Nikon reducing from 17 to 2 repair centers in USA

**loveisageless** · 12-10-2019, 06:49 PM

One wonders if mirrorless cameras need fewer repairs or have fewer replaceable parts. If either or both are true this might be Nikon's way of preparing for a future where their dominant product lines are mirrorless.

Ontarian50 · 12-11-2019, 08:54 AM

Unfortunately, it looks like even Nikon are slipping into the new "repair" methodology.

Only higher end cameras and lenses will get priority at the remaining repair centers - those that are profitable to actually repair. Lower end models sent in for repair will get the sob story all too common among other brands (ahem, the newer entrants into the serious camera markets) "there's too much damaged", "the repair is too expensive", "parts are on back order and it will take too long". So the customer is offered a replacement item at a discounted price - more than they wanted to spend on the repair, but at least it's brand new.

The economics of it suggest that for lower cost items (even if the customer doesn't perceive their $500 lens is a "low cost" item), the actual factory cost of the item is less than the North American wages required for disassembly, diagnosis, parts acquisition, assembly, adjustment, and testing.

Qualified repair technicians are scarce as hen's teeth these days. New boxes can be ordered in from the factory by the bushel.

The repair business is in a weird place these days. Many customers are happy to be "upgraded" to a new model, or a direct replacement for a discount. Others almost spit blood when they find the high end DSLR they've been babying for the past 10 years is deemed unrepairable because parts are no longer available.

**RGlasel** · 12-11-2019, 09:40 AM

Originally posted by Ontarian50

less than the North American wages required for disassembly, diagnosis, parts acquisition, assembly, adjustment, and testing.

What makes repair even less economical is that the repair shop will charge 3-4 times the labour rate they are paying to their repair-persons to cover the cost of equipment, facilities, management, return on investment, etc.

Originally posted by Ontarian50

The repair business is in a weird place these days. Many customers are happy to be "upgraded" to a new model, or a direct replacement for a discount. Others almost spit blood when they find the high end DSLR they've been babying for the past 10 years is deemed unrepairable because parts are no longer available.

The retail repair business is indeed a tough business to be in, especially for consumer goods that don't require regular maintenance. When those things need repair, it is a disaster we are unprepared for. It really comes down to the emotional response people have to the things they buy, sometimes we just enjoy buying new things and sometimes we treat our purchases like pets that we have an emotional attachment to.

---------- Post added 12-11-19 at 10:53 AM ----------

Originally posted by loveisageless

One wonders if mirrorless cameras need fewer repairs or have fewer replaceable parts. If either or both are true this might be Nikon's way of preparing for a future where their dominant product lines are mirrorless.

Since Nikon is not renewing its contracts with independent repair shops to do authorized repairs (for both warranty and retail work), it doesn't really matter if mirrorless cameras are less likely to be repaired (for either reason). Nikon is trying to reduce what it costs them to service cameras (and presumably lenses as well) that have already been manufactured and sold, by bringing all repairs in-house.

bdery · 12-11-2019, 10:49 AM

I don'T wish any manufacturer ill, however given that Nikon's imaging division lost 94 million dollars this year, it's no surprise that they're looking to cut costs. However, degrading the quality of the service you offer to your customers rarely results in more sales, so this often ends up being a downward spiral.

fsge · 12-11-2019, 03:23 PM

It is a massive cut, which should affect quality of service at the end. I remember the time when ppl were criticizing Pentax for not having a big enough repair network...
Nikon is in stop the haemorrhage mode!

bobmaxja · 12-11-2019, 03:49 PM

THis is tendency for all manufacturer of electronic product or including software or firmware . Apple, Samsung do not want divulge proprietary information . Same now with car, motor , etc.
There a big trend for Right to repair , seem Nikon is choosing the other camp
Well explain here

Right to Repair - iFixit

**mlt** · 12-11-2019, 04:48 PM

Impact on NPS customers will be interesting. If Nikon’s two authorized centers will now be handling all Nikon repairs, either the NPS service benches will have to be separate, non NPS customers will see their priorities bumped back every time an NPS item gets checked in, or NPS customers will see delays. Time will tell which direction Nikon is going.

mgm2 · 12-11-2019, 05:02 PM

Regarding Nikon profits, not sure where the numbers came from indicating a loss so far this year. Thru the 2nd quarter their financial statements indicate that the Imaging Division posted a 2 billon yen profit thru 6 months.

**Rondec** · 12-11-2019, 05:54 PM

Originally posted by mgm2

Regarding Nikon profits, not sure where the numbers came from indicating a loss so far this year. Thru the 2nd quarter their financial statements indicate that the Imaging Division posted a 2 billon yen profit thru 6 months.

