Happy G1 X owners excited about G1 X Mark II?

Started 5 months ago | Discussions thread
Mk7
Mk7
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Re: Happy G1 X owners excited about G1 X Mark II?
In reply to meland, 5 months ago

meland wrote:

I think you missed the point. Anyway you are assuming the RX and G1x type cameras are more profitable than "the dinky low-end P&S market" but you don't know that.

I can't verify that the salespeople and company reps I've spoken to were telling the truth. But they have told me that they have to sell many low-end cams to equal the profit of one high-end cam. Retail profit percentages vary widely bot are sometimes quite similar for both. Some cheap cams have even higher profit percentages than DSLRs. But of course the high-dollar cam will bring a larger amount per unit.

Retail profit margins bear absolutely no resemblance to manufacturer margins.

Right. Manufacturer profits are addressed in the next paragraph.

You have no idea what the R&D costs for these individual models were; the production costs, or the marketing costs, or indeed the volume sold.

I've also been told that the high-end cams and especially lenses are highly profitable to the manufacturer, even after factoring in "Made in Japan" labor costs. Then again, they were only referring to the Canon and Nikon brands.

You've been told? A lot of this is hearsay. Some 'exotic' lenses in the Canon range for example make no manufacturing profit at all. But it is worth it overall for the manufacturer because the wide product range is a USP. The overall product mix enables the range to be profitable overall.

True, even when the mix includes slow-sellers (G1 X).
Talk to people in the business where you live, see what they say.

I can assure you that some of these cameras, unfortunately, make no profit at all but the manufacturer keeps them in the range for a variety of reasons, one of which is brand image. As a 'halo' product they can often be subsidised by other less glamorous products and treated as a marketing expense.

Even if the RX100 were a halo product, it is not a Plymouth Prowler or Chevy HHR. It is a Prius, enhancing brand identity while managing to generate a nice profit, a win-win.

I regret I am not familiar with the two former items you mention.

Look them up. They're failed "halo" products that didn't enhance the brand, and lent to their companies going bankrupt.

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