Grey Market vs USA - it's the "increment" that counts.

Frank Patton

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This is a message I am copying over from another thread in order to air out this subject. I think it deserves another run of it's own, with it's own header. It was written in regard to selection of a source for a lens, but it got deep into grey market vs USA.

Here is the message I am coping over:

I don't have any "grey phobia" thing in my head at all. I just have 53 years of age, and judgement based on purchase experiences. In fact, I purchased one of my 550EX's grey from HotBuys.com. It actually came with a warranty card that indicated it was good in at least (3) countries, including Canada and the USA.

I didn't know that would be the case when I ordered it, and from what I was told by Hotbuys on the phone later (there was a missing "foot" from the package), that was an exception, not the rule.

Canon, it appears, and I say appears because I have only heard this heresay, honors the USA warranty terms on non-USA "packaged" Canon items (honoring your assessment that only the materials packaged with the equipment is different, not the product). This "if" the owner can produce a receipt showing it was purchased from a USA source. Again this is heresay to me until Canon publishes a statement on a Canon site or on Canon letterhead.

This honor is by "policy". Policy is NOT warranty. Policy can change one minute from now. Warranty can not. Warranty is governed by law (read on below). Any of you who wish can argue with this until you are blue in the face, but you cannot change the laws that govern warranty no matter what you say. Policy is policy, and policy is not governed by law. Warranty is.

That being the case, the "increment" of value to me is this. Increment is an important word here. If I can purchase a true Canon USA whatever from Allen's, or Canoga, or B&H for LESS than the grey market version from Delta, or Hotbuys, or BestPrice.com, etc, then if instead I purchase a higher-priced grey, I am taking some level of risk about Policy vs. Warranty.

If the USA is less. If the USA is the same price. If the USA is somewhat more in price (up to a point), then the answer to this question is an absolute no-brainer. That because of Policy vs Warranty.

Where it becomes a valid argument is based on the "increment". At some point a price difference advantage for grey, when and where it exists, begins to outweigh the Policy vs Warranty question.

You guys can argue about that increment all you want, but if you put (10) of you in a room you will never come out with a unanamous agreement. We each value the increment differently.

I am married to an attorney (she prefers that description over "laywer" as she does not deal in litigation ). Her primary work is with an automotive manufacturer's finance arm. That finance arm markets the manufacturer's own extended service plan product. When the mfr itself markets an extended product it is tied closely to the original warranty. For that reason, she has to stay right on top of warranty law. And I mean RIGHT on top.

Policy is NOT warranty.

Base your decision on the increment.

I'll add one other tidbit here, and read through to the end to see why it is important.

I read last night over on the Galbreith site a message from a Canon engineer. He stated clearly that an item still under warranty, if sold by the original owner to a third party, would no longer have warranty coverage. He quoted the language in the written Canon warranty that spells this out. And it does quite clearly.

In many, if not most states, that language is pretty much worthless, and I will assume from my wife's knowledge that Canon even knows that.

Most states regard the Warranty as coverage by the producer, of the item they produced. The Warranty backs the physical product for defects in materials and workmanship. The warranty does not warrant the purchaser (only the genetic parents are responsible there !).

Sometimes mfr's locate their warranty repair facilities in states that have more general interpretations, and attempt to enforce that kind of language based on the repair location. However when it boils down to it, the Warranty is governed by the state of the purchaser, or the state where the product was sold.

I point this all out for one important reason. If you buy "grey" you are pleading under Policy, not Warranty. If like many of us, you buy and sell (eBay, whatever) to keep current on your equipment, then again on "grey" the Policy vs Warranty question becomes important at the time of re-sale. Where a State might nail a mfr such as Canon for an attempt to judge Warranty coverage after re-sale, there would be NO State juristiction in the case of the "grey" because it is Policy.

Same holds true for you if you purchase a "used" grey. As a 2nd or later owner of a grey Canon (or anyone else) can refuse you all they want and you have nothing to fall back on.

Frank
 
You don't have to be a lawyer (or married to one) to understand that that's all true. Anyone that denies it is simply in denial. But, the whole thing can be expressed just as well in about 5 sentences. You have been infected with the language of your wife's trade .
This is a message I am copying over from another thread in order to
air out this subject. I think it deserves another run of it's own,
with it's own header. It was written in regard to selection of a
source for a lens, but it got deep into grey market vs USA.