There is this story...

Nikon Just Released Some Terrible Financial Results | Fstoppers

and this thread...

Nikon imaging forecasting first year of losses - PentaxForums.com

biz-engineer · 12-11-2019, 11:47 PM

Originally posted by KiloHotelphoto

Except for the NPS members, they will still be able to get the great service turnarounds and other benefits not offered by Ricoh

Sure, there is a still a lot of fat to burn at Nikon until Nikon become a skeleton like Pentax, at least Nikon still have a lot of muscle they can flex to make new lenses, the Z lens lineup of Nikon by end of 2020 will cover more than Pentax lenses including the 20 years old screw drive ones.

bdery · 12-12-2019, 06:23 AM - **1 Like**

Originally posted by biz-engineer

Sure, there is a still a lot of fat to burn at Nikon until Nikon become a skeleton like Pentax, at least Nikon still have a lot of muscle they can flex to make new lenses, the Z lens lineup of Nikon by end of 2020 will cover more than Pentax lenses including the 20 years old screw drive ones.

Yes. Nikon is far from dead. However if I was on the board of directors I would be very worried. First that I'll remain able to "flex those muscles" (invest in R&D and product development), second that customers will actually want to purchase what I develop (not proven so far), third that I'll keep my workforce in-house and motivated (many sailors flee sinking ships). It's not a certainty that all this will happen.

**BigMackCam** · 12-12-2019, 07:23 AM

Originally posted by biz-engineer

Sure, there is a still a lot of fat to burn at Nikon until Nikon become a skeleton like Pentax, at least Nikon still have a lot of muscle they can flex to make new lenses, the Z lens lineup of Nikon by end of 2020 will cover more than Pentax lenses including the 20 years old screw drive ones.

Originally posted by bdery

Yes. Nikon is far from dead. However if I was on the board of directors I would be very worried. First that I'll remain able to "flex those muscles" (invest in R&D and product development), second that customers will actually want to purchase what I develop (not proven so far), third that I'll keep my workforce in-house and motivated (many sailors flee sinking ships). It's not a certainty that all this will happen.

Agreed. And being "skeleton like" (though I think that's a pretty negative description), Pentax has very limited risk in the market compared to Nikon. Bet BIG, and you could lose BIG. Bet small, and you could lose small. Let's hope Nikon's BIG bet results in plentiful sales of that new Z lens lineup...

**clickclick** · 12-12-2019, 12:21 PM

It's got to be about a bottom line figure and market analysis. Without insight to information that's probably confidential to Nikon, we'll never know for sure, but must assume it was decided as a way to meet the need within a cost structure. How all those pieces tie together and what comes out the other end goes into the "time will tell" and "anybody's guess" categories without more information.

hypermodern · 12-12-2019, 12:37 PM

Originally posted by clickclick

It's got to be about a bottom line figure and market analysis. Without insight to information that's probably confidential to Nikon, we'll never know for sure, but must assume it was decided as a way to meet the need within a cost structure. How all those pieces tie together and what comes out the other end goes into the "time will tell" and "anybody's guess" categories without more information.

^
|
This

**RobA_Oz** · 12-12-2019, 12:58 PM

Originally posted by BigMackCam

Agreed. And being "skeleton like" (though I think that's a pretty negative description), Pentax has very limited risk in the market compared to Nikon. Bet BIG, and you could lose BIG. Bet small, and you could lose small. Let's hope Nikon's BIG bet results in plentiful sales of that new Z lens lineup...

For that to happen, either sales of MILCs will have to dramatically lift out of the band they’ve been confined to for the past near-decade, or Sony sales will have to fall (even more dramatically in that scenario if Canon MILC sales improve). Nikon employees must be looking at their pension scheme and considering their options right now, even if they aren’t panicking.

12-12-2019, 07:23 AM	#27
BigMackCam Digitiser of Film Join Date: Mar 2010 Location: North East of England Posts: 20,687	Originally posted by biz-engineer Sure, there is a still a lot of fat to burn at Nikon until Nikon become a skeleton like Pentax, at least Nikon still have a lot of muscle they can flex to make new lenses, the Z lens lineup of Nikon by end of 2020 will cover more than Pentax lenses including the 20 years old screw drive ones. Originally posted by bdery Yes. Nikon is far from dead. However if I was on the board of directors I would be very worried. First that I'll remain able to "flex those muscles" (invest in R&D and product development), second that customers will actually want to purchase what I develop (not proven so far), third that I'll keep my workforce in-house and motivated (many sailors flee sinking ships). It's not a certainty that all this will happen. Agreed. And being "skeleton like" (though I think that's a pretty negative description), Pentax has very limited risk in the market compared to Nikon. Bet BIG, and you could lose BIG. Bet small, and you could lose small. Let's hope Nikon's BIG bet results in plentiful sales of that new Z lens lineup... Last edited by BigMackCam; 12-12-2019 at 12:55 PM.

