$2750 5d3 is Ebay promotion, not downward price pressure

Started Sep 16, 2012 | Discussions
chironNYC
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$2750 5d3 is Ebay promotion, not downward price pressure
Sep 16, 2012

Some people have been interpreting the Ebay-sponsored sale price on the 5d3 as a sign of downward price pressure on the 5d3 because of teh 6D and D600. This is completely wrong.

Ebay is trying to position themselves as not only an auction house but also as a competitor to Amazon--a place where you go to buy new at retail. In order to promote this new marketing strategy, they are subsidizing some truly outstanding sale prices of high profile items. Selling USA warranted, brand new 5d3s for $750 less than any other other authorized dealer is a HUGE savings.

But this is not about price pressure. Adorama on Ebay isold about 600 5d3s at this price before they withdrew the listing. Beach Camera a few weeks ago sold about 200 at $2800 before they withdrew the listing.

In neither case could you get those prices at the store or through the store's online sites. This is because a subsidy from Ebay for their own marketing purposes is the source of the super price.

While the D6 and 600D will probably put downward pressure on the price of the 5d3, I would be astonished if it gets as low as $2750 anytime in the next 12-18 months. I would gues the 5d3's price will come down to around $3100 or $3200 by Christmas.

Ebay is buying this camera for you when the 5d3 is offered for $2750--with free shipping!. I think the free shipping is a condition of the Ebay subsidy in order to match what Amazon does.

Who knows if there will be any more Ebay sales like this. But if there are, it is a great deal.

Canon EOS 5D Mark III Canon EOS 600D (EOS Rebel T3i / EOS Kiss X5) Canon EOS 6D Nikon D600
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Horshack
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Re: $2750 5d3 is Ebay promotion, not downward price pressure
In reply to chironNYC, Sep 16, 2012

Prices of discretionary items are set at the margins, so it doesn't matter whether they sell 100 cameras at this price or 1,000 - the expectation of the next deal will create air bubbles in demand and that will force the price down due to the temporal supply and demand distortions that are built around the expectation of lower prices from these deals.

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chironNYC
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the deal is back up!
In reply to chironNYC, Sep 16, 2012
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chironNYC
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Re: $2750 5d3 is Ebay promotion, not downward price pressure
In reply to Horshack, Sep 16, 2012

You may be right. But if you are, the price pressure will be a result rather than a 600D-related cause of the ebay sale.

Horshack wrote:

Prices of discretionary items are set at the margins, so it doesn't matter whether they sell 100 cameras at this price or 1,000 - the expectation of the next deal will create air bubbles in demand and that will force the price down due to the temporal supply and demand distortions that are built around the expectation of lower prices from these deals.

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billythek
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Re: $2750 5d3 is Ebay promotion, not downward price pressure
In reply to Horshack, Sep 16, 2012

Unless you can provide verifiable details including numbers, and why it makes business sense for ebay to do this, I have to doubt that this is completely subsidized by ebay. The parties that have the incentive are the retailer and Canon. Possibly Canon funneled some money through ebay as an incentive to move some inventory. That might make some sense. Or perhaps Adorama is just trying to clear out the stock they have that isn't moving at the ridiculous price point that was set by Canon.

To think this has nothing to do with the D600 is just ignoring the obvious. This is all about moving inventory that would otherwise be sent back to Canon, and making Q3 sales figures.

In any event, I expect to see more sales at this price point.
--

  • Bill

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chironNYC
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Re: $2750 5d3 is Ebay promotion, not downward price pressure
In reply to billythek, Sep 16, 2012

Your argument is silly in my view. Why have the sales of the 5d3 appeared no where but ebay? And why would the stores not sell themselves for the same price they were selling on ebay if it were not that ebay was subsidizing the sale? And as for Canon subsidizing the ebay sales--that's the most ridiculous argument of all--their other retail outlets would kill them.

You won't see this price anywhere but ebay, for at least 18 months from now.

