Japanese importers profiteering by exploiting devalued Yen

Started May 17, 2013 | Discussions thread
Leonard Shepherd
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Re: Trading reality
In reply to Chad Gladstone, May 18, 2013

The UK movement is around 25%. Importers to some extent cushion currency movements by not following them right down when they go down, or straight up when they go up. With this in mind the UK currency appreciation is closer to 15% for pricing purposes.

Nikon cut their gross profit margin from 10.5% to 8% last year because of the recession and plan to get profit margins up to 11% on reduced sales (primarily Coolpix) in the current year to maintain the profit amount. This is a common business practice.

A specific UK issue - the Jessops collapse may have cost Nikon UK around $1,000,000.

Despite all this body prices in UK are well discounted with recent price falls, lenses less so but still priced lower. Whether you agree with Nikon selling bodies in the UK as a "loss leader" to get money back on lens sales is for you to decide - but this seems to be a major part of the current Nikon UK sales direction.

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Leonard Shepherd
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