« on: May 19, 2013, 12:59:12 PM »
The Japanese Yen has fallen considerably in value in recent months. Japanese exports should therefore be much cheaper now for buyers, so why are Canon prices remaining so high? I'd love a new Canon 5D mk III but current MAP limitations are keeping prices high and stopping me from buying.
I have read many, but not all of the replies, so please forgive me if I repeat something someone else has already stated.
Unfortunately, you are thinking in ways that don't correspond to how businesses actually work. It is easy to do this because many of us tend to think of how we would behave - if we were perfectly selfless individuals acting on a one-to-one basis with a friend or relative - in setting prices on something or other ourselves. In this regard, corpporations, as well as individuals in business, who make and/or sell goods or services in the universal market environment in which we all conduct our financial transactions behave, at the most basic level, according to two principals: 1) they set their prices to maximize their income and profit, while always being careful not to set prices higher than would be the level to suppress demand, and 2) try not to churn the market by changing their prices too often or too rapidly, in order not to create ill will or confusion among their customer base and avoid pricing mistakes by basing their profit assumptions on too short a data sample.
Under the above realities, Canon has done two things: 1) when the value of the yen rose, it did not raise U.S. product prices as high or fast as the monetary valuations would suggest, and 2) when the value of the yen fell, it did not lower U.S. product prices as low or fast as the monetary valuations would suggest. And, if after testing the market for a period of time during which its competitors do not lower their prices and/or Canon's sales do not diminish or sales growth slow, they will probably take advantage of the period of lower yen evaluations to raise income and profit.
In short - no surprise here - the business world continues to operate under well known principles of supply and demand. "Fairness" in pricing is a principle that only exists in the minds of the naïve or schemes of various collectivist-minded "planners." The reality is that Canon will set its prices to maximize its income and profits, and only if the price levels they set punish them by reducing those two metrics, will they reduce their prices at all.