Registered: Jan 10, 2002
Total Posts: 11947
Country: United States
Why do you think high-volume dealers get better prices from manufacturers? It is the way the marketing system works around most of the world. Of course Widget Inc. will give Walmart a lower price if they order a million more widgets than our local hardware store.
Why do you insist on believing that Canon is the only manufacturer that does this
Companies such as Canon and Nikon have said for the longest time that they sell to everyone at the same price. High volume retailers can benefit by saving a couple percent by paying promptly rather than using a line of credit. That being said, they must adhere to MAP pricing, and cannot advertise below a certain price. On most canon goods, the markup is between 5% and 10%. There isn't much money to be made here, and it's a relatively level playing field. Small dealers are given co-op advertising money rather than the slight discount large dealers receive.
The issue I take is when Canon makes shady backroom deals with select stores, and offers them the cameras for $800 or more below cost. The catch is that these stores are not allowed to sell the cameras at such a discount through traditional means on their website. Instead, they are forced to unload them on ebay, or other venues where MAP does not apply. This is why you've see stores such as Adorama, Beach, and others blow out 5DIIIs on their ebay stores, but not through their traditional distribution.
If Canon feels a price reduction is necessary, why not just provide it to all dealers? Why do they think it's best to play dealers against each other by giving some of them preferencial treatment? What are all the other dealers suppose to do when people come in asking to match prices for various online places that are getting a significantly better deal. It's not good in the long run for the distribution system when Canon plays favorites for a select few dealers. IMO, this shows tremendous weakness and desperation with Canon right now. I'm sure that heads will roll for what has happened.