How is the SURE program working?

Our local retailer (National Camera Exchange) has a lot of top-end Sony equipment, ranging all the way from A900/A850 and through CZ 24-70 f/2.8, CZ 85mm f/1.4 etc and onward to other less expensive stuff.

So yes, SURE certainly has encouraged them to stock all of this premium stuff. I doubt they would have stocked this without SURE, since people would simply elect to pay a lot less and buy it online. Of course you still save taxes when buying online.
roweraay, you're only assuming that the SURE program encouraged National Camera Exchange from carrying the line. You have no proof, nor have you indicated that you've talked with anyone at the store that has mentioned the SURE program as the incentive for them to carry the line.
 
Mark, the U.S. Supreme Court ruled that a manufacturer does have the right to set the retail price. Therefore, Sony is not in violation of any US laws. The case involved a small company that made women's purses, if I'm not mistaken.
I think Mark's point was that Sony may be in a different situation since they also have a retail element with the Sony Style stores. In this they are similar to Apple. Does anyone know if Apple has a similar thing to the SURE program?

--
Rick
Well, you and Mark might want to research the case, as it was exactly like how Sony operates. In the case in question, as best as I can recall, a woman designed and sold women's handbags at her shop. She also sold bags to other retailers. When one of these retailers started discounting the handbags, she sued, saying she had the right to set the retail.

I believe she lost in the lower courts, but she appealed to the Supreme Court and won. It was kind of surprising as for decades the courts had ruled that a manufacturer couldn't force dealers to sell at a certain price. It was a 5-4 decision, and the majority was made of conservative judges, while the minority were from the liberal side of the bench.

The ruling was fully discussed on this forum a couple of years ago. Sony came out with the SURE program, within a year of the ruling.
Thanks for the info. I wasn't suggesting anything specifically just what Mark had suggested. And quite frankly as I said in the OP I wasn't all that interested in the prices controls themselves just.

I am more interested in if anyone has seen the expected benefit to the smaller shops in actuality. I still don't think we have any real examples where this has happened.

--
Rick
 
Mark, the U.S. Supreme Court ruled that a manufacturer does have the right to set the retail price. Therefore, Sony is not in violation of any US laws. The case involved a small company that made women's purses, if I'm not mistaken.
I'm aware of that case, though I have not read it in detail. The big difference, at least to me, is that Sony also is a retailer in that it sells direct to the public through the Sony Style Stores and its website. It also offers discount coupons or other incentives, such as when you register a product, that are good only through on-line purchases (or maybe also at a Sony Style store). Thus, what Sony is doing is far more than just a manufacturer setting a retail price.

But, it won't matter unless someone challenges it in court, and that would be a very long and expensive process, so it is highly unlikely to happen. Sony knows this and thus does what it does.

--
Mark Van Bergh
http://www.markvanbergh.com
 
Just stating facts as I saw them. :) Seems like you have moved away from Sony, lately.

If I were shooting with 35mm products, Pentax, with their losing APS-C-only strategy is not something that I would be too enthusiastic about.

I used to be a former Pentax film shooter but their digital strategy has been a losing one, as far as I am concerned. I truly hope they stick around but with more and more products (with sensors that are APS-C-sized and below) moving into EVIL type products, it is only a matter of time before Pentax (the 35mm side) will wind up, if they stick to APS-C dslrs. Hoya's patience is wearing thin, as far as I know.
Catch up! :)

Wholesale Sony Fan- that's ripe.

C
--
http://www.AlphaMountWorld.com
 
Mark, the U.S. Supreme Court ruled that a manufacturer does have the right to set the retail price. Therefore, Sony is not in violation of any US laws. The case involved a small company that made women's purses, if I'm not mistaken.
I'm aware of that case, though I have not read it in detail. The big difference, at least to me, is that Sony also is a retailer in that it sells direct to the public through the Sony Style Stores and its website. It also offers discount coupons or other incentives, such as when you register a product, that are good only through on-line purchases (or maybe also at a Sony Style store). Thus, what Sony is doing is far more than just a manufacturer setting a retail price.

