Pentax Unilateral Pricing Policy

**monochrome** · 04-03-2012, 07:13 AM

Originally posted by luftfluss

How do we know that Pentax isn't earning more from these price increases - or won't in the near future? Pentax could have easily raised their prices, I saw something similar happen years ago in a store where I worked, the boss was not happy.

You are correct - we don't know.

But for Pentax to rebuild a dealer network Pentax's strategy would be to write dealer agreements (contracts) that serve both parties to the agreement. IOW the contract will offer dealer incentives (price breaks for volume, advertising co-op sharing, print ad inches planned in national media, etc.) that would over the course of the agreement bring the cost back down to current or near-current levels. Think of the retailer goal as net monthly profit per cubic foot of inventory. Over the toal of the Pentax Dealer Agreement, what is the potential net profit per cubic foot of invetory on store shelves, warehouse and sales floor. In theory the entire store should be fiklled with items that generate the highest PPFt3.

One presumes when Pentax converted to they converted to Amazon/Crutchfield/Best Buy/Adorama/B&H/Abe's BigBox/internet marketing they made their target wholesale prices net of reduced expenses in USA the same or better than they had been before the changes. One presumes their target net prices aftern this change net of increased expenses will be the same as or better than they are now.

We have to hop we get some benefit from any icnreased expenses

Raffwal · 04-03-2012, 07:19 AM

Soon after I bought my first Pentax DSLR some 3-4 years ago, Hoya introduced ridiculous price hikes for nearly all Pentax lenses. So was this for Europe only or was it worldwide? Due to the price hikes I bought mostly 2nd hand lenses, when with no hike I might have bought new ones back then. Interesting to see where all this will end up going. If the new price increases seem worldwide and permanent, I may end up selling my Pentax system after all.

Hey, wasn't Ricoh supposed to be the good guys as opposed to the evil blood-sucking Hoya?

steve1307 · 04-03-2012, 07:19 AM

Looking on the bright side... my LBA is now cured.
I've been clean since late January but struggling to keep the credit card inside the wallet. This does make it easier.

Anvh · 04-03-2012, 07:26 AM

Originally posted by Raffwal

Soon after I bought my first Pentax DSLR some 3-4 years ago, Hoya introduced ridiculous price hikes for nearly all Pentax lenses. So was this for Europe only or was it worldwide? Due to the price hikes I bought mostly 2nd hand lenses, when with no hike I might have bought new ones back then. Interesting to see where all this will end up going. If the new price increases seem worldwide and permanent, I may end up selling my Pentax system after all.

Hey, wasn't Ricoh supposed to be the good guys as opposed to the evil blood-sucking Hoya?

That was around the world and it was different.
They raised the price for the dealers, so Hoya directly got more money.
Now in the USA they have introduced a minium selling price for stores to consumers, so quite different.

In america the prices of lenses was always quite cheap compared to the EU so they look more in line now.

cali92rs · 04-03-2012, 07:32 AM

Pentax can't afford to keep these lenses at these prices much longer. If there was any shot at gaining any new Pentax customers over the next few months, they've effectively killed that.

AGWoodard · 04-03-2012, 07:33 AM

I can't wait to see the sticker shock on all the faces of those who think the new 560mm lens is going to come in around 2 grand.

ElJamoquio · 04-03-2012, 07:38 AM

Originally posted by fuent104

How can they be serious? Just raising prices that much out of the blue? It seems like they are trying to drive customers away with every move they make.

Who is 'they'? I think the retailers are confused right now. Perhaps it's Pentax's fault, but I don't think prices will stay this way.

topace · 04-03-2012, 07:44 AM

Originally posted by AGWoodard

I can't wait to see the sticker shock on all the faces of those who think the new 560mm lens is going to come in around 2 grand.

Yeah, suddenly 2.5-3k sounds closer. Though I wasn't going to buy it anyways. If I'm getting something that long, might as well get something that fits my 645N as well.

Rupert · 04-03-2012, 07:49 AM - **1 Like**

I stopped buying Pentax lenses after two DA*50-135 SDM failures. I get better lenses and better warranties with both Sigma and Tamron, all at a much lower price. Having Pentax on the lens doesn't necessarily mean you will get better IQ, in fact it may mean you get worse in many comparisons. Paying more and getting less is not good economic sense.
I see where B&H has the DA*50-135 now priced at $1600. This is a great lens, but I can assure you it is no where close to being that great. I thought Ricoh was going to lead Pentax out of the ashes.......looks to me like they are just building themselves a hotter fire.
Regards

kenafein · 04-03-2012, 07:58 AM

Seriously a big "screw you" from Ricoh to all the loyal Pentaxians. I was being cautiously optomistic of their new policy. I guess I am glad I already have almost everything I want. This is a really stupid move. They have just increased the street value of the equipment for people who might want to hop systems, and right after Nikon released one of the most sought after cameras ever.

krebsy75 · 04-03-2012, 08:06 AM

Well said.

