What is the markup on cameras?

Started Dec 26, 2009 | Discussions thread
naurholm
Senior MemberPosts: 1,282
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Re: What is the markup on cameras?
In reply to sno1man, Dec 28, 2009

First off I have no experience in camera shops but have been working other stores including computers and cellphones (subscriptions)

sno1man wrote:

jeffpc2000 wrote:

Considering 20-25% price difference between retailers in Canada and another 15-25% CAD-US, I say they make 80-100% on each camera at list in Canada.

Do not believe 7-10% talk, most of the retail business makes 100% on every little item they sell or more, if somebody says they do not; they are retailers protecting their profit. It would be impossible to pay for rent on 7% margin at down town location, not to mention salary for 10 people, insurance etc.
(they will respond to my post about not having idea about business etc…)

I just learned how much high end road bicycle cost. Store sells it for 5000-8000$ if you order parts from manufacturer it will cost you about 2000$. Same applies to ski equipment and many others.

Check prices on different stuff at the source: Taiwan or China, you will be surprised how much they run at.
Canada prices: Henrys, Vistek 5d Mark II 3299.00, Aden Cameras 2699.00

That is 600$ difference about 18% from 3300$, Both Vistek and Henrys will match Aden price without even checking the website.

Henry’s is big chain with many employees and many sq/ft of retail space, Aden small shop on Young without big advertisement campaign etc. When you look at two stores you will need to expect price difference, same as with grocery prices at Loblwas and Chinese grocery corner store.

I dont believe this guy knows what he's talking about.

Seems so

1. There is a difference between a 25% markup and a 25 margin, accounting 101....

Indeed there is but look longer down cause you seem to neglect this your self

2. Back in the film days I was a manager at a medium camera chain in the southeast. It was common to have a single digit percentage markup on slrs and also common to have a 40 to 50 percent markup on a bags and tripods and even more on batteries and filters, for example a UV filter that retailed for 12.95 would cost us $2.00. You bet the employees pushed those.

Good for you I'm pretty sure it's the same today, you have luring products to attract the customer and then sell them latent need products (USB Cables, card-readers, extra batteries you name it) this latent product generally see a markup of > 100% which leaves a complete margin around 6-12% depending on how good your employees is at selling "extras"

3. Advertising CO-OP was another source. I E. if you advertised the Canon AE1_program, Canon would pay x percent of the cost of the ad (based on the size of the product relative to the overall ad. If you did the ad right, the manufactures co-op paid for the ad. By the same token it was common to sell the hot cameras at or near cost (so you would buy it plus the accessories and start using the photo finishing which had good margins in the range of 40-50 percent)

Still viable as I stated one point up, again don't know the notations on cameras but figure it on "extras" that they gain the margin

4. There was very much a pay your bill in 45 days and get 3-4% off the order. You can bet that we put some items on sale if they were getting close to the 45 day line.

This goes for any business, I take money from client, but don't pay my sources till around 30-60 business days after depending on agreement. (again if your good this is where you make the real margin in your business (dangerous as hell if your not)

5. Service contracts had a 90% markup and were pushed hard. If you thought they were a good deal or not depends on perspective. The odds of having your camera fail outside of the manufacturers warranty period were small (less than 3%). Most that did fail did so within the first 90 days. That being said if your camera did die after the warranty period the cost of the contract was a bargain compared to the cost of repairs especially as the camera's got more electronic

This is what most business owners calls free money, you insure a product for your client which is then re-assured through a 4th party insurance company, 1st party (customer) 2nd party (business) 3rd party (insurance company) 4th party (financial re-assurance company)

6. Last but not least there seems to be a common perception that stores of any stripe markup things 500% and make tons of money. The reality is that a business is doing very good to hit a high single digit percentage profit margin and fantastic if they hit 10%

Here you swipe the explanation of the difference between markup and margin
1.) Markup -> The gross difference in purchase and sales price

2.) Margin -> The net difference all costs taken account for between purchase and sale (remember: Salaries, rent, taxes, VAT, power, internet, phone, etc (LONG list) )

Now it's possible that things have changed with digital and i suspect that if anything it's only gotten tighter with so many other sources of the gear.

Depends on how you marketing your business and run it, a lot of people still prefer personal service, you just need to find the mix between acceptable prices and level of service.

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