Prices...What The...???

Started Apr 14, 2011 | Discussions thread
tyyreaun Contributing Member • Posts: 523
Re: Prices...What The...???

moimoi wrote:

Yes, that's indeed correct. However, was Sendai's plant the only one dedicated to high-end glass and bodies? In that case, that would be a mistake to centralize the making of high-end products in just one place.

I would assume that the industrial equipment required to manufacture to Nikon's pro tolerances isn't cheap. That, and the worldwide volumes probably aren't that high to justify having more than one facility.

We're talking about cameras and lenses, here. It's not like orphans and kittens are going to die if the supply is disrupted for a few months, so I doubt Nikon went to great lengths to ensure redundancy and immediate disaster recovery.

To the best of my knowledge, all D7000s are assembled in Thailand, most likely in a single facility. If Thailand's political situation flares up again, expect those to in be in short(er) supply, too.

So, that would be a retailer issue, taking advantage of the situation to "inflate" significantly the prices. No laws in the US preventing such actions?

As someone mentioned, there are probably laws against setting extreme prices for basic staple goods during emergencies, but that will cover stuff like food and water. I doubt any state or nation will ever pass a law guaranteeing your fundamental right to cheap camera equipment.

Consider how stuff like the D7000 and the 35mm f/1.8 DX regularly sold for well above MSRP prior to the earthquake, simply due to lack of supply.

Assuming they don't have the inventory...that we don't know for sure..

True - they may simply be hoarding the product expecting prices to go up higher. However, that wouldn't make much business sense. Prices are already well above MSRP, and the situation in Japan is stabilizing. I would guess prices will come back down pretty soon - especially once Nikon announces their long-term recovery plans, quelling the panic.

Same with gas in the US after Katrina - it spiked for a week or so but came back down pretty quickly, once the damage was fully assessed and people realized we weren't all doomed.

Note that I'm not saying what the retailers are doing is moral - nor am I saying it's immoral. However, it is legal (to the best of my knowledge) and it follows the basic laws of economics, making it good business sense.

Maybe. Unless there is a higher demand...and I believe for the race FX has been running faster than ever

If there is higher demand, then that's even more reason for prices to go up if supply has been disrupted. Given the high price of pro lenses, I doubt any retailer was holding significant inventory in stock, just in case. The holding cost (mainly, opportunity cost on the capital tied up in inventory) would crush them.

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