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12-10-2019, 06:49 PM	#16
loveisageless Site Supporter Join Date: Dec 2009 Location: Oakland, California Photos: Albums Posts: 1,250	One wonders if mirrorless cameras need fewer repairs or have fewer replaceable parts. If either or both are true this might be Nikon's way of preparing for a future where their dominant product lines are mirrorless.

12-11-2019, 08:54 AM	#17
Ontarian50 Veteran Member Join Date: Mar 2015 Posts: 530	Unfortunately, it looks like even Nikon are slipping into the new "repair" methodology. Only higher end cameras and lenses will get priority at the remaining repair centers - those that are profitable to actually repair. Lower end models sent in for repair will get the sob story all too common among other brands (ahem, the newer entrants into the serious camera markets) "there's too much damaged", "the repair is too expensive", "parts are on back order and it will take too long". So the customer is offered a replacement item at a discounted price - more than they wanted to spend on the repair, but at least it's brand new. The economics of it suggest that for lower cost items (even if the customer doesn't perceive their $500 lens is a "low cost" item), the actual factory cost of the item is less than the North American wages required for disassembly, diagnosis, parts acquisition, assembly, adjustment, and testing. Qualified repair technicians are scarce as hen's teeth these days. New boxes can be ordered in from the factory by the bushel. The repair business is in a weird place these days. Many customers are happy to be "upgraded" to a new model, or a direct replacement for a discount. Others almost spit blood when they find the high end DSLR they've been babying for the past 10 years is deemed unrepairable because parts are no longer available.

12-11-2019, 09:40 AM	#18
RGlasel Site Supporter Join Date: Sep 2013 Location: Saskatoon Photos: Gallery \| Albums Posts: 3,229	Originally posted by Ontarian50 less than the North American wages required for disassembly, diagnosis, parts acquisition, assembly, adjustment, and testing. What makes repair even less economical is that the repair shop will charge 3-4 times the labour rate they are paying to their repair-persons to cover the cost of equipment, facilities, management, return on investment, etc. Originally posted by Ontarian50 The repair business is in a weird place these days. Many customers are happy to be "upgraded" to a new model, or a direct replacement for a discount. Others almost spit blood when they find the high end DSLR they've been babying for the past 10 years is deemed unrepairable because parts are no longer available. The retail repair business is indeed a tough business to be in, especially for consumer goods that don't require regular maintenance. When those things need repair, it is a disaster we are unprepared for. It really comes down to the emotional response people have to the things they buy, sometimes we just enjoy buying new things and sometimes we treat our purchases like pets that we have an emotional attachment to. ---------- Post added 12-11-19 at 10:53 AM ---------- Originally posted by loveisageless One wonders if mirrorless cameras need fewer repairs or have fewer replaceable parts. If either or both are true this might be Nikon's way of preparing for a future where their dominant product lines are mirrorless. Since Nikon is not renewing its contracts with independent repair shops to do authorized repairs (for both warranty and retail work), it doesn't really matter if mirrorless cameras are less likely to be repaired (for either reason). Nikon is trying to reduce what it costs them to service cameras (and presumably lenses as well) that have already been manufactured and sold, by bringing all repairs in-house.

12-11-2019, 10:49 AM	#19
bdery Pentaxian Join Date: Mar 2008 Location: Quebec city, Canada Photos: Gallery Posts: 9,362	I don'T wish any manufacturer ill, however given that Nikon's imaging division lost 94 million dollars this year, it's no surprise that they're looking to cut costs. However, degrading the quality of the service you offer to your customers rarely results in more sales, so this often ends up being a downward spiral.

12-11-2019, 03:23 PM	#20
fsge Veteran Member Join Date: Jun 2010 Location: Genf Posts: 1,138	It is a massive cut, which should affect quality of service at the end. I remember the time when ppl were criticizing Pentax for not having a big enough repair network... Nikon is in stop the haemorrhage mode!

