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

[penfolderoldo]

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).

Very true. Typically, something like a 7D body retails normally in the UK for around £1175 ($1850) whereas a grey import typically from Hong Kong is around £875 ($1365). Interestingly, the price differentials with Nikon gear seem slightly less pronounced, a D700 in the UK is £1900 ($3000) whereas an Asian grey is £1725 ($2700)

 

[Nikon_Josh]

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.

Well as stated.. I plead ignorance on certain counts.

My gripe with Nikon right now is this... the new mirrorless camera is outrageously priced? Why on earth is it as expensive as it is? When most mirrorless cams are around the £400 mark. It is tiny with a decent sensor and looks as if it may be a huge success for Nikon, but at this pricing? When you can get a Sony NEX with a DSLR sensor for quite alot less. This is how Nikon worries me, the camera market is changing and competition is growing rapidly.

Sony can;t hold a candle to Nikon in my mind, but in some respects they really do have it right at the moment. The NEX series was a fantastic move by Sony to give DSLR performance in a small body at great value. And Nikon release a camera with a much smaller sensor and ask for more money when they are aiming at the consumer compact enthuasiast market?

 

[Overread]

Nikon and Canon both like to put very very high release prices on items - then a few months on the market and the price drops considerably on almost everything (ignoring fluctuations in the various currencies and natural disasters). It's pretty much the same story every time they release something; the initial price is stupidly high and remains so for a while and then the market adjusts and it drops - sometimes by a very considerable amount.

 

[Derrel]

My gripe with Nikon right now is this... the new mirrorless camera is outrageously priced? Why on earth is it as expensive as it is? When most mirrorless cams are around the £400 mark. It is tiny with a decent sensor and looks as if it may be a huge success for Nikon, but at this pricing? When you can get a Sony NEX with a DSLR sensor for quite alot less. This is how Nikon worries me, the camera market is changing and competition is growing rapidly.

I agree that the pricing of the new 1-series Nikon bodies is fairly steep...$699 US and $899 US as I understand it...that places the new Nikon 1 into the "luxury compact" price range...I do not think Nikon wants to try and win a race to the bottom of the pricing pyramid. See, that is the thing Josh...Nikon has never "really" been about the entry-level very much. Nikon is more Mercedes-Benz than it is Hyundai or Toyota. Nikon's best products have typically been aimed at the enthusiastic amateur market (Nikon FE-2, Nikon N8008s, Nikon N90s, Nikon F100, Nikon D100, Nikon D90, and Nikon D200 and D300 and now the D7000...and the "Professional" market F-F2-F3-F4-F5 then D1-D2-D3 series as well as the D700. The "flagship" Nikons D1 and D2x and D3/D3s were priced at $5998, $5000, and $4700 at intro, with the D3x at $7999 at intro...and their retail prices remained pretty steady across time. The Nikon 1 series is, again NOT designed to compete against $399 Point and Shoot cameras. Hey, I wish it were priced lower, just like you do, bugt given the current world supply of photo equipment AND the current state of production and distribution capability, launching a YADDA YADDA camera (Yet Another Dumbed-Down-Automated Yuppy And Daddy-Desired Accessory) is really NOT a smart move for a company with a brand name and a reputation like Nikon has. Leave that to Casio, Canon, or Panasonic, or Olympus, or FujiFilm...they all make snapshot cameras, for snapshooters. AGAIN, launching a new product category where the goal is to please customers by racing to the BOTTOM of the pricing segment....ehhhh...that's a money-loser for a company like Nikon. A big alarm-clock maker and blender maker like Panasonic, or a huge copier and photcopier company like Canon might want to try and compete in that market. But not Nikon.

 

[Nikon_Josh]

Nikon and Canon both like to put very very high release prices on items - then a few months on the market and the price drops considerably on almost everything (ignoring fluctuations in the various currencies and natural disasters). It's pretty much the same story every time they release something; the initial price is stupidly high and remains so for a while and then the market adjusts and it drops - sometimes by a very considerable amount.

Well I hope your right, because I really think this could be a hit if the price lowers. I think if this camera is truly pocketable and offers much better performance than say a Canon G12. Then Nikon has a sure fire winner on its hands! I will be getting one for a start as my 'pocket' camera if it comes into line on pricing.

 

[Nikon_Josh]

My gripe with Nikon right now is this... the new mirrorless camera is outrageously priced? Why on earth is it as expensive as it is? When most mirrorless cams are around the £400 mark. It is tiny with a decent sensor and looks as if it may be a huge success for Nikon, but at this pricing? When you can get a Sony NEX with a DSLR sensor for quite alot less. This is how Nikon worries me, the camera market is changing and competition is growing rapidly.

I agree that the pricing of the new 1-series Nikon bodies is fairly steep...$699 US and $899 US as I understand it...that places the new Nikon 1 into the "luxury compact" price range...I do not think Nikon wants to try and win a race to the bottom of the pricing pyramid. See, that is the thing Josh...Nikon has never "really" been about the entry-level very much. Nikon is more Mercedes-Benz than it is Hyundai or Toyota. Nikon's best products have typically been aimed at the enthusiastic amateur market (Nikon FE-2, Nikon N8008s, Nikon N90s, Nikon F100, Nikon D100, Nikon D90, and Nikon D200 and D300 and now the D7000...and the "Professional" market F-F2-F3-F4-F5 then D1-D2-D3 series as well as the D700. The "flagship" Nikons D1 and D2x and D3/D3s were priced at $5998, $5000, and $4700 at intro, with the D3x at $7999 at intro...and their retail prices remained pretty steady across time. The Nikon 1 series is, again NOT designed to compete against $399 Point and Shoot cameras. Hey, I wish it were priced lower, just like you do, bugt given the current world supply of photo equipment AND the current state of production and distribution capability, launching a YADDA YADDA camera (Yet Another Dumbed-Down-Automated Yuppy And Daddy-Desired Accessory) is really NOT a smart move for a company with a brand name and a reputation like Nikon has. Leave that to Casio, Canon, or Panasonic, or Olympus, or FujiFilm...they all make snapshot cameras, for snapshooters. AGAIN, launching a new product category where the goal is to please customers by racing to the BOTTOM of the pricing segment....ehhhh...that's a money-loser for a company like Nikon. A big alarm-clock maker and blender maker like Panasonic, or a huge copier and photcopier company like Canon might want to try and compete in that market. But not Nikon.

It will be interesting to see how it pan's out and whether this strategy will work for Nikon. Maybe they are truly the Japanese version of LEICA?

Just out of interest Derrel, have you checked out the Fuji X100? I know you like your Fuji cameras. This is a luxury compact I yearn to own.

Ah Great! I have discovered how to add TraylorTRASH OR 'TraylorC' as he likes to call himself to my ignore list and I now can not see any of his post's or future ones, the beauty of the internet. HOORAY!! :lmao:

 

[ScubaDude]

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?

If the buyer and the seller agree on the price, nobody is getting gouged. People only buy things when they value the thing more than the money.

 

[djacobox372]

Profits have very little to do with pricing. Supply and demand are the major factors, and admittedly supply may be "tweaked" in order to ensure an ideal profit.