But you go ahead and wait.

billythek wrote:

Unless you can provide verifiable details including numbers, and why it makes business sense for ebay to do this, I have to doubt that this is completely subsidized by ebay. The parties that have the incentive are the retailer and Canon. Possibly Canon funneled some money through ebay as an incentive to move some inventory. That might make some sense. Or perhaps Adorama is just trying to clear out the stock they have that isn't moving at the ridiculous price point that was set by Canon.

To think this has nothing to do with the D600 is just ignoring the obvious. This is all about moving inventory that would otherwise be sent back to Canon, and making Q3 sales figures.

In any event, I expect to see more sales at this price point.
--

  • Bill

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clarnibass
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Re: $2750 5d3 is Ebay promotion, not downward price pressure
In reply to billythek, Sep 16, 2012

Someone can correct me if it's wrong but I'm pretty sure I remember one of the stores confirming that this was true (i.e. ebay paying for part of the price).

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docvince
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3050 at FRY's Electronics in San Jose, CA
In reply to chironNYC, Sep 16, 2012

just passing by the stores but you have to pay State Tax of 8.5%

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Silvex
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Your explaination makes sense, but...
In reply to chironNYC, Sep 16, 2012

...it begs the question: Why only the 5D3? Why not the D800? Why not the 5D2? Or any other Canon DSLR? This seems more like two completely different retailers unloading inventory of the exact same camera. I guess it could be coincidence.

Thoughts?

chironNYC wrote:

Some people have been interpreting the Ebay-sponsored sale price on the 5d3 as a sign of downward price pressure on the 5d3 because of teh 6D and D600. This is completely wrong.

Ebay is trying to position themselves as not only an auction house but also as a competitor to Amazon--a place where you go to buy new at retail. In order to promote this new marketing strategy, they are subsidizing some truly outstanding sale prices of high profile items. Selling USA warranted, brand new 5d3s for $750 less than any other other authorized dealer is a HUGE savings.

But this is not about price pressure. Adorama on Ebay isold about 600 5d3s at this price before they withdrew the listing. Beach Camera a few weeks ago sold about 200 at $2800 before they withdrew the listing.

In neither case could you get those prices at the store or through the store's online sites. This is because a subsidy from Ebay for their own marketing purposes is the source of the super price.

While the D6 and 600D will probably put downward pressure on the price of the 5d3, I would be astonished if it gets as low as $2750 anytime in the next 12-18 months. I would gues the 5d3's price will come down to around $3100 or $3200 by Christmas.

Ebay is buying this camera for you when the 5d3 is offered for $2750--with free shipping!. I think the free shipping is a condition of the Ebay subsidy in order to match what Amazon does.

Who knows if there will be any more Ebay sales like this. But if there are, it is a great deal.

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docvince
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exactly what I have in mind
In reply to Silvex, Sep 16, 2012

5d mark 3 price in state retailers are rapidly sliding down as well. 3300 last week in FRY's Electronics and earlier today it went down to 3050 Brand New Canon USA

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tarjei99
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Re: $2750 5d3 is Ebay promotion, not downward price pressure
In reply to billythek, Sep 16, 2012

billythek wrote:

Or perhaps Adorama is just trying to clear out the stock they have that isn't moving at the ridiculous price point that was set by Canon.

To think this has nothing to do with the D600 is just ignoring the obvious. This is all about moving inventory that would otherwise be sent back to Canon, and making Q3 sales figures.

I take it you have not researched the obvious sales rating of the 5D3 on amazon.com

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riknash
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Re: Your explaination makes sense, but...
In reply to Silvex, Sep 16, 2012

The 5D2 is too long in the tooth to generate any significant sales volumes from a deep discount. I suspect Canon no longer is making this camera body, regardless of their claims to the contrary a few months ago. Its a dinosaur in technology timelines.

The D800 is still very much supply exceeding demand, therefore no reason to lower the price.

The Canon 5D Mark III is perfectly situated at an over supply with huge stale inventories in all major retail stores that carry the product. That's why a lot of retailers have lowered the price to around $3K.

