Canon losing 30% sales to grey market

[mikew09]

It seems Canon Australia (and most likely Nikon Australia + all the other official distributors) who are the culprits.
If their mark-up is so high, it's no wonder local B&M stores can't compete, afterall you do have to make a profit, otherwise why do the trade at all.
I have noticed a trend lately though, at least with some Nikon gear, local prices were only about 5-10% higher so when you factor in things like GST, shipping etc. it's quite fair. If the difference is small I always still prefer a B&M store. I now have a good relationship with my local dealer and am happy with the face-to-face service. I always try to drive a bargain but it's pretty clear at what point they just can't compete.

Agree 100%. Ovwer time I have build a elationship with one store, one fella ducks for cover when I come in but my usual sales girl understands my wants price wise. Hence, to date, I have bought all my items bar one from my reguarlar store as they have discounted close to grey market. I am fore supporting Australian business and there is some benefits with building a relationship - as example - when I went in with a question about my warranty, I was offered an upgrade on the 12 month old 50D purchase to the new 5 yr warranty.

Just not sure if the current economics will allow locals to be as competitive as I have found them in the past.

[peterb666]

I understand thier prices need to be higher than online stores to employ people, but some shops have really poor service which gives you very good incentive to buy online.

Online stores employ people too.

[Xenedis]

Given the proliferation of information on the Internet these days (in the form of review sites, forums, etc.), it's arguable that the good old-fashioned service traditional camera stores provided, has since been superseded.

I'm the sort of customer who doesn't need to be educated about the product. I know what I want, I know the gear, and all I need is someone to sell it to me for a reasonable price.

I don't know how much of the buying market consists of people who really need face-to-face advice, but if the proliferation of digital photography and photography review/discussions sites is an indicator, I'd say that segment is a minor part of the overall market.

[peterb666]

Customer service is more than product information. It is being made welcome, being able to get what you want with a minimum of fuss and to get it at a fair price. I will always prefer face-to-face service however poor delivery is completely off-putting and far too common.

[Xenedis]

Customer service is more than product information. It is being made welcome, being able to get what you want with a minimum of fuss and to get it at a fair price. I will always prefer face-to-face service however poor delivery is completely off-putting and far too common.

It really depends what you want.

Personally, I don't need to be made welcome by going into a store. I'm after a specific thing, not warm-and-fuzzies.

Getting what I want with a minimum of fuss, and at a fair price, is very easy to do on the Internet.

Then again, I'm the sort who'd rather use an ATM than a human bank teller (back when teller service was more common).

If you prefer human interaction, that's entirely okay; some people do.

[sonofcoco]

It's not really surprising to hear I guess. I bought my 40D from a shop (Harvey Norman funnily enough - back before I had a clue about where I should get camera stuff from ). I bought four lenses from camera shops in Korea, most were significantly cheaper than buying in Australia. Most camera accessories, and my tripod, I bought online in Korea and made significant savings. In the end I saved about $350 on my tripod + ball-head, and $50 on a little digital level for the hot shoe. Online shops in Australia wanted $70 for the digital level and it was a model down from the one I got...I have no idea what it'd cost in a shop. It's ridiculous.

[ricktas]

I have heard a small rumour regarding prices and the difference they have around the world, in relation to camera companies. Stay tuned, there may be some very interesting news on the horizon.

[jgeor21]

Bought 7d + 17-55 lens from Australian business on Gold coast + Gst and still paid less than even online stores direct from Hong Kong no gst included. Looked for this lens in local stores and had trouble finding it, most did not stock it. Yes it was delivered direct from HK.
My point is the local australian busness with its local employees made a profit, the gove got there GST and I still payed alot less than RRP. Obviously there is a lot of margin for profit or margin for discounting in the rrp. No point been in business if you can,t make a profit / living, But imo Australian rrp is set way to high by canon. It would also be my guess it is Canon Australia making all the profit and not nessasarily the retailers.
My two cents worth.

[Mark L]

I have heard a small rumour regarding prices and the difference they have around the world, in relation to camera companies. Stay tuned, there may be some very interesting news on the horizon.

Does this mean I need to order a 60D from overseas now, or wait until my local overprices major retailer offers me a competitive price?

