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Author Topic: Impact of falling Yen on Prices  (Read 5840 times)

RGF

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Impact of falling Yen on Prices
« on: April 04, 2013, 06:06:05 PM »
Last November the change rate was 80 Yen to the $.  Today it is 93.  That is a 16% changes.  Does anyone know how Canon prices?  Especially as international rates change?  Who profits (Canon US or Canon corp) when the exchange rises?  Will we see new products introduced at lower prices (such as the 200-400 F4), more details, or simply Canon profits increase?

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Impact of falling Yen on Prices
« on: April 04, 2013, 06:06:05 PM »

Bosman

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Re: Impact of falling Yen on Prices
« Reply #1 on: April 09, 2013, 02:26:36 PM »
Hopefully this means they can afford to drop prices.
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Re: Impact of falling Yen on Prices
« Reply #2 on: April 09, 2013, 03:20:28 PM »
I'm guessing the MSRP would remain high.  Discounts might run a little deeper though.  Companies rarely reduce prices officially because it's bad business when they train customers to think that way.  Most companies are unable to transfer the total cost increase when their costs rise, so they're looking to pocket any gains attendant with a currency shift in their favor.

RGF

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Re: Impact of falling Yen on Prices
« Reply #3 on: April 10, 2013, 01:41:16 AM »
I am hoping that as the Yen weakens and canon prices internal in Yen, then they will be more willing to discount (such as on the 300-600 II lens) or introduce the 200-400 for closer to $10,000 vs $12,000.

But  why leave $ on the table.

First there was the MP wars, now there seems to be the highest price wars.

Hillsilly

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Re: Impact of falling Yen on Prices
« Reply #4 on: April 10, 2013, 03:16:59 AM »
The exchange rate change might make grey imports cheaper.  To counter this, you might see more rebates and special offers rather than official price cuts.  Over time, you might see a gradual decline in prices. But as mentioned above, companies avoid continual price changes due to currency fluctuations (as customers love prices going down, but hate prices going up).  Instead, they'll use currency hedging strategies to smooth out changes.   
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Northerner

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Re: Impact of falling Yen on Prices
« Reply #5 on: April 10, 2013, 06:02:11 AM »
When the Pound fell against the Yen from @ 180 to @120 the prices of some lenses in the UK went up accordingly hopefully now the trend is the other way prices
will come down.
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Re: Impact of falling Yen on Prices
« Reply #6 on: April 10, 2013, 06:04:07 AM »
Meant to say should come down but dont hold your breath.

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Re: Impact of falling Yen on Prices
« Reply #6 on: April 10, 2013, 06:04:07 AM »

CharlieB

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Re: Impact of falling Yen on Prices
« Reply #7 on: April 10, 2013, 07:02:47 AM »
The exchange rate change might make grey imports cheaper.  To counter this, you might see more rebates and special offers rather than official price cuts.

+1

When you see B&H and Adorama start to offer significant pricing alternatives through grey channels, then you'll see some rebates from CUSA that "just coincidentally" almost perfectly offset those pricing advantages.  This has been the marketing scenario for a very long time.  CUSA also will configure those rebates on what is actually available, what is popular, what is actually selling, and... what they have in their own inventories.  There's nothing new to this at all.

squarebox

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Re: Impact of falling Yen on Prices
« Reply #8 on: April 10, 2013, 07:56:56 AM »
I doubt you'll see any price differences.  It seems that lens prices are determined with an exchange rate when they first come out.  As i have noticed that any new canon product that came out in the last 18 months was roughly the same price in USD and JPY.  However, anything older than that was SIGNIFICANTLY cheaper in the US and more in line with when the the exchange rate was more like 120 yen to the dollar.

I have no hard facts here, just something I've noticed with all the gear I have purchased recently from B&H because it's cheaper than here in Japan.
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Re: Impact of falling Yen on Prices
« Reply #9 on: April 10, 2013, 10:57:13 AM »
Every lens they replace with a new version comes in at double or triple the former price.  Costumers apparently still buying at this high prices. Why would Canon lower prices despite the value of the Yen? 

Pi

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Re: Impact of falling Yen on Prices
« Reply #10 on: April 10, 2013, 01:21:03 PM »
The prices of Canon lenses and dSLRs do not just follow the exchange rate trends. They depend on them, of course, but it is not that simple. Canon has is doing business in the USA as well, it is not like they have a factory somewhere in Japan, and price their equipment in yen. In the lest 7-9 years, the yen has been as low as 123 per USD, and as high as 75. The prices did not follow that wild ride. BTW, the prices of P&S went down.

Now, the yen is at its 2008-2009 levels. Do not expect the prices to go that low.

RGF

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Re: Impact of falling Yen on Prices
« Reply #11 on: April 10, 2013, 08:03:03 PM »
When the Pound fell against the Yen from @ 180 to @120 the prices of some lenses in the UK went up accordingly hopefully now the trend is the other way prices
will come down.
Alan

If the price internally in yen, then yes price should decline as the yen weakens

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Re: Impact of falling Yen on Prices
« Reply #11 on: April 10, 2013, 08:03:03 PM »