Home · Register · Join Upload & Sell

Moderated by: Fred Miranda
Username  

  New fredmiranda.com Mobile Site
  New Feature: SMS Notification alert
  New Feature: Buy & Sell Watchlist
  

FM Forums | Canon Forum | Join Upload & Sell

1       2       3      
4
       end
  

Archive 2016 · Is the profit margin for retailers on Canon lenses really so low?

  
 
Don George
Offline
• • •
Upload & Sell: Off
p.4 #1 · p.4 #1 · Is the profit margin for retailers on Canon lenses really so low?


Was at a Sams Club yesterday to get a couple of posters printed. The employee at the desk was new. He had been looking for a camera and picked up a box to show me what they had just received in. He wanted my opinion on it. It was a Canon 70D with two kit lenses. I asked him what the price was and he rung it through his wand and it came up to $649.. He said they had received four of them and hadn't placed them on the shelf yet. He also said he wasn't sure if that was the final floor price but he would let me know when he talked with his manager. I have to go over today to get my posters should be interesting what I learn.


May 03, 2016 at 03:47 AM
Max_Pain
Offline
• • •
Upload & Sell: Off
p.4 #2 · p.4 #2 · Is the profit margin for retailers on Canon lenses really so low?


leftcoastlefty wrote:
Furthermore, $70 is chump change


Ah, so that's what it is. Some of you projecting your six figure salaries on me. Sadly, that's not the case. I actually have to work for that money, and it goes a long way with an infant son. But more power to you.

leftcoastlefty wrote:
hardly justifies the drive home and the hassle of buying online and fretting over delivery.


As opposed to not going back home? Where did you think I would go? Going home doesn't need a justification, and I don't find buying online to be a hassle. Your experience may vary I suppose.

---------------------------------------------

chez wrote:
Most of the gear which I bought new came from this one B&M store. I get the opportunity to try the gear before buying it which I value a lot. I also get great information from the staff when I need it. The big kicker since I have this relationship with this shop is I get to use their rental gear for free.

Sure some items cost a bit more than what I can get online...but I don't have the hassle of shipping and returning a bad copy which seems to be a common pain. Too boot...which online store will
...Show more

Well, if I had one such local store, that would indeed be a nice motivation. But somewhere along the line you and others forgot this is mega store chain Best Buy. They don't do favors to anyone, they don't give free rentals, they don't do anything that isn't to the benefit of the business. Which I'm perfectly ok with, but then I have to make decisions that favor me, not them.

It seems to me like those of you taking issue with this one instance of me deciding not to buy in a physical store must never have bought online or used after seeing a product in person. If you did, that would be hypocritical, and I'm sure that's not what is going on here



May 03, 2016 at 07:28 AM
Shutterbug2006
Offline
• • • •
Upload & Sell: Off
p.4 #3 · p.4 #3 · Is the profit margin for retailers on Canon lenses really so low?





May 04, 2016 at 10:42 AM
chez
Offline
• • • • • • •
Upload & Sell: Off
p.4 #4 · p.4 #4 · Is the profit margin for retailers on Canon lenses really so low?


Max_Pain wrote:
Ah, so that's what it is. Some of you projecting your six figure salaries on me. Sadly, that's not the case. I actually have to work for that money, and it goes a long way with an infant son. But more power to you.

As opposed to not going back home? Where did you think I would go? Going home doesn't need a justification, and I don't find buying online to be a hassle. Your experience may vary I suppose.

---------------------------------------------

Well, if I had one such local store, that would indeed be a nice motivation. But somewhere along the line you and
...Show more

This "one such local store" relationship was cultivated over the years. I did not walk in one day and buy a $20 item and all of a sudden I had free access to their rental equipment. It's a mutual relationship that took over 10 years to create...one that does not exist in the online world.

As far as going into a store like Best Buy to just browse...never. I detest stores in general and just wasting time browsing. If I need something, I'll go into a store and buy it.

