Nikon rebate ends 1-31-09

Started Jan 11, 2009 | Discussions thread
Eamon Hickey
Veteran MemberPosts: 3,156
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In reply to wilkman, Jan 15, 2009

wilkman wrote:

... prices are very unlikely to rise IMO... this downturn is getting
funky.
2 out of 3 says they fall 15% by midsummer.

I suppose if Nikon finds themselves sitting on huge volumes of unsold inventory, they might go ahead and sell it at a very big loss, so I won't say it's impossible.

But when they raised prices in 1994-95, they hurt their sales very badly and lost a very great deal of money. But they did it anyway because they calculated that they would lose less money that way than they would if they kept prices stable and absorbed the currency losses.

When the value of the yen goes up, to Nikon USA it's exactly the same thing as if the cost of the raw materials in the camera goes up -- Nikon pays more to get the camera to market. The math can't be changed. Nikon USA would have to be staring at huge volumes of dead inventory to swallow a 15-20% currency loss, much less compound it by lowering prices another 15%, as you are predicting.

And if they have huge volumes of dead inventory this spring and summer, that's just terrible management.

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