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08-12-2014, 10:06 AM   #61
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QuoteOriginally posted by TomB_tx Quote
In modern marketing price is determined by competition - not by the cost to produce (as long as the competitive price provides adequate profit). The MF market competition tends to be high priced - therefore prices are set to compete in that market segment. If the anticipated new MF players do introduce new lines at lower prices, there may either be price adjustments (If Pentax sales fall off) - or decisions to back out of the market. That's when we learn if the cost to manufacture gives a high margin now.
I think you're spot on here. Case in point is how Hasselblad has responded to the 645D by lowering the price of their 40MP camera, and now their 50MP back has come down from the stratosphere. While all associated costs are considered, in the end the final price is what the market will bear. It doesn't matter if item X costs $100 to produce, if the market will pay $10,000 for it, then it'll sell for $10,000. It just doesn't make any business sense to sell an item for less what you can get for it.

08-12-2014, 08:39 PM   #62
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QuoteOriginally posted by FrankC Quote
I think you're spot on here. Case in point is how Hasselblad has responded to the 645D by lowering the price of their 40MP camera, and now their 50MP back has come down from the stratosphere. While all associated costs are considered, in the end the final price is what the market will bear. It doesn't matter if item X costs $100 to produce, if the market will pay $10,000 for it, then it'll sell for $10,000. It just doesn't make any business sense to sell an item for less what you can get for it.
Unless for example you make it for $20 and determine that by pricing it at $100 you can sell 20; but if you price it at $80 you can sell 30... That is $200 more...

What Pentax did with marketing and pricing the 645D and Z when they came out...

Like I said earlier do you really think it costs Hasselblad and Phase One that much more to produce? They sell fewer at higher profit which a good bit gets eaten up by higher per unit manufacturing costs (lower production) and development costs spread out across fewer sales.

If Ricoh was earning 1000% profit by pricing things so high we would all be desperate for Ricoh stock... Development costs play a large role. You can't just look at cost of materials and assembly.

2013 results:
Net Income 32,500M JPY. Capital Expenditures 124,500M JPY... Think of it as you invest $125 in something and at the end of the year you get $157...

Last edited by atlnq9; 08-12-2014 at 08:47 PM.
08-19-2014, 10:43 PM   #63
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while the cost of r&d is high, it's not as high as they want you to believe. a lot of it is because they can. with the supply of 645 film lenses drying up , and the number of lenses needed for the 645's being low compared to others, they are forgoing up dating the older lenses. for a newer more expensive line.
08-20-2014, 03:13 AM   #64
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QuoteOriginally posted by atlnq9 Quote
Unless for example you make it for $20 and determine that by pricing it at $100 you can sell 20; but if you price it at $80 you can sell 30... That is $200 more...

What Pentax did with marketing and pricing the 645D and Z when they came out...

Like I said earlier do you really think it costs Hasselblad and Phase One that much more to produce? They sell fewer at higher profit which a good bit gets eaten up by higher per unit manufacturing costs (lower production) and development costs spread out across fewer sales.

If Ricoh was earning 1000% profit by pricing things so high we would all be desperate for Ricoh stock... Development costs play a large role. You can't just look at cost of materials and assembly.

2013 results:
Net Income 32,500M JPY. Capital Expenditures 124,500M JPY... Think of it as you invest $125 in something and at the end of the year you get $157...
I think with regard to camera bodies, Pentax is able to share R and D costs between medium format and APS-C bodies, which I don't think Hasselblad and Phase One can do. Lenses are a different story, where each lens bears its own individual cost to develop and will need to be priced based on expected sales.

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