Darkgear and McGizmo, I find your posts are most interesting. (Even if it 'hijacks' Gransee's post to a whole different direction.)
Regarding the lawsuits, not only does it exact a financial toll. However, another major toll is the one on the emotional/mental 'bandwidth'. A lawsuit has a way of preoccupying one emotionally so that there is little energy left for other things. Of course, I hope that this is not affecting the Gransees in the same way but often, it does. It is not uncommon for larger companies to hassle smaller ones, spending them into the ground in legal defenses. I've maintained that lawsuits is sometimes used as a legal means of harrasing smaller companies out of the business. (Of course, having not seen the actual content of these suits, I can't comment on their validity so I'm stating a generall principle.)
Darkgear, I definitely understand your frustration as a dealer. This issue is timeless and is true for the larger corporations as well as smaller. (i.e. When Compaq or IBM tried to go with the Dell model and sell direct, to the howls of their dealers.) The question I ask is whether Gransee's motive is: (1) greed (meaning he is doing well and yet trying to increase his profits at the expense of his dealers)or (2) survival (meaning he is barely breaking even or below breaking even.) I deem the first case greed because of the implicit understanding in my mind that dealers do advertising for the manufacturer and thus, should reap in the rewards. Cutting the dealers out then is to withold rewards for the dealers' work. HOWEVER, if it is the second case, then Arcflashlight's move is appropriate because without restructuring the products and distribution method, Arcflashlight would not be in existence for long. Obviously we don't know Arcflashlight's balance sheet but from our brief interactions, knowing the Gransee's convictions, and also reading about the incredible R&D problems he has had, my read is that #2 applies. If this is the case, then the dealers are reaping the benefits (including the 30 day satisfaction guaranteed? How does this work with dealers' clients?) and Arcflashlight is not sharing equally in generating the profits to cover costs.
Of course, one solution is for Arcflashlight to increase the premier line to much higher (i.e. $200) cost and then sell to dealers too. This would really drive down the demand though.
So yes, this is a difficult line that Arc has to figure out. One can mistake Arcflashlight's decision as wanting the cake and eat it too. (i.e. Have dealers provide more points of sale while reserving the highest profit items for direct full retail sale.) However, in this case, it is a small company, seeking to bring the best product into the market with integrity, under lawsuits (frivolous or not), AND most importantly, is basically family run. Behind Arcflashlight are the Gransees who also need to make a living as with everyone else.
My thought is that in this case, we should cut Arcflashlight some slack. In return, may be nice for Gransee to assure his dealers that they are seeking to be as generous to dealers as possible as they get better fiscally, have a more stable product line, and more consistent supply of premier luxeons. I'm with McGizmo's note that other manufacturers do not state what quality their LEDs are, and thus, resolving one of the problem Gransee is facing.
Of course, it is possible that the market is not right for such a premium flashlight given the costs. (99% of the population would probably gasp at $150 for a tiny flashlight.) But that is conjecture for a different thread. (i.e. If that is the case, then either drop the market or find a cheaper way to produce the LS with fewer features.) I find this whole exchange very interesting.
MO