can't believe my 5R has lost almost half value in 7 months

Started Sep 2, 2013 | Discussions thread
oklaphotog Senior Member • Posts: 1,093
Re: 7 months *is* unusual for a Sony camera

marike6 wrote:

It does seem unusual that any Sony camera would drop so significantly in price in such a short time.

The RX-100, for example, hasn't dropped at all in price (it's still 650 USD) and version two has already shipped. The NEX-7 did not drop in price after all this time.

The RX-100 was a premium product in it's category. It's currently $599 vs $750 USD for the MII. Sony brought out the MII as a higher priced and higher level camera not as a replacement at the same price as the previous model. In the end the MII is a little more than the M1 was originally, with the M1 taking a $100 price reduction.  For many, the MII doesn't bring enough to the table over the MI version to justify $150 difference in price. But because it is so popular, Sony is riding the coat tails of the MI while at the same time making more money from sales of MII to people who just have to have it all or have the latest. The NEX-7 doesn't have a replacement yet, but being it's pretty old now, when a replacement does arrive, it's value will drop like a rock.

AFAIK, The NEX-5N remained at full price for it's entire lifespan. I was waiting for it's price to drop to snap one up, and that never happened.

But the 5T replaced the 5R for about the same price. The RX100 appeals to many SLR shooters as a pocket camera, where the NEX 5 series doesn't. They are in different markets and the RX100 has wider appeal with a large audience.

So knowing that Sony rarely, if ever, reduces prices on their cameras, why do you guys think the NEX-5R price dropped so quickly

Because the 5R was replaced. Sony always reduces price by varying degrees on models that get replaced depending on how much it has in inventory and how well it is selling. It's cheaper to sell them for less than to sit on them in a warehouse.

What made the NEX-5R different for the above models that still are selling at full price?

It's highly likely there are a lot of 5R's on shelves, forcing Sony to give dealers price protection on current inventory in order to sell it and to clear shelves for newer product.. Or Sony has been caught with it's pants down, sitting on a large quantity of 5R's in their warehouses after the 5T release, and had to drop the price to sell them. Nobody wants the older version for the same or nearly the same price. B&H sells the 5R kit for $499 vs the 5T kit for $699. Sony is selling the 5R for $749 + $150 instant savings. Anyone selling a 5R at $429 is likely selling it at below their cost in order to get rid of them now that the camera is no longer on SURE.. Having previously worked in a dealer and knowing how Sony prices things, I suspect that current dealer cost is $499 for the 5R kit which gives slightly less than a 17% markup at $599 ($499/.83=$601). Sony never sells in it's stores or online store for more than what they recommend their brick and mortar retailers to sell at. Where Canikon bodies, lenses, and kits generally have a 10% markup, Sony is usually 15-18% for photo specialty dealers. B&H almost always sells their gear at the same price as what it costs the brick and mortar store to purchase them, except Sony products under the SURE structure. Once it goes off of SURE, then they drop the price to other dealer's cost.

So on average in most dealers you are likely to find this camera at between $499 and $599, now that the camera is no longer SURE priced. B&H, Adorama, Amazon, etc.... can sell it at other dealers cost because their purchasing power allows them to buy such a large quantity that they get a lower cost than everybody else. If you see this camera for less than $499 for the kit at anywhere other than one of the big mail order houses, it's likely below cost and the company is trying to shed them from inventory before they loose more value. When shops do this, they often make up for part of it in the shipping price and by selling accessories with it that have a high markup which balances out the sale. Most folks who buy one will buy a card and a uv filter, maybe a battery, nicer strap and bag, all of which have at least a 40% markup. When this happens they get to move the camera while taking a minimum loss vs. having it sit on the shelf for a year unsold only to get sold for even less than they paid for them.

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