How is Canon going to compete with the grey market in Australia?

[MyPhotographer]

I just came across this article today - http://www.channelnews.com.au/Digital_Cameras/Compact_DC/V8E9H8M6
New Canon EOS 5D Mark III Set To Be Available Via Cheap Grey Channel

Given that Sigma have been price matching the Grey market for over a year, and Nikon planning to "match overseas grey pricing and supply a two year warranty to consumers who buy their products via a Nikon approved retailer", what are Canon going to do to support those of up trying to attain CPS membership and purchase through the "authorised" distrubutors?

I'm already finding it almost impossible when trying to sell my old lenses when I upgrade to newer versions - even when still under warranty as i'm competing against new product through local comsumer stores that sell so much below what i purchased it for. Getting a 30% return on a 1-2 year old lens is financial suicide - Another reason for longer refresh times from the market.

Maybe if enough of us in Australia request a fair go from Canon they may do something - especially with the strength of the local currency.

 

[Bennymiata]

Nikon fixed this problem by forcing its retailers in the US and Asia to only sell their cameras for a fixed (and higher) price, to bring world prices into line, so in the end, Nikon users in Asia and the US are now forced to pay more.
Not a good thing as it stifles competition.

Canon Australia couldn't give a rats you know what about Aussie users and what they have to pay locally, and if you buy grey, and have a problem they won't warrant anything and if you do send a grey import to them for repair, even though you have to pay for the repair, they stick it on the bottom of the pile just to punish you.

I can't understand why multinational companies like Canon don't have similar pricing worldwide for thier products, taxes and duties excepted of course, but it does show that either the local companies want to make more profit in some areas than others, or countries who buy more get it cheaper.
Personally, I think Canon Australia are just plain greedy, and the margins they give their retailers is pretty poor too.
The best way to get back at them is just to buy grey!
Complain with your wallet, and don't give them any of its content and buy where you get a reasonable price and good service.

 

[djw]

Interesting, as reported on Nikon Rumours, it looks like Nikon Australia have come to the party and priced the AU stock the same as grey imports (through JB HiFi).

Canon AUshould follow their lead.

http://smarthouse.com.au/Digital_Photography/Industry/A9P7P5N4

 

[djw]

Is the mark ii getting a price drop in Australia as it has in the US?

 

[nighstar]

interesting... thanks for the link. i had no idea that Nikon had stepped up to the plate and were trying to be more competitive in Australia re: the gray market. if Canon doesn't do the same...... with that on top of the ridiculous RRP for the Mark III, i am going to be so. pissed. off.

.....but at the same time, what can you really do? i fear that Bennymiata is right, Canon Australia really doesn't give a rat's a$$ about what its customers have to pay. and they should, obviously, because if enough people go gray it would be a problem for them. on the other hand, i think that it's really only prosumers and pros who are willing/knowledgeable enough to go gray, which is only a small percentage of their costumers. if only a small percentage of their costumers go gray, it really isn't that much of a problem for a huge company like Canon.......

sigh.

i would go gray myself, but i really want a genuine Canon warranty, especially for a brand spankin' new product that hasn't even been properly reviewed yet. :/ maybe a letter, as dilbert suggested, would be the way to go, but i really can't see it accomplishing anything. :'(

Is the mark ii getting a price drop in Australia as it has in the US?

some places have already dropped the price, from what i've seen.

 

[te4o]

@topbuy.com.au the 5D2 is at 1939 AUD and dropping...
They give full Aussie warranty as stated on the website and are legal greys... I bought two CZ ZEs from them and it was quite straight forward. A friend got the 5D2 and is happy. I'll probably buy the 135/2 for 860 a d the 85/1.8 for 380 until they stock the 5D3 for a NORMAL PRICE! I think this is the only way to teach Canon Au .

 

[4thchicken]

http://smarthouse.com.au/Digital_Photography/Industry/A9P7P5N4

great work nikon. Hopefully canon australia does the same!

 

[MazV-L]

I really feel sorry for the owners of the small camera stores, there just seems to be so many closing down in the last few years, if you don't live in a major city want to buy direct from the store there's no options anymore except chain stores such as Harvey Norman or Dick Smith Electronics and they generally only stock consumer gear anyway. If I'm planning on making a major photography purchase, it's an 8hour trip for me to my favourite photo-gear store or buy on-line, but I won't touch grey-market.

 

[Rampado]

where is the origin of AU grey market? USA or Hong Kong?

 

[4thchicken]

where is the origin of AU grey market? USA or Hong Kong?

mainly HK - though people do order from US (B&H etc) - There are also a couple of singaporean based companies (DWI/DD electronics) though not sure if thats HK stock as well or not.

Basically importing from most places in the world would be cheaper than australia and the asking 4.2k aussie price (is effectively 4.5k USD at current 1.07 exchange rate)

 

[stessel tank]

Canon australia seem to stick its head in the sand and hope grey imports will go away

My way of thinking is I am not buying a grey import becauce i buying from Canon dealer network in Japan

I travel to Japan each year and i can't believe that if i buy something from the sorce "Canon Japan" Dealer network canon aus won't warrant it in Australia

But it does not worry me re;Warranty if i need a service or warranty repair i get it done on my next visit to Japan
and don't get me started on cps aus service pricing and slow turnaround time, in Japan you can drop camera off for service eg. shutter replacement will be ready next day and much cheaper as well

With the aus dollar being so much higher then the us dollar and then you look at the canon usa pricing being so much lower then Canon aus retail pricing ???