But, it won't matter unless someone challenges it in court, and that would be a very long and expensive process, so it is highly unlikely to happen. Sony knows this and thus does what it does.
Here's an article regarding the decision-

http://articles.latimes.com/2007/jun/29/nation/na-prices29

The last paragraph is interesting-

"The ruling leaves open the possibility that price-fixing agreements can be challenged under antitrust laws, but only when a manufacturer's brand dominates the market. This is rarely true with common retail products."

Since Sony doesn't dominate, they are free to set prices. However, by doing so, I think they've pi$$ed-off a bunch of consumers, and therefore, damaged their own sales. If you don't like the SURE policy, then take your money elsewhere. Boycott Sony. There are other suppliers that aren't setting prices, but allow the prices to fall where they may. And these other manufacturers make some pretty good equipment.

Maybe then, Sony will stop their SURE program.
 
I believe she lost in the lower courts, but she appealed to the Supreme Court and won. It was kind of surprising as for decades the courts had ruled that a manufacturer couldn't force dealers to sell at a certain price. It was a 5-4 decision, and the majority was made of conservative judges, while the minority were from the liberal side of the bench.

The ruling was fully discussed on this forum a couple of years ago. Sony came out with the SURE program, within a year of the ruling.
LEEGIN CREATIVE LEATHER PRODUCTS, INC. v. PSKS, INC., dba KAY’S KLOSET U KAY’S SHOES

http://www.law.duke.edu/publiclaw/supremecourtonline/certgrants/2006/leevpsk

It was decided in 2007. Although really I don't know if it changed all that much. For years there have been companies who have had minimum pricing. Oakley sunglasses, Bose stereos, etc. In hi-fi electronics, for years there is what is called grey market dealers. If you buy from a authorized dealer you get a warranty, you buy from grey market you save some money.

I'm not sure this is that big of a deal. I'd say the issues are access to product and advertising.
 
I'm aware of that case, though I have not read it in detail. The big difference, at least to me, is that Sony also is a retailer in that it sells direct to the public through the Sony Style Stores and its website. It also offers discount coupons or other incentives, such as when you register a product, that are good only through on-line purchases (or maybe also at a Sony Style store).
You can't use the coupons to buy cameras and lenses, only accessories. And it doesn't seem to me like the SURE program applies to accessories.
 
Since Sony doesn't dominate, they are free to set prices. However, by doing so, I think they've pi$$ed-off a bunch of consumers, and therefore, damaged their own sales. If you don't like the SURE policy, then take your money elsewhere. Boycott Sony. There are other suppliers that aren't setting prices, but allow the prices to fall where they may. And these other manufacturers make some pretty good equipment.

Maybe then, Sony will stop their SURE program.
All of the Sony stuff I bought was before SURE. I haven't bought a thing from them since they started it.

--
Henry Richardson
http://www.bakubo.com
 
The SURE program extends to the accessories as well as bodies and lenses. The reasoning for this would be if a retailer sold you a camera body at full, but gave you an accessory for 'free', then the overall sale could be seen as giving you a discount on the body.

This is the same thing as when Ritz Camera gave you a free printer with the purchase of a DSLR. They had an exception for Sony.
 
I'm not sure about SURE, whether it helps or hurts. But my strong sense is that it is not nearly as big a factor as what cyan calls "pulling" and "pushing" customers to the retailers to buy. And in the last year it has not been nearly as big a factor as is the fact that Sony has not put any compelling cameras on the table for a year and a half.

I think that has to do in large part with the hit Sony took as a result of the world-wide economic tailspin. Sony was hit harder than the other camera companies because of its large presence in the financial sector, which was the hardest-hit sector, and because Sony's market is in greater proportion overseas--and the yen has been strong. As a result, Sony cut more than 18,000 jobs, restructured its divisions, restructured its management, closed factories, including camera factories, and cut costs everywhere. The cameras Sony released last year scream cost-cutting to me.

Mark, I wonder if your friend the Sony rep, didn't get caught in this.

But Sony did not cut its $5 billion R&D budget. I get the feeling from listening to Sony people, and people who have talked to Sony people, that they strongly believe that they have lots of great stuff to show us this year. And I'm seeing signs that, as these products begin to be released, we'll begin to see a much stronger promotional effort than we are used to seeing for Alpha.

