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Re: Dealer agreement flexibility


Daniel,


The problem is that Shure already has a large and well established retail network. I am also sure that a large portion of their funds come from retail sales. They would be crazy to screw one of their brick & mortar retailers out of exactly the kind of sales they're set up to handle so they could make a few extra bucks off every live sound guy who wanted their product. That would rapidly wreck their operating margin by forcing them to gear up for onesie-twosie shipping out of their warehouse, not to mention the customer service interactions.


In our warehouse, for example, our shipping department can clear an entire pallet in about the same time it takes to put together 4-5 drop ship items to go by UPS.