Here is the message I am coping over:

I don't have any "grey phobia" thing in my head at all. I just have
53 years of age, and judgement based on purchase experiences. In
fact, I purchased one of my 550EX's grey from HotBuys.com. It
actually came with a warranty card that indicated it was good in at
least (3) countries, including Canada and the USA.

I didn't know that would be the case when I ordered it, and from
what I was told by Hotbuys on the phone later (there was a missing
"foot" from the package), that was an exception, not the rule.

Canon, it appears, and I say appears because I have only heard this
heresay, honors the USA warranty terms on non-USA "packaged" Canon
items (honoring your assessment that only the materials packaged
with the equipment is different, not the product). This "if" the
owner can produce a receipt showing it was purchased from a USA
source. Again this is heresay to me until Canon publishes a
statement on a Canon site or on Canon letterhead.

This honor is by "policy". Policy is NOT warranty. Policy can
change one minute from now. Warranty can not. Warranty is governed
by law (read on below). Any of you who wish can argue with this
until you are blue in the face, but you cannot change the laws that
govern warranty no matter what you say. Policy is policy, and
policy is not governed by law. Warranty is.

That being the case, the "increment" of value to me is this.
Increment is an important word here. If I can purchase a true Canon
USA whatever from Allen's, or Canoga, or B&H for LESS than the grey
market version from Delta, or Hotbuys, or BestPrice.com, etc, then
if instead I purchase a higher-priced grey, I am taking some level
of risk about Policy vs. Warranty.

If the USA is less. If the USA is the same price. If the USA is
somewhat more in price (up to a point), then the answer to this
question is an absolute no-brainer. That because of Policy vs
Warranty.

Where it becomes a valid argument is based on the "increment". At
some point a price difference advantage for grey, when and where it
exists, begins to outweigh the Policy vs Warranty question.

You guys can argue about that increment all you want, but if you
put (10) of you in a room you will never come out with a unanamous
agreement. We each value the increment differently.

I am married to an attorney (she prefers that description over
"laywer" as she does not deal in litigation ). Her primary work is
with an automotive manufacturer's finance arm. That finance arm
markets the manufacturer's own extended service plan product. When
the mfr itself markets an extended product it is tied closely to
the original warranty. For that reason, she has to stay right on
top of warranty law. And I mean RIGHT on top.

Policy is NOT warranty.

Base your decision on the increment.

I'll add one other tidbit here, and read through to the end to see
why it is important.

I read last night over on the Galbreith site a message from a Canon
engineer. He stated clearly that an item still under warranty, if
sold by the original owner to a third party, would no longer have
warranty coverage. He quoted the language in the written Canon
warranty that spells this out. And it does quite clearly.

In many, if not most states, that language is pretty much
worthless, and I will assume from my wife's knowledge that Canon
even knows that.

Most states regard the Warranty as coverage by the producer, of the
item they produced. The Warranty backs the physical product for
defects in materials and workmanship. The warranty does not warrant
the purchaser (only the genetic parents are responsible there !).

Sometimes mfr's locate their warranty repair facilities in states
that have more general interpretations, and attempt to enforce that
kind of language based on the repair location. However when it
boils down to it, the Warranty is governed by the state of the
purchaser, or the state where the product was sold.

I point this all out for one important reason. If you buy "grey"
you are pleading under Policy, not Warranty. If like many of us,
you buy and sell (eBay, whatever) to keep current on your
equipment, then again on "grey" the Policy vs Warranty question
becomes important at the time of re-sale. Where a State might nail
a mfr such as Canon for an attempt to judge Warranty coverage after
re-sale, there would be NO State juristiction in the case of the
"grey" because it is Policy.

Same holds true for you if you purchase a "used" grey. As a 2nd or
later owner of a grey Canon (or anyone else) can refuse you all
they want and you have nothing to fall back on.

Frank
 
and you are free to spend it any way that helps you to sleep at night AFAIAC. I've taken the few grand I've saved and begun to save for a house at this point. Better in my hands than Canon USA. Also should I ever really require a warranty (which so far I haven't and hope not to) It would more likely be MACK doing the work and not Canon. I guess it's "what ever floats your boat" but again until I see Canon's behavior change toward Grey merchandise....I'll continue to put the money in MY pocket and not the U.S. distribution chain....FWIW ALL of the goods I buy Grey are in perfectly unmolested form when they arrive to me with ALL of the prescribed factory accessories that the U.S. product has in it. IF it didn't it would go right back for one that did. I don't buy from some fly by night or questionable source, so maybe I've just been more fortunate.....
 
