GENERAL MANAGER OF PROXIMA ELECTRONIC
The ultimate goal of all business activities is to make a profit. Although the brands claim, in their advertisements, that their priority is customer satisfaction, the main priority is always profit. Customer satisfaction is of course important too, but the “priority” for the companies is to increase their sales and profits. On the other hand, the sales increase a result of customer satisfaction, and decrease as a result of not satisfied customers. Customer satisfaction is important at this point. The profit to be obtained, on the other hand, has no limit. If a product costing 1 Turkish lira can find a buyer for 10 Turkish liras, this “nine times the profit” is legal. The ultimate goal of high-tech companies that produce electronic components is to make profit too. They want to sell the products they produce and achieve the highest profit possible. They try to sell the same product at different prices through their distributors by applying certain criteria to different users.
“The main reason for the formation of a secondary product market is the efforts
of the original product manufacturers to make huge profits. “
That is precisely why a secondary product market is formed. Someone buys goods sold with a low profit, sells them at higher prices, and causes the formation of a secondary product market. Product entry into the secondary market is mainly from two sources: Front companies of distributors, and the big buyers who can buy at a low price with volume buying. However, big users are usually not actively involved in this trade. Distributors coordinate the supply of products from them. Distributors, on the other hand, cannot actively involve in these secondary market sales. They deliver the products to brokers or people in need through the front companies they set up.
In addition, due to the high profit potential of the product, the fake and counterfeit product market is also forming. Because, as the original manufacturer of the product and the patent holder continue to sell at prices far above their costs, someone makes a “copy” of the product and puts it on the market without a brand, or simply by copying it. These products reach the people in need either directly or through brokers. In short, the main reason for the formation of a secondary product market is the efforts of original patent owner manufacturers to make huge profits. Since no company clearly states which distributor sells its products, it is not possible to determine which company is a broker and which company is a subsidiary of the distributor.
“Due to the high profit potential of the product, the fake and counterfeit product market is also forming.”