I believe that the sub-theme just might be: It's Alpha time!

Whatever their intentions, however, as cyan said, they'll never be a central player unless they get their act together.

Good discussions in this thread. Thanks.
--
Dulaney
A700; SAL 50 f1.4; SAL 18-250; CZ 85 f1.4
 
I'm aware of that case, though I have not read it in detail. The big difference, at least to me, is that Sony also is a retailer in that it sells direct to the public through the Sony Style Stores and its website. It also offers discount coupons or other incentives, such as when you register a product, that are good only through on-line purchases (or maybe also at a Sony Style store). Thus, what Sony is doing is far more than just a manufacturer setting a retail price.
Yes, no, maybe.

Sony Style is not Sony per se rather Sony Style will be classified as a wholly owned subsidiary or some other legal BS that makes Sony Style independant of Sony USA for legal and finacial purposes. Similar to Sony USA being a wholly owned subsidiary of Sony Japan.

Might all seem to be legal BS, but every business seperates their major divisions, if for no other reasons that keeping lawsuits in one division from sucking dry every $ out of the Mother-Corporation.
 
of
I believe she lost in the lower courts, but she appealed to the Supreme Court and won. It was kind of surprising as for decades the courts had ruled that a manufacturer couldn't force dealers to sell at a certain price. It was a 5-4 decision, and the majority was made of conservative judges, while the minority were from the liberal side of the bench.

The ruling was fully discussed on this forum a couple of years ago. Sony came out with the SURE program, within a year of the ruling.
LEEGIN CREATIVE LEATHER PRODUCTS, INC. v. PSKS, INC., dba KAY’S KLOSET U KAY’S SHOES

http://www.law.duke.edu/publiclaw/supremecourtonline/certgrants/2006/leevpsk

It was decided in 2007. Although really I don't know if it changed all that much. For years there have been companies who have had minimum pricing. Oakley sunglasses, Bose stereos, etc. In hi-fi electronics, for years there is what is called grey market dealers. If you buy from a authorized dealer you get a warranty, you buy from grey market you save some money.

I'm not sure this is that big of a deal. I'd say the issues are access to product and advertising.
I agree that prior to the ruling, companies had ways to enforce the price that a product was sold for. The first thing manufacturers do is to check a company out to see if it's the type that would discount. Secondly, they would limit the number of dealers carrying the line, so their is less incentive for a dealer to have to discount. Then, they limit the quantity of product out there, so that demand exceeds supply. Then if a dealer does discount, they find that the factory is suddenly 'out of stock'.

However, sometimes things get out of whack. Bausch & Lomb, which made Ray-Ban sunglasses, kept opening up distributors because they were number one in the marketplace, and veryone wanted them. When business started going down, they had too many distributors, who had to drop prices just so they could move merchandise. It got so bad, that the distributors were cannibalizing each other just to have share of the pie.

Oakley, on the other hand, always kept tight control of their products, refusing to open any distributors in the US, preferring to sell directly to the retailer. One time they sold some glasses to a distributor, who was suppose to sell them overseas. However, he sold them to Costco, who had tried to get Oakley to sell to them, but Oakley refused, knowing how Costco discounted.

Oakley found out about it, and as they couldn't force Costco to sell the whole supply to them. They had their sales force go into Costco, and buy them out. Costco limited the number of glasses that could be bought at one time, so the reps had to keep going back in to stores.

I remember the Oakley rep telling me that he and his friends had to keep going into the store, and I think he bought $50,000 worth of merchandise, which Oakley reimbursed him for. I sold Serengeti Eyewear at the time, and just laughed about it.

The one thing about the Sony SURE program as it applies to the Alpha line, is that it applies to the whole line, not just the upper-end of the line. Sony applied the SURE program to some high-end audio and video stuff, but not the whole line.
 
Mark, the U.S. Supreme Court ruled that a manufacturer does have the right to set the retail price. Therefore, Sony is not in violation of any US laws. The case involved a small company that made women's purses, if I'm not mistaken.
I'm aware of that case, though I have not read it in detail. The big difference, at least to me, is that Sony also is a retailer in that it sells direct to the public through the Sony Style Stores and its website. It also offers discount coupons or other incentives, such as when you register a product, that are good only through on-line purchases (or maybe also at a Sony Style store). Thus, what Sony is doing is far more than just a manufacturer setting a retail price.

