Michael Reichmann explains the SD1 price...

Started Jul 23, 2011 | Discussions thread
Richard Franiec
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Re: The price was already set at below $2000.00 prior to the release.
In reply to Gary Dean Mercer Clark, Jul 25, 2011

gary mercer wrote:

The price was already decided during the development phase of the SD1 project. That is why there are so many documented interviews where high ranking Sigma officials tease us with hints that the price would be competitive with the Canon 7D etc. Contracts for chips and production were fixed costs at that point. Companies know to the penny exactly how much each product will cost and how much they will charge when it comes to market a year before it is even built.

It is simple. The SD1 was designed to compete with the Pentax K5, Canon 7D in that price range and if you look at the build--it is comparable to those models and very nicely built from my experience shooting with it. It was never intended to be sold above $2000.00 in price. EVER. Now why would a company price a product at 500 percent higher than planned? Because the owner said so. End of controversy.
Its his company. He can do whatever he wants.

And he did.The only mystery here is the basis for his decision.

He knew all along where the SD-1 was intended to be placed price wise. If he has disagreed then, he would put the stop for spreading the word by his executives.

I think the reason for sudden change of mind was simple. Based on the initial output (not supported by careful analysis), someone has whispered to the Yamaki senior ear that he has created a jewel able to compete with MF without the bulk associated with the later. Sometimes, people have selective hearing when they hear what they want to hear. Going against the collective wisdom of rest of the Sigma's upper echelon was easy, knowing that no one will dare to challenge him.

His son took the blame for his own incompetence in this sad saga to save the owner's face. There was no specific evidence of his fault revealed.

I would not be surprised if SD-1 will be scrapped as a mere concept to prove the new Foveon chip which is the best selling point for Sigma build cameras, after all.

The replacement camera would be introduced relatively quick with more realistic price tag and a few improvements over the "prototype". This way the embarrassment can be saved to some degree and the cost of new sensor development can be recouped.
After all the education has never been cheap.

Cheers

Richard

mike earussi wrote:

RWilliam wrote:

The current price point for the Sigma SD1 is based upon its footprint cost. It has everything to do with the Sigma purchase of Foveon. The corporate capitalization and cost cut in the ownership groups profits. Capital outlays while financed with stock options none-the-less still have an initial rate of investment born by the owner of Sigma. He simply needed to capture his investment, so why not at the pricing of the newest camera. While the additional sales of lenses will provide more income it will take more time and another investment/R&D and fabrication costs so it will take several years to recapture. Due to the Foveon investment, earthquake and increased production expenses/costs in Japan the new pro-lens line is still a distant future plan. The $6899 price of the SD1 lets him take more profit to the bank much sooner. After the Sigma ownership group reaches their capital out-lay the price will drop on the SD1, however, not significantly as it will be needed to off set the new pro-lense process investment. New products and product lines are initially cost prohibitive at first. So new purchases of the SD1 are paying for the acquisition of Foveon. It will pay-off in time with reduced price points on future cameras.

By your logic then Sigma should price them at $1,000,000 each. That way they would get a very fast return on investment--provided thay sold any at all.

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