Nikon decide to increase Prices even though they are making decent profits??

[Nikon_Josh]

Another Nikon price increase in the US? | Nikon Rumors

In recent times I think it is becoming clearer and clearer that Nikon are losing the plot, they have made profits supposedly but are now putting prices up?

You realise of course, that article does not say Nikon will be increasing their prices, only that they have a new pricing policy that is going into effect the price retailers charge.

On Sept 1, Nikon announced that there will be a new pricing policy going into effect on all Nikon DSLR, Lens and Flash product. This will go live October 16, 2011. What does this mean?
Any retailer that prices Nikon DSLR, Lens or Flash product below their National price will be in a violation of the policy (Unilateral Pricing Policy = Maximum Value Policy (MVP).

You're just being a troll.

Thanks for the expert analysis Keith! If you can't find a lower price deal then clearly you will pay more for an item than you would if it was discounted? If you want to get into the game of brandishing people with names, I'm good at that!

 

[Nikon_Josh]

God forbid a company wants to make a profit.

Where did I knock a company for wanting to make a profit exactly?? Can I ask??

I understand a company wants and needs to make a profit, the thing I don't like is when a company decides to deliberately fleece their customers. I have now discovered Nikon are not doing this, as Derrel gave a very intelligent explanation as to why Nikon are initiating this move. There is so much unethical business practice going on, that if we as the consumer do not stand up and say anything. The corporate world will be completely allowed to continue to treat their customers as 'useless eaters'.

Even if Nikon were planning on raising it's prices, despite the fact they are profitable, how is that "fleecing" their customers?

As long as Nikon not involved in some sort of price collusion or any other illegal activity, I have no problem if they elect to raise their prices despite being profitable profitable. Nikon is not the only game in town, so if they misjudge the marketplace and raise prices then the consequences of that bad pricing decision will negatively impact their profits and market share.

If you actually read what I wrote? I DID NOT say that Nikon was fleecing their customers, I said I have a problem with companies that spot an opportunity and 'fleece' their customers. AS I WROTE, I have now discovered Nikon are not doing this'

 

[molested_cow]

Inflation?

Come on, company wants to make more profit. Don't you want to make more money if it's your own business? There are many ways to go about doing so. If Nikon feels necessary to do so, and you are not happy about it, then don't buy Nikon. I hope you are living in the land of the free(not referring to money).

 

[jaomul]

While there are many good points above and some people nit picking not accepting others point of view, I think we will find that no matter what your brand of choice is, and no matter which company ups their prices there will be a way to get an item for the price it is worth. Many people are waiting longer now to get the new product, allowing the buzz around the product to simmer down and a realistic price to settle on the shelves.
The competition here is getting very tight with other brands cutting costs and upping specs, and lets be honest there is not a massive difference in quality between any brands gear at a given price range, so caniksony or whoever will end up losing if they alienate their customer base with prices. The main problem I see here is that from what I read the higher spec cameras that are used by the majority type of photograher who contributes to "the Photoforum" or similar sites are relatively high spec but represent a small percentage of most camera makers sales and profit margins (I am subject to correction here). The people who buy these cameras are obviously often heavily invested into a system and I think that companies will exploit their customers, as jumping ship will cost so much more. Joe bloggs may need a certain level and quality and size of a lens but I would bet these lenses do not cost a fraction to manufacture as what the customer ends up paying

 

[penfolderoldo]

Spare a thought for those of us over the pond here - and various places around the rest of the world for that matter - who are paying anywhere from 30% - 50% more than you guys for the same gear, with pretty much the same income levels, GDP and CoL as in the US better climate over there too probs! (still rather be Scottish tho!)

 

[Nikon_Josh]

Inflation?

Come on, company wants to make more profit. Don't you want to make more money if it's your own business? There are many ways to go about doing so. If Nikon feels necessary to do so, and you are not happy about it, then don't buy Nikon. I hope you are living in the land of the free(not referring to money).

Yeah great thanks for the input or not as the case may be!! As I've said three times now, I was hasty in my first judgement. Derrel came on explained it to me in an intelligent manner, why I had got the wrong end of the stick when claiming what I claimed. It was an article I read clearly written to create reaction and I reacted when I read it. But to keep coming at me and claiming I said 'a company shouldnt want to make a profit', is quite clearly insanity! I am based in the UK like penfolderoldo and its true Nikon/Canon charge us alot more here than they do in the USA.

I understand FULLY that companies want and need to make money, if we sit back though as the consumer and say 'nothing' when they exploit this though to the extreme, then we will end up paying more and more for everything in life. So this sentence of 'Oh a company wants to make money and should be able to do it however they want' is a complete joke of a statement.