Originally posted by Rupert

I stopped buying Pentax lenses after two DA*50-135 SDM failures. I get better lenses and better warranties with both Sigma and Tamron, all at a much lower price. Having Pentax on the lens doesn't necessarily mean you will get better IQ, in fact it may mean you get worse in many comparisons. Paying more and getting less is not good economic sense.
I see where B&H has the DA*50-135 now priced at $1600. This is a great lens, but I can assure you it is no where close to being that great. I thought Ricoh was going to lead Pentax out of the ashes.......looks to me like they are just building themselves a hotter fire.
Regards

krebsy75 · 04-03-2012, 08:07 AM

Amen, Brother!

Originally posted by steve1307

Looking on the bright side... my LBA is now cured.

krebsy75 · 04-03-2012, 08:10 AM

I still love Pentax and the gear I have. Regardless, I will not be recomending this brand to friends and colleagues for quite some time. Too much uncertainty and mismanagement.

v5planet · 04-03-2012, 08:30 AM

Well, there goes one of Pentax's few advantages over CaNikon. That leaves us with smaller form factor and some unique primes. Okay. I don't usually like to beat this drum, but the grass is definitely starting to take on a new shade of green next door.

**WillWeaverRVA** · 04-03-2012, 08:34 AM

I am already looking into the prospect of switching to Canon or Sony and selling off all my Pentax equipment. Pentax had better do something soon.

04-03-2012, 07:58 AM	#205
kenafein Veteran Member Join Date: May 2011 Location: Southern California Photos: Albums Posts: 4,082	Seriously a big "screw you" from Ricoh to all the loyal Pentaxians. I was being cautiously optomistic of their new policy. I guess I am glad I already have almost everything I want. This is a really stupid move. They have just increased the street value of the equipment for people who might want to hop systems, and right after Nikon released one of the most sought after cameras ever. Last edited by kenafein; 04-03-2012 at 08:36 AM.

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04-03-2012, 07:13 AM	#196
monochrome Loyal Site Supporter Join Date: Mar 2008 Location: Working From Home Photos: Gallery \| Albums Posts: 26,276	Originally posted by luftfluss How do we know that Pentax isn't earning more from these price increases - or won't in the near future? Pentax could have easily raised their prices, I saw something similar happen years ago in a store where I worked, the boss was not happy. You are correct - we don't know. But for Pentax to rebuild a dealer network Pentax's strategy would be to write dealer agreements (contracts) that serve both parties to the agreement. IOW the contract will offer dealer incentives (price breaks for volume, advertising co-op sharing, print ad inches planned in national media, etc.) that would over the course of the agreement bring the cost back down to current or near-current levels. Think of the retailer goal as net monthly profit per cubic foot of inventory. Over the toal of the Pentax Dealer Agreement, what is the potential net profit per cubic foot of invetory on store shelves, warehouse and sales floor. In theory the entire store should be fiklled with items that generate the highest PPFt3. One presumes when Pentax converted to they converted to Amazon/Crutchfield/Best Buy/Adorama/B&H/Abe's BigBox/internet marketing they made their target wholesale prices net of reduced expenses in USA the same or better than they had been before the changes. One presumes their target net prices aftern this change net of increased expenses will be the same as or better than they are now. We have to hop we get some benefit from any icnreased expenses

04-03-2012, 07:19 AM	#197
Raffwal Veteran Member Join Date: Oct 2010 Location: The North Posts: 879	Soon after I bought my first Pentax DSLR some 3-4 years ago, Hoya introduced ridiculous price hikes for nearly all Pentax lenses. So was this for Europe only or was it worldwide? Due to the price hikes I bought mostly 2nd hand lenses, when with no hike I might have bought new ones back then. Interesting to see where all this will end up going. If the new price increases seem worldwide and permanent, I may end up selling my Pentax system after all. Hey, wasn't Ricoh supposed to be the good guys as opposed to the evil blood-sucking Hoya?

04-03-2012, 07:19 AM	#198
steve1307 Veteran Member Join Date: Mar 2010 Location: Sydney Photos: Gallery \| Albums Posts: 1,130	Looking on the bright side... my LBA is now cured. I've been clean since late January but struggling to keep the credit card inside the wallet. This does make it easier.