Now the camera shop I do go into just to hang with the people there. Bunch of great photogs that just happen to also own a camera store.



May 04, 2016 at 11:37 AM
henryp
Offline
• • • •
Upload & Sell: Off
p.4 #5 · p.4 #5 · Is the profit margin for retailers on Canon lenses really so low?


Adam Schallau wrote:
And to answer the OP's question, yes the margins are incredibly low on the big ticket items such as DSLRs and lenses. Margins are much better on accessories, especially filters, and third party batteries.


Incredibly slim margins. A store selling nothing but Canon 16-35mm f/4L EF IS (USM) lenses all day would soon be holding candlelight-only no air conditioning days because they could not otherwise cover their overhead. :-)

Henry Posner
[email protected]
B&H Photo-Video



May 04, 2016 at 03:38 PM
henryp
Offline
• • • •
Upload & Sell: Off
p.4 #6 · p.4 #6 · Is the profit margin for retailers on Canon lenses really so low?


ShutterbugJ wrote:Camera stores make their money on accessories. I don't doubt that they make ~10% on most lenses, but they can't across the board. If you make a profit on every single item, you will make less money overall in most retail systems.

Let's not lose sight of the fact the OP was shopping in a Best Buy. The two nearest my home sell CDs DVDs, telephone answering machines, refrigerators, washers& dryers, smartphones and all sorts of higher-markup stuff in addition to camera gear and accessories. A store like that can offset slim margins on some items (or brands or genres) with more plump margins on others where the market will bear.

Henry Posner
[email protected]
B&H Photo-Video


May 04, 2016 at 03:45 PM
henryp
Offline
• • • •
Upload & Sell: Off
p.4 #7 · p.4 #7 · Is the profit margin for retailers on Canon lenses really so low?


scalesusa wrote:
Very true. In the consumer electronics business there are often many things involved that ultimately affect your margins and therefore profitability. Disregarding the cash discount (which is fairly common in most businesses), with consumer electronics you deal with a variety of kickbacks, bonuses based on quantities bought and/or sold (and often not available until after the goods have been sold, therefore not considered part of the stock value), price protection (supplier or manufacturer crediting you for being stuck with old inventory that's dropping in value) and so on and so forth, making it near-impossible to tell, at the point of
...Show more

My wife used to work for a trade magazine aimed at the supermarket industry. Since I do most of the food shopping in our family I found their articles very informative. One in particular discussed line extensions -- adding pumpkin spice Oreos to the shelf you're already using to sell Double Stuff Oreos and Mint Oreos and so on. You've seen it, no doubt.

One aspect that particularly struck me is that a retailer has to charge every bag of cookies and every can of soup rent. It costs the retailer money to put a can of soup onto a shelf and it costs more every hour that can sits there motionless. Some items move quickly and others move more slowly. The retailer who wants to maximize profits will carry more of the former, but there are items the retailer has to have to get business in the door even though some of those items fall into the snail-paced genre. So, you charge those items more rent and build that into the price.

A camera retailer with a shelf of fast-moving consumer zooms and another of slower moving pro-oriented f/2.8 zooms has to factor that in too. The time when a retailer simply applied some multiplier to the wholesale price to get to the retail price (you're paying twice for that dress shirt Macy's paid to buy it) is long gone.

Henry Posner
[email protected]
B&H Photo-Video



May 04, 2016 at 03:56 PM
henryp
Offline
• • • •
Upload & Sell: Off
p.4 #8 · p.4 #8 · Is the profit margin for retailers on Canon lenses really so low?


Peter Figen wrote:
California has gotten much stricter as well, and we have both a healthy income tax and a very ample sales tax. There's now a line item on your state income tax return to declare out of state purchases subject to use tax. That's for everyday shoppers. Those of us with State Resale certificates have always had to declare every quarter. Of course, if you never get audited, none of this matters - if...