12-11-2019, 03:49 PM	#21
bobmaxja Veteran Member Join Date: Mar 2010 Location: Laval, Quebec Canada Posts: 2,171	THis is tendency for all manufacturer of electronic product or including software or firmware . Apple, Samsung do not want divulge proprietary information . Same now with car, motor , etc. There a big trend for Right to repair , seem Nikon is choosing the other camp Well explain here Right to Repair - iFixit

12-11-2019, 04:48 PM	#22
mlt Site Supporter Join Date: Dec 2007 Posts: 1,159	Impact on NPS customers will be interesting. If Nikon’s two authorized centers will now be handling all Nikon repairs, either the NPS service benches will have to be separate, non NPS customers will see their priorities bumped back every time an NPS item gets checked in, or NPS customers will see delays. Time will tell which direction Nikon is going.

12-11-2019, 05:02 PM	#23
mgm2 New Member Join Date: Sep 2009 Location: Pennsylvania Posts: 22	Regarding Nikon profits, not sure where the numbers came from indicating a loss so far this year. Thru the 2nd quarter their financial statements indicate that the Imaging Division posted a 2 billon yen profit thru 6 months.

12-11-2019, 05:54 PM	#24
Rondec Loyal Site Supporter Join Date: Mar 2009 Location: Gladys, Virginia Photos: Gallery Posts: 27,663	Originally posted by mgm2 Regarding Nikon profits, not sure where the numbers came from indicating a loss so far this year. Thru the 2nd quarter their financial statements indicate that the Imaging Division posted a 2 billon yen profit thru 6 months. There is this story... Nikon Just Released Some Terrible Financial Results \| Fstoppers and this thread... Nikon imaging forecasting first year of losses - PentaxForums.com

12-11-2019, 11:47 PM	#25
biz-engineer Pentaxian Join Date: Feb 2015 Photos: Gallery Posts: 12,245	Originally posted by KiloHotelphoto Except for the NPS members, they will still be able to get the great service turnarounds and other benefits not offered by Ricoh Sure, there is a still a lot of fat to burn at Nikon until Nikon become a skeleton like Pentax, at least Nikon still have a lot of muscle they can flex to make new lenses, the Z lens lineup of Nikon by end of 2020 will cover more than Pentax lenses including the 20 years old screw drive ones.

12-12-2019, 06:23 AM - 1 Like	#26
bdery Pentaxian Join Date: Mar 2008 Location: Quebec city, Canada Photos: Gallery Posts: 9,362	Originally posted by biz-engineer Sure, there is a still a lot of fat to burn at Nikon until Nikon become a skeleton like Pentax, at least Nikon still have a lot of muscle they can flex to make new lenses, the Z lens lineup of Nikon by end of 2020 will cover more than Pentax lenses including the 20 years old screw drive ones. Yes. Nikon is far from dead. However if I was on the board of directors I would be very worried. First that I'll remain able to "flex those muscles" (invest in R&D and product development), second that customers will actually want to purchase what I develop (not proven so far), third that I'll keep my workforce in-house and motivated (many sailors flee sinking ships). It's not a certainty that all this will happen.

12-12-2019, 12:21 PM	#28
clickclick Loyal Site Supporter Join Date: May 2016 Location: East Coast Posts: 2,903	It's got to be about a bottom line figure and market analysis. Without insight to information that's probably confidential to Nikon, we'll never know for sure, but must assume it was decided as a way to meet the need within a cost structure. How all those pieces tie together and what comes out the other end goes into the "time will tell" and "anybody's guess" categories without more information.

12-12-2019, 12:37 PM	#29
hypermodern Senior Member Join Date: Jun 2018 Posts: 131	Originally posted by clickclick It's got to be about a bottom line figure and market analysis. Without insight to information that's probably confidential to Nikon, we'll never know for sure, but must assume it was decided as a way to meet the need within a cost structure. How all those pieces tie together and what comes out the other end goes into the "time will tell" and "anybody's guess" categories without more information. ^ \| This

12-12-2019, 12:58 PM	#30
RobA_Oz Site Supporter Join Date: Nov 2008 Location: Tasmania, Australia Photos: Gallery Posts: 8,209	Originally posted by BigMackCam Agreed. And being "skeleton like" (though I think that's a pretty negative description), Pentax has very limited risk in the market compared to Nikon. Bet BIG, and you could lose BIG. Bet small, and you could lose small. Let's hope Nikon's BIG bet results in plentiful sales of that new Z lens lineup... For that to happen, either sales of MILCs will have to dramatically lift out of the band they’ve been confined to for the past near-decade, or Sony sales will have to fall (even more dramatically in that scenario if Canon MILC sales improve). Nikon employees must be looking at their pension scheme and considering their options right now, even if they aren’t panicking.