Canon 1DX pricing in Australia

[P_R]

Hello,

I purchased a 35L just before flying out to Europe in 2010. I received the GST back (GST is equivalent to the VAT in Australia) on departure. I thought I would have to pay the GST on re-entry, but no. I was advised at departure that since the unit was would have been used (it was!) I would not be asked to pay it.

So if I went to the US to purchase a 1Dx (likely if it is $9990 here!), then I would definately use it and claim it was no longer new. I would be the last person to try to dodge a legitimate tax, but from my experience with the 35L, it would not be the case.

More generally, is there a time limit? If I went to the states, purchased a 1Dx and then stayed for x months / years all the while using it, would I still be expected to pay the GST on return? I suspect the on-line purchases would be vulnerable to such taxes, but in person purchases should be exempt. At least I would hope they would be.

 

[wopbv4]

Hi,

in general cameras and lenses are expensive in Oz. A EF 70-200mm f/2.8L IS II USM will set you back around 2800-2900$ while you can get them around the 2000$ mark from B&H.
I had a chat with Camera Electronic in Perth (very reliable) and they confirm $9999. I complained as well and they say that their price is based on canon price with their usual mark up to sustain their business.
Looking at the price ratio for a EF 70-200mm f/2.8L IS II USM, which ~ 1.5 then the $9999 makes sense.
I do NOT like it either, but please do not blaim the retailers, they have to make a living as well.
It is a fact that canon is forcing a base price on them and the result is that we pay a lot more in Oz.

 

[kimloris]

It would be interesting to know how many Australian average monthly salary is the 1dX ?
When I was living in Thailand, a lot of the same brand were priced way cheaper than in France... Although, it was still unaffordable for most people there...
But 45% more just doesn't make any sense...since I doubt that people in Australia make 45% more money in average than US people.

 

[Khristo]

Taxes and duties here in Oz have some impact, but there are similar taxes in other countries as well. Simple fact is that it's a marketing decision taken by Canon to charge more wholesale in Australia than in other markets (obviously pushing up retail and even used prices).

E.g. if they decided to charge 10% less, they would sell more gear, but they might need to sell something like 25-30% more units to make up the margin $ (plus more because of increased financing and other unit costs). There are lots of components to the pricing decision (competitors/market share; pro vs consumer; grey market/isolation; warranties etc), but ultimately Canon takes a decision to charge what it thinks will maximise profit in a particular market, and unfortunately we here in Oz have a reputation of being prepared to pay more. So we get it in the neck on cameras, cars and lots of other stuff.

I downloaded the trials of LR and PS a couple of weeks ago - just to have a play. Even though it's a download and there are no issues with distribution costs, they still cost hundreds of dollars more here - no reason other than Adobe charging what they think will maximise profit. So I'll keep on with DPP and GIMP (should get it right in the camera anyway!!!) as a matter of principle.

Canon knows perfectly well that I and others would go out tomorrow and spend $$$$ on new gear if we could get an equitable price - but they would loose on all the pros (who will buy anyway) paying less - it's not personal (even though it feels like it!!!) it's just business. So, I'll stick with my 40D (good camera!) and Sigma and Tamron lenses - maybe one day it will change (it already is on the lower priced consumer gear - that's pretty much at parity with world pricing. Just the higher end bodies and L lenses, where the market forces are different.)

Waiting to buy a 5DII (or III?) + 16-35 + 24-70 + 70-210 - as soon as the price is equitable!!!

 

[PeterJ]

It would be interesting to know how many Australian average monthly salary is the 1dX ?
When I was living in Thailand, a lot of the same brand were priced way cheaper than in France... Although, it was still unaffordable for most people there...
But 45% more just doesn't make any sense...since I doubt that people in Australia make 45% more money in average than US people.

Australian median salaries are normally a few thousand below the USA. Some cost of living things are cheaper, some are more expensive but in general things are close enough that you might as well say a $AUD7000 camera is about as affordable to an Aussie as a $US7000 camera is to an average US citizen.

 

[gmrza]

Hello,

I purchased a 35L just before flying out to Europe in 2010. I received the GST back (GST is equivalent to the VAT in Australia) on departure. I thought I would have to pay the GST on re-entry, but no. I was advised at departure that since the unit was would have been used (it was!) I would not be asked to pay it.

So if I went to the US to purchase a 1Dx (likely if it is $9990 here!), then I would definately use it and claim it was no longer new. I would be the last person to try to dodge a legitimate tax, but from my experience with the 35L, it would not be the case.

More generally, is there a time limit? If I went to the states, purchased a 1Dx and then stayed for x months / years all the while using it, would I still be expected to pay the GST on return? I suspect the on-line purchases would be vulnerable to such taxes, but in person purchases should be exempt. At least I would hope they would be.

When I moved to Melbourne from Johannesburg, the "test" that was applied was that anything older than one year was treated as "used" and would not attract duties or GST. I am not certain what would be the case for an Australian resident purchasing and using something overseas and then bringing it back. I would not be surprised if the rule of one year also applies.

