Why GP's are bad?

[SuffolkD at aol.com]

Ned:  

1.  Can you please explain why the GP is bad for the Audi community?
1a.  From your explanation you say future development is hurt by the GP 
concept:  How so?

I as the buyer, (my look) is that a volume pricing discount moves more 
product for the distributor / manufacturer.  
While the distributor chain (profit) may suffer in your example, I suspect no 
purchase due to the original pricing would have been more beneficial?

2.  Is a GP detrimental to overstock inventory?

The manufacturer who produces more "product" usually sells more.  
If the vendor can't sell the product, then there is no demand for it next 
year FROM THAT vendor.
This example doesn't reflect what may be the real (no demand next year) sales 
problem:..........TOO HIGH of a price to the customer.

I wanted the "best" chip for a 200 20V and sought out your product first.  
But the price was more than I could afford, so, no chip for me.

Then I bought one a year later as part of a GP and with some work on my part, 
I got a chip, with performance I desired.

With all due respect, I seem to read your post and correlate that's the 
reason why you didn't respond to my GP chip inquiry in 2002 and why several of us 
sourced them elsewhere in 2003.

I expect your IA chip is the best out there, so please don't misunderstand my 
inquisitive questions.
Respectfully submitted - Scott by BOSTON

Ned  wrote>>>>
> Now a NOTE TO ALL:
> While I have participated in group purchases as the supplier of the part
> I now believe that the group buy concept does not help the Audi
> owners/vendors group as a whole.  While in the short term the supplier
> looses and the owner wins NO ONE WINS in the end.  Since the Audi group
> is really a small group of people and small businesses it reduces the
> ability for vendors as a whole to produce new parts and have viable
> businesses.  Then the owners loose.  I've talked to other vendors about
> this and speaking from experience there are several neat trick
> performance parts I CHOSE NOT TO MANUFACTURE because one year there was
> a group buy that messed with our cash flow.  ALL THE AUDI OWNERS LOST!
> I don't think anyone excited about a group buy ever thinks about this
> bigger picture.  I know I didn't.
> 
> In summary: Group Buys are not good for the Audi community, and now you
> know how many vendors are now feeling about those who promote them.
> 
> Ned Ritchie
>