OTOH you're signing that return under penalty of perjury so if you do get audited, it's the tax plus interest plus penalties plus the risk of felony prosecution which, if convicted, means more fines if not jail. I'd pay $70.00 to stay out of jail, but I'm daffy.

mb126 wrote:
I doubt anyone on the board really knows, but I also highly doubt the 18-year-old on the floor knows either.


There you are. :-)

Henry Posner
[email protected]
B&H Photo-Video



May 04, 2016 at 04:00 PM
Max_Pain
Offline
• • •
Upload & Sell: Off
p.4 #9 · p.4 #9 · Is the profit margin for retailers on Canon lenses really so low?


henryp wrote:
OTOH you're signing that return under penalty of perjury so if you do get audited, it's the tax plus interest plus penalties plus the risk of felony prosecution which, if convicted, means more fines if not jail. I'd pay $70.00 to stay out of jail, but I'm daffy.


I used to do my own taxes using TurboTax for years. Never, once, did it ask me for out of state purchases. The last two years I've paid a CPA to do my taxes. Never, once, have they asked me for out of state purchases.

So either it's not a concern in Florida or neither TurboTax nor the CPA that I know has been in business for about 20 years now know what they're doing. I sure as heck don't know tax law.




May 04, 2016 at 04:05 PM
Jeff Donald
Offline
• • • •
Upload & Sell: Off
p.4 #10 · p.4 #10 · Is the profit margin for retailers on Canon lenses really so low?


Max_Pain wrote:
I used to do my own taxes using TurboTax for years. Never, once, did it ask me for out of state purchases. The last two years I've paid a CPA to do my taxes. Never, once, have they asked me for out of state purchases.

So either it's not a concern in Florida or neither TurboTax nor the CPA that I know has been in business for about 20 years now know what they're doing. I sure as heck don't know tax law.



No offense, but ignorance is not a defense of the law. I live in Florida and because of past business activities I'm very familiar with the Florida Laws (remember sales tax is governed under individual state laws). The state rarely audits individuals for large out of state purchases, except boats and vehicles. But businesses is a separate issue.

I wouldn't trust my fate to a program like TurboTax. The CPA that did your taxes probably figured the odds of an individual being audited for the sales tax was so remote as to not mention it.

I used to own a large video production company in Cincinnati and and was audited by the IRS twice in ten years. It was an industry that the IRS targeted. Both times I had my CPA and tax attorney in tow. I really didn't feel like spending time in a federal prison for tax evasion. Just saying.



May 04, 2016 at 07:27 PM
Max_Pain
Offline
• • •
Upload & Sell: Off
p.4 #11 · p.4 #11 · Is the profit margin for retailers on Canon lenses really so low?


Jeff Donald wrote:
No offense, but ignorance is not a defense of the law.


Did I say it was? Do you know what I do for a living?

Jeff Donald wrote:
I live in Florida and because of past business activities I'm very familiar with the Florida Laws (remember sales tax is governed under individual state laws). The state rarely audits individuals for large out of state purchases, except boats and vehicles. But businesses is a separate issue.


You mention business twice and specify large purposes. My expenses for photography are strictly as a hobby, as I derive zero income from it, and none of my purchases are considered large by IRS standards.

Jeff Donald wrote:
I wouldn't trust my fate to a program like TurboTax.


I'm sure the people who create TurboTax, and the millions who use TurboTax would be offended by that.

Jeff Donald wrote:
The CPA that did your taxes probably figured the odds of an individual being audited for the sales tax was so remote as to not mention it.


So a CPA who has been doing this exclusively for about 20 years thinks it's not a problem, and I'm supposed to disagree with him? And side with someone on the internet? No offense, but why would I trust you, or anyone else, over my CPA?

Jeff Donald wrote:
I used to own a large video production company in Cincinnati and and was audited by the IRS twice in ten years. It was an industry that the IRS targeted. Both times I had my CPA and tax attorney in tow. I really didn't feel like spending time in a federal prison for tax evasion. Just saying.


