Upload & Sell: On
binary visions wrote:
I suspect that Nikon is making very little off the sale of this lens.
Typically, flagship products like this are not high profit margin items - their value is in defining a brand.
I'm sure their are a lot of high profit margin lenses that Nikon sells, but this is very unlikely to be one of them.
I totally agree. For some reason it seems like a popular drum to beat in the photography world, but I find it kind of silly. These are companies, not charities. As someone said above, it has never been so affordable to get amazing imaging power in your hands. In the case of this lens, I doubt they are making much at all in terms of real margin, whether gross dollars (due to low volume) or % (due to high base costs).
So after they've paid for all the development, testing, tooling, service infrastructure, etc., none of it cheap, how many more do they sell by dropping the price to, say $12K?? For that matter, let's say they get crazy and drop it to $9K, fully half of what they announced. How many more go out the door?
Probably very, very few. This is a lens for a very specific crowd. Their market is pretty small and dropping the price is unlikely to do anything more than cause them to lose money on an exotic piece of development. At the announced price, I doubt they'll make any money on it for the first couple of years - they're just paying off the costs of tooling and other sunk costs that are there no matter what. On top of that, this isn't a lens that sells as they add share - the crowd that buys this is already on a platform and won't switch for a single new piece of glass because they have several others that are big money already. You'll get new sales from bureaus/rental services as they replace damaged examples. A very small number of people will take up areas of photography where this lens is useful.
Ultimately, they aren't going to sell very many so they are being fiscally smart. I doubt they'll lose many sales at all at that price, only money if they reduced it. If the MTF ratings are accurate, this is a pretty amazing piece of work.
Shoot, even at $3K most of us couldn't and wouldn't have one. What is the point in ranting about the greedy company? It takes just a few minutes of considered thought to understand why Nikon is just being a prudent, reasonable company in this case. As usual.
Edited on Feb 02, 2013 at 03:15 PM · View previous versions