Why is the 42.5 F/1.2 $1600 when the Fuji 56mm F/1.2 is only $1000?

Started 4 months ago | Discussions thread
zenit_b
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Price = cost + margin
In reply to Richie S, 4 months ago

Richie S wrote:

Hey charge what they think the market will stand

At last !!! Looking through this thread was agonising with people counting the lens elements, weight, IS or whatever and somehow equating it to cost. Fine, but cost and price rarely have a straight correlation for a non-commodity product. Here are the factors that would affect PRICE rather than cost

- what is the return period for investment (the shorter this is the higher the price) ?

- could the production facilities produce large volumes of the lens if a low price triggered high demand ?

- do we need to price attractively to attract people to overall system at the moment ?

- is there a large number of existing users likely to buy this product despite high initial price ?

- branding - you don't undermine a premium brand with a budget price - is that the case here?

- what direct competition is there for this lens on this mount

- do you discount bodies heavily but make the money back on lenses ?

- is it year end and we need some cashbacks out there to make our sales numbers for the year ?

- is it an "oh wow" product that people will pay lots for ?

- what sort of margin are your importers (separate business remember) Panasonic UK, Panasonic USA etc demanding currently before they will import, stock and repair low volume niche products ? (this factor is probably the key one! Remember what happened to the EOS M2)

I personally think pana see this Leica branded lens as an "aspriational" lens that will sit at the top of their range. They are probably not tooled up to make loads so don't need to sell lots of them but having the lens gives the whole system a "glow". Just having the lens in the range will sell more bodies because people know they could always get a high end lens (canon do this with the L series).

At the other end of the spectrum look at the 14mm lens. They are going to sell millions over a long period because it is bundled with bodies. Gear up to make loads - sell em cheap. Don't put the Leica brand on.

Cost does not equal price. Ever !!!!

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