I was wondering, does anyone know how much canon charges dealers to buy their cameras? i wonder how much prices really are inflated by the time they get to us? if anyone can satisfy my curiosity i would really appreciate it! Thanks!
They claim not much I have returned a couple items to a place in CA and the manager got kind of pissed and saying there isn't much of a mark up on the camera's, lenses. Also I know an owner of a camera store out of State and he says they don't make much. Sorry I couldn't be more help
BuLLets wrote:
Most stuff sells at or very near dealer cost. There are programs that get them a few % here and there. That's how they make money.
Have to agree just look at the accessories they try and sell to a person I believe that is where they make a killing. I mean look at the cost of the Mack warranties I can get the same warranties at a site I buy from all the time at a fraction the cost of they are asking. Also the filters etc prices are way out of line
Jun 14, 2008 at 09:20 PM
Lars Johnsson Offline • • • • • • • Upload & Sell: Off
Actually the markup is betweem 28% and 35% in the United States and about 5% less in Australia and the EU. Most of the cost difference between these regions is attributed to the tax scheme (VAT vs sales tax). Larger volume dealers usually do about 5% better. Markup on lenses and accesories is closer to 45%.
Cheers-Red
It depends on the store and the region they're located in, but high-end Nikon and Canon gear bodies and lenses) is usually marked up between 5% and 20%. There are also various package discounts and volume rebates available to the dealer, but they really don't make a lot of money on cameras and lenses.
Accessories like batteries and filters are another story - these markups are often in the 100% -200% range - so a store can make more money selling you a filter for your 70-200 f2.8 lens than they make selling you the lens itself.
Jun 15, 2008 at 05:55 AM
Lars Johnsson Offline • • • • • • • Upload & Sell: Off
molson wrote:
It depends on the store and the region they're located in, but high-end Nikon and Canon gear bodies and lenses) is usually marked up between 5% and 20%. There are also various package discounts and volume rebates available to the dealer, but they really don't make a lot of money on cameras and lenses.
Accessories like batteries and filters are another story - these markups are often in the 100% -200% range - so a store can make more money selling you a filter for your 70-200 f2.8 lens than they make selling you the lens itself.
High end gear is more than between 5% and 20%.
I will give you an example from B&H. They charge you $ 8000 for a 1Ds3. I bought mine for just over $ 6400 in a Bangkok store without any special discount or anything. And they are still selling it for about that price (take a couple of hundred dollars up & down depending on the daily exchange rate) And the Bangkok store makes a descent profit (not very much) on that sale.
And I'm sure that B&H even buying it for less than that store because they are so big.
You're right Lars. There's far more profit in these than some people think, but the real profit is in the over priced accessories (lenses, hoods, remotes, etc.). The belief that a store makes less profit on a lens than it does on a filter is simply not correct . Lenses have tremendous mark ups, and that's increasing with every new lens offered (e.g. 200mm f/2, 85L, 50L, etc.). There's less profit in the small P&S cameras that sell for a couple of hundred dollars, but there's still enough profit for the mfg, the distributor, and the retailer....
Large and small stores obviously want to protect that profit so they'll cry about their share, but they're keeping the doors open, paying sales people, etc. About 2 years ago I read somewhere that a retailers cost on the 5d was $1700 when it was still selling for $2700+. if that was true or not, I don't know and the cost has obviously changed over that time.
Why people want to believe that these cameras cost so much is beyond me. Perhaps that's the only way they can justify the purchase in their own head, but some day reality comes into play, like the "Fully Loaded" cost of a FF 1ds3 sensor is only a couple hundred dollars, not thousands like some maintain...
Edited by jamesf99 on Jun 15, 2008 at 07:26 AM GMT
Markup on lenses 45% no can du boogie loo. I'll forward this to my dealer so he can roll his eyes then laugh and cry. Had lunch with him the other day, I complain about shooting rates he complains about his margins. 45% Canon L beh.
I have no idea what their profit margin is. I do know according to every sales person I ever met they where all starving to death and where selling at cost or at a loss.
comparing between countries might be dubious, because differing countries have differing taxing systems.
e.g., there is a 20% Mehrwertsteuer added to everything in Germany. This is a different figure in other EU countries.
either way, my preferred brick-and-mortar shop makes enough profit from the 40D that they can afford to drop the price of it 100EUR (as they did) and still turn a profit.
