p.1 #1 · Impact on increasing US$ vs Japanese yen exchange rate?
We heard many times before that the price increases of camera gear were due to the declining value of the US$ vs the Japanese yen. Now, the situation has reversed. The yen has hit a 4.5-year low against the US$. Can we expect Canon USA to adjust their prices accordingly or is that simply too much to expect ?
p.1 #4 · Impact on increasing US$ vs Japanese yen exchange rate?
AGeoJO wrote:
We heard many times before that the price increases of camera gear were due to the declining value of the US$ vs the Japanese yen. Now, the situation has reversed. The yen has hit a 4.5-year low against the US$. Can we expect Canon USA to adjust their prices accordingly or is that simply too much to expect ?
Why would they lower the prices? It's their chance for bigger profits now.
However, at the very least, it would be nice to see deeper discounts in a form of rebates.
Perhaps Sony and Panasonic will finally get out of the red...
p.1 #5 · Impact on increasing US$ vs Japanese yen exchange rate?
Fred Miranda wrote:
Why would they lower the prices? It's their chance for bigger profits now.
However, at the very least, it would be nice to see deeper discounts in a form of rebates.
Perhaps Sony and Panasonic will finally get out of the red...
I would guess Canon is using the increased revenues to offset the cost from the storm damage.
p.1 #6 · Impact on increasing US$ vs Japanese yen exchange rate?
Fred Miranda wrote:
Why would they lower the prices? It's their chance for bigger profits now.
However, at the very least, it would be nice to see deeper discounts in a form of rebates.
Perhaps Sony and Panasonic will finally get out of the red...
Because a lower price might yield greater overall profits based on the price/demand curve.
p.1 #8 · Impact on increasing US$ vs Japanese yen exchange rate?
Fred Miranda wrote:
Why would they lower the prices? It's their chance for bigger profits now.
However, at the very least, it would be nice to see deeper discounts in a form of rebates.
Perhaps Sony and Panasonic will finally get out of the red...
Really depends upon how they do internal product transfers. Is Canon USA an independent P&L center - do they buy from Canon Japan using Yen or do they use a fix exchange rate? Are P&L targets in Yen or $?
Since rebates tend to be world wide (from causal observation) there appears to be bit of central control from Toyko Canon may take this opportunity to increase promotional / marketing $. If they are structured like some US companies, they have fixed top and bottom line targets. Lower Yen will allow them to hit targets more easily and if the target is in site, they could (1) use this opportunity to exceed on both top and bottom line or (2) spend back to improve market share/product equity. Though in the end, if Nikon acts aggressively, this might force Canon's hand.
Not sure if they will target the high end of the market - would an extra few $100 off a 1Dx or $100 off a 5DM3 would drive many sales. On the other hand, promotions on P&S could be produce a considerable gain in revenue.
Just an FYI, I have never worked in the photographic or consumer electronics industry, but am now retired for the Marketing in CPG and prior to that, high end electronics.
p.1 #9 · Impact on increasing US$ vs Japanese yen exchange rate?
snapsy wrote:
Because a lower price might yield greater overall profits based on the price/demand curve.
It would have to be a really big decrease in price to cause the cash strapped masses to buy significantly more Canon gear. DSLR gear is more of a luxury item and is pricy for the average joe. Saving 10% probably won't change that reality much.
I've been buying EOS since 1990 and, considering the current cost of living, prices seem a lot less expensive to me. There has been considerable inflation these past 25 years and yet camera gear has held pretty steady or only creeped up a bit.
p.1 #11 · Impact on increasing US$ vs Japanese yen exchange rate?
Not really, or at least not very quickly. Prices tend to rise very quickly, but can take years to come down, if they do at all. It's just like the price of gas or anything else, when there's a crisis it rises very quickly, and when the crisis is over it might drop a few cents every week, often taking many months to return to 'normal'.
When costs decrease, competition will hopefully drive prices down in the long term, but that can take a while.
p.1 #13 · Impact on increasing US$ vs Japanese yen exchange rate?
I don't think currency actually had a lot to do with Canon price fluctuations in USD, or most/all other currencies.
The notion that relative currency value played a major role in price to consumers was mainly armchair quarterbacking-- from folks with enough knowledge of economics to think they had it figured out, and not enough knowledge to really know what they were talking about.
Canon prices will go down when they must. Which doesn't look like now.
p.1 #14 · Impact on increasing US$ vs Japanese yen exchange rate?
justruss wrote:
I don't think currency actually had a lot to do with Canon price fluctuations in USD, or most/all other currencies.
The notion that relative currency value played a major role in price to consumers was mainly armchair quarterbacking-- from folks with enough knowledge of economics to think they had it figured out, and not enough knowledge to really know what they were talking about.
Canon prices will go down when they must. Which doesn't look like now.
Why else would countries engage in competitive currency devaluation if not to make their exports more competitively priced?
p.1 #15 · Impact on increasing US$ vs Japanese yen exchange rate?
I've watched Canon gear prices since May 2007 when I bought a minty used Eos-3 film camera.
Each year the best time to buy brand new is a few days before Thanksgiving.
As the Yen gained against the dollar the inflated prices reset higher after each new year.
The best price deals occur in the run up before Thanksging & then become less appealing by mid December at B&H.
2013 Turkey Day deals are 6 Months & a week away & I'll seriously consider adding a couple more brand new Canon made lenses with cash inhand.
If there's no deals on what I'd like to buy then I'll continue with what I own, most of which was bought each year right before Thanksgiving.
p.1 #16 · Impact on increasing US$ vs Japanese yen exchange rate?
Now would be a good time to buy in Japan, assuming one is in Japan for other reasons besides photography shopping. With 10% off retail in some stores, prices in Japan are more attractive. I can't get over walking past a 6D at $1540 the last time I was there.
Other than that, I don't see the Canon pricing coming down any time soon.
p.1 #17 · Impact on increasing US$ vs Japanese yen exchange rate?
justruss wrote:
I don't think currency actually had a lot to do with Canon price fluctuations in USD, or most/all other currencies.
The notion that relative currency value played a major role in price to consumers was mainly armchair quarterbacking-- from folks with enough knowledge of economics to think they had it figured out, and not enough knowledge to really know what they were talking about.
Canon prices will go down when they must. Which doesn't look like now.
I've seen some doozies here, and this makes one heck of an all-star representative.
Currency/foreign exchange rates make a huge difference in pricing and Canon has used oil prices and FX (over valued yen) disparities to maintain not just their revenues, but their after tax profits. This is really elementary economics.
BTW - Japanese cars sold in the US didn't go up (much) because they're primarily made in the US. Canon will not lower prices; they will treat this as a windfall and maximize profits to a greater extent than they have been over the last 4+ years.
?
I've seen some doozies here, and this makes one heck of an all-star representative.