What's wrong with Velodyne?

Always cracked me up how manufactures start off with those strict and stringent distribution and marketing strategies to the hi-end stores - and how they put the screws to their dealers to stay withing rigid guidelines - so as to keep their products in some upper echelon product image in the minds of the consumers. It's like, "we don't sell our products in chain stores, only high end salons!"
Yeah let the economy slide a bit, or sales figures start to slide a bit, and every manufacture starts dumping their stuff at Best Buy, Costco, and any Flee market that will take it! Er, seems as such anyway.
I remember lots of so called high end product lines that eventually made it into the average Joe's chain store.
In fact, I remember years ago when Krell first came into a high end store I was with, with owner and rep in-tow. They told us if we ever sold any products sideways, sold any floor models even, or even had the appearance of having any sort of "sale" on Krell products, that we would be ousted as Krell dealers! Yeah, the second we said we didn't want to go with them, they changed their tune REAL fast, and started offering us all kinds of flexibility and discounts!
Amazing what a little negotiating and outside influences can achieve when the tough get going...