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Comment by DrOrloff posted on Pentax/Ricoh putting prices up at 14/04/2012 - 17:56
George Lazarette wrote:
Dr Orloff.
Putting up prices will ALWAYS increase the margin, which is the difference between cost and sales price.
Depending on the elasticity of demand, the advantage of a higher margin may be outweighed by a more than proportional fall in sales volumes (as you said).
Luxury items such as lenses fall in the highly price elastic bracket.
This is the fear. However, none of us work for Pentax, and none of us are privy to the information on which Pentax has based its marketing decisions. I find the assumption by many people here that Pentax doesn't know the principles of supply and demand to be comical.
As for Ricoh being in bad shape, it's true that they had a bad year in 2009. They were not alone, of course. They made reasonable profits for the years to March 2010 and 2011, and a profit for the half year to September 2011. They are forecasting a profit for 2012 which will be approximately 10% up on 2011, which in turn was 10% upon 2010.
So I think the bad shape stuff is historical. If my income was both reasonable and rising 10% every year, I would not be complaining.
G
Thanks for the lesson George. When I refer to margins I meant, as most people would, the difference between revenues and costs (ie: sales less cost of sales rather than sales price less cost price, the latter being theoretical until you sell something). Its obvious from the context and because I'm not actually stupid.Dr Orloff.
Putting up prices will ALWAYS increase the margin, which is the difference between cost and sales price.
Depending on the elasticity of demand, the advantage of a higher margin may be outweighed by a more than proportional fall in sales volumes (as you said).
Luxury items such as lenses fall in the highly price elastic bracket.
This is the fear. However, none of us work for Pentax, and none of us are privy to the information on which Pentax has based its marketing decisions. I find the assumption by many people here that Pentax doesn't know the principles of supply and demand to be comical.
As for Ricoh being in bad shape, it's true that they had a bad year in 2009. They were not alone, of course. They made reasonable profits for the years to March 2010 and 2011, and a profit for the half year to September 2011. They are forecasting a profit for 2012 which will be approximately 10% up on 2011, which in turn was 10% upon 2010.
So I think the bad shape stuff is historical. If my income was both reasonable and rising 10% every year, I would not be complaining.
G
Your figures paint a picture of a company doing quite well, but goodness knows where you got them from. In 2009 profits plunged 94% to a small amount (0.3% of revenues). 2010 was better but still a poor year, 2011 was 30% down on 2010. For 2012 a profit was originally forecast and that was later revised to a loss of around half a billion US dollars. Had that not been for a major cost cutting exercise through job losses the performance would have been worse. Ricoh is not doing well.
Comment by DrOrloff posted on Pentax/Ricoh putting prices up at 14/04/2012 - 17:49
There's only a point in increasing prices if it is going to increase margins. Some of these price rises are enormous and it is difficult to envisage anything other than a corresponding drop in sales. Maybe they are setting the market up for a future promotions drive with massive discounts. Maybe analysis shows that the Chinese market can bear elevated prices and the rest of us have to suffer. Or is it perhaps a desperate measure by a struggling business. It certainly does seem a puzzling decision. The modern consumer is well informed and I think Pentax would do well to issue some kind of explanation.
My concern about the original Ricoh takeover was that Ricoh, whose core business is not photography, was in bad shape. I hope the decision to raise prices is based only upon the requirements of the photography division only.
My concern about the original Ricoh takeover was that Ricoh, whose core business is not photography, was in bad shape. I hope the decision to raise prices is based only upon the requirements of the photography division only.
Comment by DrOrloff posted on Pentax/Ricoh putting prices up at 14/04/2012 - 15:20
For landscape I've just thought of another advantage of the 12-24, the larger element should make better use of graduation on filters. So that's settled in my mind.
Comment by DrOrloff posted on Would you swap a 12-24 for the DA15mm? at 14/04/2012 - 13:18
Then the answer must be yes.
Comment by DrOrloff posted on Pentax/Ricoh putting prices up at 14/04/2012 - 12:54
No-one is accusing anyone of not telling the truth! It could well be, for example, that Pentax are unaware that merchandising in Jessops stores is inadequate. There could be plenty of other reasons too.
This is not negative feedback it is positive feedback. I wanted to try and quite likely buy a Q but I couldn't. Neither could the fellow shopper in the Brighton branch, she bought something else instead. If I worked for Pentax I would want to know this. Companies don't improve by only being told what is going right.
This is not negative feedback it is positive feedback. I wanted to try and quite likely buy a Q but I couldn't. Neither could the fellow shopper in the Brighton branch, she bought something else instead. If I worked for Pentax I would want to know this. Companies don't improve by only being told what is going right.
Comment by DrOrloff posted on Jessops fall out with pentax at 13/04/2012 - 11:46
The lens is now sold and will be making a short journey to the neighbouring departement.
Comment by DrOrloff posted on FS (A Vendre) Pentax DFA100mm f2.8 Macro at 13/04/2012 - 09:36
PentaxUK wrote:
Hi, there seems to have been some confusion here, we are pleased to confirm that the full range of Pentax products are being stocked in a number of Jessops stores nationwide and are available via the Pentax shop via the Jessops website:
http://www.jessops.com/directory/pentax-shop.aspx?cm_re=170212-_-Home-_-services...
PENTAX Ricoh Imaging UK Ltd.
Welcome to the forum. It's great news that they are being stocked in Jessops but it's a bit of a mystery as to where. I couldn't find a Pentax Q in Brighton or a large area of South-East London. In Bromley they did have a little plastic model, but I'm not going to buy a camera based on a little plastic model. I know I could buy one online but that's not the point of Jessops as there are pro retailers offering two year guarantees. I wouldn't have minded waiting a day or two for one to be ordered but I need to see and try a proper display model first. Quite honestly sales reps from other companies must be giggling when they say Pentax represented only by a little plastic camera.Hi, there seems to have been some confusion here, we are pleased to confirm that the full range of Pentax products are being stocked in a number of Jessops stores nationwide and are available via the Pentax shop via the Jessops website:
http://www.jessops.com/directory/pentax-shop.aspx?cm_re=170212-_-Home-_-services...
PENTAX Ricoh Imaging UK Ltd.
Comment by DrOrloff posted on Jessops fall out with pentax at 13/04/2012 - 09:09
This lens is in very good condition, everything as it should be, just a few little scuffs on the hood.
For sale in France, €310 including delivery by Colissimo. Payment can also be accepted in £ for UK residents of France, £260 inc. postage.
The lens is for sale following upgrade to the WR version.
Pictures of the lens and some images taken with the lens to follow.
For sale in France, €310 including delivery by Colissimo. Payment can also be accepted in £ for UK residents of France, £260 inc. postage.
The lens is for sale following upgrade to the WR version.
Pictures of the lens and some images taken with the lens to follow.
Comment by DrOrloff posted on FS (A Vendre) Pentax DFA100mm f2.8 Macro at 12/04/2012 - 08:43
I like the 12-24 as a landscape lens for the sheer convenience of the zoom range (otherwise I think I'd be forever swapping between 15 and 21) and 50-135 as an event lens. Primes for everything else.
Comment by DrOrloff posted on What is the use of a prime ? at 12/04/2012 - 00:49
Camera lenses are an entirely different matter. The 40% odd rise in price of a 12-24 I suspect is neither due to massive increased demand (unless the Chinese are going nuts for them) or production costs which are predictable.