Again, the business angle does not apply to me. Moreover, doing what I do for a living, I know that I would never spend a day in prison for "tax evasion" if all the IRS has on me is I was supposed to report my B&H Photo purchases and I didn't.


Frankly, at this point, I'm going to reach out to Fred to see if he would kindly delete this thread. I started this thread to ask a question. That question has been asked. Then the thread has been derailed and I'm a bit tired of having to defend myself on here.



May 04, 2016 at 07:36 PM
Jeff Donald
Offline
• • • •
Upload & Sell: Off
p.4 #12 · p.4 #12 · Is the profit margin for retailers on Canon lenses really so low?


Max, I'm not trying to single you out for criticism and if you feel that way, I apologize.

However, many thousands of people read these forums and threads. You made a statement that paying sales tax for out of state purchases is not a concern in Florida (at least your accountant doesn't think so). But twice now I've posted that that it can be a concern.

Do yourself a favor and ask your CPA/accountant what the Florida state law is regarding purchases made out of state. If he's unfamiliar with the law, this is from the Florida Dept. of Taxation site.

You Might Owe Florida Tax

Many Florida citizens are not aware that this state has a "use tax." Use tax normally applies to items purchased outside Florida, including another country, which are brought or delivered into this state and would have been taxed if purchased in Florida. The use tax rate is the same as the sales tax rate, 6%.
Examples include:

Purchases made through the Internet.
Mail-order catalog purchases.
Purchases made in another country.
Furniture purchased from dealers located in another state.
Computer equipment ordered from out-of-state vendors advertising in magazines.
If an out-of-state seller fails to collect sales tax, it is your responsibility to comply with Florida law. You must submit payment directly to the Florida Department of Revenue. This payment is required by section 212.06(8), Florida Statutes. You can file and pay use tax online or complete an Out-of-State Purchase Return (Form DR-15MO). If the tax owed is less than one dollar, you do not have to file a return.


I can almost guarantee that you won't be audited for sales tax as an individual tax filer. But in my occupation I know I might be audited by the state and I pay the sales tax on my purchases from B&H. Amazon now has several warehouses in FL and I'm charged sales tax when I order from them.



May 04, 2016 at 07:56 PM
jcolwell
Online
• • • • • • •
Upload & Sell: On
p.4 #13 · p.4 #13 · Is the profit margin for retailers on Canon lenses really so low?


Max_Pain wrote:
...Frankly, at this point, I'm going to reach out to Fred to see if he would kindly delete this thread. I started this thread to ask a question. That question has been asked. Then the thread has been derailed and I'm a bit tired of having to defend myself on here.


Hey Yemil,

You're always free to ask Fred anything, but it's a rare occasion when a thread gets deleted. This thread has suffered from considerable drift. There's lots of disagreement on peripheral issues, yet it remains civil. IOW, it's really not so bad.

Starting a thread on FM is like putting a message in a bottle, and then throwing the bottle into the sea. You have complete control over it, right up to the moment that it leaves your fingers. After that, you have no control over it, at all. None.

I've been there. Believe me, I've been there. After repeatedly bashing my head against the wall, I realized that the only way to feel better about it, is to stop bashing my head against the wall. That's not to say that I agree with your position, or with the positions of other people, it's simply to say that if you're tired of having to defend yourself, then you can simply stop defending yourself. The message will quickly fade away.



May 04, 2016 at 08:00 PM
Fred Miranda
Offline
Admin
Upload & Sell: On
p.4 #14 · p.4 #14 · Is the profit margin for retailers on Canon lenses really so low?


The thread originator requested for this thread to be locked.


May 04, 2016 at 08:10 PM
1       2       3      
4
       end




FM Forums | Canon Forum | Join Upload & Sell

1       2       3      
4
       end
    
 

You are not logged in. Login or Register

Username       Or Reset password



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.