I just don't get these 2001 prices??

Started Jan 7, 2012 | Discussions thread
Timothy Stark
Timothy Stark Regular Member • Posts: 164
Re: I just don't get these 2001 prices??

Retail pricing has nothing to do with the component cost of an item. Camera company's marketing groups spend a lot of time calculating the uptake of their new products based on an estimated retail selling price (not to be confused with MSRP).

Economics 101 provides the clue that for every given sale price the company will sell X thousand cameras. This is a curve function and could see the marketing VP out the door if they get it wrong. The calculated price will include the marginal cost (more cameras sold mean each unit becomes slightly cheaper to produce) and an acceptable return on investment cost per unit.

Consumer behaviour is notably fickle and based on forward estimates by marketing, will determine what features are in any product, based on price point.

The Bank of Canada has a nice little inflation calculator on its website at


My 1973 Nikon F2 purchase at $550 is about $2700 in todays funds. A $4500-$6000 pro level body gives a lot more functionality than my old F2. Even more telling is the FE I purchased in 1978 for $329. Today's equivalent is $960. Hence the D7000 is about right on target.

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