products. A new one of mine is collecting high end watches. Nowhere else have I seen the rampant rip offs similar to our current predicament with high end M radios.
Granted, there are more people dealing in high end watches - and therefore, more fakes entering the marketplace... but that's sorta redundant - what's important are the similarities involved in the high-end merchandise market.
Of course, when someone spends $8,000.00 on a high end rolex daytona and it turns out to be a built-from-parts POS... the "pain" is merely monetary....
When a firefighter is hurt because the radio he purchased on ebay was sold by someone (nick?) who didn't bother installing a gasket on the radio chassis...and it failed when it got wet.... we have an entire different ball game - LIABILITY... which, regardless of where you THINK it will end up - will come right back into Motorola's lap. Why sue some poor guy on ebay when you can go after a billion dollar conglomerate... who has a public image to uphold?
There are many ways to verify the authenticiy of a high end watch - usually one takes it to a master jeweler where a proper appraisal can be accomplished... which usually includes a complete disassembly... only then can the sum of the parts be validated to be original.
This leads us to the wonderful "grey" market.... where everything may, or may not be - as it seems. just as there are a handful of second-hand high-end watch dealers on greedbay, there are 100 times that number who sell built from parts, mix matched junkers and pass them off as originals. while M has done a pretty good job getting the "mass quantities" radios-built-from-parts dealers out of the picture (don't see nick selling radios anymore do you?) - it makes you wonder where it all ends.
I've recommended that M set up an official, no BS depot program for the Nick radios. The exact status of this I'm not sure about - but I think it's in place - assuming that most of the parts in your radio meet spec, you can get Moto to "buy off" on your franken-flashed deluca special and have a legit product in your hands. Of course, I would also expect that M send letters to the same people that they sent the "return our radios" letter to... but I doubt they'll do that. Imagine the response you would have gotten (M) had you said... "pay us $400 and we'll certify your franken-flash" instead of "return your radio to us and get nothing" ???
the judgement against harold seems to be more of a personal vendetta against him rather than something tangible for M. The facts of the case, as I understand them - were that he sold some radios to a division of something or another in LA... and M got PO'd about it.... rightfully so - if you were GM, and you had a guy who won a small contract to supply GM vehicles to a local business.... wouldn't it upset you if this guy wasn't even a GM dealer?
you bet it would.
however, the implications of the purported actions that harold took can be akin to buying some *USED* GM cars, putting some new body panels on them, cleaning the seats... and selling them... AS USED... *NOT* new.
This is apparently where we stand now.
The jury (?) has ruled that what he did was not illegal. Assembling used radios and selling them as USED... is not a crime. however, the software used to create said franken-radios.... leads to another entirely different discussion that I don't want to go into at this time.
---------------------part 2----------------------
just like stolen watches, there are LOTS of stolen radios out there.
i have bought and sold a number of radios over the years... and never have I had a problem with a radio coming back to bite me in the ass.
part of this are some common sense rules that some of you may not agree with.
- the addage that "you had to know it was stolen because you only paid $50 for it"
is completely ignorant of a free market economy. the true value or worth of ANYTHING ... is simple. Something is WORTH what someone else is willing to PAY FOR IT... nothing more - nothing less.
- "but that's a current issue model - no way it can be on the used market already!"
is another one that cracks me up. how about a military base that buys BOATLOADS of VHF radios...only to switch to a UHF trunking system 6 months later? where do these radios end up? Search around on the web - the auction sites are out there! go punch in "MOTOROLA ASTRO" into google and see what comes up.
- "THAT RADIO IS STOLEN." How often have you heard that one? My fav is when that is whispered between two people browsing tables at a hamfest!
for something to be stolen, it has to have a POLICE REPORT. There is a big difference between "missing" and "stolen" - and this leads us to a big problem in the used radio market....if something is missing - it's not necessarily stolen.... if it's stolen, and not noticed... is it stolen? (i need some imitrex after thinking about that one) ...
- "THAT RADIO HAS NO SERIAL TAG - IT MUST BE ILLEGAL"
Illegal? I doubt it. Built from parts? Perhaps. This is just one of those things that you have to educate yourself on! Too bad Rolex's don't have electronic serial numbers....
Let me digress.
I once had a college professor... ethics course... and he made sure we all had one point very clear before we passed his class. His words...
"THE DIFFERENCE BETWEEN UNETHICAL, IMMORAL AND ILLEGAL IS A JAIL CELL"
In other words - in business... there is no penalty for being unethical or immoral.... if you can sleep at night knowning you screwed someone without breaking the law - that's your cross to bear - not mine.
end of digression....
I've seen radios sold on the free market with "PROPERTY OF HOUSTON FIRE DEPARTMENT" engraved on the front of them. XTS 3500's in UHF to be exact. Guess what? PERFECTLY LEGAL SURPLUS.
Scenario day.
You go to the local flea market. Sitting there, brand new in the shipping box.. is an XTS 5000 radio in UHF, complete with all tags, warranty booklet and paperwork. Seller says... "I'll take $100 for that there CB radio". You choke (and instead of offering $50) dole out one fresh benjamin for your new toy.
Background... local air force base just went to UHF trunking. You know this. Radio is flashed with an Astro25 trunking flashcode.
Now ask yourself a question.
Is this radio stolen?
Perhaps.
To what end and with what resources can you use to verify that the radio is ok for sale / resale?
you have a buddy at the local PD who will run the radio's serial number through NCIC. you dole out the number and he runs it... comes back with no hits.
so you call the local base ... and after 4 hours of trying ... get the number to the land mobile shop... they refuse to give you any information ... and next thing you know - they want to know who you are and why you are calling requesting this information (i.e. - they go on the offensive!)
bottom line - they won't tell you squat. (not that they know anything in the first place - most minor property systems are broken anyway)
so you sell the radio on ebay. you make a tidy profit.
new owner of the radio does the same thing you did - runs the radio through NCIC... no hits (go figure, right?)
but the local shop goes a step further.
they call motorola.
motorola identifies the original purchaser of the radio... and contacts them... OH NOOOOOOO! "that radio is missing from our warehouse" they say.
now - is it stolen? (better get paid advice for that answer)
What I'm getting at here - and I've tried my resources...
is to get a honest to god LIST from M of the radio serial numbers that are "missing" or "lost" - or have "problems". I don't expect motorola to tell me if something is stolen - stolen means police report and NCIC entry.
I also don't expect them to tell me WHO / WHERE / WHEN it was stolen from.... I just want to find out if I am selling something smokin' hot.
Two fold solution.
1st.....An all-MSS alert that details what is to be done in the case of "lost" "missing" or "stolen" radios. This would include an entry into an internal motorola database (probably already exists) - and a request to have the radio serial number entered into NCIC. This information should also be passed on to all of M's major account holders - even adding a pop up on MOL when customers log in.
How many radios are lost in the field by firemen fighting fires? Or left on the back bumper of the patrol car and dumped into the street?
Probably HUNDREDS.... wouldn't it be nice to have a recovery method in place???
2nd....An open phone # at motorola where individuals can call and request the status of a particular radio serial #. I'm not after customer information - but any entry of a lost/missing radio into the database should include a phone number of someone at the entity that lost the radio... easy contact data for M.... Entities who "lose" products could even offer a reward if the radio is returned... paying $500 to get your $5000 radio back isn't such a bad deal in the long run!
I dunno guys - I guess i'm just waaaay too far out of the box anymore.
Feel free to respond - but if you are gonna flame me, stuff it.
Merry Xmas...and my buddy Adam Sandler sez "happy hannukah"
Doug