« on: January 11, 2013, 04:51:57 PM »
It is a sad situation, but with the increase in on-line 'grey ish' importers it is to be expected.
I don't know how companies like Jessops calculate their cost price, but (for reasons I won't go in to) I've got a good idea as to their cost price for a 7d body.
This cost price to Jessops is roughly £250 more expensive than you can purchase it from well known reputable online dealers.
Jessops then put another £100 or so on for their margin.
The way that I see it, is they didn't make enough profit on the goods that they sold. (not sure if this is down to their deal with the manufacturers/importers or simply import duty costs)
I understand that their most profitable part of their business is their printing side, so I expect that will be a service that is retained.
Sorry as I am now a Ex Jessops employee I can honestly say that all cameras were a loss leader.. The trade price on a 7D was around £1100 or more.. Jessops made huge losses on cameras sometimes well over £150.. The idea was to try and compete in the market but sell profitable items like memory cards etc with the cameras.. I shall greatly miss Jessops as I was a devoted customer before I worked there..
78 years of trading and servicing the general public has been torn apart in less then 2 days..
That was my point. How were Jessops ever going to compete with other online retailers if their trade prices were so much higher than the competition