Nikon DF, Why is the price so high?

Started Nov 10, 2013 | Discussions thread
lolopasstrail
Regular MemberPosts: 185
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Re: Econ 101
In reply to Hulamike, Nov 11, 2013

Hulamike wrote:

Basic market pressure works like this. If your new product has limited appeal, you must charge more for it to cover R&D and generate a profit. Fewer sales x higher price = profitability.

If your product has mass appeal, you can charge a lower price to generate a profit because youll make it up in volume.

Econ 101 like I said.

We don't know what Nikon's costs are for this.  It may be $300 per unit for all I know, over the course of its life.

If the D600 can be sold at its price point, with all its new for the first time r&d, then there is plenty of margin for a product that badge engineers various components and sells for a 50% uplift over an all-new D600.

They don't get to set a price in the vacuum, even for a niche product.  People have to buy it for that wish price, or the manufacturer risks going home with zero margin.

The market can kick your butt if your pricing misses.

Econ 102.

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