Anastigmat
Forum Pro
This model is profitable for Pentax even at $910 because it costs about the same, if not less, than the K10D to manufacture. Pentax decided to sell it for a lot more money than the K10D when it was introduced. Big mistake.
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K20d $910 w/o lens $1016 w/ kit lens 1016 on Amazon
- Thread starter Mindflux
- Start date
MR The Guy
Senior Member
MSRP. That's Manufactuers Suggested Retail Price, not 'street' price'. Accessories 'street' price is 40%+
Oh please, I guess everyone pays their employees, the rent, taxes, the credit card company cut, heats the buildings and pays the phone bill without any markup. Exactly why would they stay in business and not just buy Treasury bills?
Interesting theory on Store Inventory, but Most retail stores of small ticket Consumer Electronic items, especially smaller mom and Pop or small chains pay for A huge % of inventory up front, Even the Bestbuys of the world pay for a large portion of their inventory.
Granted many big manufacturers Do a quasi Floor Plan On BIG ticket Items - (Multiple Thousands $ items - think 80" Flat sceeen TV) - or have them on some kind of inventory / payment tier structure or a rotating inventory with 30, 60, or 90 day allowances, but that is the exception, not the norm.
I think you are mistaking demo units for free inventory. A Canon of the world will work locally, regionally or nationally when their inventories start to bulge and offering (x) amount of stores, advertising budgets, (x) amount of product for (x) amount of time at (x) price - Which is usually a Huge discount % of normal cost, in hope of clearing out huge amounts of inventory thru a quick sale, but after the predefined (x) period of free inventory the Retailers are on the hook. Ever walk in Bestbuy the few days they have a sale on a certain item and You see Pallets full of them? this is what you describe.
If your theory of free inventory was correct, the internet sales would be almost non existent. Or more to a point not worth it for the E-tailer - You would have the BestBuys of the world with 1000 K20s per store or warehouses full of them gobbling up all available inventory. What would happen is there would be NO small stores almost overnight, No way for an E-tailer or small store . chain who sell a few a month to even get their inventory. The Store with the biggest warehouse would own All the Stocks of Every item, thus capturing the market.
As it stands now, An E-tailer has the benefit of Little or no overhead, Hes has A website maybe a small room somewhere for storage of cheap items, but typically has, No store, no employees No property taxes etc... or very minimal amouts of those. They buy items as they sell them, rarely having any inventory when the actual sale is made, Many items sold drop ship from other merchants, distibutirs etc.. - think Amazon.Com which is a large scale user of this model. This allows them to buy an item they sells on a website from a big retailer, Distributor or his own Brick and mortar store at a predefined or agreed upon price. Thus undercutting the Brick and mortar stores 95% of the time maybe higher. As I explained in other posts. But they don’t have the buying power which allows Most stores to meet most prices ( If they choose) 95% of the time. obviously these numbers vary per OEM, market, item sold etc.. but is E-commerce in a simplified nutshell.
In Pentaxes case with no real volume outlets Retail or E-tail, the model is simplified even more and the margins even less. Many of the E-tailers also have a store, or the items being cheaply sold are either "Pre-Loved" or Grey Market
Thanks and good luck
Granted many big manufacturers Do a quasi Floor Plan On BIG ticket Items - (Multiple Thousands $ items - think 80" Flat sceeen TV) - or have them on some kind of inventory / payment tier structure or a rotating inventory with 30, 60, or 90 day allowances, but that is the exception, not the norm.
I think you are mistaking demo units for free inventory. A Canon of the world will work locally, regionally or nationally when their inventories start to bulge and offering (x) amount of stores, advertising budgets, (x) amount of product for (x) amount of time at (x) price - Which is usually a Huge discount % of normal cost, in hope of clearing out huge amounts of inventory thru a quick sale, but after the predefined (x) period of free inventory the Retailers are on the hook. Ever walk in Bestbuy the few days they have a sale on a certain item and You see Pallets full of them? this is what you describe.
If your theory of free inventory was correct, the internet sales would be almost non existent. Or more to a point not worth it for the E-tailer - You would have the BestBuys of the world with 1000 K20s per store or warehouses full of them gobbling up all available inventory. What would happen is there would be NO small stores almost overnight, No way for an E-tailer or small store . chain who sell a few a month to even get their inventory. The Store with the biggest warehouse would own All the Stocks of Every item, thus capturing the market.
As it stands now, An E-tailer has the benefit of Little or no overhead, Hes has A website maybe a small room somewhere for storage of cheap items, but typically has, No store, no employees No property taxes etc... or very minimal amouts of those. They buy items as they sell them, rarely having any inventory when the actual sale is made, Many items sold drop ship from other merchants, distibutirs etc.. - think Amazon.Com which is a large scale user of this model. This allows them to buy an item they sells on a website from a big retailer, Distributor or his own Brick and mortar store at a predefined or agreed upon price. Thus undercutting the Brick and mortar stores 95% of the time maybe higher. As I explained in other posts. But they don’t have the buying power which allows Most stores to meet most prices ( If they choose) 95% of the time. obviously these numbers vary per OEM, market, item sold etc.. but is E-commerce in a simplified nutshell.
In Pentaxes case with no real volume outlets Retail or E-tail, the model is simplified even more and the margins even less. Many of the E-tailers also have a store, or the items being cheaply sold are either "Pre-Loved" or Grey Market
Thanks and good luck
MusicDoctorDJ
Forum Pro
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Pretty obvious that you are NOT in the camera sales industry.
Like I said . . . it is the accessories that bring in the dollars for the camera stores!
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J. D.
Colorful Colorado
Remember . . . always keep your receipt, the box, and everything that came in it!
LMAO - it is like all thos Auto Dealerships that sell all those MULTI Thousand Dollar, Floor planned Cars at 1$ over invoice!
The question is - Which Invoice !!!
Nobody is in business NOT to make a profit or sell items at a loss or sell items with little or No mark up, that is Naive at best - the bigger the Ticket, the bigger the Markup in most cases.
unless you are talking about the U.S. Government!
MR The Guy
Senior Member
As per usual I disagree with this poster. The sensor in the K20D was developed by Samsung and the development costs have to be amortized over projected sales on two camera models (the K20D and GX20). The sensor in the K10D was bought from SONY and thus had no development costs for Pentax as SONY amortized the development costs over everyone who bought the sensor.
MR The Guy
Senior Member
JAKIE is right about invoices. I am assuming you are working retail and your commissions are payed to you on the basis of the 'retail' wholesale price. I once quit a retail sales job when I discovered I was getting shafted on my commissions when one day, my boss mistakenly left the 'real' prices on his desk in his office and I saw them when looking for something else. Ahh, good times when I was young and naive...
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And to date nobody else chose the Samsung sensor - The plot Thickens!!!
The samsung Body sales are non existent. They Panasonic and Which other OEM wont be making DSLR in the Near Future?
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