I just checked the site and it shows estimated ship date of 10/3. Dell has run these specials before. Back in about April they sold the 1D for 2,999 for a few days. Hopefuly this is the same type of deal.
You posted 'your' companies cost. Item costs for companies like B&H, Adorama, Dell, etc. are not mass produced and distributed in pricing books. They're negotiated in back rooms at trade shows, etc.
In other words, regardless of how large the store is you work for (yes I know who they are), it probably fails by comparison to the mass retailers I mentioned above. Another thing to consider is that Canon Canada has just announced considerable price reductions on DSLRs, L lenses, and other products. If Canon has reduced costs to distributors, Canon USA might announce a new pricing structure soon. Perhaps not.
One last thing. I realize you're a bit miffed at hearing other's conjecture about the industry you're involved with, but please clean up the language. It doesn't bother me at all, but If I were the moderator your post would have been edited, and you would have received a PM from me. Members of all ages visit this board, and adult members feel comfortable allowing their children to peek over their shoulder. Lets try to keep it that way. OK?
Today while ordering a monitor from Dell I asked my salesman if there had been any talk about the Canon 70-20mm lens. He said that, yes, there was quite a bit of talk. He was sure they would deliver but he confirmed what someone had posted earlier on this forum--it would take them until February to fill all the orders.
Is it possible this is a loss leader? How many people have gone to Dell's site since this great deal appeared? How many other sites are discussing this? How many people will check Dell's site the next time they want to purchase camera gear? Just a thought.
Now I'll we need to know is if Dell will deliver all 500+ of them and how long it will actually take
For all the; 'Dell can't sell it for that', and 'I know how much it costs', it appears Dell knew what they were doing all along. Either that or they made a huge mistake, took forever to correct it even though they where being questioned about the validity of the price all along, but decided to make good on their promise at a ~$200,000 loss. I'll vote for the former...
If the pricing on this lens is a "loss leader" it is the most interesting use of that pricing strategy I have ever scene. Dell did not advertise this lens or its price. Nor was the lens even listed on Dell's website. The pricing of this lens was discovered by some photographer who in turn posted it on a web forum and word rapidly spread from there. There is not a single other Canon item in Dell's catalogue that has a price that is out of whack with what other merchants are selling them for. It is hard to see how this could be anything other than an error.
It may not be an error. Dell has quite a bit of buying power, and with the new lower pricing from Canon Canada on some L lenses (the f/2.8 IS is one of them), it's possible this lower price is from Canon corp. to its distributors, and not just a price reduction by Canon Canada.
We might see a price reduction on this lens and other selected products from other US vendors in the near future. Once again, I want to emphasize the 'might'. There's just no way to know for sure at present...
The pricing of this lens was discovered by some photographer who in turn posted it on a web forum and word rapidly spread from there.
How many web forums was it posted on? People throw around $200k as a big loss for Dell but how much does it cost to produce a comercial for TV? By posting to photography web sites they are targeting the people most interested. Recently I heard on the radio about celebrities that are paid that much money for casually mentioning a products name when they are being interviewed on a big name show. Just something to think about. Jim
It's no secret that Dell wants greatly to expand their business from computers to consumer electronics. Part of their likely strategy is to make a big splash and also get the attention of their vendors at the same time.
Dell has the potential to be one of Canon's largest retailers in very short time; they have everyting in place (marketing, sales and operations) to quickly ramp up in this endeavor. The earlier photo deals and now the 70-200 IS are probably the shot across the bow. How many other photo vendors can sell, much less handle, 500+ lenses in one week?
Retailing is a business that is very hard to understand at times. Safeway was selling prime rib a few weeks ago for $2.97/pound when most restaurants pay up to $15/pound for the same grade; go figure.
Well, considering Dell's own internal inventory page lists the item cost at: $1104.74, I can only assume they either are buying it right, or they made a huge mistake, are making good on it, and are trying make the best of a bad situation. In either case it's good news for us.
If it was a designed ad campaign I doubt there would have been a reason to produce a phony pricing page, and if it's not phony then there's no need to wonder any further, Dell can sell it at that price and make a very small profit (probably break even after costs). In addition, if it was planned, it was rather haphazard. Dell just took a chance that someone would see or ask about this lens to get the ball rolling? Most ad campaigns are for more structured than that and do not rely upon luck of the draw.
Personally, I think Dell is getting a good price and included this item in their 10% off offer, perhaps by mistake, perhaps not.
Please Jim, I just don't think it was planned this way. If what you are saying is true, then you also believe they purposely planted the phony inventory page?
even after negotiations it is not 400 lower than net book price. i do know what one can negotiate at canon and if were truly that low b and h would not sell it for 1649 and 1599 for import.
