We received this press announcement Friday night. It was unusual enough that we thought we’d bring it to your immediate attention.
Elettromedia-USA said it has terminated a “very prominent” dealer in Los Angeles county for transshipping. “This dealer violated our dealer agreement by selling our product though a large Internet reseller,” said the high end, select distribution company.
The dealer sold Elettromedia’ s Hi-Energy line of speakers, said the company.
Elettromedia has terminated 6 dealers this year, Elettromedia Director of Sales Rob Wempe told us.
“This will not be tolerated,” Wempe said. “I do not blame the Internet retailer as much as our authorized retailer. The Internet site is just trying to find a brand that he can make an acceptable profit margin. Our dealer network knows we do not allow this kind of behavior.”
He added, “Let me just say, this is not the only retailer that is being terminated, there are more in the VERY near future! If you are one of our dealers that is selling product in this channel and you want to continue to sell our product, we suggest you cease these sales to this channel immediately.”
“We value our brand’s position in the market and this kind of behavior harms our authorized dealer’s ability to make the desired profit margin. Our brand stands for two major things in the market, technology and profit attainability. We must train our dealers about our technology and protect our dealer’s ability to obtain the desired profit margins at all costs!” states Phil Bolden, President of Elettromedia-usa.
We deleted a statement from an earlier version of the story.