M43 seems more and more overpriced compared to NEX

Started Aug 27, 2013 | Discussions thread
Sean Nelson
Sean Nelson Forum Pro • Posts: 13,094
Re: I'm curious

peevee1 wrote:

ThomR wrote:

peevee1 wrote:

ThomR wrote:

These companies sell items for what the market will pay. If there is less competition and no used market/supply, the prices will be high.

I am not sure what "market will pay" means.

It means they list it at a price and see if it sells. If if does they keep that price. I am sure they do their research too. After a few years, like most lenses, the price drops because of the used market and costs to make the lenses drop.

What do you mean "it sells"? 1 lens a month - does it mean "it sells"? 10?

Are you being deliberately obtuse?   The manufacturers set a price that they hope will maximize profits.  They do market research to get an idea of what the demand is, and then they set the price as high as they think they can which will still sell enough units to bring in the amount of revenue they've planned for.    They set a high price initially because it's a lot easier to lower the price than to raise the price if they've misjudged.

Of course market research can be wrong, so they monitor how many units actually sell.   If sales are close to or above estimates, they generally leave the price alone.   But if sales are below expectations then they'll lower the price in order to stimulate more sales.   There's normally a pretty good margin built into the product so that they have a fair bit of room to lower prices and still make money.   The goal is to maximize profit - that's a very different goal than maximizing the number of units sold.

I often see complaints about the price of M43 glass because of some comparison of the supposed production cost - for example "M43 f/2.8 lenses aren't any bigger than FF f/5.6 lenses so they shouldn't cost any more".   That's ridiculous - prices have only a very tenuous relationship to production cost.   Prices are set by marketing departments based on their estimate of the demand for the product.   The fact that M43 lens prices may be higher in relation to their production cost is an indication that the lenses are in high demand, at least in relationship to the manufacturers' planned sales volumes.

You can criticize high lens prices as much as you want, but if they were really "too high" (i.e., higher than most people were willing to pay) then the manufacturers would be forced to lower them in order to stimulate sales.   This is pretty obvious when you look at what happens to older M43 bodies.

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