High MSRP + Rebates is a STUPID idea

Started Apr 19, 2012 | Discussions
Katsura
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High MSRP + Rebates is a STUPID idea
Apr 19, 2012
  • Who the hell in their right mind will then buy lens outside the rebate period? Which means most places will not sell a single lens outside the rebate dates instead of a steady stream of sales.

  • Rebates are region specific, for people outside the US that used to use the price parity for importing lens, Pentax just cut off their means of getting value lens.

  • Unless it's instant rebate, a conventional mail in rebate is hassle for consumers.

  • I would guess the rebate fund comes out of Pentax's pocket, yet they still whole sale to retailers the same price, so in teh end, rebate will mean Pentax get even less money.

STUPID. IDIOTIC.

Voe
Voe
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Re: High MSRP + Rebates is a STUPID idea
In reply to Katsura, Apr 19, 2012

It could be other countries distributors like Australia for example where they sell for much higher prices are losing sales thanks to people like me who buy from B&H photo video. Maybe those distributors complained to Pentax/Ricoh about that, so this is their workaround to make us buy locally (ex. from Australia).

My 5 cents.
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sir_bazz
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Re: High MSRP + Rebates is a STUPID idea
In reply to Voe, Apr 19, 2012

Voe wrote:

It could be other countries distributors like Australia for example where they sell for much higher prices are losing sales thanks to people like me who buy from B&H photo video. Maybe those distributors complained to Pentax/Ricoh about that, so this is their workaround to make us buy locally (ex. from Australia).

My 5 cents.

All true but if I read Ned's blog correctly then this new pricing policy only applies to the US market.

I think most internet savvy Aussies will just start buying from the Asian grey importers so it's only the online US stores who will miss out on sales.

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Plakanina
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Re: High MSRP + Rebates is a STUPID idea
In reply to sir_bazz, Apr 19, 2012

On line stores will not loose out, They will only have to sell one lens instead of four to make the same profit. IT IS PENTAX THAT WILL LOOSE OUT as the on line dealer will need to now stock less!!!!

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Gerry Winterbourne
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Re: High MSRP + Rebates is a STUPID idea
In reply to Katsura, Apr 19, 2012

One thing MSRP minus discount does is allow the maker to respond to market forces without creating a big fuss. As we know from the outcry over US lens pricing, it's very difficult if a maker needs to increase the selling price. If a maker wants to boost sales of a product it's much easier to use the discount to reduce prices temporarily.

You see the same thing in seasonal tourist cities: hotels have a rack rate that is pretty high but most of the year you pay a lot less; then in the peak season the rack rate comes into force. No one claims that the hotels have boosted prices to take adavantage of tourists because they don't see the lower prices.

If you buy a new camera and want a specific lens badly enough you'll buy it immediately; if you are happy to wait for a discount that's fine. But saying no one will buy outside the discount period is like saying no one will buy a new camera model until its price drops after a year.

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shield20
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Re: High MSRP + Rebates is a STUPID idea
In reply to Katsura, Apr 19, 2012

Katsura wrote:

  • Who the hell in their right mind will then buy lens outside the rebate period? Which means most places will not sell a single lens outside the rebate dates instead of a steady stream of sales.

  • Rebates are region specific, for people outside the US that used to use the price parity for importing lens, Pentax just cut off their means of getting value lens.

  • Unless it's instant rebate, a conventional mail in rebate is hassle for consumers.

  • I would guess the rebate fund comes out of Pentax's pocket, yet they still whole sale to retailers the same price, so in teh end, rebate will mean Pentax get even less money.

STUPID. IDIOTIC.

Makes one wonder how Canon survives?!

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justin23
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Re: High MSRP + Rebates is a STUPID idea
In reply to Voe, Apr 19, 2012

Most likely very true. CRK were part of the Harvey Norman add 10% GST to all overseas purchases push.

But if they actually priced competitively as well they wouldn't have the issue.
I bought a few things in australia when they were priced at a resonable cost.

Voe wrote:

It could be other countries distributors like Australia for example where they sell for much higher prices are losing sales thanks to people like me who buy from B&H photo video. Maybe those distributors complained to Pentax/Ricoh about that, so this is their workaround to make us buy locally (ex. from Australia).

My 5 cents.
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sir_bazz
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Re: High MSRP + Rebates is a STUPID idea
In reply to Plakanina, Apr 19, 2012

Plakanina wrote:

On line stores will not loose out, They will only have to sell one lens instead of four to make the same profit. IT IS PENTAX THAT WILL LOOSE OUT as the on line dealer will need to now stock less!!!!

Pentax won't miss out. They'll get the sale in Asia rather than in the US.
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glanglois
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I think they have regular rebates .....
In reply to shield20, Apr 19, 2012

shield20 wrote:

Katsura wrote:

  • Who the hell in their right mind will then buy lens outside the rebate period? Which means most places will not sell a single lens outside the rebate dates instead of a steady stream of sales.

  • Rebates are region specific, for people outside the US that used to use the price parity for importing lens, Pentax just cut off their means of getting value lens.

  • Unless it's instant rebate, a conventional mail in rebate is hassle for consumers.

  • I would guess the rebate fund comes out of Pentax's pocket, yet they still whole sale to retailers the same price, so in teh end, rebate will mean Pentax get even less money.

STUPID. IDIOTIC.

Makes one wonder how Canon survives?!

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Mark Ransom
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Rebates stink
In reply to Katsura, Apr 19, 2012

I've been burned by rebates before. I've pretty much written them off, and they aren't going to influence my buying decision the way the honchos think.

The only exception are instant rebates, where you get the rebate factored into the price and you don't have to play Mickey Mouse games to get your own money returned to you. I hope that's what they're planning.

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mgm2
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Re: High MSRP + Rebates is a STUPID idea
In reply to Katsura, Apr 19, 2012

You're calling C&N stupid?

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