Nikon price increases - your reaction

[stwrtertbsratbs5]

<p>My reaction? Buy now.</p>

[garry edwards]

<p>It seems to me that Nikon are being blamed for something outside of their own control. Currency fluctuations affect everyone in this situation and everyone will need to either increase their prices or go out of business.<br>

Nikon were the first to blink, others will have to follow.</p>

[todd_angood]

<p>I own a small business. My product suppliers had no problem increasing their pricing to me by 7 to 10% and my health insurance provider didn't seem to mind increasing my health coverage premium for my company by 13%. A company can only absorb so much increase internally.<br>

Think about Nikon and all of the various components that they must purchase to make a camera. Now try to imagine what Nikon had to pay for just the plastic components that go into their cameras considering all of the fluctuation in oil prices. Not only does the cost of the product go up because of the increase in manufacturing costs, but the cost of delivery of the finished product went up too I would guess, because the delivery source probably added a fuel surcharge to the delivery price and so on and so on....<br>

One of my suppliers was telling me that when diesel fuel pricing increases by just 2 cents, it costs his company almost 140 million dollars. Their delivery system is nation wide by truck.<br>

It is what it is.....</p>

[ilkka_nissila]

<p><em>Therefore, the price hike of Japanese products in Europe, Australia, etc. will likely be even more.</em></p>

<p>Not necessarily, as the existing prices that Nikon charges in these countries are much higher than what they sell the products to US retailers for.</p>

[dejansmaic]

<p>What this means for me is I have to ask myself "do I want it or need it...". When prices are low, I buy what I want, but don't necessarily need. But with these uncertian economic times, I am only buying what I need...meaning fewer purchases.</p>

[tholte]

<p>"A lot of things tend to increase in price at the first of the year." Not this year! Most prices are going down; houses, cars, tv's, clothes, airline tickets, hotels etc., etc. because of the severe recession most of the world is in. I don't think Nikon will be able to increase prices for long and will probably start cutting prices sooner than later. </p>

[commtrd]

<p>I look at it this way: the US federal reserve is printing money out of thin air at unbelievable rates. This dilutes the value of every existing dollar ever more. Nikon is looking at this and pricing their product to take the currency debasement into account as well as the dollar / yen spread. They are trying to hit a moving target with economic assessment to judge their pricing power so currency debasement and currency spreads are their two main data points in deciding pricing strategy. They will most likely cater to their bell-curve distribution of sales to maintain pricing parity with the competition while toeing the line with the pro-level lenses / bodies as those customers are more likely to pay up for the product. It's a different demographic and Nikon knows that serious photographers will pay the price to get the pro-level fast glass and high-end camera bodies whereas entry-level users will shop price and megapixels above all else.<br>

It was fairly apparent that the fed would start monetizing debt to accomadate politicians' failed policies and gross mismangement by corporate executives so looking ahead I started to acquire my FX-capable lenses first (trilogy, 85 1.4, 105VR, etc.) as I suspected pricing may not drop on those items much if at all. Latest purchase (D700) I paid 2319 from B & H last week after waiting for a while to see where price may stabilize on this body so better or worse that is the price paid...now I have the core kit I planned on getting so probably the only thing I will get in the near future would be a good tripod / ball head.</p>

[rich_evans]

<p>Far too soon to tell, but price increases will be the norm for many suppliers of goods from Japan - autos included. The exchange rates will control how prices fluctuate over the next 6-12 months as the economies of the world try to level off and re-establish some kind of normalcy. Companies like Nikon cannot afford to keep producing these luxury items at a loss. Nikon cameras are not 'luxuries' to us of course but the general consumer can take photos with their cell phones if they really want to, and the major purchase of a DSLR at a time like this, especially a 'Nikon' will be viewed as a 'luxury' expense by many.</p>

<p>And you all need to stop whining about the price of the D3X - Nikon did what they felt they needed to do to send a message that 'this is the BEST FF DSLR available right now'. Canon did it - and were sucessful for the market they targeted. I don't NEED a D3X, therefore I'm very happy with - and have adjusted my budgeting for - the equipment that does what I NEED it to do.</p>

<p>Just my 2 cents........ --Rich</p>

[dan_brown4]

<p>Another bottom line, is I would rather see Nikon raise prices than see Nikon cut component quality or quality control thoroughness.</p>

[ShunCheung]

