The explanation was that they'd made an agreement with their distributors not to undercut them on pricing. But seeing as how the preorder agreement predates this by like two years, I don't understand why it doesn't take precedence. There weren't that many (International) pre-orders anyway, and I don't see how any distributor can complain about them selling a few units at a long ago agreed price. Why can't those preorders just ship out direct from VXL US, bypassing the distributors completely?
Thank you for framing these concerns as questions, rather than accusations. And they are fair questions.
IMO it would be helpful revisit what Stu posted about the tizzy with pre-orders here in the U.S. that resulted from a "demand" by VXL's "merchant processor". In that case, the company that processes VXL's sales/financial transactions required VXL to launch in a way that ran afoul of VXL's earlier promises and VXL's own expectations. Let this be clear: Had VXL not complied, it would not have been able to process
any orders, VXL would have been at a standstill, and the business would have been at serious risk. In short,
VXL had no choice.
Now something similar has happened with international distribution. I am not surprised. Building foreign distribution channels is very challenging and high risk. A manufacturer's business model for selling and/or servicing in one country or region will be different from another. A small start-up recruiting, contracting, financing, and supporting a master distributor will find that a great deal is outside of its control. The leverage is with the distributor, even more so than the merchant processor above because the distributor is typically responsible for all functions in its region short of building the product itself. There are a myriad of requirements which must be met; product, regulatory, transactional, country-specific, inventory, title transfer, accounting and reporting - the list goes on. It is simply not possible for a start-up to have all of this in place in advance; if that were required, the business would never get off the ground. As a consequence, there are always unpleasant surprises, there are always mistakes made.
The pertinent question is, why would VXL change a policy which it knows will piss off valuable customers, even though there is no significant financial advantage to do so?
Why??? For the same reason that it did here last year, as ref'd above: Because
VXL has no choice. As SM posted, in order to do the launch, this is what VXL
must do. Its alternative is to not be able to launch at all, a totally unacceptable position for the business to be in.
When a contract is negotiated with a foreign distributor, a great many details must be agreed upon. And once again, there are the wide range of uncontrollable external requirements which also will influence the terms. VXL is not in a position to dictate terms. Given all the factors at work, it is not surprising that the "in-store credit" is the best and only mutually acceptable arrangement available for customers who pre-ordered.
About bypassing distributors by going direct . . . there are good reasons why nearly all manufacturers only sell through distributors overseas (or subsidiaries, which are equally governed by local requirements). As daunting as that can be, selling direct can be much more of a challenge, and in many countries, it simply isn't an option at all. Assuming it would be possible, VXL couldn't possibly justify the infrastructure cost to support doing so for a limited number of people across a number of different countries.
So should VXL have made the pre-ordering assurances it did a couple years ago? Evidently not. But let's recognize these for what they were: Premature and impractical, although well intended, decisions made out of limited experience. Also known as growing pains.
For those who cannot accept that this is an unavoidable business decision, those that demand a "pound of flesh" through accusation and character assassination . . . allow me to just respectfully suggest that you simply move on and do business elsewhere. After all, no harm, no foul.
Or perhaps we should just put the evil VXL crew on the executioner's block. Off with their heads - that will teach 'em!