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  • Gray Market 1200A advice

    Posted by Jennifer Isenhart on December 2, 2005 at 10:27 pm

    Hello,

    we are a small production company with a Panasonic VariCam (love it!) and Final Cut Pro editing system utilizing a Kona 2 card for i/o. We have a G5 w/fiber channel connection to an XServe RAID for media storage.

    The last piece of the puzzle for us us a HD1200A deck. We are currently shopping for one and I’m interested in your valuable advice on the idea of purchasing a gray market deck. We have found several equipment houses selling brand new Japanese model HD1200A decks (w/HD-SDI card) for about $8000 less than we have to pay for a new US model.

    Does anyone out there own a Japanese model deck? What are the pitfalls? We know about the swapped XLR plugs in the back, but aren’t too concerned as we can make our own cables and will be working in digital 90% of the time anyhow.

    The equipment dealer says the deck comes with a 1 year warrantee and says Panasonic USA will talk to us if we have problems (I wonder about that). He says he will provide us with an English manual.

    Any advice/comments you have would be much appreciated.

    Jennifer Isenhart
    Wide Eye Productions

    John Sharaf replied 18 years ago 9 Members · 17 Replies
  • 17 Replies
  • Thomas Kaufman

    December 3, 2005 at 2:10 pm

    Probably these decks come directly from Japan, so I doubt that there would be any US warrantee. You would probably have to ship it to Japan for warrantee service. Also, if you need some technical advice, I would doubt the dealer would be able to help you, as opposed to buying from a US dealer who has tech-minded people on staff to answer questions.

    Hope this helps,

    Thomas Kaufman, DP
    Washington, DC

  • Gary Adcock

    December 3, 2005 at 5:27 pm

    [Thomas Kaufman] “Probably these decks come directly from Japan, so I doubt that there would be any US warrantee. You would probably have to ship it to Japan for warrantee service”

    Or mention the menus will be in Kanji.

    I cannot believe that you cannot deal with someone you already work with to get $800 off?

    Grey market products hurt everyone except the seller. -they usually go out of business before they get caught.

    Gary Adcock
    Studio37
    HD and Film Consultation
    Chicago, IL USA

  • John Sharaf

    December 3, 2005 at 5:41 pm

    Jennifer,

    First off, I don’t think you’re getting a price from Japan which is including the two optional cards (which add almost $10000 retail to the price).

    I think prices in Japan are actually higher than in the states; this is because of a report from a friend who recently visited Japan and found prices to be more there than in the states for similar items.

    The warrantee on a recorder is very important; it’s full of mechanical, moving parts, spinning heads, etc. all of which are service intensive. My deck has been to the shop three or four times already and serveral were within the one year warrantee period. I’d be very cautious of buying grey market.

    Finally I noticed that Panasonic has extended their cash back program on purchases of the deck in combination with camera, perhaps you can qualify for this. There is as much as $5200 back with a Varicam and deck purchase.

    JS

  • Jeff Merritt

    December 3, 2005 at 5:55 pm

    All,

    There is a perfectly good reason why these products are called “Gray Market” as we’re never sure where they come from or the conditions in which they have been shipped or stored. In addition, you are not likely to see a “UL” label affixed to the unit which might bring about liability questions, particularly when used in a commercial environment such as TV or network facilities. Using Non-UL approved devises in a home might have serious consequences with insurance companies should a fire develope.

    Apart from all that, Panasonic in America will not warranty these products which will mean the purchaser is on their own to get a machine fixed if something goes wrong. Replacement parts may also be an issue as they would have to be purchased at full retail price if they are even available for a foreign model. You should also note that there is likely no warranty card that is applicable in the USA included. There are very strict warranty laws in the USA.

    How do you know if a product like the VariCam or AJ-HD1200A is not from Panasonic America?

    One of the first tip-offs is the XLR audio connectors are reversed in gender if imported from Japan. A second thing to look for is the included operations manual is in a foreign language, usually Japanese, although an English copy might have been downloaded from our Panasonic USA web site and stuffed in the box, in which case you’ll notice the box has been opened and closed. And, the acutual model number of the product sold and distributed by Panasonic America ends with the letter “P” such as AJ-HDC27HP or AJ-HD1200AP. (note we at Panasonic America do not use this final letter designation in promotional and ordering information) And buy the way, in America, we keep track of serial numbers that go through our warehouse and distribution.

    Finally, if the price of a product is too good to be true, it usually is. Therefore, purchasing at below the usual price is a good indication that something is wrong.

    Panasonic America prides itself in qualifying resellers of our professional products to know they will not only represent our products well, but will stand by their customers with service and support. In addition, Panasonic America stands by our authorized resellers with service and support as well. Those companies that sell foreign versions of our professional products like DVCPRO and DVCPRO HD for example, do so without any authorization or support from Panasonic America. Purchasers of products from these companies do so at their own risk.