<p>In the last 6 months or so, the value of the US$ actually has gone up quite a bit against most major currencies except for the Japanese yen. E.g. see the following one-year chart on the US$ vs. the Euro: <a rel="nofollow" href="http://finance.yahoo.com/echarts?s=EURUSD=X#symbol=EURUSD=X;range=1y" target="_blank">http://finance.yahoo.com/echarts?s=EURUSD=X#symbol=EURUSD=X;range=1y</a><br /><br />6 months ago, 1 Euro was like US$1.60. Today, it is about $1.30. The US dollar is actually quite strong recently overall.</p>

<p>That is why all the theories about the weak US dollar is simply untrue, and since the yen has gone up so much against the Euro, the British Pound and the Australian $, expect Nikon and all other Japaese good prices in those countries to go up by even more as I said earlier.</p>

<p><br />Canon already had their price hike in the US last year. Therefore, the discussion that people might switch brands is also wrong. The only surprising thing is that it has taken Nikon so long to incrase their prices. And who knows whether Canon needs a 2nd price hike or not. See the following info on Canon price hike in 2008; it was a modest 3 to 5%: <a href="http://www.bobatkins.com/photography/Canon_price_increase_2008.html">http://www.bobatkins.com/photography/Canon_price_increase_2008.html</a></p>

[lookitsanthony87]

<p>as much as we dont like it, EVERYTHING is going to change during these tough times. theirs nothing we can do about it, things only get worse before they get better.</p>

[maurycy]

<p>I guess I am lucky that I did switch to Nikon about two weeks ago before the price increase :-)</p>

[alvin_lim5]

<p>What I understand is that the Australian prices will go up by about 20-30% and that totally sucks as I do get some of my stuff from there.</p>

<p>As much as I hate the increase in prices, I think it is pretty expected as the Australian dollar has weakend by quite a bit over the past year.</p>

<p>Hopefully, the price increase will not hit Singapore, if not my dream of owning the 70-200mm VR will stay permanently as a dream.</p>

[tobycline]

<p>I'm glad to see Nikon doing what it needs to do to stay profitable. I work for the airlines, and they have no clue how to make money. However, that being said, I wish more people who are happy to see Nikon raise prices to stay profitable will not cry themselves into a tantrum because they can't fly from NY to LA for less than $200 bucks . . . :o)</p>

<p>Like Maurycy, I too dropped some big coin right after Christmas -- and it looks like I got in right before the bell!</p>

[p_m12]

<p>The blame should be placed on the depreciating dollar. Comparing Yens to Dollars does not give an accurate picture if both are depreciating, which is likely. The price of a product for a smart company, who plans to stay in business, is the result of a calculation based on what it costs to manufacture the product. If it costs X dollars (or yens) to produce the product, then you multiply that by 4 usually. If you multiply by less than 4 you run the risk of going out of business. It's just simple math. Playing games of lowering the price to sell more, might work for software or CD's because the cost is negligible, but for camera equipment you need to cover your manufacturing costs. This is the simple model. I'm sure the potential number of sales is a variable in the formula also, but inflation is still the main culprit. Have you been watching the price of food this past year -- not good. The cause of inflation? That's another discussion and a giant one. My 2 cents (4 cents now with inflation).</p>

[vorlandphotography]

<p>Nikon's customer base is going to be increasingly limited to the top end for the next period of time ... providing highest end gear to top end professionals whose companies stake their equipment buys. It's folks like us -- consumers who fund our own equipment, who are adverse to spending money right now. Price increases don't effect our decision much -- we just ain't buying new stuff at the moment, regardless of the price.</p>

[dan_brown4]

<p>Actually, I haven't noticed any price increases at the on-line retailers. When are they going to take place?</p>

[robert_hooper1]

<p>Is the average Nikon price increase around 10%? That is not enough of an increase to prevent me from purchasing a new Nikon product if I really wanted or needed it. It certainly is not enought of an increase to boycot Nikon. If your budget is so tight that a 10% or even 20% increase is going to make you seriously reconsider purchasing a new Nikon item, then I would say you probably can't afford the expenduture in the first place. Buying used might be a better option if you are in that situtation.</p>

[peter_ferling]

<p>The cost of raw goods or materials needed to manufature their gear may have an impact as it eats into the bottom line. Sometimes a particular supplier goes under and you have to switch to their competition, or an exclusive supplier whom can command higher prices due to lack of direct competition, and you're given little choice but to comply.</p>

<p>We honestly cannot judge Nikon, Canon, or any other company for their actions without knowing all the facts, and some of those facts may be either competitive or confidential in nature. We can only vote our own confidence with our own money.</p>

<p>There is a growing trend whereby the majority of folks are actually thinking before they spend. Do I really need that? Or, do I need to eat first. (Depending on where you are financially). So maybe we're all more sensitive to a price increase.</p>

