Originally posted by AGWoodard So it doesn't matter who you rape, dealers or customers, as long as someone gets raped, all is OK because they have a plan for you? The technical term is BOHICA. Bend Over, Here It Comes Again.
I think you are seriously misunderstanding the whole conversation. Pentax has not raised prices. They have required authorized dealers to stick to MSRP or some percentage of it (we do not know the exact terms). Pentax is attempting to police their sales channel just as many other manufacturers do. Any additional margin will go to the dealers not Pentax.
Without getting into the B&M versus online argument there is a good reason to make sure dealers make money on your product: if they do not make money they don't care about you or your products and neither do their sales staff.
How did we get here? The same way a lot of industries did, including gas stations back in the day when stations competed for your business. Your competitor offers a product cheaper than you do, so you either lower your price to match or go below him to get the sales. The week after your competitor drops his price again and then you do the same, round and round we go. If no one is policing the children it ends up with your product being sold at essentially no margin, and guess what, the dealers stop stocking it and stop pushing it because they are not making money. Even though they caused the issue themselves.
In this case we have B&H, Amazon, Adorama, Abe's and maybe a few others all trying to keep their volume up by discounting to make the sale. Add in the higher stocking and minimum order requirements instigated by Hoya and you can see they all have motivation to keep the volume moving or they lose either their AD status or some amount of discount. What has been needed is someone to step in and say stop. Here are the rules, everybody follows them and everybody makes money. I cannot imagine any of the dealers being too upset about being able to actually make money on Pentax. But they were never going to let a competitor undercut them.
Is this fair to consumers? No, not at all and carried to extreme it is probably illegal in the US. But the system being used was not fair either, and carried to extreme would have ended up with no dealers stocking Pentax because there was no money in it. Ricoh, recognized the retail channel was in a death spiral and moved to fix it. Will we be stuck at MSRP? No, no way. Once the gray channel has flushed out and Pentax has the dealers back toeing the line prices will be allowed to float gradually to the level that creates the most sales / margin.
Will we see last week's prices again? Probably not. I think we were seeing things being sold at essentially zero margin or at least a margin so low it was unsustainable.
Am I happy about it? Nope, I was one more paycheck from the DA 40mm. At $359 it was an incredible bargain. At $500, I have a perfectly serviceable F 50mm 1.7 that will do the job good enough for me. Will I ever get the DA 40? Who knows but not anytime soon. But I am not going to go around downing Pentax / Ricoh for being good business people, recognizing an issue and moving to fix it. Ricoh has committed millions of dollars to this project and if they are as good as I think they are they realize it takes a lot more than a top notch product to succeed. You also need good marketing, solid service and a committed dealer network that values your product because it makes them money.