HEY OLYMPUS! I’m irritated as %@&#!!!

Started Sep 14, 2013 | Discussions thread
3DrJ Senior Member • Posts: 1,027
Interesting comment. Now a question for you...

peevee1 wrote:

3DrJ wrote:

In other words, introductory rebates are a separate issue. Thing is, some kind of rebate is offered in each region, and the items have a retail value that is approximately equal.

In N. America, it's the MMF3 or FL300R, retail price of these is ~$200. But the HLD7 also retails for $200. All 3 are worth about the same. Which accessory qualifies for rebate does NOT change the overall price, or value received.

But the retail value and COST to Olympus are two different things. Both MMF-3 and FL-300R are relatively high-volume products with marginal cost of below $5 and their very low R&D costs distributed between probably tens of thousands of copies over the life of the products. Giving them on $1,400 costs them $5.HLD-7 is a low-volume product just for this particular body, probably just a couple of thousands of them (if that many) will ever be sold separately (so all R&D and tooling will have to be divided by those couple thousands), and even marginal cost is obviously higher due to precision assembly needed, and that high cost is recouped only if you include it in the introductory price of the body and distribute with it to build up some volume. Of course they decided to include it in the price in market with higher price tolerance (otherwise body price in the US would be $1,600 or so).

OK, one or more of your assertions is possibly true. Here's my question: how do you know? What data do you have?

What you'd need to show are documents tabulating Olympus' manufacturing and marketing costs of the items as you asserted, and the number of units sold (of MMF3 and FL-300R), etc. And since you brought it up, separating R&D cost and amortization over the last few years would help establish the facts.

It would also be helpful if you'd provide comparative profit/loss data for European vs. N. American sales of Olympus cameras, since you imply cost differences in various regions ("higher price tolerance" of one place vs. another) play a role in Olympus' decisions about what rebates to offer.

These queries are only examples. I'm certain many other sorts of data could be relevant to the "explanations" you gave. Any real, and pertinent, data would be sensational.  In the absence of concrete data, the statements can't be considered true.

Naturally, these questions just barely scratch the surface concerning the financial nuances of the camera business. I'm not an accountant, though having run my own business for a long time, I have some idea of the complexities of profit and loss. If you are an accountant and/or have deep knowledge of Olympus' financial practices, well, I am quite sure you shouldn't be writing about it on an internet forum.

Here's the deal. When it's done and said, I'd still greatly prefer a rebate on something I can really use (the HLD-7), rather than for stuff I already have (MMF3, et. al.).


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