Is the E-pl1 the greatest mirrorless camera of all time?

Started Jun 7, 2012 | Discussions thread
Senior MemberPosts: 1,904Gear list
Re: Selling at a profit
In reply to tedolf, Jun 12, 2012

tedolf wrote:

rpm40 wrote:

NorthwestF wrote:

What that means is that Oly were unable to sell the camera, so now they are selling for under $300 (with the lens), losing money on the camera.

I guess you are partially right. It's the most sold camera that still lost money for the company

That probably is fairly close to accurate, actually. Speaking from 5 years experience working in tech sales, digital cameras generally have a pretty good profit margin. At the regular retail price, the profits were typically between 10-30%. Closeout prices are generally right at or around the store cost of the item, with some big sales maybe even resulting in a small (5-10%) loss. The hope there is get the customer to buy other accessories, or to start frequenting the store.

That doesn't take into account what the manufacturer actually makes when they sell it to the store, however. I'm assuming the profits are probably split pretty closely, and that the price drops on old items from manufacturer to reseller would be in line with the drops you seel in prices to the consumer.

If that's the case, an educated guess would be that the average camera costs about 60% of its original retail price to produce, with about 20% profits to the mfg, 20% to the store, and when you get to the end of the run, both of them are just hoping to break even.

If the e-pl1 was released at $599 with kit lens, I would guess it cost about $400 to manufacture, meaning right now somewhere along the line, someone is taking a bath to the tune of about a hundred bucks on each one if they're selling the 14-42 kit for $299 or less.

Again, just educated guesswork there, but thats the norm for every product cycle.

Regardless I still love mine! It has been well worth the price I paid. (Though honestly, maybe all the more considering I got a great bargain when it was brand new for $449 with no tax and free shipping).

Your premise (that production costs are fixed) is flawed.

Do you really believe that as sales volume has increased dramatically that the cost of production has not gone down?

Do you have any idea what a conventional suply curve looks like?

Tedolph, RIP

No, I don't, other than the concept that the number of cameras sold and the price they are sold for (not built for) is related. Can you explain it to me?

I was under the impression that the initial development costs would be set by the production run regardless of sales, that the price of actually building the product (parts and labor) would decrease in higher production runs, and that the total number built and length of the production run mattered in the ultimate cost- not so much when the product was sold or for how much. I'm not trying to figure out how much each and every single camera costs at the time they build and sell it, just a reasonable estimate for an overall average.

This is not my background in any way, mind you, so if you or anyone here can set me straight in simple terms, I'd appreciate it!

 rpm40's gear list:rpm40's gear list
Olympus PEN E-PL1 Olympus PEN E-PM2 Olympus M.Zuiko Digital ED 14-42mm 1:3.5-5.6 Panasonic Lumix G 20mm F1.7 ASPH Olympus M.Zuiko Digital 14-42mm 1:3.5-5.6 II R +3 more
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