from what I understand he lost his reviewer's status at PFO for selling cables on Audiogon that he was reviewing
Yes, there is enforcement. Reviewers have been canned from PFO and other publications for far less.
from what I understand he lost his reviewer's status at PFO for selling cables on Audiogon that he was reviewing
You do have me at a disadvantage. I do not know what the accommodation discount is. The formula for the initial windfall is MSRP minus accommodation price. Used equipment does depreciate. However that is offset by the fact that you received the beniefit of use. No one expects you to get back what you paid for it.
I've been a member of Audiogon long enough to have seen reviewers not only sale their review sample at a profit but to use their status to facilitate the sale. Not all reviewers keep review samples for an extended period. Indeed one of the WBF members offered Wiison Sashas for sale in the Trading Post
Concerning engaging in transgressions that ruins ones career or reputation for little or no gain, you'd be surprised what people will do.
So I've done the math and thought it through. Conflict of interest is not a fatal flaw. Like real estate dealing with such things involves disclosure, disclosure, disclosure.
Why would I net take your word for it?
Your data is of course empirical. To me 40 to 60% is a substantial discount. If I had $30k to spend I could increase my purchase by $12-18k!
Yes, there is enforcement. Reviewers have been canned from PFO and other publications for far less.
It's a given that no one purchases a piece of high-end audio gear at the MSRP. Retail is a starting point for negotiation. Manufacturers providing reviewers equipment at prices below what they are willing to sell to consumers, i.e. accommodation pricing provides an obvious relative economic benefit to the recipient. Take for example, for a speaker with an MSRP of $20,000 that generally sells for $16,000. If the reviewer pays an accommodation price of $12,000, they have received a substantial benefit. (At a 33% tax rate, the reviewer would have received the equivalent of an extra $6,000 of income.)
I'll assume that a) all reviewers are upstanding, ethical individuals of the highest moral caliber and b) manufacturers don't care about (a) and are giving an accommodation discount for other reasons.
As consumers, we can debate and bemoan the practice of industry accommodation pricing, but practically we should accept the reality that the practice is long-standing, widespread, and unlikely to change. Reviewers should try to see things through the eyes of the consumer and understand that despite your upstanding character and unimpeachable integrity, the optics of accepting an industry accommodation look bad and looks even worse if it's not disclosed. IMO, any accommodation pricing should be disclosed as part of any review.
Doc, you are really addressing a different point, that is, not the resale for 'profit' by the reviewer of an accommodation piece but the very existence of accommodations as they may affect a reviewer's integrity. I would assume that any reviewer willing to lay out their own cash, even at a discount, actually believes the piece is good if they are willing to buy it for themselves, using their own money.
Doc, you are really addressing a different point, that is, not the resale for 'profit' by the reviewer of an accommodation piece but the very existence of accommodations as they may affect a reviewer's integrity. I would assume that any reviewer willing to lay out their own cash, even at a discount, actually believes the piece is good if they are willing to buy it for themselves, using their own money.
There is no doubt that is a substantial discount. But remember, again, ALL industry members in OTHER industries get discounts on the tools used in
their profession.
I think we should focus our outrage elsewhere.
Interesting point, Wayne. I guess once 'invested' that person is less likely to view something else as better. But, I guess that bias -which would exist even if the reviewer didn't buy it at a discount- has to be taken into account, in part by disclosure of the reviewer's reference system, and partly by the reviewer acknowledging his/her biases expressly in some form. Say I'm wedded to electostats for preferred listening. How am I going to evaluate a dynamic speaker fairly? This seems to have less to do with the 'accomodation' issue than with personal biases, but maybe I'm missing something (and I'm not being facetious).Do you see this as a conflict of interest ? and after purchasing what are the odds of said reviewer rating something over his "big " purchase, one that's cheaper ..?
Just saying ...
Point taken. I suppose it comes down to personal integrity, doesn't it? And in that instance, I guess the scenario is that the reviewer won't give the better product its due, or will unload his now marginalized piece before writing the review of the 'better piece,' or, possibly more likely, will write a review without making a direct comparison to the piece his owns. I don't know Wayne, it is a legitimate point, not sure how often it arises or how reviewers deal with it. We can all assume what the ethical approach would be....Not really ,
I review Product X give it a good review , send it back and then product -B comes along , better in every respect, I have no reason not to say so, now if i have 20K invested in product -X and product-B is cheaper guess what ... ?
Conflict of interest and it is understandable that reviewers have to or want to own gear, disclosure is necessary.....
Doc, you are really addressing a different point, that is, not the resale for 'profit' by the reviewer of an accommodation piece but the very existence of accommodations as they may affect a reviewer's integrity. I would assume that any reviewer willing to lay out their own cash, even at a discount, actually believes the piece is good if they are willing to buy it for themselves, using their own money.
Not really ,
I review Product X give it a good review , send it back and then product -B comes along , better in every respect, I have no reason not to say so, now if i have 20K invested in product -X and product-B is cheaper guess what ... ?
Conflict of interest and it is understandable that reviewers have to or want to own gear, disclosure is necessary.....