Why does Sony have such a dominant market position in the US market

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T3 Forum Pro • Posts: 21,419
Re: Why does Sony have such a dominant market position in the US market

robblackett wrote:

T3 wrote:

George1958 wrote:

I agree Sony is a strong company, but is not universally dominant. All manufacturer are having to work harder to sell cameras. This is evident when you see the cash back and discounts for popular models.

"Popular models" don't really need cash back and discounts. Not all manufacturers are having to work hard to sell cameras. This is evident when you see the lack of cash back and discounts for popular models.

A7III: $1,998.00 (no discount)

6400: $898.00 (no discount)

EOS R: $1,999.00 ($300 discount. Also includes free EF adapter, $100 value)

EOS M50: $599.00 ($200 discount)

Nikon Z6: $1,796.95 ($200 discount. Also includes free FTZ adapter, $246.95 value)

Nikon Z7: $2,796.95 ($600.00 discount. Also includes free FTZ adapter, $246.95 value)

This makes sense, of course. After all, popular models sell themselves. Why would you need to discount or give cash back on a product that will sell well without discounting and cash back?

It depends. In the days when I was responsible for marketing cameras we constantly experimented with various marketing techniques.

Now given that a camera needs to sell at, say, $1998 to generate the required margin, which would you think would generate the larger number of sales - $1998 with no discount, or $2298 with $300 cashback or discount? After all it's the same selling price, right?

Well, invariably it was the higher price with the discount that would sell best, the conclusion being that a) people love to think they are getting a bargain; and b) retailers like to be able to advertise a 'special price' (ideally with a limited time period) which provides consumers with an incentive to buy now, rather than just thinking about it.

Cameras have always been discounted over time-- but only after their sales have dropped. And that typically happens a year or two after its release. But notice that the Canon and Nikon bodies are all very recent introductions. They are all less than a year old. And yet, they are already getting discounts. Conversely, the A7III was released in February 2018 but Sony has seen no need to discount it because its sales remain so strong.

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