But, it won't matter unless someone challenges it in court, and that would be a very long and expensive process, so it is highly unlikely to happen. Sony knows this and thus does what it does.
Here's an article regarding the decision-

http://articles.latimes.com/2007/jun/29/nation/na-prices29

The last paragraph is interesting-

"The ruling leaves open the possibility that price-fixing agreements can be challenged under antitrust laws, but only when a manufacturer's brand dominates the market. This is rarely true with common retail products."

Since Sony doesn't dominate, they are free to set prices. However, by doing so, I think they've pi$$ed-off a bunch of consumers, and therefore, damaged their own sales. If you don't like the SURE policy, then take your money elsewhere. Boycott Sony. There are other suppliers that aren't setting prices, but allow the prices to fall where they may. And these other manufacturers make some pretty good equipment.

Maybe then, Sony will stop their SURE program.
What makes you think Nikon and Canon are not doing the same thing? There is not much variation in the prices of their cameras from what I've seen.

There also are other issues such as how quickly a manufacturer requires payments from retailers, and how it handles rebates in terms of the payment process and how that affects a retailer. Thom Hogan has written a bit about how Nikon's rebate programs often have a harsh impact on the local retailer. But, with about 30-35% of the market, a retailer can ill afford not to carry Nikon so they have to put up with Nikon's "demands." Of course Sony doesn't even do rebates (usually) so that's not as big an issue - not like it needs more issues with respect to its retailer relationships.

--
Mark Van Bergh
http://www.markvanbergh.com
 
All these companies do this. in every country so don't let Barry tell you it's not done in the UK. even if your a C and N dealer if you don't follow their direction the retailer is penalized some how. Even walmart get penalized if they don't follow guildlines. and even in the US. UK.. Pakistan .. doesn't matter it's all the same.

TRhe only diference here is someone posted a sttory on Sony's version on a marketing web site and it happened to come at roughly the same time the US courts through out the complaints (misinterpretations) of what price fixing is which a lot people here don't understand. Ths is proce maintenance and it's not possible to control anyplace where it's possible for a manufacturer to decide not to sell to certain people/dealers/retailer/countries... ulless you make it a law that you force a company to sell to anyone who wants you have price maintenance.

The fact that a store in your town can buy something and a cheaper price than you can get from a given manufacturer yourself is price maintenance and thats all there is too it.
--
http://www.fotosource.com/downloads/flyer/eye_cancer_en_CA.pdf
 
I'm aware of that case, though I have not read it in detail. The big difference, at least to me, is that Sony also is a retailer in that it sells direct to the public through the Sony Style Stores and its website. It also offers discount coupons or other incentives, such as when you register a product, that are good only through on-line purchases (or maybe also at a Sony Style store).
You can't use the coupons to buy cameras and lenses, only accessories. And it doesn't seem to me like the SURE program applies to accessories.
But you can use it for some items, including flashes I believe. The point is, however, that Sony through this policy is putting its own stores at a competitive advantage over other retailers selling its products and for whom Sony "fixes" the prices. I am not an antitrust attorney (and I took my antitrust class in law school a long time ago), but this does differentiate what Sony is doing from the Supreme Court case, at least to some degree. Whether or not that would be enough to allow a court to reach a different decision I can't say, and such uncertainty plus the high cost of pursuing such a claim allow Sony to do what it is doing without challenge.

I will add, however, that when Sony put the SURE program in place the cost of its flashes at some retailers (such as B&H) increased dramatically, by over $100 as I recall. This shows how much margin there is in the pricing of flashes (which like other accessories tend to be high profit items). This contrasts with cameras and lenses which, to my knowledge, have much lower margins and thus provide far less flexibility when it comes to their pricing.

--
Mark Van Bergh
http://www.markvanbergh.com
 
I'm not sure about SURE, whether it helps or hurts. But my strong sense is that it is not nearly as big a factor as what cyan calls "pulling" and "pushing" customers to the retailers to buy. And in the last year it has not been nearly as big a factor as is the fact that Sony has not put any compelling cameras on the table for a year and a half.