I would not mind paying a % more if i got something in return e.g maybe a 2 or 3 year warranty from canon aus

Give us something in return for the extra $$$$$ profit you want to charge the australian public

 

[april]

maybe a letter, as dilbert suggested, would be the way to go, but i really can't see it accomplishing anything. :'(

It forces Canon Australia to acknowledge and respond to the issue.

You may get a letter back from Canon that is just rubbish (they ignore the issue or pretend that nothing is wrong) but if you do, that's the kind of letter you photograph and upload to your blog/facebook/canon rumors. That can bring about change.

Of course, they may just ignore you, but companies very rarely ignore written letters to their CEO if the letter is well constructed and is intelligent (i.e. it doesn't rant.) Why do they take them seriously? Because very few people make an effort to actually do so.

maybe we can send that sort of letter with all our signatures on it

 

[april]

honestly I'm a bit confused about this grey market thing. these products are sold by well known companies so I suppose they're not illegal, we also get the same product as being sold by local big retailers with the same 1 year warranty and I believe these products are from the same manufacturer which is CANON, so what's the difference?

 

[4thchicken]

honestly I'm a bit confused about this grey market thing. these products are sold by well known companies so I suppose they're not illegal, we also get the same product as being sold by local big retailers with the same 1 year warranty and I believe these products are from the same manufacturer which is CANON, so what's the difference?

Only difference is that the items are not imported via the official importer (i.e. canon australia) and are therefore not subject to price gouging/profiteering by the importer. Based on current exchange rates, there's an approx $1000 USD price difference b/n US and australian pricing of the 5dIII. Even taking into account taxes and potential shipping cost differentials, canon stand to make a bucketload by putting up barriers to prevent nasty grey importing (i.e. not providing warranties) and encouraging people to 'buy local'.

 

[nighstar]

honestly I'm a bit confused about this grey market thing. these products are sold by well known companies so I suppose they're not illegal, we also get the same product as being sold by local big retailers with the same 1 year warranty and I believe these products are from the same manufacturer which is CANON, so what's the difference?

in addition to what 4thchicken said, i see it this way:

local stores bring products like the 5D Mark III to a store near you. support them in this effort. they don't like the ridiculous prices that Canon puts out anymore than customers do, so don't punish them by withholding your business because they aren't the ones who set the prices.

just my opinion on the whole "let's go gray!" thing.

 

[simonxu11]

honestly I'm a bit confused about this grey market thing. these products are sold by well known companies so I suppose they're not illegal, we also get the same product as being sold by local big retailers with the same 1 year warranty and I believe these products are from the same manufacturer which is CANON, so what's the difference?

in addition to what 4thchicken said, i see it this way:

local stores bring products like the 5D Mark III to a store near you. support them in this effort. they don't like the ridiculous prices that Canon puts out anymore than customers do, so don't punish them by withholding your business because they aren't the ones who set the prices.

just my opinion on the whole "let's go gray!" thing.

You do have a point!
But my nearest camera store is Ted's :'( :'( :'( :'( :'(

 

[djw]

The topbuytop prices look pretty good.

They get a good eBay rating; has anyone had experience with them?

 

[april]

Only difference is that the items are not imported via the official importer (i.e. canon australia) and are therefore not subject to price gouging/profiteering by the importer. Based on current exchange rates, there's an approx $1000 USD price difference b/n US and australian pricing of the 5dIII. Even taking into account taxes and potential shipping cost differentials, canon stand to make a bucketload by putting up barriers to prevent nasty grey importing (i.e. not providing warranties) and encouraging people to 'buy local'.
[/quote]

ahhh ok so the main key here is canon australia and that they wanted to monopolise destribution and deny competition.....how greedy is that?. on the marketing side where canon global has given the SRP this means all the dealers and retailers have their mark up already on that price... and they still want more!!! when I was undergoing bussiness training some years ago, I was taught to have at least 50% markup for the every product to keep up. I can just imagine how much the camera is really worth thinking that it gone through so may hands before it reaches me.

 

[nighstar]

in addition to what 4thchicken said, i see it this way:

local stores bring products like the 5D Mark III to a store near you. support them in this effort. they don't like the ridiculous prices that Canon puts out anymore than customers do, so don't punish them by withholding your business because they aren't the ones who set the prices.

just my opinion on the whole "let's go gray!" thing.

You do have a point!
But my nearest camera store is Ted's :'( :'( :'( :'( :'(

well, by "local" i don't necessarily mean only stores that are physically near you. there are Australian-owned & run businesses with Aussie stock that have websites and who ship nationally, like CameraPro in Brisbane or Leederville Camera in Perth. both have the Mark III and ship Australia-wide.

 

[te4o]

I can't support rip-offs. No go. If there's a cheaper price this should be the paid price. Fullstop.
If these go-betweens can't survive, sorry, they'll have to find another business. Or adapt to markets. There are many bad things about globalization, this is one of them. But the good thing is that we can exchange opinions and reviews and this helps with choices.
Yes, topbuy did a good job for me. I had to find out some days after ordering that they wanted me to confirm a minor VISA-card top-up amount which helps them against fraud. This made a good impression to me even if it doesn't prevent fraud but still. The only thing which I don't like are the separate shipping costs for all items, you can't get a bulk shipment (like DSLR+battery+grip+lens++++). But this relieves me from the pressure to order everything at once!