Markup on Cameras anyone know?

[eravedesigns]

Ok so I have some buddies who work at Bestbuy who can hook me up most likely with the a700 but I am wondering if anyone knows what the price is on the body at cost?

If no one knows what the a700 markup is/ cost price then just in general how much do you think cameras are marked up?

 

[R0TT3NBURIT0]

around 800 dollars.

 

[adolan20]

I know best buy employee's get something like 5% above what Best Buy paid for it. For example, Monster HiDef cables which cost us $100 cost Best Buy employee's under $5. But, I work in retail, what is stated as the cost is usually 30 to 50% less than the retail cost.

 

[Garbz]

There is little markup on photography gear in general if you shop around for a good deal.

 

[skieur]

There is little markup on photography gear in general if you shop around for a good deal.

Well, the A700 body is selling at one place at $1499, another at $1399 and around Christmas at still another place at $1249 Canadian.

In American terms this means that a store selling the body at $1150 US would still be making a profit.

In comparison terms the Sony A350 with 14.2 megapixels as opposed to 12 megapixels on the A700 is selling for $850 Canadian body only.

skieur

 

[usayit]

Well, the A700 body is selling at one place at $1499, another at $1399 and around Christmas at still another place at $1249 Canadian.

In American terms this means that a store selling the body at $1150 US would still be making a profit.

I don't claim to be an expert on this.. but something seems off about this logic... Are you not ignoring the fact that tariffs and import fees etc.. are different between the US and Canada?

It is my understanding that camera store's profit margins are extremely small.... historically, camera shops made most of their money off the services they provide. Unfortunately the market changed but not the equation when digital became mainstream.

 

[Iron Flatline]

It is my understanding that camera store's profit margins are extremely small.... historically, camera shops made most of their money off the services they provide. Unfortunately the market changed but not the equation when digital became mainstream.

And to add to that, I gather they make virtually no money off cameras these days. The good money comes off all accessories. Ink cartridges, paper, filters, bags, tri-pods, even some lenses. But the mark-up on bodies is negligible, and some say possibly even subsidized.

 

[Meysha]

Ahhhh just like polaroid in the good old days.

The old polaroids were sold at below cost, and they made all their money off film.

 

[skieur]

I don't claim to be an expert on this.. but something seems off about this logic... Are you not ignoring the fact that tariffs and import fees etc.. are different between the US and Canada?

It is my understanding that camera store's profit margins are extremely small.... historically, camera shops made most of their money off the services they provide. Unfortunately the market changed but not the equation when digital became mainstream.

What I am saying is that checking American prices on the Internet from the larger places that ship to Canada as well as checking the adds in American photo magazines shows that camera prices are about $100 cheaper in the US.

skieur

 

[usayit]

Again.. are you not still ignoring fees that a Canandian camera shop has to roll into the item's final cost versus the US camera shop and the fees it has to roll into the item's final cost for importing items from Japan (for example). Until you figure out the difference, you cannot extract out the profit margin.

I am telling you.. it is SMALL. Camera shops historically made money off of the services and accessories that come along with the camera. Digital has changed that equation but the profit margin is still small. This is part of the reason why 2 out of the 4 camera shops in my area have closed (soon to be 3 out of 4). The services they provide, limited by the introduction of digital, just could not sustain their business. What little they could make from the sale of equipment was eroded by the increasing sales online.

 

[skieur]

And to add to that, I gather they make virtually no money off cameras these days. The good money comes off all accessories. Ink cartridges, paper, filters, bags, tri-pods, even some lenses. But the mark-up on bodies is negligible, and some say possibly even subsidized.

I find that impossible to believe, especially considering the fact that camera stores in Canada that had one location for years are now becoming chains with several stores in cities across Canada and organizing camera shows. I can't see this happening without profit and when I go in, it is not accessories that I see people buying, but cameras and this is despite competition from box stores such as Best Buy, Costco, and every other store that sells point and shoot digital cameras. One small store owner said he handled 50 digital camera models.

skieur

 

[usayit]

I also forgot to mention that I have heard of kick backs as well.

A larger well known retailer with a lot of customer face time will sometimes work it out with a manufacturer to build a large display of items and/or demo units. The retailer will essentially get paid for essentially storing and "advertising" the new line of products. At times, one shop will be heavy Nikon or heavy Canon... it all depends on that retailer's relationship with the manufacturer.

 

[LWW]

Ahhhh just like polaroid in the good old days.

The old polaroids were sold at below cost, and they made all their money off film.

That is common marketing.

A new car dealer will sell cars at a net loss all day long and get rich.

Why?

Because they make a buck off the trade, service, parts, financing, yadda yadda yadda.

Mind you, I'm not saying this is wrong either. They are merely focusing where the customer is most likely to focus.

LWW