The Yen the Dollar and Canon Pricing

Started Mar 4, 2012 | Discussions thread
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JGRJR
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The Yen the Dollar and Canon Pricing
Mar 4, 2012

Exchange rate has been mentioned in other threads. I mentioned it in a thread named Canons Painful Pricing. Canon has seemed to hold firm on pricing for existing products but really passed on painful increases for new lens and bodies. Many companies try to make the exchange rate invisible to their customers unless things become absolutely unreasonable.

Well in the last five years the Yen has moved from about 120 Yen to the Dollar, to about 80 Yen to the Dollar. This is a massive change that must be in the business plan. It seems Canon has thought we would not accept a 50% percent higher price on the old 24-70 L but might accept a massive increase on a new 24-70 L.

The Euro has had a similar drop. This exchange difference has to come from somewhere. Canon might not have a choice.

As for the Nikon F800, Nikon has been pursuing a catch up strategy with Canon. For two product cycles now. Nikon has put forth cameras that devour some of their own higher end business. This is a business strategy more common to a second place company. Well thank you Nikon for the new MKIII high speed AF and other features that Canon has had to provide. The point is Nikon is more aggressive and Canon more defensive. This is probably true in pricing and features. In a modern technology company you can lose a lot of business by being defensive for too long. At least Canon is responding.

On the pricing issue, world markets decide what a currency is worth not Canon. I hate the new pricing. It takes a lot of gumption to go from a $1400.00 price on a 24-70L to a $2300.00 on a 24-70L. However if cameras were a commodity we would have seen these increases in real time over the last 5 years.

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