Camera Gear Costs More Right Now

[Canon Rumors]

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<p>I <a href="http://www.canonrumors.com/2011/03/earthquake-effect-on-canon-products/">mentioned a few weeks back</a>, that if you were going to buy anything camera related, that was the time.</p>
<p>There’s lots of reports of price increases across the globe. This was bound to happen as retailers were and are still unsure what stock levels are going to be like.</p>
<p>New rebate programs and other things have been cancelled or postponed.</p>
<p>There have been no price increases from Canon, only from retailers. They were running on a 3-5 point margin, now they’re up to 10 points or more in some cases.</p>
<p>This isn’t news to some folks, but I had to clear things up for others.</p>
<p><strong><span style="color: #ff0000;">c</span>r</strong></p>

 

[HughHowey]

So they're making more profit but more money isn't going to Canon?

 

[bvukich]

So they're making more profit but more money isn't going to Canon?

Price gouging is rampant.

Before this all happened I was going to pick up an 85/1.8, was $419, now $599+. Big box retailers (BestBuy, etc.), followed closely by Canon direct have become the cheapest option for anything they have in stock.

 

[AverageJoe]

But more importantly, what camera was used in that image? an AE-1 with something attached?

 

[bvukich]

But more importantly, what camera was used in that image? an AE-1 with something attached?

Canon Flex or Flex R2000 + external exposure meter.

 

[Etienne]

So they're making more profit but more money isn't going to Canon?

Price gouging is rampant.

Before this all happened I was going to pick up an 85/1.8, was $419, now $599+. Big box retailers (BestBuy, etc.), followed closely by Canon direct have become the cheapest option for anything they have in stock.

Still $419 at B&H and $414 at Adorama

 

[armando]

I headed the warning and bought what I could afford.

 

[Admin US West]

Yup, I bought a used 35mm L along with a 135mm L for $1750 as a package deal. Both are perfect, and focus is fast and accurate, I tried them first, of course.

I think that if I wanted, I could sell them right now for more than I paid. I've seen new 35mm L's going for close to $2,000.

 

[jebrady03]

Price gouging is rampant.

My understanding is that the term "price gouging" should only be used with necessary goods and services such as fuel, food, shelter, etc. No matter how much we depend on our gear, I can't see any court of law agreeing that camera gear is a necessity.

My understanding is also that there needs to be a sharp increase in price either before or during a disaster situation. In this case, the increase is in response to a disaster (although I acknowledge things are not back to normal yet - so perhaps this isn't quite as strong a point as the one above).

I believe that retailers are simply living by the laws of economics and specifically, supply and demand. Supply has and/or is rumored to go down, demand has basically stayed the same and perhaps has gone up because of all those who rushed out to grab the gear they've been planning to buy. A free market would dictate that the price goes up with either supply dwindling or demand ramping up. In this case, we likely have both!

I see nothing wrong with what's happening and in fact, if the prices stayed the same, I'd suggest that they were artificially high (possibly suggestive of price fixing/collusion) to begin with.

So this really shouldn't be a surprise for anyone.

 

[Admin US West]

ebay prices approximate the free market, and they are going up and up. This is a bidding site, so price gouging doesn't apply to auctions.

As to dealers, if you have a limited supply, and more buyers than product, then why not raise the price. You will not be making any profit if you can't get new stock, so you need to get what the market will bear for existing stock.

Once stock is easy to get, then drastic markdowns and hair thin profit will once again be the order of the day. We just don't know when that might happen, but it will be months at best before pipelines fill up.

 

[Kuscali]

Honestly this was brought up in another forum, but the American dollar has taken a beating as well. Bodies are cheaper here in Canada then they are in the United States, but lenses are cheaper in the United States then in Canada.

I just don't like the attitude of some people, some people even asked if the equipment would be contaminated with Radiation!

 

[Etienne]

Honestly this was brought up in another forum, but the American dollar has taken a beating as well. Bodies are cheaper here in Canada then they are in the United States, but lenses are cheaper in the United States then in Canada.

I just don't like the attitude of some people, some people even asked if the equipment would be contaminated with Radiation!

Lenses and bodies are cheaper in the states, if when the dollar is at par.

