Will prices come down after this report- New Report on the DJI Pricing Scandal

[Loman34]

DJI faces $147.6 USD loss after employees commit fraud - DroneDJ

 

[Ansia]

I highly doubt it.

 

[eaglegoaltender]

Yikes - I wonder, does that mean when someone had a drone repaired by them (DJI), they were charged more for the parts than what the actual price was?
Then those looking after repairs were scamming both the customer and DJI?

Could get pretty costly for DJI - look for a soon to be announced increase in new products - ha!

 

[Offroader]

With the number of products DJI has and the inclusion of the line "component supply line corruption..." makes me think this will not impact prices on our equipment. Since they were dealing with components, the price MAY be affected, but not such that other factors may negate it. Had they been involved in an actual price fixing scheme, as in final product price, that may be different.

As @eaglegoaltender said, it may have had an influence on the amount some may have been charged for repairs. Again, I say MAY.

 

[LarBear360]

Lame article. Can anyone explain exactly how a corrupt employee/employees can result in inflated product prices and then a loss? I don't trust Dronedj. What exactly did these employees do? Again, poorly written article.

 

[Fat Albert]

Lame article. Can anyone explain exactly how a corrupt employee/employees can result in inflated product prices and then a loss? I don't trust Dronedj. What exactly did these employees do? Again, poorly written article.

It’s pretty simple DJI sets a price for a gimbal needing replacement at lets say $500 based on a cost for the gimbal from an outside vendor at$350 but the real cost of the gimbal is only $200, the employee makes a deal with the third party supplier to get the $350 approved and they keep the $150... That’s just one of 100 ways to cheat a company

 

[eaglegoaltender]

Can anyone explain exactly how a corrupt employee/employees can result in inflated product prices and then a loss?

Good point LarBear - however, it wouldn't be the first time a company got ripped off by employees who deal directly with customers and charge higher prices for parts than what the actual price is. Then working with someone in purchasing they collect their "extra" $$$. But then again - as long as books show the repair/parts and the correct amount charged and paid - how would that result in a loss?

Maybe I read or interpreted the article wrongly - I agree for certain the way it is written up doesn't make a whole lot of sense. Odd as how by doing a search there isn't anyone else reporting this story - any site of any real substance anyway.

 

[LarBear360]

It’s pretty simple DJI sets a price for a gimbal needing replacement at lets say $500 based on a cost for the gimbal from an outside vendor at$350 but the real cost of the gimbal is only $200, the employee makes a deal with the third party supplier to get the $350 approved and they keep the $150... That’s just one of 100 ways to cheat a company

It could be a kick-back scheme. Use my company and we'll send you some money under the table. That makes sense to me.

 

[Fat Albert]

It could be a kick-back scheme. Use my company and we'll send you some money under the table. That makes sense to me.

Things like this are common place in business but the problem here is once there’s too many people involved it’s only an amount of times before someone screws up and the crap will hit the fan ,

 

[solentlife]

Will prices come down ?

Putting aside the questionable 'corruption' link ... in real terms of the product ? Highly doubtful.

You are talking about a product manufactured in China. That product is then shipped all over the world ... a certain amount of averaging goes on to try and keep pricing across the markets similar before local taxes.
But one of the major factors - international currency exchange along with inflation at both producers and sellers locations.

Not noticed lately China's currency vs others such as EU and USA ? Just to use those two as example.

My Company's deal with multi-currency movements and its a minefield - especially for the last 2 years ...

Nigel

 

[eaglegoaltender]

Things like this are common place in business but the problem here is once there’s too many people involved it’s only an amount of times before someone screws up and the crap will hit the fan

Or more like - when there is an audit - run for the hills!

 

[solentlife]

But as another has said - the story does not add up.

$147.6 million losses. Why ?

If these 40 odd people have been INFLATING prices that then get passed onto consumers - why has DJI lost this money. Unless DJI were paying the inflated prices but only recouping lesser price - which is then fraud on part of those people.
As an owner of a number of companies - I am surprised that the accounts dept had not caught this near start as you have money OUT ... money IN ... and their job is to make sure they tally.

Nigel

 

[landmannnn]

Very good point, I suspect the answer lies in the Chinese accounting rules being somewhat different...

 

[BigAl07]

*Thread title edited for clarity*

 

[furthertofly]

I lived in China for 6 years including the time of the milk adulteration scandal (@2008) for which a few people were actually executed. All chinese-owned companies are ultimately state-owned companies and are expected to not tarnish the national reputation in any way. The PRC point of view on these kinds of thing depends greatly on who is victimized and who benefits. If the victims are mainly westerners of relative wealth -- like us -- a bunch of people will go to jail for embarrassing the state, but it will be business as usual at DJI and zero compensation or reform to vicitims.

 

[jackcutrone]

Chances are Slim and None. And Slim left town a few weeks ago.

 

[ribjig]

This is a blogger.
Not an authoritative news source...?

 

[Pharm]

DJI faces $147.6 USD loss after employees commit fraud - DroneDJ

$147.60 USD isn’t very much. I’m surprised that was even a story with the amount being less than $150. I’ve lost more than that on a horse race.