[peterb666]

I was led to believe by a wholesaler that import prices are normally set about once a year and normally around April. That means US prices will be going up as the USD has gone down. Most stuff is made in Asia which has generally done well compared to the USD. Australian prices should be coming down due to the change in USD to AUD and we have done even better than most Asian currencies compared to the USD.

But how much is passed on in Australia ??? Remember in capitalism, pricing is generally determined by what the market can tollerate and we are use to high prices.

[ricktas]

Does this mean I need to order a 60D from overseas now, or wait until my local overprices major retailer offers me a competitive price?

Lets just say that some camera companies are considering setting a worldwide price for their gear, that will mean you wont be able to get it cheaper via a grey market provider cause the price to them will be currency comparable to other countries. So places like Hong Kong may not be able to get the item cheaper, thus they won't be able to sell it cheaper.

So if an item costs $1000USD to buy from the manufacturer in the USA, it will cost 7769.50HKD (as at now) to buy the same item from the manufacturer in Hong Kong. Meaning there will be no cost saving by buying grey. At present, the same item is being sold from the manufacturer at different prices depending on the country it is being sold in.

Time will tell if this happens, but it certainly is being rumoured to being seriously considered by at least one camera company, and you can bet if one does it, the others will soon follow.

[colinbm]

Good in theory, but doesn't work in practise.
Countries with lower living standards have lower retail prices so as to get the market.
A $1000 washing machine costs $250 in Philippines for example.
Col

[peterb666]

Time will tell if this happens, but it certainly is being rumoured to being seriously considered by at least one camera company, and you can bet if one does it, the others will soon follow.

So are they going to jack up prices in every other country or will we finally get reasonable cost gear in Oz? BTW, as Oz has one of the lower VAT/GST rates in the world, it should make Australian rrp one of the lowest.

Still it is a nice thought but somehow I doubt that I will be holding my breath on this one as greed overcomes common sense, more often than not.

[Kerro]

Price is not an issue for me. If I want it I buy it. I prefer Canon.....

[Xenedis]

So are they going to jack up prices in every other country or will we finally get reasonable cost gear in Oz?

I'd be curious how large is the Australian market compared to, say, the US market or some European markets.

Australia is possibly a relatively small percentage of a large camera manufacturer's revenue.

[peterb666]

So if an item costs $1000USD to buy from the manufacturer in the USA, it will cost 7769.50HKD (as at now) to buy the same item from the manufacturer in Hong Kong. Meaning there will be no cost saving by buying grey. At present, the same item is being sold from the manufacturer at different prices depending on the country it is being sold in.

Hmm, you are right in that manufacturers generally agree to a price independently for each country but the initial cost price to the wholesaler is only part of the story. If parallel importing was widespread in Australia, there may be some help but as most major firms restrict trading to a single wholesaler and then there are large mark ups at the wholesale and retail level in Australia, you won't see much change.

If questioned on this lack of price movement, you will get the standard excuses of Australia being a small market, higher distribution costs, higher warranty costs, higher wages and...

Some things just never change.

I had the fortune of seeing the Jeff Carter photo exhibition at the State Library of NSW earlier this year. Jeff Carter bought his Nikon F bodies and lenses ‘illegally’ in Japan and back to Australia back in 1959/60 or thereabouts. It is much easier today with the Internet and eBay et al, but some things never change.

[peterb666]

I'd be curious how large is the Australian market compared to, say, the US market or some European markets.

There was possibly a hint of sarcasm in my previous statement. Our photographic market is insignificant on a gobal scale.

[Xenedis]

There was possibly a hint of sarcasm in my previous statement. Our photographic market is insignificant on a gobal scale.

That's no surprise.

[colinbm]

Everything in Australia is insignificant to the World.
Our whole population is just one city in many countries
Col

[BrascoDon]

This topic is very interesting I've been wondering all the thoughts raised I know about the importance of supporting local but like was mentioned when your talking $400 difference on a lens under 2k!!!
In Bris (also Syd) there is a B&M who sell at a lower price then many stores and you can walk in. Admittedly they don't spend time as other stores would/could. I feel it's only fair though if I intentend to buy offine that's where I'll research, as tempting as it may be to get the hands on reasurance, it's literally stealing to go get your hands on using up staff time to then turn around and buy from online. I've had the experience where I work of this occurring it was a bit low and another guy was quite angry at the fact (not in front of the customer mind). Was about a year ago since then they reassesed how the price structure is set up.