Good points. At one time, the difference in price of the 85/1.2 on a gray vs. US was almost $300. I certainly bought gray then.

I'm less worried about gray lenses than the cameras, simply because the lens is a less complicated device, and is less likely to need warranty work anyway. And even though Canon does (right now) do warranty work on gray purchases right now, imagine what MIGHT (and I stress might) happen in a situation where, for example, one buys a gray 1D that front-focuses, and is only discovered 90 days after purchased, and multiple trips to the factory doesn't resolve the issue. I can imagine Canon might decide NOT to issue a replacement for a gray body, where they would for a US version. Again that's a MIGHT.

--
The Unofficial Photographer of The Wilkinsons
http://thewilkinsons.crosswinds.net
Photography -- just another word for compromise
 
This is a very good analysis of the situation. In essence you are buying insurance (for a 1 year period) against the possibility that Canon may change their policy if you have a problem item within the time period.

The increment you pay is the cost of the insurance. At B&H for instance the cost of insurance appears to be an extra 5 to 10% on the bigger glass - generally 300.00 on lens ranging from 3000 to 7000 dollars. Very expensive insurance indeed. If I should decide to self insure my guess is most problems could be fixed for 300 - again assuming the policy changed.

If there is no increment or a very small one - no brainer. However that does not seem to be the case very often.

I sell insurance and to insure a high quality product for one year against a possible problem at 5 to 10% of the total retail cost and then only if a long standing policy were reversed. I like those odds.

Worth about 10 or 20 bucks to me. Maybe slightly more if I might be a seller within the year period. As to the guy married to the ah - attorney well go for the CPA next time. My 2 cents.
This is a message I am copying over from another thread in order to
air out this subject. I think it deserves another run of it's own,
with it's own header. It was written in regard to selection of a
source for a lens, but it got deep into grey market vs USA.
 
I posted on this several times in the last week or so and I think you are referring to those posts.

In summary (and I am a lawyer who has consumer protection responsibilities):

1. Canon USA and Canon Canada will, as a matter of courtesy, provide warranty and post-warranty service on gray market Canon products as long as you present a valid sales receipt. This could change tomorrow if Canon wishes.

2. Canon USA and Canon Canada's warranties legally extend to the original purchaser or someone who obtained one as a gift. If you buy one on E-bay (other than a new one from an authorized Canon USA/Canon Canada dealer) or some other way, you are on your own if Canon wishes to deny warranty service.

3. If you purchase a Canon product in the USA or Canada from an authorized dealer with a Canon USA/Canon Canada warranty that warrranty, according to its explicit language, applies in the USA or Canada. (Canon has said that technically the warranty applies only in the country of purchase but the language of the warranty actually says otherwise and I would issue charges in a New York minute if they violated that.)

Bottom line:

1. First choice: Buy USA if you're in the USA or Canada if you are in Canada.

2. Second choice: If you can't get it in the USA, have no fear buying from Canada although with shipping and the fact that the Canadian dollar has been stronger lately, the bottom line price will be $100-$200 more. You should not be charged duty if the seller properly codes the invoice. Your social security number will be needed for customs clearance. Although a bit more expensive, you will have a legally enforceable warranty.

3. Last choice: Gray market, E-bay, etc. Take your chances.
 
When you buy grey market, or used within the original warranty period, you forfeit all rights to a Canon USA warranty.

You save some money, but each person must decide how much saving is worth the risk of having no Canon USA warranty.

Although Canon USA has provided warranty service in the past for grey market and second hand gear within original warranty period, they are under no obligation to do so, and my stop at any time.
 
If Canon USA CAN NOT resolve this than by right the retailer that sold it to you should take it back, return it for new stock under their franchise agreement and you get a brand spankin' new one. Delta told me that under the same circumstances they would? Why not YOUR retailer? You could hang on to a LOT more hair that way and stop pulling it out tweaking around with your camera trying to get it to do what it sounds like it is NEVER going to do. Why get older worrying about it. Ask your dealer to replace it PERIOD!!!!
Good points. At one time, the difference in price of the 85/1.2 on
a gray vs. US was almost $300. I certainly bought gray then.

