Dangers Of The Gray Market And Your Solution For Authorized Products
If you find a great deal on the Internet, and it seems too good to be true, it probably is, right? When you’re in a crunch and the parts you need to complete your project are not available, it can be tempting to look for alternative sources to get products you need. This often leads to products being purchased on the “gray market”—without you even realizing it.
WHAT’S THE GRAY MARKET?
The gray market is made up of products being sold and purchased outside official distribution channels without the manufacturer’s consent. This could include sources like Amazon or eBay—or other websites offering the product in question. Although the products are being sold legally, they’re also being sold in unauthorized ways.
What’s the harm in buying on the gray market? It gets you the products you need, right? But there are several hidden risks of buying on the gray market that can come back as big problems later.
DANGERS OF THE GRAY MARKET
1. Unknowingly Purchasing Counterfeit or Altered Products
Although most products sold on the gray market aren’t counterfeit, it is a possibility. The information the seller shares online about the product may seem legit and in line with what you’re looking for, but what you actually receive could be a different story. Just because a product has the right logo or label doesn’t make it authentic.
In other instances, you may be buying a used or damaged product (even if you think you’re purchasing something brand new) or a product that’s been modified from its original state.
In either case, the purchase of counterfeit, used, damaged or altered products can lead to problems with employee safety (due to malfunction) and product lifecycles (you expect the product to last for years, but it may only last a few months).
2. Bringing in New Cybersecurity Dangers
If a product purchased on the gray market happens to be counterfeit, modified or outdated, then this can create potential security vulnerabilities. In other words: It may make it easier for bad actors to infiltrate industrial networks and control systems.
As firmware and software updates become available, you won’t be able to take advantage of them—especially if you can’t find the product’s serial number or the manufacturer doesn’t have record of you purchasing it from an authorized source.
3. Unreliable Equipment
The only way to ensure that a product is as reliable as you anticipate is to purchase it through an authorized channel. Otherwise, if the product is counterfeit, modified or outdated, reliability may be sacrificed—and you won’t receive any support to correct the issue.
This can lead to costly downtime and productivity loss caused by systems and equipment that malfunction, require unforeseen maintenance and repair and aren’t as reliable as you expected.
4. Lack of Regulatory Compliance
If you’re in a validated industry, then regulatory compliance is an important factor to consider when purchasing a product: FDA, UL and CE are a few examples of these markings, listings and certifications.
Products purchased on the gray market may not meet those standards and can lead to loss of regulatory certification. For example, if a gray-market product was purchased from one country and sold in another, then it may not meet the regulatory requirements of the country in which it was sold.
5. No Warranty or Support
Lack of warranty and support is another crucial consideration. When something happens to a product and it needs repair or replacement, how will it be handled? The site you purchased it from on the gray market won’t support it, and a distributor like Van Meter won’t be able to, either. Their hands will be tied because no manufacturer’s warranty exists, and it wasn’t purchased through an authorized channel.
If a warranty is offered with a product on the gray market, then it’s from a third party and not the original source. As a result, it may not cover everything that the original warranty does.
6. The Threat of Price Gouging
Buying on the gray market means you could pay much more than what you should for the product—or much less than what you’d pay elsewhere. (Remember: If you think you’re getting a great deal, there’s probably a very good reason why the product is so underpriced. You get what you pay for!)
THE ANSWER: WORK WITH A TRUSTED PARTNER
The good news is that there’s a simple way to avoid the problems found on the gray market: Work with a trusted partner like Van Meter.
By purchasing products through an authorized channel, you’ll always receive full product service and support, manufacturer warranties and firmware and other updates—and you’ll have a resource you can count on to answer questions and offer guidance.
Van Meter puts its reputation, integrity and credibility on the line when it comes to the products we offer. We never sell solutions that would put our partnership with you at risk. Our team of internal experts is constantly monitoring the situation to make sure customers always get safe and reliable products that are fully supported with warranties and service after the sale.
If you have questions about how to get the products you need, then give us a call at 800-247-1410.
