Prices...What The...???

Started Apr 14, 2011 | Discussions thread
tyyreaun
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Re: Prices...What The...???
In reply to moimoi, Apr 14, 2011

moimoi wrote:

Indeed but such reasons cannot explain the whole story. In fact, I would have expected lowering price to favor/boost sales.

I would be interested to find out what has been the impact on the sales due to this price raise.

What can't it explain? Supply was disrupted by what's going on in Japan. The earthquake, nuclear issue, and especially the lack of consistent power supply (rolling blackouts) have caused many of the plants to shut down, or greatly reduce output. This includes plants that manufacture the high-end glass and bodies, as well as plants that manufacture precision components that are then used to assemble consumer-level glass and bodies in China and Thailand.

Nikon's probably charging the same wholesale prices as before to the retailers, but the retailers realized that supply is drying up and they can charge full MSRP - or much more, in the cases of some less scrupulous shops.

That's supply and demand - basic microeconomics. You're saying they should decrease prices to boost sales. They don't have the inventory available to support the boosted sales.

Anyway, high-end glass is either a luxury product to higher-income consumers, or a business necessity to professionals. Either way, it's going to be a inelastic market, not sensitive to price changes, so it wouldn't make much sense to lower the prices regardless of supply.

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