As for pricing of the 1DX in Australia, let us hope that Nikon does not come in as high as Canon. I suspect Canon will initially try to make as much money as possible off those those who cannot avoid buying a new camera, and prices will slide after that. Those who buy within the first year will probably pay the most. Unfortunately, we may need to buy a new full frame body at the end of this year - that may land us having to pay top dollar.

It would be nice if local subsidiaries of equipment manufacturers were forced by law to honour international warranties. That would probably start to put prices under pressure.

Just as an aside: if you think Canon charging 50% more in Australia for a camera body is bad - take a look at the prices of hiking equipment - anything from Cascade Designs (MSR, Thermarest etc) usually costs double the US MSRP. It is similar with pens - the most perverse example I have come across is that nibs for Lamy fountain pens have a MSRP of $29 in Australia, when I can get them for 4.20 € ($5.17) from Germany!

 

[Speed]

Hmm, I hope these prices are not true. I have two 1DX's on order & have already paid a 2K deposit but I'm certainly not going to pay 6K just for an Australian warranty.

Looks like I may need to cancel my Oz order & get them from overseas.

 

[Hillsilly]

There are several high profile Australian businesses that import grey market bodies and lenses. Lately, the prices have been on par with the USA - especially if you are able to claim back the GST. They generally offer warranty options. Its only by buying from overseas, or buying grey market that Canon Australia will realise that we're part of a global economy and pick up their game. Personally, I've never bought any Canon from an Australian retail shop. In some ways, I feel a bit sad about that. But for me, the price mark-up is too high.

If you don't own your own business (and can't claim back the GST and claim depreciation), discuss salary packaging it with your employer. Provided that you can show that it is:

A tool of trade (after all, I assume you take photos at work??);
That it is a "portable electronic device" (it could be - it fits the definition, but this section was intended to cover laptops and phones and I haven't had to look if cameras are included); or
Is otherwise deductible (because you'd be able to claim a deduction on your personal return),

Then, a $9900 camera will actually end up only costing between $4815 (if you're on a 46.5% tax rate) to $6,165 (if you're on a 31.5% tax rate). This makes it a bit more palatable.

 

[PeterJ]

If your business is buying it then you should be subtracting the GST from $9990.

So if you had your own business in Australia and bought the 1DX locally as part of the equipment necessary to carry out your work as a professional photographer than you claim back the GST, meaning the end price is $9082. If your company were to import it from another seller in the USA, cost is going to be ~$7500 for the camera plus shipping plus insurance.

$1500 difference to a business.

Sure on the GST part, but if you're paying $700 for shipping and insurance on a single camera you're doing something wrong. I'd expect more like $250 at retail cost (for a few weeks delivery) considering every freight company I can think of charges < 1% insurance to Australia. If you're a reseller with a half-decent freight contract I'd say importing 10 would be more like $300 for freight and $700 for insurance giving $100 a piece.

Then remember an Australian Canon reseller should be getting a wholesale price, if you buy from a US retail outlet they've already taken an extra cut as well. Sure I'd expect them to cost a bit more here, but an extra few grand sounds a bit rich to me.

 

[AG]

I think the thing is that these companies that are importing the camera and forcing the higher prices are also the ones that are complaining that people are buying "Grey Imports" and also internet/online stores such as DCW and eGlobal etc.

The fact is that until we the consumer stop purchasing at these higher prices they will not re examine the pricing rates.

I have heard prices range from $10k down to as low as $6500 for the 1DX. The main difference being that one is from a bricks and mortar store and the other is from an internet based one.

There is no such thing as a counterfeit DSLR camera, sure they may have different plugs and or crappy manuals but then you can always buy these things with the money you save or download the manuals from the Canon site. (here when available)

It all balls down to warranty and how much is it worth to you?
The convenience of being able to take your camera back to the place of purchase to get it repaired compared to the weeks it could take to ship it back to china or wherever the online store is located.

either way I'm waiting on more solid pricing (and not just pre order) to emerge from places like B&H and the other online stores so we can see what we are really paying.

 

[wickidwombat]

also if you are a business and you buy it from say B&H
it comes through customs and they hit you up for the GST it doesnt matter
because you claim it back anyway so the net cost to your business is the same
the real difference is $6800 compared to $9000 after GST is credited back, give or take a bit depending on actual prices, thats $2000 or so per body and if you are likely to be getting 2 or 3 or more bodies it adds up real quick and the benefits to buying local diminish very rapidly. Just because people are buying it for business use doesnt mean they are not going to take note of savings of this magnitude.

 

[pwp]

Where was the original information about the Australian pricing of the 1DX?
I've done a search and found nothing.

Paul Wright

 

[MazV-L]

Where was the original information about the Australian pricing of the 1DX?
I've done a search and found nothing.

Paul Wright

It's advertised for $9,999.00 at Digidirect.com.au

 

[gmrza]

It's advertised for $9,999.00 at Digidirect.com.au

... which is the same price that they have listed for the D4. I doubt the number is real.