Just to mention it as I know people will be thinking I'm getting at NIKON, that last statement WAS NOT regarding Nikon. I like Nikon because generally speaking they seem a fair company who treats their customers well and most importantly provides their customers with the technology they desire. I was just concerned that they perhaps had gone to an extreme measures to get any little extra profit they could, as I will say again Thanks to Derrel for his intelligent response to my hasty statement, that I accept now was WRONG of me to make and made on the spur of the moment. And YES again! I UNDERSTAND nikon's number one priority is to make profit above anything else and this is completely normal for any company to need and want.

Seems if anything gets said about the precious brand that some people own here, then it turns in to all out war. I love my Nikon products, but now I have made such a huge investment into a system. Nikon D90 with 6 lenses now. I want to know the company I have invested in is still headed in the right direction and it is nice to know that this is the case.

 

[Derrel]

Spare a thought for those of us over the pond here - and various places around the rest of the world for that matter - who are paying anywhere from 30% - 50% more than you guys for the same gear, with pretty much the same income levels, GDP and CoL as in the US better climate over there too probs! (still rather be Scottish tho!)

Okay, let's step back in time a few years to 2008. FujiFilm was sitting on a few boatloads of Fuji S5 Pro 12MP d-slr bodies, made on Nikon D200 bodies that FujiFilm had purchased from Nikon. With the US dollar at that recessionary time in free-fall, FujiFilm wholesaled the cameras to a few large Canadian dealers, like Vistek and Henry's Camera. The cameras were basically UN-available new at ANY America retailers, since the USA supply channel had just been cleared through price-reductions and close-out sales, at as I recall $999 US, then for about one month $899 US. And then...the cameras were sold out across the USA. Then, they popped up in Canada, at around $899 Canadian. Then, after a month or six weeks, the entire Canadian supply had been cleared out, and Fuji received its money in Canadian dollars. Then, interestingly, the remaining Fuji S5 Pro cameras showed up in......SCOTLAND...where I internet ordered one of the last remaining S5 Pro bodies for 500 Pounds, which at the time was as I recall, $584 US Dollars. Shipping via Royal Mail was 26 Pounds 47 p. And Fuji was payed in yet a third currency. Point of this is, at times of high inflationary rates, Japan-based companies are not always that keep on keeping their prices the same as different currencies change value.

By the way Penfoldero, have you had the pleasure of seeing AMerican TV clips from the long-running show, Saturday Night Live, with former cast member Mike Meyers in a recurring segment called, All Things Scottish, with the catchphrase, "If it Isn't Scottish, It's CRAP!"

 

[penfolderoldo]

Spare a thought for those of us over the pond here - and various places around the rest of the world for that matter - who are paying anywhere from 30% - 50% more than you guys for the same gear, with pretty much the same income levels, GDP and CoL as in the US better climate over there too probs! (still rather be Scottish tho!)

Okay, let's step back in time a few years to 2008. FujiFilm was sitting on a few boatloads of Fuji S5 Pro 12MP d-slr bodies, made on Nikon D200 bodies that FujiFilm had purchased from Nikon. With the US dollar at that recessionary time in free-fall, FujiFilm wholesaled the cameras to a few large Canadian dealers, like Vistek and Henry's Camera. The cameras were basically UN-available new at ANY America retailers, since the USA supply channel had just been cleared through price-reductions and close-out sales, at as I recall $999 US, then for about one month $899 US. And then...the cameras were sold out across the USA. Then, they popped up in Canada, at around $899 Canadian. Then, after a month or six weeks, the entire Canadian supply had been cleared out, and Fuji received its money in Canadian dollars. Then, interestingly, the remaining Fuji S5 Pro cameras showed up in......SCOTLAND...where I internet ordered one of the last remaining S5 Pro bodies for 500 Pounds, which at the time was as I recall, $584 US Dollars. Shipping via Royal Mail was 26 Pounds 47 p. And Fuji was payed in yet a third currency. Point of this is, at times of high inflationary rates, Japan-based companies are not always that keep on keeping their prices the same as different currencies change value.

By the way Penfoldero, have you had the pleasure of seeing AMerican TV clips from the long-running show, Saturday Night Live, with former cast member Mike Meyers in a recurring segment called, All Things Scottish, with the catchphrase, "If it Isn't Scottish, It's CRAP!"

Hmmm... nope, can't say i'd had that particular pleasure Derrel! Must be getting more mellow in my old age - foreigners (usually from your side of the water or Aussies) doing Scot's accents used to bug me, now it just makes me chuckle! Tho if the rumours are to be believed expect to see Sean Connery playing Dubya anytime soon! lol

As regards prices, yep, it's not always in the manufacturers interests to rationalise prices, tho some of the differences now are getting ridiculous - B & H 60D = $900, same thing at Warehouse Express over here = $1200, etc etc. When I bought my 1Ds mk III earlier this year worked out I could've almost had a holiday in the US AND bought it there for the same price as i paid here

 

[tevo]

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[penfolderoldo]

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Eh?

