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06-16-2011, 06:04 AM   #1
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Photo Rumors: The first Pentax Boutique in the US is now closed



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I received some information that one year after its opening, the first Pentax store in the US is now closed as a result of Pentax dropping Willoughby’s as a dealer (the boutique was located inside Willoughby’s).
The first Pentax Boutique in the US is now closed | Photo Rumors

06-16-2011, 06:12 AM   #2
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More brilliance from Pentax's infamous "Non-Marketing" Department...
06-16-2011, 07:07 AM   #3
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The curious thing is Pentax dropped Willoughby's, and not the other way around. I wonder why they would do that. The more stores carry Pentax the better, I would assume.
06-16-2011, 07:11 AM   #4
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I've read a few posts here and there that appear to outline a seriously flawed approach to Pentax's relationship with its retailers. Canon and Nikon will allow retailers to buy on credit and pay once a sale has been made, in contrast Pentax apparently only sells on a cash basis. Nikon and Canon will allow smaller retailers to pick up their lines on a very limited basis initially, again in contrast Pentax apparently requires something in the 6 figures to begin the relationship. If those things are true I can understand completely why so few retailers carry Pentax.


Last edited by Docrwm; 06-16-2011 at 07:16 AM.
06-16-2011, 07:23 AM   #5
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Allowing retailers to stock stuff on Consignment is a very liability prone supply chain programme for the vendor/wholesaler.

You will find that it isn't quite as prevalent as you might think, and when it is present, it rarely covers the entire product line - rather the models with the most secure ROI and turnover rates.

If you only sell say 5 units a month via a retailer, then it wouldn't be wise to enter into an on-consignment relationship. Not only do you risk stock stagnating that you 'own' but dont 'hold'.. but you just plain aren't going to be making any turnover compared to selling those 5 units to a retailer.

However if you are moving 25-30 units, then we may not sell on consignment - but we can establish a trade account. Then you can 'buy' and 'pay later' - within our terms that is (usually 7-30 days... depending on volume).. Providing the retailer 'effective sale on consignment' as if THE RETAILER are managing their stock levels appropriately - they will never pay for something before its sold (excluding floor models).

But selling on pure consignment - its very very rare. Certainly in these parts of the world. Way too many complications and downsides - UNLESS - there is a great volume of sales to subsidise those issues (which I believe the Canikons *may* approach - but I doubt Pentax or the others such as Olympus etc do...)

And as for the 'impost' to establishing a relationship.. it has its downsides... but its not that unusual when positioning a vendor as 'quality' and 'distinct'... Apple is a classic example. The 'costs' associated with establishing, and maintaining, an Authorised "Apple Store" are stupendous... Even pre-2000 and the iPod Driven Craze for all things White.... this is back when Apple just didn't advertise.... but still people managed to scrounge together the requirements to do so (which arent just 'costs' direct to the vendor - there is requirements for min. staff (both floor and technical) and inventory holdings etc etc....). And Apple seem to do ok and even though they are mass marketed and mass consumed these days - still retain that 'boutique' feel - both as a brand and 'in-store'...

Just some food for thought....
06-16-2011, 07:27 AM   #6
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Way to go, Pentax! Who knowns, maybe they're looking to open a standalone store:P
06-16-2011, 07:31 AM   #7
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QuoteOriginally posted by adr1an Quote
Allowing retailers to stock stuff on Consignment is a very liability prone supply chain programme for the vendor/wholesaler.

You will find that it isn't quite as prevalent as you might think, and when it is present, it rarely covers the entire product line - rather the models with the most secure ROI and turnover rates.

If you only sell say 5 units a month via a retailer, then it wouldn't be wise to enter into an on-consignment relationship. Not only do you risk stock stagnating that you 'own' but dont 'hold'.. but you just plain aren't going to be making any turnover compared to selling those 5 units to a retailer.

However if you are moving 25-30 units, then we may not sell on consignment - but we can establish a trade account. Then you can 'buy' and 'pay later' - within our terms that is (usually 7-30 days... depending on volume).. Providing the retailer 'effective sale on consignment' as if THE RETAILER are managing their stock levels appropriately - they will never pay for something before its sold (excluding floor models).

But selling on pure consignment - its very very rare. Certainly in these parts of the world. Way too many complications and downsides - UNLESS - there is a great volume of sales to subsidise those issues (which I believe the Canikons *may* approach - but I doubt Pentax or the others such as Olympus etc do...)

