I'm curious as to what the dealer markup is on the Canon and Nikon DSLRs. Is anyone here able to shed some light on the subject? Also, anyone that works at a store like Best Buy or Circuit City and knows what cameras like the D80 and 30D go for at employee discount would certainly help give an idea for what dealer cost is as well.
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Dealer cost for DSLRs?
- Thread starter YoYoMa
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I don't want to get into specifics because, well, I'm not supposed to.
But I will say margins on DLRs are ridiculously low. Dealers make almost nothing on them. They take their profit in memory cards, filters, etc.
But I will say margins on DLRs are ridiculously low. Dealers make almost nothing on them. They take their profit in memory cards, filters, etc.
Like quackattack said, the margins that retailers make on most electronics is ridiculously low in comparison to other industries, not only in the US but globally, found this out over in Thailand for some business stuff and I'm sure it applies for this generalization. To give a fairly poor but general idea, check out B&H's prices, lower than BB and CC and their margins are less but they sell more.
The employee discount at Best Buy is between 5% and 15% above dealer cost (cannot remember which.) The discounts are quite different when it comes to electronics. An amplifier is usually marked up 50%, as is a TV. Speakers are around 100% markup. Ipods however are about $5 off. Is there anyone who has worked at one of these stores that wouldn't mind spilling the beans on DSLRs? I'm guessing that the markup has to be at least 35% as CC and Best Buy regularly offer 10% and 12% off coupons.
Right you are. The shame is that Brooklyn shops make it seem that retail shops are making a killing. D200's for like $800! Never mind MAP, doesn't one think that if Wally World could sell the D200 for $800 - that they wouldn't - even if they could not advertise it?
I like asking folks that are looking at some of the prices on the web for cameras, would they buy a '07 Toyota Corolla that has an MSRP of $18K US for $10K US BRAND NEW? They answer don't be ridiculous, that is below fair value. Go figure...... P.T. Barnum was right......
DSLRs have little markup (except sony I beleive which has slightly higher margins). My employee price on a d40x kit was roughly 725 (if I remember correctly) about $5-10 less than the actual (sale) price at that time. On my canon sd1000 the sale price was lower by $3 than the empolyee price. Big box retailers make very little on cameras and computers themselves, the profit is in primarily services and peripherals especially cables. This is why most sell warranties and initial install and setup packages.
If they are lucky, B&H sells many models well below dealer cost. Something doesn't quite add up.
Certainly true that large volume retailers pay less than small dealers, but that's true in any industry.
When I bought my D50, I really wanted to buy from my local store but I bought from Beach Camera. I levelled with my local guy and asked if he could match the price or even come close to it, and he said "if I were to drop the price, which I would, I still couldn't come within $100 of the Beach price even if I discount it to my cost" Now before y'all get mad at me and tell me I'm an a*s for not supporting my local, I would have save that I'm a poor college student and couldn't make the $150 difference work, but rest assured that once I have a job I'll be purchasing from my local store
But anyway my point is that dealer markup is minimal at local/small dealers but that beach and B&H etc can sell for so little because they move a LOT more volume than those dealers and hence get commensurate discounts. All this means is that manufacturer markup is high on electronics, whereas retailer markup is high in other industries (see fashion).
No, but they're indicative of the profit. I used to get 20 % discount on clothes and furniture and 10 % discount on cameras, electronics, and household goods.
Yeah, someone else was trying to buy from BroadwayPhoto, and those people have probably yet to ship one camera, despite all the money they get and advertising they do. I'm always impressed when someone thinks that they really can get a bargain.
Certainly true that large volume retailers pay less than small dealers, but that's true in any industry.
When I bought my D50, I really wanted to buy from my local store but I bought from Beach Camera. I levelled with my local guy and asked if he could match the price or even come close to it, and he said "if I were to drop the price, which I would, I still couldn't come within $100 of the Beach price even if I discount it to my cost" Now before y'all get mad at me and tell me I'm an a*s for not supporting my local, I would have save that I'm a poor college student and couldn't make the $150 difference work, but rest assured that once I have a job I'll be purchasing from my local store
But anyway my point is that dealer markup is minimal at local/small dealers but that beach and B&H etc can sell for so little because they move a LOT more volume than those dealers and hence get commensurate discounts. All this means is that manufacturer markup is high on electronics, whereas retailer markup is high in other industries (see fashion).
I dealt with my local dealer when I bought my Olympus E-1 three years ago and for all the help I got, I could have bought from Amazon.com and learned as much. Now that Circuit City and Best Buy have dSLRs, they have to be a little more helpful.