Do you feel that Canon "price gouged" early 5D III buyers?

Started Oct 25, 2012 | Discussions thread
zlatko Regular Member • Posts: 401
Re: Do you feel that Canon "price gouged" early 5D III buyers?

x-vision wrote:

No. They just genuinely misjudged the market (as confirmed by their quarterly financial results).

In 2008, the 5DII was priced very competitively and spec'd with a class leading resolution.

Overall, it offered very good value for money, so buyers went nuts and the 5DII could not be found is stock for more than a year.

But Canon obviously thought that that they were leaving money on the table with the 5DII, so they priced the 5DIII accordingly.

What has changed since 2008 is a) competition and b) market expectations.
Canon did misjudge these and the end result is that the 5DIII has much poorer value proposition compared to the 5DII.

No wonder the 5DIII needs to be discounted just six months after introduction.
And the price will only keep falling.

It's not true that the 5DII "could not be found in stock for more than a year" as I bought one from Amazon just a few months after it was announced.

The 5DIII wasn't priced higher because Canon thought they were "leaving money on the table" with the 5DII, but rather because it was a substantially upgraded camera. Despite bearing the old "5D" name, the 5DIII represents a new blend of the 5D series and the 1D series, with a number of features borrowed from the 1D series.

The 5DIII was priced 30% higher than the 5DII at launch ($3,500 vs. $2,700), and easily provided 30% more value. Many professional buyers recognized the value immediately. Some photographers who had previously needed the 1D series for their work and paid $4,500 for a 1DIII or $7,000 for a 1DsIII, for example, could now meet their needs with the 5DIII at $3,500 and thus save money. They were getting much of the 1D series (autofocus, shutter and mirror response, dual cards, 100% viewfinder, etc.) but in a 5D-sized body. The high demand for the 5DIII, even at $3,500, is why the price has held up this long.

A price drop over time is common and foreseeable in the camera world. It is a legitimate way to charge more to those who need a product more. Early buyers are often those who have a pressing business need for the product and for whom the product is actually worth more. For them, the extra paid to get the product early is quickly outweighed by the benefit of actually having the product in regular usage earlier.

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