Silvex wrote:

...it begs the question: Why only the 5D3? Why not the D800? Why not the 5D2? Or any other Canon DSLR? This seems more like two completely different retailers unloading inventory of the exact same camera. I guess it could be coincidence.

Thoughts?

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tarjei99
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Re: Your explaination makes sense, but...
In reply to riknash, Sep 16, 2012

riknash wrote:

The Canon 5D Mark III is perfectly situated at an over supply with huge stale inventories in all major retail stores that carry the product. That's why a lot of retailers have lowered the price to around $3K.

Exactly!!

All the big internet shops have reduced their prices significantly due to their huge inventories :

Adorama $3464
Amazon $3459
B+H $3464

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Silvex
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Re: Your explaination makes sense, but...
In reply to riknash, Sep 16, 2012

riknash wrote:

The 5D2 is too long in the tooth to generate any significant sales volumes from a deep discount. I suspect Canon no longer is making this camera body, regardless of their claims to the contrary a few months ago. Its a dinosaur in technology timelines.

The D800 is still very much supply exceeding demand , therefore no reason to lower the price.

"demand exceeding supply" Right?

The Canon 5D Mark III is perfectly situated at an over supply with huge stale inventories in all major retail stores that carry the product. That's why a lot of retailers have lowered the price to around $3K.

Well, it seems more logical to me than the eBay promo idea.

Silvex wrote:

...it begs the question: Why only the 5D3? Why not the D800? Why not the 5D2? Or any other Canon DSLR? This seems more like two completely different retailers unloading inventory of the exact same camera. I guess it could be coincidence.

Thoughts?

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riknash
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Re: Your explaination makes sense, but...
In reply to Silvex, Sep 16, 2012

Cr@p! I said it wrong... My dyslexic brain at 1AM in the morning...

Silvex wrote:

riknash wrote:

The 5D2 is too long in the tooth to generate any significant sales volumes from a deep discount. I suspect Canon no longer is making this camera body, regardless of their claims to the contrary a few months ago. Its a dinosaur in technology timelines.

The D800 is still very much supply exceeding demand , therefore no reason to lower the price.

"demand exceeding supply" Right?

The Canon 5D Mark III is perfectly situated at an over supply with huge stale inventories in all major retail stores that carry the product. That's why a lot of retailers have lowered the price to around $3K.

Well, it seems more logical to me than the eBay promo idea.

Silvex wrote:

...it begs the question: Why only the 5D3? Why not the D800? Why not the 5D2? Or any other Canon DSLR? This seems more like two completely different retailers unloading inventory of the exact same camera. I guess it could be coincidence.

Thoughts?

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Silvex
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Re: Your explaination makes sense, but...
In reply to riknash, Sep 16, 2012

I have lysdexia too

riknash wrote:
Cr@p! I said it wrong... My dyslexic brain at 1AM in the morning...

Silvex wrote:

riknash wrote:

The 5D2 is too long in the tooth to generate any significant sales volumes from a deep discount. I suspect Canon no longer is making this camera body, regardless of their claims to the contrary a few months ago. Its a dinosaur in technology timelines.

The D800 is still very much supply exceeding demand , therefore no reason to lower the price.

"demand exceeding supply" Right?

The Canon 5D Mark III is perfectly situated at an over supply with huge stale inventories in all major retail stores that carry the product. That's why a lot of retailers have lowered the price to around $3K.

Well, it seems more logical to me than the eBay promo idea.

Silvex wrote:

...it begs the question: Why only the 5D3? Why not the D800? Why not the 5D2? Or any other Canon DSLR? This seems more like two completely different retailers unloading inventory of the exact same camera. I guess it could be coincidence.

Thoughts?

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chironNYC
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Re: Your explaination makes sense, but...
In reply to Silvex, Sep 16, 2012

Because the 5d3 is a much hotter selling camera than the d800 and eBay is doing this to bring attention to themselves as an alternative to Amazon.