Jun 15, 2008 at 08:09 AM
Lars Johnsson Offline • • • • • • • Upload & Sell: Off
sillypants wrote:
comparing between countries might be dubious, because differing countries have differing taxing systems.
e.g., there is a 20% Mehrwertsteuer added to everything in Germany. This is a different figure in other EU countries.
either way, my preferred brick-and-mortar shop makes enough profit from the 40D that they can afford to drop the price of it 100EUR (as they did) and still turn a profit.
Mehrwertsteuer is the same as VAT or sales tax in other countries. The dealers (shops) don't pay that when they import the cameras from Japan ot other countries
Seems like no one really knows how much profit there is to be made on the cameras and lenses. Is there anyone who actually works in a store that might shed some light. I really don't think it is anywhere near the 40% range some folks think. Like any electronic item, there is not much profit in them. The accessories is where the money is made.
chez wrote:
Seems like no one really knows how much profit there is to be made on the cameras and lenses. Is there anyone who actually works in a store that might shed some light. I really don't think it is anywhere near the 40% range some folks think. Like any electronic item, there is not much profit in them. The accessories is where the money is made.
There is someone on this board who works for a camera shop but I'm not sure what he can actually disclose this information.
There is also an owner of camera shop on this board and he will tell you there is no difference in dealer cost among the various stores.
As for mark up, it depends on the store. I would say compare the higher price Internet stores (Wolf Camera, Best Buy, etc) to the lower costing ones (Canoga, B&H) for comparison.
Using B&H as an example, nearly every single Canon lens they are selling at the moment, USA warranty versions are at 'dealer net' (without including the instant rebate, include that and they are below dealer net) as I'm looking through Canon's Price sheets at this very moment. About the only thing that isn't at dealer net with regard to Canon are the New High end Bodies, 1ds mark 3, and 1d mark 3. Hence my original comment about 'most stuff'.
Eventually those bodies will drop closer to dealer net as well. They always start at Canon Map and drop after the initial demand lets up.
The 1d mark 3 is much closer to dealer net at the moment then when it first came out selling for $4499 (MAP). Right now it's selling for $4099 on B&H's site. Dealer net is $3960 on that body. Making the current markup $139, not even 4%.
Lars Johnsson wrote:
Most shops sell their cameras and lenses NOT very near dealer cost
BuLLets wrote:
Using B&H as an example, nearly every single Canon lens they are selling at the moment, USA warranty versions are at 'dealer net' (without including the instant rebate, include that and they are below dealer net) as I'm looking through Canon's Price sheets at this very moment. About the only thing that isn't at dealer net with regard to Canon are the New High end Bodies, 1ds mark 3, and 1d mark 3. Hence my original comment about 'most stuff'.
Eventually those bodies will drop closer to dealer net as well. They always start at Canon Map and drop after the initial demand lets up.
I'm sorry, but anyone that thinks a 200mm f/2.0 costs $6,000 USD - or anywhere even close to that figure - is missing the mark by a wide margin (and margin is what we're talking about). A fully loaded high end SUV, truck, or other large vehicle has a cost in the low to mid teens (which sells for $30k+).... It does not cost half the price of a car to build a lens, or a camera body...
Canon is making lots of money on this stuff, and the dealers are not going broke either (at least the big boys are not - they're making lots of money). Go get a copy of Canon's annual or quarterly reports (or read it online). Read industry news... This stuff is not top secret, it is related to the costs of other high tech goods, and can be logically ascertained...
Heh, anything brand spanking new and high end sells at MAP when it first comes out. Dealer net on the NEW high end Canon EF 200 2.0 is $5300. MAP is $5999.00, it'll sell at that price for some time. I'm only reading Canon's price sheet for those that asked, don't kill the messenger!
And even some dealers will sell new stuff below MAP, using this one as an example...
Good shop by the way, not one of the Brooklyn scam joints.
James, we're talking about dealer net not what it costs a manufacture to produce goods. Big difference there.
jamesf99 wrote:
I'm sorry, but anyone that thinks a 200mm f/2.0 costs $6,000 USD - or anywhere even close to that figure - is missing the mark by a wide margin (and margin is what we're talking about). A fully loaded high end SUV, truck, or other large vehicle has a cost in the low to mid teens (which sells for $30k+).... It does not cost half the price of a car to build a lens, or a camera body...
Canon is making lots of money on this stuff, and the dealers are not going broke either (at least the big boys are not - they're making lots of money). Go get a copy of Canon's annual or quarterly reports (or read it online). Read industry news... This stuff is not top secret, it is related to the costs of other high tech goods, and can be logically ascertained... ...Show more →
