Will Nikon be out of business in 5 years?

Started 6 months ago | Discussions thread
PenguinPhotoCo
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In reply to Jeff_Donald, 6 months ago

Most studios have been facing this same kind of situation the past 5 years or so.

A declining market for their product (tech has allowed many to DIY or turn to $50 photogs instead of $500 studio session/packages)
Sears/Walmart fell - so even a low price/high volume approach is no guarantee of success. If you divide their annual sales by locations you'd see the average studio had $27,000 in sales PER YEAR. Not enough to pay one employee much less rent, overhead, utilities, prps, gear, marketing and print costs.
i saw it this year - last year I had a record number of weddings -19. this year? 6. avg year is 12. Hard as helll to run a business when you have that kind of income swing. You can't plan caause you have no idea what revenue will be.

For 6 straight years my sales grew by double digits, then with the slowing economy it leveled. I increased marketing (increased my costs) and it still declined by less amount...increased marketing and reduces sales curves when overlapped don't have a good long term outcome.

Nikon made a lot of money off P&S cameras...phones have replaced most of that market and nobody sees a change in that in the future.

Can pro's be expected to buy more? Not likely - we are in a tough situation and while I shoot canon I don't see any need to buy a new body - what features will it have that will benefit me and my bottom line? I don't need more ISO, more FPS, more pixels, more DR...build in IR maybe? Built in wifi maybe.

So that leaves hobbyists to keep the sales going. How big is the hobbyist segment?

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