Archived posting to the Leica Users Group, 2006/12/14
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Not only that but the big camera companies are demanding a substantial investment in product to handle their very expensive cameras - Hassy is certainly doing this and pushing the smaller camera stores away from handling their sales. I guess this makes sense to the bean counters everywhere but it does nothing for the relationship between a dealer and buyer. When forking over tens of thousands of dollars you want to have a relationship. Instead you get a fast talking sales person who takes no real deep interest in you, your work, your business. You're just a buck to him. I ponder buying my new bike as a counter-point to this experience. I go in to Wheelworks in Davis, a city that has bike stores by the acre. But Wheelworks specializes in the good bikes. They can be a bit off-putting the first time you walk in if you're new. But I tell the guy what I'm interested in. He measures my bicycle, we talk some more - then we make an APPOINTMENT for me to come back on Friday morning when I can give a few hours. I discover they have built two bikes for me - adjust them to my specs. We put them on a stationary trainer and he carefully measures the fit. Then he tells me to "go out and give it a good ride." I am gone 35 minutes having done a reasonable round-trip over one of the "hills" (overpasses that pass for hills) and he says "So soon?" And then I try the other bike. I bring it back. We talk. He decides we need a different set of gears for the front and a different set for the back, a different crank. They have to order in the parts. The next Tuesday the bike is ready - try it out again he says - and THEN I pay them. I have NEVER gotten this kind of service buying ANYTHING. If a camera shop paid 1/100th that much attention to what I wanted and was looking for, how I worked, what I did, do you think I'd buy mail order instead? I don't think so. Now I have a great $1,500 bike (I wasn't even remotely into the high end all carbon fiber bikes) that I ride almost daily with joy. Would that other enterprises see customers in the same way. Wheelworks has my business for life or until they change hands and some idiot bean-counter with no passion for the business takes over. Then it'll be a sad day. Oh well - rant over. Although I do have to say that here in Hawaii I'm getting the best customer service I have ever received in a hotel anywhere. Sheraton will get my business again. Adam On 12/14/06, Don Dory <don.dory@gmail.com> 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..... > > > > _______________________________________________ > > Leica Users Group. > > See http://leica-users.org/mailman/listinfo/lug for more information > > > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information >