I'm less worried about gray lenses than the cameras, simply because
the lens is a less complicated device, and is less likely to need
warranty work anyway. And even though Canon does (right now) do
warranty work on gray purchases right now, imagine what MIGHT (and
I stress might) happen in a situation where, for example, one buys
a gray 1D that front-focuses, and is only discovered 90 days after
purchased, and multiple trips to the factory doesn't resolve the
issue. I can imagine Canon might decide NOT to issue a replacement
for a gray body, where they would for a US version. Again that's a
MIGHT.

--
The Unofficial Photographer of The Wilkinsons
http://thewilkinsons.crosswinds.net
Photography -- just another word for compromise
 
I assume you're forgetting that I purchased the 1D in mid-March. Well past most e-tailers 14 to 30-day return policy. After that, it's an issue you take up with the manufacturer, not the dealer.

I specifically asked Roberts Imaging, for example, about this when I got my 70-200/2.8 IS. It wasn't quite as contrasty as the non-IS I had (and others had reported that their IS lens was as good, if not better, than their non-IS). I wanted to send it back, but there was a problem: they had no more in stock. I asked specifically if I could keep the lens (and use it that weekend for a "real world" test), and then, if not satisfied, once they got some back in stock, send it back for an exchange. The answer was a definite NO. If I kept the lens longer than their stated policy, then I'd have to send it back to Canon. I knew that was the policy, but wanted to know if they'd make an exception for a lens that was brand new, and hard-to-get.

Perhaps Delta is different. If so, that's extremely rare, at least to the "common customer". You may have been told they'd replace a 1D in a similar situation, but they're not legally bound by that, nor is it stated anywhere on their website. Words are easy to say, backing it up is something altogether different. Perhaps they would, but do you know of anybody that's tried them out on that? More importantly, somebody who hasn't purchased $10k or more of stuff from them, and who they know is a "mouthpiece" for them.

I'm not bashing the service of Delta, nor Canoga. However, contrary to many messages by you and others here, I haven't received "stellar" service from either place. Unless, of course, you want to say that I've received "stellar" service from every other place I ordered. All of them have performed quite adequately in the service department for me. Yes, several of them (Delta included) made mistakes, but rectified them. I'd order from any of them again, given the right circumstances, without hestitation.

I must be cursed, I guess. Canoga didin't give my brother any special pricing on the stuff he was planning on ordering (he ended up going with Adorama). I didn't get offered overnight exchange service by Delta on my defective lens (they offered UPS ground - I had to ask for 2-day Fedex). Delta would only drop $20 on their 70-200/2.8 IS (down to $1820), even though B&H had one offered in their catalogue for $1799 (US Warranty). And then 2 weeks later, Delta dropped the price to $1640. I hard a third lens shipped from them to me by then, and no offer was made to give me the now lower price. (I didn't bother asking, I was more interested in getting a non-defective lens to test against the lens I already had). B&H wouldn't price-match against Canoga on the 135/2 lens, either.

Where IS all this "special" service from ANY vendor that people keep talking about?
If Canon USA CAN NOT resolve this than by right the retailer that
sold it to you should take it back, return it for new stock under
their franchise agreement and you get a brand spankin' new one.
Delta told me that under the same circumstances they would? Why not
YOUR retailer? You could hang on to a LOT more hair that way and
stop pulling it out tweaking around with your camera trying to get
it to do what it sounds like it is NEVER going to do. Why get older
worrying about it. Ask your dealer to replace it PERIOD!!!!
--
The Unofficial Photographer of The Wilkinsons
http://thewilkinsons.crosswinds.net
Photography -- just another word for compromise
 
FYI, the only reason Delta might be able to do what you suggested is this: their main business is NOT selling directly to the public. What they do is import large quanties of gray merchandise, then sell this merchandise to other smaller vendors here in the US. Places like B&H are big enough they can deal directly with the distributors in Europe/Japan to do their importing. Many other stores are not.

It wouldn't surprise me to one day see Delta drop this part of their business, either because it simply doesn't justify the work, or because their own business customers find out what they're doing, and complain about being undercut by their own supplier.
I specifically asked Roberts Imaging, for example, about this when
I got my 70-200/2.8 IS. It wasn't quite as contrasty as the
non-IS I had (and others had reported that their IS lens was as
good, if not better, than their non-IS). I wanted to send it
back, but there was a problem: they had no more in stock. I asked
specifically if I could keep the lens (and use it that weekend for
a "real world" test), and then, if not satisfied, once they got
some back in stock, send it back for an exchange. The answer was a
definite NO. If I kept the lens longer than their stated policy,
then I'd have to send it back to Canon. I knew that was the
policy, but wanted to know if they'd make an exception for a lens
that was brand new, and hard-to-get.