 

[Hillsilly]

Currently, it is just as cheap to buy camera gear locally in Australia than import it from the US (factoring in deliver and GST). Its the first time that I've ever noticed that. Given that locally supplied gear has correct warranties, the right power plugs etc, I'd be silly not to give the local guys my business. I'm sure that other people around the world are thinking the same. While some of the big US stores might be taking advantage of prices - it will backfire as they lose international sales, as currently the USD is at record lows compared with many major currencies. BH Photo, Adorama, Amazon etc should be taking advantage of this and using this as an opportunity to increase their international sales and generate increased profits. I hope that they will realise this sooner, rather than later.

On a similar topic, has anyone else noticed the increase in shipping costs out of the US over the last two years? What's going on with that? I heard it was due to terrorism laws, but businesses are trying to send things out of the country, not bring them in. If businesses in the US want to become internationally competitive again, shipping prices are a good place to start.

 

[Kuscali]

Honestly this was brought up in another forum, but the American dollar has taken a beating as well. Bodies are cheaper here in Canada then they are in the United States, but lenses are cheaper in the United States then in Canada.

I just don't like the attitude of some people, some people even asked if the equipment would be contaminated with Radiation!

Lenses and bodies are cheaper in the states, if when the dollar is at par.

Right now the 7D and the D7000 can be found for in Canada for prices, that are less than Store in the United States.

 

[Hillsilly]

An example of shipping prices - to have a 5d delivered from BH Photo is $US90.36. A couple of years ago, a similar item would have been approximately $45 - $60.

 

[traveller]

In the UK, I haven't noticed prices rising, but then they started a whole lot more expensive than in the USA (taxes!). Then again, the Camera Price Buster website definitely has fewer price drops in recent weeks, so it looks like retailers aren't discounting nearly as much.

Somewhat off topic, by comparing the prices in the Canon Camera Museum to today's using a website like http://www.measuringworth.com, you can get some interesting results (I would give figures, but I can't get this site to load at the moment!). You might want to be careful if inputting the Yen price and using the average earnings metric, as the average Japanese person was relatively far less wealthy than the average American or even British person back in the early 1960s (something we often forget). Does anyone know the release price for this model in GBP or USD?

 

[KBX500]

Financially, the photographic divisions of Canon, Nikon and Sony should withstand the disaster in Japan without excessive difficulty. The loss of some of their production lines for one to two months is a major blow to quarterly projections, but for the most part, sales deferred for now will be largely made up by the end of the summer. By this time next year they'll be back to normal, at least let's hope so. As corporations, operating world-wide and with many divisions, each is sufficiently diversified that the impact on their bottom line is lessened even more.

However, the situation for photographic equipment retailers is dramatically different. Canon, Nikon and Sony likely comprise the majority of their regular, high dollar sales and with their stock not being replenished, those retailers are faced with the loss of the cash flow that is their business. They now have to extract the same gross profit they would normally generate in March, April, May and June (?) on cameras, lenses, flashes, etc., from the stock they have on hand, or what little is left in the pipeline. If they don't they'll have to start laying off employees, or cutting wages or benefits, or hours, or...

So what are they supposed to do ? How many of those shop owners have had a good nights sleep lately. None, I'd say. How many of those employees are sleeping well ? Keep in mind that the employees that these camera shops are about to lay off typically make a pretty good living. They have kids, car payments, mortgages and an endless number of bills to pay just like we do. If their employer doesn't have stock for them to sell how long will they be employed ? What are they going to do.

So before you complain of price gouging, or the naturally occuring price increases, consider the whole range of issues that have arisen due to the Earthquake and Tsunami. Show a little consideration. Be kind.

 

[stark-arts]

The price of gas/fuel has gone up dramatically in that time frame. So besides delivery the cost of flying, driving, and boating have gone up as well. Since that is what UPS and FedEx use to deliver things I think you can figure that out if you take a second.

 

[Hillsilly]

I agree that fuel is expensive, but its not like these companies are filling up their jets and ocean liners at the local gas station. Current international fuel prices are significantly lower now than compared with three years ago.

 

[hutjeflut]

dont be surprised its bin happening for the past year and a half ! !