    Buyer beware.

    Jeff Merritt
    Product Line Business Manager
    High Definition Products
    Panasonic Broadcast
    323-436-3676

  • Jennifer Isenhart

    December 3, 2005 at 8:44 pm

    You are all confirming our suspicions, thanks for responding. I must say it’s tempting to pay $16,500 vs. $24,500 for a HD1200A deck WITH an HD-SDI card installed, but I think we’d pay for it (and then some) in the long run.

    I have to ask you though, Jeff– why is Panasonic Japan selling decks for a third less than Panasonic America? I can’t imagine that Japanese video producers would accept a product that’s sub-par (afterall, they’ve been producing in HD a lot longer than we have). What’s the big diff?

    Jennifer

  • John Sharaf

    December 3, 2005 at 11:15 pm

    Jennifer,

    If you want to capture into FCP with firewire, you’ll also need the Firewire Card Option. Deck with both cards comes to about $31000 less prevailing discounts.

    The discrepancy in pricing is confusing, especially because of the weak Yen and prevailing higher prices in Japan; I can only reiterate that the price quoted you does not include the option cards.

    JS

  • Jeff Merritt

    December 4, 2005 at 12:29 am

    Jennifer asks a really good question, as to why is Panasonic selling decks for so much less in Japan then in the U.S.? To answer that, let’s consider what you are paying for when you purchase a deck from an Authorized reseller. First is the obvious warranty. If anything goes wrong under normal circumstances during the first year from date of purchase, it will be fixed at no cost to you and as quickly as possible. We don’t send the machines back to the factory. Second is the piece of mind that Panasonic North America, known as PNA, will be around for a long, long time to back up the product. And third, we have a small number of very qualified/authorized resellers who also back up the products with customer service and advise that can be counted on. This is not to say that in Japan you get less value than in the U.S. But in this case we really don’t know where these decks are coming from or even if they’re new.

    Another aspect of pricing is the value of the dollar against the yen. Right now the dollar is particularly strong. But just a few years ago the dollar was very weak. However you’ll notice that even with the up and down ratio, the price of the AJ-HD1200A is the same today as when it was introduced almost two years ago. We strive to keep our prices as constant as possible in fairness to our customers.

    Please remember in this case, Panasonic is NOT selling the deck, an Un-Authorized reseller is.

    I said in my last posting, “Buyer beware”. I should also add, “You get what you pay for”. Every reseller is entitled to make a certain profit and part of that profit goes into the value you receive as a customer. Let’s hope that in the case of purchases from an un-authorized reseller, that profit doesn’t come completely at your expense with no other value added.

    Regards,

    Jeff Merritt
    Product Line Business Manager
    High Definition Products
    Panasonic Broadcast
    323-436-3676

  • Jennifer Isenhart

    December 4, 2005 at 2:05 am

    Once again, it seems as though American companies foot the bill in the global marketplace. But I don’t want to get on a rant here, because I must say we are very pleased with our Panasonic video gear.

    Thanks for the feedback. I guess I’ll be calling our Panasonic certified rep. about that AJ-HD1200A (P!)…

    Jennifer

  • John Chater

    December 4, 2005 at 6:53 am

    Jeff wrote: Every reseller is entitled to make a certain profit and part of that profit goes into the value you receive as a customer.

    Jeff
    While we are on the subject of pricing fairness. I have to say that I find Panasonics policy of assisting local ‘authorized resellers’ by allowing them to get better unit pricing than out of area ‘authorized resellers’ really misguided. I regularly have to pay more for my Panasonic equipment than I would locally, so I can get better support and advice for my business.
    I understand the philosophy, but in practice the policy is really flawed. If all the authorised dealers provided the same level of service and support then the policy might be valid. But they dont.

    Best
    John

  • Jeff Merritt

    December 4, 2005 at 1:49 pm

    Hi John,

    I have read your post many times and do not understand your position. I must say however that our Panasonic policy is to treat each of our Authorized Resellers fairly and equal particularly as it concerns pricing. Please be aware that under U.S. federal law, we are not allowed to set prices for the products they sell. To do so would be called “restraint of trade” or price fixing and it is quite illegal in the U.S. That is why you often see “MSRP” which means Manufacturer Suggested Retail Price. Again, we do not set the Resellers’ prices, they do so based on their own individual business models.

    Thank you for your input and should you want more dialogue on this topic, please contact me offline at merrittj@us.panasonic.com.

    Regards,

    Jeff Merritt
    Product Line Business Manager
    High Definition Products
    Panasonic Broadcast
    323-436-3676

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