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Disappointed with the fate of the EOS M line

Started 2 months ago | Discussions thread
Shooters on My Squad Regular Member • Posts: 379
Re: Disappointed with the fate of the EOS M line
1

Sittatunga wrote:

But that's a very vague statement and I still don't think that Canon would injure their overall profitability to boost certain unspecified lines. Please give some examples of this behaviour that have no other explanation.

I think this is where your confusion comes from. You need to understand that a company reduces its overall profitability if it sells a product similar to another one that they also sell that delivers 80% of the results, but for 20% of the price. It is natural as an average consumer to compare the “values” of items, and then get the best value for your money.

You usually will also have a higher profit by selling one product for amount x, instead of selling ten products for amount x / 10, even if margins stay the same. You need to take into account additional costs in logistics, and support (10x more packages, 10x more “amateur” customers).

What's the relevance of the timing of releases remark?

Timing is important if you want to maximize profits. Just search for “product launch timing strategy” if you are interested in this topic.

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