What are the profit margins on cameras and lenses typically?

11 years 9 months ago #242051 by Hamtastic
I'm sure this is going to vary from store to store. Most stores are pretty close on price with one another so I'm sure there must be a safe ball park range?

While on topic, and here's a long shot. Does anyone know how much it cost to produce a top end DSLR? Let's say a Canon 5D Mark III or Nikon D800. I remember years ago there was a 20/20 episode on the true cost of manufacturing cars. The prices were ridiculous. I'm just curious what the cost of materials and actually building a DSLR before their normal MSRP markup?


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11 years 9 months ago #242071 by Vahrenkamp
I would be surprised if it's over 15%


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11 years 9 months ago #242079 by effron

Vahrenkamp wrote: I would be surprised if it's over 15%


Yeah, and that might be on the high side. Also, scrutinize carefully what you might hear on 20/20. They are NOT in the business of truth......

Why so serious?
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11 years 9 months ago #242080 by Baydream
I agree. Major retailers buying in bulk get better wholesale prices. Costco has a fixed 15% markup and still makes money but I would guess that they paid less. Costco and B&H both have the same price on the D7000 (Costco includes a 32GB card). The 60D is the same price (Costco includes an 8GB card and a bag.). That would indicate that the 15% markup on cameras is pretty valid.
I would guess lenses are marked up a bit more.

Shoot, learn and share. It will make you a better photographer.
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11 years 9 months ago #242081 by MajorMagee
I used to make components for the consumer electronics industry, The life of a product design was 26 weeks, and the profit margin in week one (pre-production / prototype) was 17%. The OEM required us to drop our price 1% per week through the life of the product. The volume production came in weeks 17 through 25. If you couldn't drop your production cost at 1% / week you made less and less profit until you went out of business. We were able to net out about 5% on most projects.


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11 years 9 months ago #242102 by Silver Fox
This is a great topic, interesting one. I would have thought that the stores mark up would have been very tight these days considering how many online stores are cutting each other off for pennies.


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11 years 9 months ago #242166 by effron

Silver Fox wrote: This is a great topic, interesting one. I would have thought that the stores mark up would have been very tight these days considering how many online stores are cutting each other off for pennies.


Some of the manufacturers set a minimum price, and I know in Nikon's case, you could risk losing them as a supplier if you go too low. That's how they protect their distributors....;)

Why so serious?
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11 years 9 months ago #242171 by Baydream

effron wrote:

Silver Fox wrote: This is a great topic, interesting one. I would have thought that the stores mark up would have been very tight these days considering how many online stores are cutting each other off for pennies.


Some of the manufacturers set a minimum price, and I know in Nikon's case, you could risk losing them as a supplier if you go too low. That's how they protect their distributors....;)

Canon also does this. Usually it is the "advertised price". Occasionally you see a deal where you add the item to your basket to get the price. That gets around some of the manufacturers' rules.

Shoot, learn and share. It will make you a better photographer.
fineartamerica.com/profiles/john-g-schickler.html?tab=artwork

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11 years 9 months ago #242178 by Joves
If I remember right on cameras and lenses it is around 10%. Where they make their money is in the secondary items like bags, tripods, filters, and other accessories, there the mark up is in the 20 to 30% range. As far as the MSRP price that is inflated so the dealers can sell at the actual price and look like it is a bargain.
As Mr Effron said I would set much by what 20/20 says about anything at all. Because there are tons of hidden costs to manufacturing that people do not take into account, especially if the media covers it. First thing is the time it takes to do the new programming in the case of cameras, and the testing involved in eeking out all they can from the sensor. Then there is the cost of tooling for a particular body, which are redesigned about every time. Most times you may not see the change at all but it is there, whether it is changing the holes for buttons so they work better or making more room internally for a change in the boards, maybe a new shutter mechanism. Then you have make a new production line, and train your people for any differences in procedure. Also I might add that there are prototypes of the models that were made, several sometimes, and only one sees the market. So it is not just the cost of materials that goes into the new cameras in happy photogs hands.


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11 years 9 months ago #242277 by Roy Wilson
I never hold much value in what the media publishes, I'll wait till direct reports from the companies it self. But 10% does seem to be a comfortable sounding figure, I'm sure years ago that figure was much higher.

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