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Archive 2016 · Are Camera and Lens Prices Contractually Fixed?
  
 
PureMichigan
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p.1 #1 · p.1 #1 · Are Camera and Lens Prices Contractually Fixed?


Maybe the title is a little more accusatory than I intend -- but I can't think of any other area in my life where the prices for an of such relatively high-value items are so extraordinarily consistent (excepting grey market, of course).

Do Nikon and Cannon contractually bind their retailers to sell at a given price? Clearly the mark-ups on these items are such that you would think that in an open market prices might be a little more spread.

To be clear -- no accusations here. I'm just na´ve in respect to the market dynamics which are fairly interesting.



Nov 02, 2016 at 04:21 PM
EBOBO
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p.1 #2 · p.1 #2 · Are Camera and Lens Prices Contractually Fixed?


Yes. 'Unilateral Pricing Policy'


Nov 02, 2016 at 07:22 PM
timgangloff
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p.1 #3 · p.1 #3 · Are Camera and Lens Prices Contractually Fixed?


I think this has been discussed in the Canon forum. Maybe check there.


Nov 02, 2016 at 08:16 PM
CW100
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p.1 #4 · p.1 #4 · Are Camera and Lens Prices Contractually Fixed?


PureMichigan wrote:
Maybe the title is a little more accusatory than I intend -- but I can't think of any other area in my life where the prices for an of such relatively high-value items are so extraordinarily consistent (excepting grey market, of course).

Do Nikon and Cannon contractually bind their retailers to sell at a given price? Clearly the mark-ups on these items are such that you would think that in an open market prices might be a little more spread.

To be clear -- no accusations here. I'm just na´ve in respect to the market dynamics which are fairly interesting.


"open market" pricing includes all prices - Best Buy, B&H, Adorama, ebay, refurbished (which includes the regular one year warranty) , craigslist etc.
And there's always the buy/sell camera forum sections
it can be a wide'r' range of prices if you look at all the options





Nov 02, 2016 at 11:00 PM
PureMichigan
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p.1 #5 · p.1 #5 · Are Camera and Lens Prices Contractually Fixed?


Offline, someone pointed me to an article by the AG of my home state of Michigan that answers my original question, for anyone who has an interest. The short answer is:

"While it used to be that manufacturers could only suggest a minimum retail price, the U.S. Supreme Court recently changed that rule. Now, manufacturers may, under appropriate circumstances, require a minimum retail price to be charged."

Interesting ... I haven't been keeping up on retail law and have no idea why the government would stick its nose in this.



Nov 03, 2016 at 12:41 AM
Assocracer
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p.1 #6 · p.1 #6 · Are Camera and Lens Prices Contractually Fixed?


PureMichigan wrote:
Offline, someone pointed me to an article by the AG of my home state of Michigan that answers my original question, for anyone who has an interest. The short answer is:

"While it used to be that manufacturers could only suggest a minimum retail price, the U.S. Supreme Court recently changed that rule. Now, manufacturers may, under appropriate circumstances, require a minimum retail price to be charged."

Interesting ... I haven't been keeping up on retail law and have no idea why the government would stick its nose in this.


Kinda kills the whole "free market" thing doesn't it? If I buy something from a manufacture at a certain price I should be allowed to sell it for whatever I would like to sell it for to be competitive.



Nov 03, 2016 at 05:09 PM
 

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Littleguy
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p.1 #7 · p.1 #7 · Are Camera and Lens Prices Contractually Fixed?


You are allowed to sell it at whatever price you want.

However, the manufacturer doesn't have to keep selling to you if you do :-)

https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/dealings-supply-chain/manufacturer-imposed

Assocracer wrote:
Kinda kills the whole "free market" thing doesn't it? If I buy something from a manufacture at a certain price I should be allowed to sell it for whatever I would like to sell it for to be competitive.





Nov 03, 2016 at 06:44 PM
Assocracer
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p.1 #8 · p.1 #8 · Are Camera and Lens Prices Contractually Fixed?


Littleguy wrote:
You are allowed to sell it at whatever price you want.

However, the manufacturer doesn't have to keep selling to you if you do :-)

https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/dealings-supply-chain/manufacturer-imposed






Nov 04, 2016 at 02:39 PM
Assocracer
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p.1 #9 · p.1 #9 · Are Camera and Lens Prices Contractually Fixed?


That's interesting, my message didn't show up with the quote. Anyways, and I think that's bull. That's how us as consumers get screwed. I know all about manufacturing processes, I've been an engineer for years. And though I know that camera lenses are more difficult to make, there is no way that a lens that sells for $2000 costs that much to make. Probably more along the lines of about $200-$300 to make. They keep the costs up because people use them in their profession, even though it's only a small percentage of people who use them outside of a hobby so because of the small percentage of pro's using them us hobbiests get screwed. Same goes with things like music. I was a DJ for 10 years. A lot of the music I purchased cost three to four times what a regular CD costs because it had a mix of songs on it. I know for a fact that it didn't cost any more to manufacture that CD then it did any other CDs but because I was using it in a business they over inflated the price 4 to 5 times. Its because of stuff like this that photographers have to charge so much money for a shoot because they have to make up the cost of their equipment. But yeah, I'm just on a rant now


Nov 04, 2016 at 02:45 PM
CW100
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p.1 #10 · p.1 #10 · Are Camera and Lens Prices Contractually Fixed?


Assocracer wrote:
That's interesting, my message didn't show up with the quote. Anyways, and I think that's bull. That's how us as consumers get screwed. I know all about manufacturing processes, I've been an engineer for years. And though I know that camera lenses are more difficult to make, there is no way that a lens that sells for $2000 costs that much to make. Probably more along the lines of about $200-$300 to make. They keep the costs up because people use them in their profession, even though it's only a small percentage of people who use them outside of a
...Show more

That is so wrong
And I was a cost accountant for over 10 years!
...... Rant off






Nov 04, 2016 at 10:47 PM
Littleguy
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p.1 #11 · p.1 #11 · Are Camera and Lens Prices Contractually Fixed?


If you want to stay in business - you don't price your products at your costs.

You remind of clients who ask me why their photos don't costs .25 each because that's how much it costs to print them at Walmart. No concept of the value of Intellectual property.

Assocracer wrote:
That's interesting, my message didn't show up with the quote. Anyways, and I think that's bull. That's how us as consumers get screwed. I know all about manufacturing processes, I've been an engineer for years. And though I know that camera lenses are more difficult to make, there is no way that a lens that sells for $2000 costs that much to make. Probably more along the lines of about $200-$300 to make. They keep the costs up because people use them in their profession, even though it's only a small percentage of people who use them outside of a
...Show more




Nov 05, 2016 at 12:23 AM







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