04-03-2012, 07:26 AM	#199
Anvh Veteran Member Join Date: Sep 2011 Posts: 4,616	Originally posted by Raffwal Soon after I bought my first Pentax DSLR some 3-4 years ago, Hoya introduced ridiculous price hikes for nearly all Pentax lenses. So was this for Europe only or was it worldwide? Due to the price hikes I bought mostly 2nd hand lenses, when with no hike I might have bought new ones back then. Interesting to see where all this will end up going. If the new price increases seem worldwide and permanent, I may end up selling my Pentax system after all. Hey, wasn't Ricoh supposed to be the good guys as opposed to the evil blood-sucking Hoya? That was around the world and it was different. They raised the price for the dealers, so Hoya directly got more money. Now in the USA they have introduced a minium selling price for stores to consumers, so quite different. In america the prices of lenses was always quite cheap compared to the EU so they look more in line now.

04-03-2012, 07:32 AM	#200
cali92rs Veteran Member Join Date: May 2011 Location: Long Beach, CA Posts: 3,354	Pentax can't afford to keep these lenses at these prices much longer. If there was any shot at gaining any new Pentax customers over the next few months, they've effectively killed that.

04-03-2012, 07:33 AM	#201
AGWoodard Banned Join Date: Jul 2010 Location: New Hampshire/Vermont Posts: 118	I can't wait to see the sticker shock on all the faces of those who think the new 560mm lens is going to come in around 2 grand.

04-03-2012, 07:38 AM	#202
ElJamoquio Veteran Member Join Date: Feb 2011 Posts: 4,873	Originally posted by fuent104 How can they be serious? Just raising prices that much out of the blue? It seems like they are trying to drive customers away with every move they make. Who is 'they'? I think the retailers are confused right now. Perhaps it's Pentax's fault, but I don't think prices will stay this way.

04-03-2012, 07:44 AM	#203
topace Senior Member Join Date: Sep 2011 Location: Stockholm Posts: 198	Originally posted by AGWoodard I can't wait to see the sticker shock on all the faces of those who think the new 560mm lens is going to come in around 2 grand. Yeah, suddenly 2.5-3k sounds closer. Though I wasn't going to buy it anyways. If I'm getting something that long, might as well get something that fits my 645N as well.

04-03-2012, 07:49 AM - 1 Like	#204
Rupert Veteran Member Join Date: Sep 2006 Location: Texas Photos: Gallery \| Albums Posts: 25,123	I stopped buying Pentax lenses after two DA50-135 SDM failures. I get better lenses and better warranties with both Sigma and Tamron, all at a much lower price. Having Pentax on the lens doesn't necessarily mean you will get better IQ, in fact it may mean you get worse in many comparisons. Paying more and getting less is not good economic sense. I see where B&H has the DA50-135 now priced at $1600. This is a great lens, but I can assure you it is no where close to being that great. I thought Ricoh was going to lead Pentax out of the ashes.......looks to me like they are just building themselves a hotter fire. Regards

04-03-2012, 08:06 AM	#206
krebsy75 Veteran Member Join Date: Jun 2010 Location: Chester County, Pa. Posts: 804	Well said. Originally posted by Rupert I stopped buying Pentax lenses after two DA50-135 SDM failures. I get better lenses and better warranties with both Sigma and Tamron, all at a much lower price. Having Pentax on the lens doesn't necessarily mean you will get better IQ, in fact it may mean you get worse in many comparisons. Paying more and getting less is not good economic sense. I see where B&H has the DA50-135 now priced at $1600. This is a great lens, but I can assure you it is no where close to being that great. I thought Ricoh was going to lead Pentax out of the ashes.......looks to me like they are just building themselves a hotter fire. Regards

04-03-2012, 08:07 AM	#207
krebsy75 Veteran Member Join Date: Jun 2010 Location: Chester County, Pa. Posts: 804	Amen, Brother! Originally posted by steve1307 Looking on the bright side... my LBA is now cured.

04-03-2012, 08:10 AM	#208
krebsy75 Veteran Member Join Date: Jun 2010 Location: Chester County, Pa. Posts: 804	I still love Pentax and the gear I have. Regardless, I will not be recomending this brand to friends and colleagues for quite some time. Too much uncertainty and mismanagement.

04-03-2012, 08:30 AM	#209
v5planet Veteran Member Join Date: Jan 2010 Location: Seattle Photos: Albums Posts: 1,915	Well, there goes one of Pentax's few advantages over CaNikon. That leaves us with smaller form factor and some unique primes. Okay. I don't usually like to beat this drum, but the grass is definitely starting to take on a new shade of green next door.

04-03-2012, 08:34 AM	#210
WillWeaverRVA Site Supporter Join Date: Apr 2011 Location: Richmond, VA Photos: Gallery Posts: 1,071	I am already looking into the prospect of switching to Canon or Sony and selling off all my Pentax equipment. Pentax had better do something soon.