To call attention to themselves, they use a hot item.

You will only see this price on the 5d3 at eBay, for limited periods, as part of EBay's promotion.

Silvex wrote:

...it begs the question: Why only the 5D3? Why not the D800? Why not the 5D2? Or any other Canon DSLR? This seems more like two completely different retailers unloading inventory of the exact same camera. I guess it could be coincidence.

Thoughts?

chironNYC wrote:

Some people have been interpreting the Ebay-sponsored sale price on the 5d3 as a sign of downward price pressure on the 5d3 because of teh 6D and D600. This is completely wrong.

Ebay is trying to position themselves as not only an auction house but also as a competitor to Amazon--a place where you go to buy new at retail. In order to promote this new marketing strategy, they are subsidizing some truly outstanding sale prices of high profile items. Selling USA warranted, brand new 5d3s for $750 less than any other other authorized dealer is a HUGE savings.

But this is not about price pressure. Adorama on Ebay isold about 600 5d3s at this price before they withdrew the listing. Beach Camera a few weeks ago sold about 200 at $2800 before they withdrew the listing.

In neither case could you get those prices at the store or through the store's online sites. This is because a subsidy from Ebay for their own marketing purposes is the source of the super price.

While the D6 and 600D will probably put downward pressure on the price of the 5d3, I would be astonished if it gets as low as $2750 anytime in the next 12-18 months. I would gues the 5d3's price will come down to around $3100 or $3200 by Christmas.

Ebay is buying this camera for you when the 5d3 is offered for $2750--with free shipping!. I think the free shipping is a condition of the Ebay subsidy in order to match what Amazon does.

Who knows if there will be any more Ebay sales like this. But if there are, it is a great deal.

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chironNYC
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Wrong. Fry's Price is $3500 & $4300
In reply to docvince, Sep 16, 2012

docvince wrote:

just passing by the stores but you have to pay State Tax of 8.5

Wrong and you don't provide a link. Fry's is selling the 5d3 for $3500 and the kit for $4300, just like everyone else. See link below, from 8:30 AM EST on Sunday, September16th.

http://www.frys.com/search?search_type=regular&sqxts=1&query_string=canon+5d+Mark+III&submit.x=0&submit.y=0&cat=0

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chironNYC
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Fry's Price is $3500/$4300
In reply to docvince, Sep 16, 2012

docvince wrote:

5d mark 3 price in state retailers are rapidly sliding down as well. 3300 last week in FRY's Electronics and earlier today it went down to 3050 Brand New Canon USA

You keep saying this, but you are wrong. And I notice that yo never provide a link.

Fry is selling the 5d3 for $3500 and the kit for $4300, just like everyone else. See link below, from 8:30 AM EST on Sunday, September16th.

http://www.frys.com/search?search_type=regular&sqxts=1&query_string=canon+5d+Mark+III&submit.x=0&submit.y=0&cat=0

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chironNYC
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Provide a link for your claim.
In reply to riknash, Sep 16, 2012

Please provide a link to a major retailer selling the 5d3 for $3000.

Only grey market from non-authorized sellers in Hong Kong (good luck with any problems) have the 5d3 for less than $3500.

Provide a link if I am wrong.

riknash wrote:

The 5D2 is too long in the tooth to generate any significant sales volumes from a deep discount. I suspect Canon no longer is making this camera body, regardless of their claims to the contrary a few months ago. Its a dinosaur in technology timelines.

The D800 is still very much supply exceeding demand, therefore no reason to lower the price.

The Canon 5D Mark III is perfectly situated at an over supply with huge stale inventories in all major retail stores that carry the product. That's why a lot of retailers have lowered the price to around $3K.

Silvex wrote:

...it begs the question: Why only the 5D3? Why not the D800? Why not the 5D2? Or any other Canon DSLR? This seems more like two completely different retailers unloading inventory of the exact same camera. I guess it could be coincidence.

Thoughts?

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