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

Started Apr 14, 2011 | Discussions thread
moimoi
Senior MemberPosts: 2,691Gear list
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Re: Look at the price of a new D700!!!
In reply to Digetydog, Apr 15, 2011

Digetydog wrote:

moimoi wrote:

Amazon and Adorama > 3000 USD

There has been a supply disruption. When supply goes down, prices gio up. It is as simple as that. While some of the disruption is at Nikon plants, there are also disruptions with suppliers, employee issues, and transportation.

For people who are claiming gouging, imagine you sell 100 units per month at an average price of $1000. Your revenues are $100,000 per month. You have a 1 month supply on hand. Your supplier calls you up and says there will be a 2 month delay before you get any more shipments. Once shipments resume, your units per month may not get back to normal for six month. All your competitors are going through similar problems.

What do you do?

1. Raise price as much as possible on your existiting units b/c once they are gone, they are gone.

2. When new units start ariving, you keep prices as high as possible so that you make up as much of the lost revenue as possible.

Interesting! What if people are more and more reluctant to buy (or even stop buying) the units b/c their price was raised significantly. In other words, what would happen if the demand decreases significantly (and we do have control on our actions I believe) while the supplies also decrease?

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