Originally posted by NicoleC I saw a Pentax bundle in Costco early this year (or maybe late last year). They've tried that venue, at least.
Originally posted by dcshooter I believe they are carrying some stuff in Costco Canada as well, or at least on their website. I've seen the Q in target stores but never any of the DSLRs.
I'm curious to know what the items were, and whether they were in stores. If they were first-line products in stores at the start of their product life - that's one thing. If they were K-500 bundled with a 18~55 kit lens - especially one of the older versions of the kit lens - or a Q10/02 - I would call that inventory liquidation. If they were web-only (like the current Target K50 deal) that's a low-cost fulfillment item - buy 'em, store 'em, ship 'em - no muss, no fuss. B&H / Adorama / Amazon on a different website.
The point is, if a Manufacturer wants to negotiate a long-term product placement with one of these companies the Manufacturer must
Guarantee delivery of product, on-time, boxed as Advertised, etc - or
pay a penalty to the Retailer. These retailer operate on a Profit-per-cubic-foot-per-minute basis. If your product isn't on the shelves because you couldn't produce it -
in the volume you agreed to - then
the Manufacturer compensates the Retailer for the 'lost opportunity!!
Can you imagine putting the profit from the output of an entire plant at risk if a component supplier screws up? You have a strike? An earthquake or Tsunmai or 100-year flooding happens? Now add the risk of paying a penalty fee for non-fulfillment -
and you didn't sell any product on top of paying the penalty!! It isn't just that you didn't get revenue - you also have to PAY OUT MONEY!!
Part of the business decision is buying insurance against delivery failure - add that to the cost of filling the order. Big Box product distribution is much more complex and cost-driven than we can see from the outside.
There are manufacturers who have walked away from Walmart and Target and accepted the decline in volume because it was just to risky and expensive to sell there.