"Product Diversion is like a plague, spreading through American business," declares Reginald J. Montgomery (President, RJMA).
Product diversion refers to products sold by a manufacturer that are distributed into markets other than originally intended in violation of a contract, law or regulation. With product diversion, third parties can undercut a company’s price and reap huge profits. This international scheme hinges on an industry practice in which U.S. manufacturers set up different pricing for the same products as a way to break into new markets, expanding name recognition outside the United States. Because of tax incentives and other cost savings, American businesses can sell their products to overseas distributors at dramatically lower prices than what distributors based in the United States pay. With product diversion, goods destined for overseas sales are illegally rerouted by a third party back to American markets at prices below the manufacturer’s United State’s wholesale pricing.
Diverters know most manufacturers will not pursue, or even care about, their product’s post-sale destination. This carefree attitude results in unfair competition within the manufacturers’ own markets. Whether product diverted is valued at one or one thousand dollars, its impact, when sold at below-wholesale prices, is cancerous to equitable trade. To fight this corruption, you need an expert.
Diversion investigations, when successful, can return enormous rewards for a client. Reggie Montgomery has negotiated settlements for his clients reaching millions of dollars. Additionally, training for R.J.M.A.’s clients enables them to perform their own audits using proven procedures for identifying diversion tactics.
"Gray Market" (a common term for diverted goods) sales have existed for years; meanwhile the subversion tactics used continually improve. All products are targets for diversion (Health and Beauty Aids, pharmaceuticals, electronics, food, technology, etc.). From the initial manufacture of a product to the time of consumer purchase a trail is formed. To the untrained eye a diversion course may seem normal, to experts in diversion investigations, a variation in routine will be spotted, targeted, pursued and proved. The world of diversion has become computer-based, high tech, on-line and extremely sophisticated. Trails left by today’s most subtle diversion methods may be well hidden, but will be found by R.J.M.A.’s investigators.
Few investigators in the United States have as much experience in detecting, preventing, tracing and proving product diversion as Reginald J. Montgomery. Reggie’s successful investigations have uncovered billions of dollars in diverted product. For years Reggie has conducted seminars throughout the United States on Product Diversion. He is respected as an innovator in the field of diversion detection. R.J.M.A.’s investigators will discern who is diverting, where the product is going, how it is diverted, quantity of diversion and all aspects of the fraudulent conduct. More often than not, once confronted, the diverting individual(s) will reveal their entire operation to avoid prosecution (this is when a much larger picture of illicit activities is uncovered). R.J.M.A.’s investigators will provide expert testimony when and if the situation reaches litigation.
Doing nothing is equal to condoning diversion and accepting loss of revenues. There is no reason diverters should ever profit via underhanded business maneuvers when methods of prevention are available and effective. Contact R.J. Montgomery Associates to discover the process for regaining the edge (and profits) in your sector of commerce.
Diverters have tilted the playing field in their own favor; they must, and can be stopped.