I think that has to do in large part with the hit Sony took as a result of the world-wide economic tailspin. Sony was hit harder than the other camera companies because of its large presence in the financial sector, which was the hardest-hit sector, and because Sony's market is in greater proportion overseas--and the yen has been strong. As a result, Sony cut more than 18,000 jobs, restructured its divisions, restructured its management, closed factories, including camera factories, and cut costs everywhere. The cameras Sony released last year scream cost-cutting to me.

Mark, I wonder if your friend the Sony rep, didn't get caught in this.
To my knowledge it was indeed a cost cutting measure that let to his release, but I don't know for certain as such personnel decisions are not going to be talked about publicly. What was more problematic is that, in my experience, he was one of the most knowledgeable Sony reps. Indeed, his primary job was training store personnel on the Sony products more than serving as a sales rep. He would also be the person demonstrating the product at store events, or at shows like PhotoPlus. I have talked with many Sony reps at PhotoPlus and elsewhere, and this guy knew more than just about all of them. Note also that he, like most of the other reps, actually worked for a third party marketing company (BDS Marketing), and not Sony. Sony "farms out" such marketing and training responsibility to a third party (or parties), which might also be part of its problem in the U.S.

I'll add that Sony was not the only manufacturer hit hard by the world-wide recession, though it might have been hit harder. We don't really know what impact Sony's reorganization and economic belt-tightening had on the Alpha division and product line, though I think it's fair to assume there had to be some.
But Sony did not cut its $5 billion R&D budget. I get the feeling from listening to Sony people, and people who have talked to Sony people, that they strongly believe that they have lots of great stuff to show us this year. And I'm seeing signs that, as these products begin to be released, we'll begin to see a much stronger promotional effort than we are used to seeing for Alpha.
Sony may or may not have cut its R&D budget, but it products over the past 1 1/2 years or so were just not competitive. Since Sony came out with new products it could and should have made them better and/or more competitive. There was no reason it had to so totally redesign the camera body for the A230/330/380 cameras and dumb them down as much as they did, two reasons those cameras are not competitive and have presumably not done well in the market. The resources devoted to redesigning the bodies could have been spent far more wisely in improving the A200/300/350 or simply adding a few new features to build on what Sony had already done with those cameras that had done fairly well in the market. Instead, Sony subtracted and made worse, and then overpriced the "upgrades" for the A300/350 (the A500/550) while also taking out some basic functions. Bottom line - Sony made some dumb product decisions that has led to its stagnation in the market. Add to that having no upgrade/successor for the A700 after more than two years and Sony's Alpha line seems to be going backwards (except for the A900/850, which are very much niche products and not intended for the larger DSLR market).

Sony really does need to change that trajectory. We'll see if it does.
I believe that the sub-theme just might be: It's Alpha time!

Whatever their intentions, however, as cyan said, they'll never be a central player unless they get their act together.
Now that's a bit of an understatement. :)

--
Mark Van Bergh
http://www.markvanbergh.com
 
Mark, the U.S. Supreme Court ruled that a manufacturer does have the right to set the retail price. Therefore, Sony is not in violation of any US laws. The case involved a small company that made women's purses, if I'm not mistaken.
I'm aware of that case, though I have not read it in detail. The big difference, at least to me, is that Sony also is a retailer in that it sells direct to the public through the Sony Style Stores and its website. It also offers discount coupons or other incentives, such as when you register a product, that are good only through on-line purchases (or maybe also at a Sony Style store). Thus, what Sony is doing is far more than just a manufacturer setting a retail price.