 

[Overread]

I've no idea

 

[Nikon_Josh]

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Eh?

haha! Maybe translated it means 'It's silly to say a company should not make a profit'.

 

[Derrel]

The HUGE price differences between the USA market and the SCOTLAND market, or the Australian Market, seem to be the result of importer/distributor price gouging, and not the price Nikon sells equipment to the vendors. The same thing exists with Canon and Pentax gear...in most places around the world, there is a HUGE price difference for the buyers who are not buying in the USA...this is an issue I am not all that familiar with, but I have seen some frightening examples of huge costs for equipment in Australia, for example. In years past, Nikon equipment used to be imported by EPOI, or Eherenreich Photo-Optical Industries. But that was way back in the day...

What I would like to know is who is responsible for the huge price mark-ups on camera gear sold outside of the USA/Canada market...and also, what kind of price differences are there on "gray-market" equipment sold in, say, Scotland, or Australia?

 

[Overread]

In the UK part of the problem is apparently our official stock is bought from the European Distributors who in turn buy from the Japan suppliers. So, outside of tax (20% VAT) and currency issues, we already have one extra middle-man stage in many of our purchases. However market differences in many areas often have the stronger £ against the $ show up with us paying more as many companies just set a single numerical price for something and charge that across the whole market - so a $40 item in the US is -- £40 in the UK even though we are technically paying more based on the value of our currency.

I think its something that is slowly changing as many companies are catching up to the fact that mailorder and online purchases are a significant part of the market and when one is mail ordering a few more days (or even no difference at all with current postage speeds) for an international over a national order to save money isn't much of a worry for most people; they'll rather make the saving than get something a day early (esp when the savings are quite substantial). I think the camera market is a little broken on this now, used to be UK and US prices were very similar numerically, but more recently the US prices appear (in numbers) to be getting higher and higher.



As for grey market differences it varies a lot - on camera gear however you can normally expect a good few £100 in savings on many lenses, teleconverters and camera bodies, depending where you order from - Hong Kong I think makes the most savings, but the US imports are also good for saving. Kerso (up in scotland and on ebay running the Flashcamera store) does well out of US grey imports into the UK (if TPF had a larger UK membership chances are you'd hear his name more often).

 

[traylorc]

Where did I knock a company for wanting to make a profit exactly?? Can I ask??

I understand a company wants and needs to make a profit, the thing I don't like is when a company decides to deliberately fleece their customers. I have now discovered Nikon are not doing this, as Derrel gave a very intelligent explanation as to why Nikon are initiating this move. There is so much unethical business practice going on, that if we as the consumer do not stand up and say anything. The corporate world will be completely allowed to continue to treat their customers as 'useless eaters'.

Even if Nikon were planning on raising it's prices, despite the fact they are profitable, how is that "fleecing" their customers?

As long as Nikon not involved in some sort of price collusion or any other illegal activity, I have no problem if they elect to raise their prices despite being profitable profitable. Nikon is not the only game in town, so if they misjudge the marketplace and raise prices then the consequences of that bad pricing decision will negatively impact their profits and market share.

If you actually read what I wrote? I DID NOT say that Nikon was fleecing their customers, I said I have a problem with companies that spot an opportunity and 'fleece' their customers. AS I WROTE, I have now discovered Nikon are not doing this'

I read what YOU WROTE...the question is did you read what YOU WROTE?

God forbid a company wants to make a profit.

I understand a company wants and needs to make a profit, the thing I don't like is when a company decides to deliberately fleece their customers. I have now discovered Nikon are not doing this, as Derrel gave a very intelligent explanation as to why Nikon are initiating this move. There is so much unethical business practice going on, that if we as the consumer do not stand up and say anything. The corporate world will be completely allowed to continue to treat their customers as 'useless eaters'.

Until Derrel set you straight Josh... it appears you were under the impression that Nikon was fleecing it's customers. Derrel dropped some knowledge on you regarding the industry, and now you have a clear understanding that Nikon is not fleecing it's customers.

So my question to you was this....regardless of what Derrel said why would the concept of raising prices, or why would the article in question, lead you to believe customers were being fleeced?

Seemed like a fair question since you were the one who was questioning Nikon's pricing strategy. After all this pending pricing strategy "links in with alot of worrying decisions Nikon seem to be making right now".

Never mind...if I want to engage in a discussion with someone who understands the business aspect of this industry, or business in general, I'll shoot Derrel a PM.