at half the average cost of retail?
Where is that being done?
B&H sells a $999 MSRP D70s package for $874.95 thats 12.42% off! How is that 1/2 offa retail? Retail = MSRP.
Just how many people here think that there are 50 to 100% margins on the likes of of digital cameras?
what do you think the margins are then?
Myself being a wholesale distributor of products in a completly different industry, truely believe that yes there probably is between 50 to 70% "markup" in selling cameras!
Do you think that a company like Nikon just sells to anybody? I'm sure not! and inside that contract that you sign with them there is a termination clause that states something to the nature that, if they feel that you are doing anything to upset/undermine the market selling their product that they have the right to terminate doing business with you without any notice!
Take Apple for instance, do you really think that co.'s like MacMall, when they purchase 1000's of computers doesn't recieve at least 50% offa MSRP?
I have a friend that works for them, and while they sell usually at $5 off of MSRPto the public and also sometimes give away companion items for free to offer a discount he has guidlines that must be followed which will let him discount product to aprox. 20% off to a customer if need be. He can also buy as an employee at aprox. 40% off, and then re-sell on ebay or where ever. and there are alot of Dell, B&H, and MacMall employees doing this on ebay to earn extra money!
Getting back to camera's, Lets take a Samsung NV10. It's not even out yet, but the likes of B&H are already advertising it at $349.99, MSRP is $399. Thats a 12.3% discount to the "Retail Market". If we used your logic Chip, and said their wasn't a 50% margin then B&H is already loosing money selling this camera. If they were only getting 25% offa MSRP they'd be loosing money at this price, since that "fancy" piece of NYC real estate and state of the art warehouse and 100's of employees and NYC taxes would at least generate an overhead of around 18%. And lets not forget all the seconary market that a company like B&H sells to, all the Mom & Pop shops that can't afford to keep inventory and go to B&H and buy @ wholesale.
Not only are the likes of B&H buying at at least 50% off its probably more like at a 50/10 or 50 & 2-10's off of MSRP! Yeah I'd like to see the Hassid buyers face when the Nikon rep walks in and tells him,"we're running a special this month, you can now buy a D70s package w/18-70 for $749.25"
Ha
Serpent