Transshipped At A Cost
"Then they started removing the serial numbers," says Mike Klipsch, executive vice president and chief operating officer. "So we started to hide some serial numbers, and we still do. But they'll search inside the cabinets and eventually find every hidden serial number we had."
Klipsch also launched a public relations campaign to tell customers that if they buy product that lacks serial numbers, they could be purchasing counterfeit product that wouldn't be backed by a manufacturers' warranty. But gray marketers will tag a product with fake serial numbers, "then the customer doesn't even know that they have a product with a problem," Klipsch says.
In late 2003, Klipsch began working with Net Enforcers, a company whose services automated and streamlined the monitoring and enforcement that Klipsch was doing in-house.