Originally posted by regken Gotta side with Jer on this one. A company decides what they are going to sell a product for but if the market doesn't like the price it doesn't sell. To stay in business the company has to bend to the market.
When looking at the whole market I'm amazed they have been able to keep the price as high as they have.
Ken
then why are 1D's mk3's selling for what they are?
why are diamonds worth what they are worth?
a company can floor its price to maintain a status quo at the expense of attracting new customers, even if logicaly speaking they would benefit from a lower price.
today, actually, i went shopping for some fall coats. I purchased a single armani biker-esque jacket for 250 dollars, wool/cotton with some nylon, stylish and all that jazz. I also purchased 3 other jackets from Bluenotes for 50 bucks each, also made from cotton/wool/nylon combo's. While i'll admit that the armani jacket has a bit more.. "design" to it, as far as clothing goes the 50 dollar bluenotes pieces are just as well made.
yet why the price difference? because the armani name demands it.
Pentax (or nikon, canon, whatever) can satisfy "the market", but if the price passes a certain point, a particular level of prestige may be lost.
also, i would like to remind you, of which "market" are we talking about.
not to insult, but americans are getting some of the cheapest goods out there. Ask any European here how much they pay for their camera equipment, and they do pay, and the only time they wil frown is when you flaunt the US price at them.
alternatively, take a look at tobaco prices. In Russia a pack of malboro's or parliments goes for 40-50 rubbles, thats roughly 2 US dollars.
Canada... 9 bucks for a pack of smokes.. NINE ****ING DOLLARS. The government is using their muscle to influence public purchasing patterns. Make somethign too expensive and only the die hard fans (for lack of a better phrase) will purchase it.
linear supply and demand graphs and general market theory are nice... in a perfect market economy world, but its not that black and white, just something for everyone to consider.