<edit>
I just saw that according to CNET (http://www.cnet.com.au/canon-powershot-g1x-339328515.htm Canon has set a tentative MSRP of AUD 849.00 for the G1X - $50 odd higher than the USA launch MSRP. Hopefully that bodes well for the 1DX price in Australia. Of course the G1X and 1DX target totally different market segments, so Canon Australia could have totally different pricing strategies for the two.

 

[pwp]

It's advertised for $9,999.00 at Digidirect.com.au

... which is the same price that they have listed for the D4. I doubt the number is real

Ha! Yes I doubt we'll see anything resembling real 1DX pricing until it actually starts shipping.
Just for a laugh I did a tighter search and found the 1DX is available for just AU$15,999. Better line up for this one...

http://www.techrific.com.au/product_info.php?products_id=2403&cPath=127#myshopping&utm_source=myshopping&utm_medium=cpc&utm_campaign=Digital+Cameras&utm_term=Canon+EOS+1DX+1D+X+Digital+SLR+Camera+Kits+Body+Only+NO+Credi

Paul Wright

 

[MazV-L]

It's advertised for $9,999.00 at Digidirect.com.au

... which is the same price that they have listed for the D4. I doubt the number is real.

???I don't know where it is that you saw the price of the D4 the same as the 1Dx, I just checked their site, they're selling the 1D4 for $5,699.00 and the 1Ds3 for $7,399.00, both considerably less than their 1Dx price!

 

[Khristo]

It's advertised for $9,999.00 at Digidirect.com.au

Hopefully that bodes well for the 1DX price in Australia. Of course the G1X and 1DX target totally different market segments, so Canon Australia could have totally different pricing strategies for the two.

I hope it bodes well too.....but seems unlikely. Canon Australia has been forced to reduce prices of the lower end gear to international levels - e.g. I think 60Ds are pretty much the same here as anywhere. If you go higher up the totem pole the gap is still there.

Anything up to $1000 you can import grey with no GST - so that makes a big difference which Canon has to fight with more aggressive pricing here.

I think the most important thing is that if you're buying a "cheap" camera (of course that's relative!!) you might be happy to risk a non-Canon repair if something breaks. But if you've shelled out big bucks for your dream camera and lens(es) and you're not quite sure if it's working perfectly and you want to be able to take it to Canon and ask them to check it out - well you can't if it's grey. (For L lenses they will apparently honour international warranty, but not bodies). You could probably pay for them to check it out, but it's possible that they might just refuse to touch it - they are under no (legal) obligation.

So you can pay a fair (grey market) price and hope for the best, or pay Canon Australia a few hundred (or thousand) $ extra "insurance" for a Canon warranty.

Or be happy with what you've got and not upgrade at all!

 

[Speed]

It's advertised for $9,999.00 at Digidirect.com.au

... which is the same price that they have listed for the D4. I doubt the number is real.

???I don't know where it is that you saw the price of the D4 the same as the 1Dx, I just checked their site, they're selling the 1D4 for $5,699.00 and the 1Ds3 for $7,399.00, both considerably less than their 1Dx price!

http://www.digidirect.com.au/slr_cameras/nikon/nikon_d4_digital_slr_camera_body

 

[AG]

Just noticed that the $6800USD does not include their Sales Tax.

That can vary from state to state from 0% - 18% depending on where your located.

Might pay to add that to the price also (average is 14%) but even then its still way cheaper than what we would be slugged.

Funnily enough i have been getting told the same kind of wild prices for the 5D3 pre orders too.
Everything ranging from $2500 - $7000.

Instead of the companies saying "we don't know" they take a wild guess and get you to put a deposit (the bigger the better) onto a camera you have no idea of the cost so you can be one of the first adopters.
why?
Simple ... remember the waits for the 5D2 last time?

This is why they do it.
If it comes out and you have paid a $2000 deposit on what you thought was going to be a $5000 camera and the final RRP is $2800 you only have $800 difference and so think that its was a bargain.
It gives the company ordering it for you the ability to say, we got you the best deal we could, and they come out the heroes.

Either way i just wish they would hurry up and give us more details on these cameras (1DX, 5D3, CinemaDSLR, C300) so we can work out what the damage will be to our credit cards.

 

[Mark1]

I live in New Zealand and have the same problem with the pricing of Canon gear. I find it hard to justify supporting my local camera shop when their price is 30% higher than on Amazon USA. Parrallel importers (with an office and back-up in Auckland) are a good 30% cheaper on some lenses.

I too believe that it is Canon NZ keeping the price artificially high for whatever reason. Maybe because they need higher margin to support the cost of having offices in a country with a much smaller market?

Whatever it is, I can buy a brand new 5Dmk2 on Amazon for less than a used one on internet auction site here in NZ. You do the math

I'd love to buy the next generation full frame 5D equivalent but I know it will be daylight robbery for the first 6 months of being available.