And as for the 'impost' to establishing a relationship.. it has its downsides... but its not that unusual when positioning a vendor as 'quality' and 'distinct'... Apple is a classic example. The 'costs' associated with establishing, and maintaining, an Authorised "Apple Store" are stupendous... Even pre-2000 and the iPod Driven Craze for all things White.... this is back when Apple just didn't advertise.... but still people managed to scrounge together the requirements to do so (which arent just 'costs' direct to the vendor - there is requirements for min. staff (both floor and technical) and inventory holdings etc etc....). And Apple seem to do ok and even though they are mass marketed and mass consumed these days - still retain that 'boutique' feel - both as a brand and 'in-store'...

Just some food for thought....

Again, from what I have read these policies are followed by the BIG TWO and not by Pentax. From a success in the marketplace perspective which approach is doing better?
06-16-2011, 07:33 AM   #8
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Do hey have a retail outlet at their Colorado facilities?

06-16-2011, 07:55 AM   #9
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QuoteOriginally posted by Docrwm Quote
Again, from what I have read these policies are followed by the BIG TWO and not by Pentax. From a success in the marketplace perspective which approach is doing better? __________________
Your question is ultimately akin to "Chicken or the Egg - Which Came First". However - I would seriously doubt that Canikon in anyway *built* their market share selling on consignment - rather it was a natural progression on certain models once volumes offset such an approach - if it occurs at all (as I said - I'm dubious).

Selling on consignment alone is not going to push more stock... it might assist in a retailer holding more stock - but it isn't going to get them to sell more.... I'd be looking more at what ROI does Pentax offer a retailer over the other two... How does their margins and rebates to retailers compare... what *incentive* is there to move Product A over Product B....

The holding of consignment stock is only going to *potentially* assist in moving larger volumes - it most certainly wont *establish* those volumes....
As stated - establishing a trade account is akin to selling on consignment - if you're prepared to *sell* the product that is and not let it languish on store shelves.... so I just dont see the impost you are with regard to whether Pentax do or dont sell on consignment.. If I want to sell Pentax - I'll get an account, manage my inventory, and make damn sure I pedal my wares...
06-16-2011, 08:01 AM   #10
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QuoteOriginally posted by adr1an Quote
Your question is ultimately akin to "Chicken or the Egg - Which Came First". However - I would seriously doubt that Canikon in anyway *built* their market share selling on consignment - rather it was a natural progression on certain models once volumes offset such an approach - if it occurs at all (as I said - I'm dubious).

Selling on consignment alone is not going to push more stock... it might assist in a retailer holding more stock - but it isn't going to get them to sell more.... I'd be looking more at what ROI does Pentax offer a retailer over the other two... How does their margins and rebates to retailers compare... what *incentive* is there to move Product A over Product B....

The holding of consignment stock is only going to *potentially* assist in moving larger volumes - it most certainly wont *establish* those volumes....
As stated - establishing a trade account is akin to selling on consignment - if you're prepared to *sell* the product that is and not let it languish on store shelves.... so I just dont see the impost you are with regard to whether Pentax do or dont sell on consignment.. If I want to sell Pentax - I'll get an account, manage my inventory, and make damn sure I pedal my wares...
Your arguments are flawed in one very important way - if retailers do not hold stock they can not sell it. If they hold stock, there exists a chance they will actually sell it. If Canon and Nikon do engage in that practice prudence would suggest, given their success in actually selling cameras to the public, that a good look at their model might prove illuminating. Not saying I know that they do sell in the manner I outlined but I have read about the practices I listed in a number of places, here among them, and I would think that Canon and Nikon's marketing and sales far outdistance Pentax's. Theory is terrific, but practice tends to beat it.
06-16-2011, 08:13 AM   #11
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By your logic - every best selling product ever must have only been provided on consignment. In practice.

I guess we'll just have to agree to disagree on this one...
06-16-2011, 08:57 AM   #12
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No retail or service in Golden; I wish they did.
06-16-2011, 08:58 AM   #13
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Maybe just not enough sales.
06-16-2011, 09:20 AM   #14
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QuoteOriginally posted by kevinschoenmakers Quote
The curious thing is Pentax dropped Willoughby's, and not the other way around. I wonder why they would do that. The more stores carry Pentax the better, I would assume.
The more stores = more sales and distribution costs. You have unsold inventory at dealer A competing with faster-moving dealer B who wants and can sell the new stuff.

These days, competing against the online marketplace, a few, select stores carrying your brand with attention to detail is better than a scatter shot solution.
06-16-2011, 09:23 AM   #15
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QuoteOriginally posted by Aristophanes Quote
The more stores = more sales and distribution costs. You have unsold inventory at dealer A competing with faster-moving dealer B who wants and can sell the new stuff.

These days, competing against the online marketplace, a few, select stores carrying your brand with attention to detail is better than a scatter shot solution.
Guess you guys must be right about that model working better. Who wants to tell Nikon and Canon management?
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