Perhaps Delta is different. If so, that's extremely rare, at least
to the "common customer". You may have been told they'd replace a
1D in a similar situation, but they're not legally bound by that,
nor is it stated anywhere on their website. Words are easy to say,
backing it up is something altogether different. Perhaps they
would, but do you know of anybody that's tried them out on that?
More importantly, somebody who hasn't purchased $10k or more of
stuff from them, and who they know is a "mouthpiece" for them.

I'm not bashing the service of Delta, nor Canoga. However,
contrary to many messages by you and others here, I haven't
received "stellar" service from either place. Unless, of course,
you want to say that I've received "stellar" service from every
other place I ordered. All of them have performed quite adequately
in the service department for me. Yes, several of them (Delta
included) made mistakes, but rectified them. I'd order from any of
them again, given the right circumstances, without hestitation.

I must be cursed, I guess. Canoga didin't give my brother any
special pricing on the stuff he was planning on ordering (he ended
up going with Adorama). I didn't get offered overnight exchange
service by Delta on my defective lens (they offered UPS ground - I
had to ask for 2-day Fedex). Delta would only drop $20 on their
70-200/2.8 IS (down to $1820), even though B&H had one offered in
their catalogue for $1799 (US Warranty). And then 2 weeks later,
Delta dropped the price to $1640. I hard a third lens shipped from
them to me by then, and no offer was made to give me the now lower
price. (I didn't bother asking, I was more interested in getting a
non-defective lens to test against the lens I already had). B&H
wouldn't price-match against Canoga on the 135/2 lens, either.

Where IS all this "special" service from ANY vendor that people
keep talking about?
If Canon USA CAN NOT resolve this than by right the retailer that
sold it to you should take it back, return it for new stock under
their franchise agreement and you get a brand spankin' new one.
Delta told me that under the same circumstances they would? Why not
YOUR retailer? You could hang on to a LOT more hair that way and
stop pulling it out tweaking around with your camera trying to get
it to do what it sounds like it is NEVER going to do. Why get older
worrying about it. Ask your dealer to replace it PERIOD!!!!
--
The Unofficial Photographer of The Wilkinsons
http://thewilkinsons.crosswinds.net
Photography -- just another word for compromise
--
The Unofficial Photographer of The Wilkinsons
http://thewilkinsons.crosswinds.net
Photography -- just another word for compromise
 
READ READ READ your warranty card!

At the top of your warranty card on both sides it says "Canon International Warranty".

On the back it states that this warranty is honored at any Warranty Service Facility in the world. It also states that all you need is proof of purchase. It states that the warranty is not transferable so these idiots that buy only used USA Canon equipment thinking that they get some kind of warranty are really getting nothing.

It's in black and white. It's warranty and not policy.

Canon USA might want people to believe that they have to purchase from them but that's not true.
 
Neither of my D60 warranty cards say that.

Can you post the entire text? Was this issued for the D60?
 
...show a modicum of respect for other posters? You often have some very valid points which are overshadowed by sarcasm and rudeness.
 
Greg,

Warranty cards are individualized by product. For example, the 1V has such a similar card.
 
Greg,

Warranty cards are individualized by product. For example, the 1V
has such a similar card.
However, I do not know of such a card with the D30 or D60. If anyone comes across one, please post it here.

It is the card that came with your camera that generally governs.
 
Hi,

I bought my 1D and 2 lenses from Delta International. All 3 came with "Canon International Warranty" wording on top of warranty card.
Does that help?
EGrav
 
Hi,
I bought my 1D and 2 lenses from Delta International. All 3 came
with "Canon International Warranty" wording on top of warranty card.
Does that help?
EGrav
The warranty is product specific. I have the same with the 1V.

However--nothing like that with the D30 or D60.

So---as was mentioned earlier...READ the card.
 
So, now you've got to have somebody go read the product card for ya before ordering a gray item, I guess, if you want to know exactly what the card says before buying it.
Hi,
I bought my 1D and 2 lenses from Delta International. All 3 came
with "Canon International Warranty" wording on top of warranty card.
Does that help?
EGrav
The warranty is product specific. I have the same with the 1V.

However--nothing like that with the D30 or D60.

So---as was mentioned earlier...READ the card.
--
The Unofficial Photographer of The Wilkinsons
http://thewilkinsons.crosswinds.net
Photography -- just another word for compromise
 

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