[Leica] In Shock

[walt at waltjohnson.com (Walt Johnson)]

Don

Years ago I had a friend who owned a small camera store in the local 
mall. After two decades he bid it goodbye. Your analysis of the 
independent shop owners is right on the mark. I think the same will 
eventually hold true for any business in this country. Consumed by 
corporations.

Don Dory wrote:

> Neal,
> The camera business is one of eight hundred pound gorillas and everyone
> else.  So, B&H, Ritz, Best Buy and a few others who order in the 
> hundreds of
> thousand boxes get fabulous prices that the small shop can only dream of
> receiving.  So the small shop goes away as any rational consumer will not
> pay $50 more for a three hundred dollar camera just because of 
> loyalty.  One
> example of the power of being big, Ritz sold over 50,000 HP small 
> printers
> in 10 days as part of a free after rebate promotion.  So the small guy 
> has
> no pricing power, can not keep the depth of stock required and has 
> lost the
> profit from 4X6 prints.
>
> At PMA I had the chance to talk to many large and small retailers and the
> small guys are specialising in camera phones, gift items like custom 
> coffee
> cups, studio business, large format printing, knowledge about specific 
> items
> like Epson printers, or some other niche.  But don't think the big 
> guys are
> on easy street; prices depreciate by the minute and unless you can 
> move the
> product through the pipeline in three to ten weeks you are stuck with 
> money
> losing merchandise.  Manufacturers will only protect your inventory to a
> certain point after which you are out really large $.
>
> As to profit, it has always been on the accessories.  Going back to 
> the AE-1
> Canon you made more money on the UV filter than you did on the Camera.
>
> Don
> don.dory@gmail.com
>
>
> On 12/14/06, Neal Friedenthal <neal@nairobisafari.com> wrote:
>
>>
>> The photo retail business is the most rediculous business to gwet 
>> into, as
>> it seems to be a sin to make a decent profit. On Canon amd Nikon, 
>> which are
>> by far the most popular makes, it is impossible to sell for more than 
>> $100
>> over cost and are usually sold for less than $50 over cost. You can't 
>> stay
>> in business for long on that type of profit margin.  We have to sell 
>> some
>> cameras at cost and try to make some profit on accessories such as 
>> memory
>> cards, cases, filters, and batteries. I work part time for Le Camera 
>> in New
>> Jersey and we are trying to hang in there but it is not easy.  The only
>> cameras that we do make a decent profit on, a bit over 10%, is Leica and
>> that is only because to get a dealership with them you have to sign a
>> contract that requires that you sell no lower than their "minimum 
>> selling
>> price" which is why everyone's price is the same on Leica equipment.  
>> The
>> small independent camera shop is a dieing breed and it is the 
>> consumer who
>> is killing it.
>> BTW we have more used equipment than we know what to do with, how 
>> about a
>> nice Nikkormat FTN with a 50mm f1.4 Nikkor for $125.....
>>
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>>
>
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