p.6 #1 · 5D III Authorized US Dealer $2899 once more!
Ben Horne wrote:
The 5DIII isn't selling very well at the 3500 price point. To move product, Canon is cutting shady backroom deals with certain high volume dealers. I've seen dealers selling the cameras as low as $800 below small dealer cost. They are being sold on ebay because selling the cameras below MAP would be a violation of their dealership agreement with Canon.
When contacted by customers, some of the stores claim that it is some sort of special ebay backed promotion, but that doesn't make any sense. why would Ebay voluntarily take an $800 hit on each camera sold? This is being offered as an excuse because these select dealers aren't allowed to say that Canon cut them a backroom deal that none of the other dealers were privileged to receive.
In any case, it shows tremendous weakness in canon right now. They can't admit they priced the 5DIII too high because the early adopters will feel thrown under the bus --- but they are sitting on a mountain of cameras that need to sell. Instead, they are throwing their small dealers under the bus by going behind their back with these backroom deals. ...Show more →
And you make these assertions as though they are facts based on what reliable source?
p.6 #2 · 5D III Authorized US Dealer $2899 once more!
RDKirk wrote:
And you make these assertions as though they are facts based on what reliable source?
I work at a camera store. I know dealer cost on canon products, and when I see a few select dealers selling USA warranty goods for $800 less than cost through channels not policed by MAP -- there are very few conclusions that make sense.
Canon is cutting deals with select dealers to blow out inventory, but Canon isn't allowing them to sell through traditional means that are patrolled by MAP. Instead, they are unloading these cameras on ebay where MAP does not apply. It's a pretty lame move by Canon. Seriously, if they feel a price reduction is required, why not just do an official price drop across the board at all dealers. Instead, they are making shady deals with select dealers, and screwing the vast majority of their distribution network.
p.6 #3 · 5D III Authorized US Dealer $2899 once more!
curious80 wrote:
I am sure no one has the data to show whether 5DIII is selling well or not. There are just conjunctures made up by people based on what they "feel"
All the evidence you need to see regarding this is the fact that select dealers are blowing out theses cameras far below cost. Why would they be doing this if the 5DIII was flying off the shelves?
p.6 #4 · 5D III Authorized US Dealer $2899 once more!
curious80 wrote:
I wonder how people are quick to declare whether a camera is selling well or not without any concrete data to back it up.
These discussions really lack any kind of informed analysis about the camera business.
Those types of threads - bringing a professional perspective - would actually be interesting to read. After all, Canon is by far the largest camera manufacturer in the world.
Insightful analysis about why that is true, how the other manufacturers have fared, etc. would be much more useful. Whether Sony can continue to compete after losing money for 4 years in a row and firing 10,000 people, what that means for their camera business, etc.
Otherwise it is like the guy who quit the music business to be a plumber at 23, now is 54 and drunk and whining about how he really had more talent than the Beatles anyway, and they outta get a haircut and sing classical music ...
p.6 #5 · 5D III Authorized US Dealer $2899 once more!
I work at a camera store. I know dealer cost on canon products, and when I see a few select dealers selling USA warranty goods for $800 less than cost through channels not policed by MAP -- there are very few conclusions that make sense.
Canon is cutting deals with select dealers to blow out inventory, but Canon isn't allowing them to sell through traditional means that are patrolled by MAP. Instead, they are unloading these cameras on ebay where MAP does not apply. It's a pretty lame move by Canon. Seriously, if they feel a price reduction is required, why not just do an official price drop across the board at all dealers. Instead, they are making shady deals with select dealers, and screwing the vast majority of their distribution network....Show more →
Okay, in the first paragraph you state a hypothesis that you say is the only one that makes sense.
Then in the second paragraph you say your hypothesis does not make sense.
You have been "in the business." So you explain why Canon is screwing the vast majority of their distribution network instead of officially dropping their prices?
p.6 #6 · 5D III Authorized US Dealer $2899 once more!
RDKirk wrote:
You have been "in the business." So you explain why Canon is screwing the vast majority of their distribution network instead of officially dropping their prices?
Officially lowering the price to about $2800 will show tremendous weakness, and it will alienate those who paid full pop for the camera when it first came on the market. It will essentially be admitting a big mistake, which they seem very reluctant to do. Instead, they are circumventing their own system, and playing favorites to a few select dealers. Notice how none of the usual reps on FM from the big dealers are chiming in on this one --- it's because they can't.
p.6 #7 · 5D III Authorized US Dealer $2899 once more!
We are speculating without even knowing the units sold, profit goals within divisions, etc.
The distinction between total cost and variable cost is critical in manufacturing.
In the short run, if you can more than cover your variable (incremental) cost, you might want to produce and sell units well below your total breakeven. This can even have the effect of lowering your B/E (by amortizing fixed costs over a greater number of units.)
Units that are already produced are also a capital drain. You want to recoup that investment. And if there is a carrying cost to inventory - either real cost or a tax cost - moving inventory at the end of an accounting period can be important.
Channel differentiation is also important. Not all channels are the same. Sales costs are not the same in different channels either. You use the model that works best overall, while trying not to damage sales in other channels.
Believe me, there are literally 100's of product analysts at Canon looking at all of the costs and opportunities. In a struggling global economy, there are certainly niche opportunities to move product allocation between regions and channels.
But the analysis here is much too personal and emotional to ferret out those sorts of details. None of it is "cheating", but a company has to make sure that it's short term decisions don't negatively impact it's relationships in any channel - unless there is a newer model that makes a channel less important in the long run. All just business decisions.
p.6 #10 · 5D III Authorized US Dealer $2899 once more!
I am surprised anyone buys a new Canon release.....the price is always substantially lower within months in the UK...the 5D3 is available from an eBay importer at £1000 below the original release price ... a price some dealers are still asking even though many official outlets are cutting hundreds off the 'list' price!
I will be buying a 1GX soon.....by Christmas it will be under £400....it was nearly £700 when released here.
p.6 #12 · 5D III Authorized US Dealer $2899 once more!
BluesWest wrote:
Murph, your post is much too logical and informative. Are you sure you're on the right forum?
John
I should know better John ....
It is just a bit of what I would like to see. Some real analysis that explains **why** things are the way they are, rather than just complaining about the way things are ....
About 2/3 of the time here, I kill my posts before I hit "Send Reply", because it just isn't worth getting into the mix ...
Their Reseller Ratings is somewhat better. But if you read between the lines, it sounds like they are selling grey market equipment and trying to "upsell" via the standard "call to confirm the order" schtick.
Their Reseller Ratings is somewhat better. But if you read between the lines, it sounds like they are selling grey market equipment and trying to "upsell" via the standard "call to confirm the order" schtick.
p.6 #15 · 5D III Authorized US Dealer $2899 once more!
rockant wrote:
A lot of "newbies" work for Ryther too!
I would not doubt that at all!
I linked to page 4 of the reviews, which were almost universally horrible. Somehow the last fews weeks seem a bit better!
But the M.O. is still the same - grey market cameras advertised at a low price, the obligatory phone call to "confirm the order", losts of lies and missing ship dates if they can't upsell you and you don't want grey market.