But, it won't matter unless someone challenges it in court, and that would be a very long and expensive process, so it is highly unlikely to happen. Sony knows this and thus does what it does.
Here's an article regarding the decision-

http://articles.latimes.com/2007/jun/29/nation/na-prices29

The last paragraph is interesting-

"The ruling leaves open the possibility that price-fixing agreements can be challenged under antitrust laws, but only when a manufacturer's brand dominates the market. This is rarely true with common retail products."
Took a quick look at the decision, but did not read it in full. The court did not say that the establishment of a minimum required price was not a violation of the antitrust laws. What it did do is overrule a prior precedent (almost 100 years old) that said that such a policy was a "per se" violation of the antitrust laws. That meant, if you proved such a policy it was automatically a violation of the law and not subject to further analysis. Instead, the 5 conservative justices decided to change the "per se" standard to what is called a "rule of reason," which means that a further analysis is required to determine whether the conduct at issue is a violation of the antitrust laws. The Courth thus sent the case back to the lower court for further proceedings consistent with the change in how the antitrust laws are applied. The lower court, and the appeals court, had applied the prior "per se" law in ruling that the challenged conduct violated the antitrust laws.

Thus, price fixing arrangement or agreements can still be challenged under the antitrust laws, it's just that a different standard of review will apply in determining whether a violation of the law exists. How would Sony's SURE program fare under such a challenge? That would be for the courts to decide, but only if someone undertakes a challenge. Because the cost to do so is so high, and the process so lengthy, it's unlikely that a challenge will ever occur and Sony (like many other manufacturers) can basically do what it wants.

--
Mark Van Bergh
http://www.markvanbergh.com
 
Just stating facts as I saw them. :) Seems like you have moved away from Sony, lately.
I can understand you have a lot of catching up to do, but claiming facts is another thing. I didn't change, Sony did.

This thread explains things a bit better than you have summarized:
http://forums.dpreview.com/forums/read.asp?forum=1037&message=34891457

Quoting it so you dont have to click on the link:

"Circa 2008- I think that most of the industry (reviewers, photographers etc.) were prepared to give Sony a pass in the enthusiast category because they were/are generally new to the DSLR arena in whole.

So while the A700/900 lacked some features it was pretty obvious then that Sony were working really hard on nice upper level cameras. And while they did a great job on those cameras (they truly did), we all knew that Sony were still behind the bigger more experienced camera manufacturers.

This was obvious they were behind, but when it was discussed we all were defensive about it knowing (hoping), expecting, Sony to improve every year in this category. We expected Sony to keep the momentum going.

Then 2009 came and went. And what a year that was.

Then PMA came, and went. And what kind of signal has that sent?

So while I praised Sony when they were making great strides- that was then, and this is now. I'm not gonna be blind to the fact that they seem pretty out of touch with enthusiasts since late 2008, with perhaps the exception of the A850 which was really an easy camera for them to manufacture and produce.

Sony are still new to this, and it's vital they continue to earn trust of enthusiasts who while being a smaller percentage of buyers for them, still spend much more money than other buyers in the hobby/profession and make great marketing tools for word of mouth advertising.

They are losing them in droves, and have been for quite some time.

I'm pretty sure nobody wants to hear this but many are thinking it and even some have said it here too. But part of being a champion for the brand means you have to call it like it is sometimes. And thats what I'm doing.

Does it mean that Sony aren't making good cameras for some people? Nope. They do, they certainly do. But if they are going to make the goal of being #3 as they have stated they would, they need to do better- much better. Problem is, they aren't, they are going in reverse.

Who wants to go down without a fight? How lame is that? "

--
http://www.AlphaMountWorld.com
 
Well, I know for a fact that they never stocked the more expensive stuff, prior to the advent of SURE.....I am a long term shopper at NatCam.

Whether you want to consider that as "proof" or not, is upto you. Bottomline, after Sony started the SURE program, I see a lot more high value stuff in the store. Whether that is sheer coincidence is entirely upto one's interpretation.
Our local retailer (National Camera Exchange) has a lot of top-end Sony equipment, ranging all the way from A900/A850 and through CZ 24-70 f/2.8, CZ 85mm f/1.4 etc and onward to other less expensive stuff.

So yes, SURE certainly has encouraged them to stock all of this premium stuff. I doubt they would have stocked this without SURE, since people would simply elect to pay a lot less and buy it online. Of course you still save taxes when buying online.
roweraay, you're only assuming that the SURE program encouraged National Camera Exchange from carrying the line. You have no proof, nor have you indicated that you've talked with anyone at the store that has mentioned the SURE program as the incentive for them to carry the line.
 

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