<p>On a final thought, there is the issue with how much technology benefit will your dollar purchase today? That is, for example, I essentially replaced my 1Ds mark I with a 40D for 1/7th the cost, as I found my needs lie with the 80% of what that camera has to offer that equals the 1Ds. However, my initial purchase of $7000 for the 1Ds years ago was a significant leap in technology and value as it replaced the time and expense of processing film. Do we see a similiar value added benefit in what is more or less a feature or upgrade?</p>

[mark_gonda]

<p>This problem is not unique to Nikon or any product manufacture across the globe. The fact that Nikon is raising their prices shows how poor their business planning is. Have you noticed auto prices going up due to currency exchange rate?</p>

<p>If Nikon had anticipated value increase of Yen vs other currencies, they certainly could have bought currency futures to protect them from volitilities and minimize the loss of revenue as result of exchange rate, if that actually is the case. So when Yen devalues as the global economy recovers, will Nikon lower their lens prices? Probably not.</p>

<p>The increase in prices has nothing to do with exchange rate in reality. Rather, it is most likely having to compete in lower end DSLR and P&S cameras at much lower margins. Lens has high margins and they are going after those revenue growth, now that they've sold lots of bodies.</p>

<p>Cheers!</p>

[Paul Lewis1664881697]

For those of you that complain about these price increases, you should see what Nikon products sell for in Japan. The new Coolpix P6000 sells for about 10-20% more in Japan than in the U.S, as an example.

[simon_baker2]

<p>Shun,<br>

You are spot on, here in the UK prices have "rocketed" in one week. To those who are moaning at Nikon remember this has a lot to do with exchange rates, Nikon Japan will have a set figure in Yen that they need as a return, if the currencies of other countries are falling against the Yen then it is obvious that the next imported batch of gear is going to cost more. None of us want higher prices ( including the manufacturers where it may harm volumes ) but thats what happens when your currency drops.<br>

Going back to prices here in the UK, they are eye-watering now, the pound is on its ass, our economy is shot - interest rates are at an all time low in a bid to stimulate growth ( so far not working ) which means traders are ditching it for stronger currencies so its value drops even more ... the result ... imports cost a lot more.<br>

Last week Nikon 400mm F2.8 VR cost 5099.00 GBP ( at Nikon Premier dealership ) this week its 5999.00 thats a 900 POUND INCREASE !<br>

Last week D3 was 2500.00 GBP today its 2800.00<br>

Last week 200 F2 VR was 2300 GBP today its 3099.00<br>

and for lesser mortals...... last week D90 was 569.00 GBP today 690.00 GBP</p>

<p>as I said sterling is on its ass, IMO our government is at a loss as to how to get out of this ( though they will never admit that ... they wouldn't would they ) hoping for a miracle, spending taxpayers money like never before, burdening the taxpayer for many many years to come, thinking of printing money out of thin air in a desperate bid to get things moving ...... the games up Gordon, you've had ten years in charge of the economy and 14 months as PM .... you can't keep blaming the rest of the world for the mess the UK finds itself in now. Anyway back to the topic ( apologies for my little rant at our PM or should I say Pompous Moron ) ) , while material & manufacturing costs may be rising its currency fluctuations that are doing the most damage with regard to price rises.<br>

For those of you who don't live in the UK ..... thank your lucky stars.</p>

<p>Simon </p>

[dan_brown4]

<p>Wow Simon! You paint a bleak picture. Mind you, we have our problems here in the "colonies" as well. Printing money and spending like crazy, and it looks like all the social programs are going to burn money for the next four years. This should be interesting.</p>

<p>Hopefully my current bag of Nikon gear can get me through ;-)</p>

[constance_cook]

<p>I have always been able to buy Nikon products cheaper and often significantly cheasper here in the U.S. than I could/can in Japan.</p>

<p>I buy in Japan when I want to get something 'first-out' and am willing to pay the freight, which is considerable or if it is one of the peripherals that Nikon has that never appears in the U.S.</p>

<p>Conni</p>

[ShunCheung]

<p>Simon, 5 months ago, 1 British Pound worth US$2. Today, it is about $1.5 and it has been $1.4 or so recently. In other words, the Pound has lost about 25% of its value against the US$ in 5, 6 months. When you factor that on top of the Yen's gain vs. the $, Japanese products will get very expensive in the UK. Therefore, the huge price increase in the UK should be completely expected.<br>

According to reports, the price increase in the US will be effective February 1. If you want to enjoy the "low" prices, it is time to act.</p>