Just curious: how much does a retailer earn on a camera?

[DaisyHead]

Say if B&H sells a 10D for $1500, how much do they pocket? I guess what I'm asking is if anyone know what the wholesale price is? What's the typical markup in that industry? I'm sure a lot of people here wonder the same thing.

[justme_dc]

Not much. The margin on digital cameras is pretty slim. Larger chains can get a bit of a break for purchasing in volume but not much. When the 1D was selling for $3200. the wholesale on it was $3000. I believe the wholesale on the 10D is $1300ish.

The same applies to canon lenses.

[KennyG]

Say if B&H sells a 10D for $1500, how much do they pocket? I guess what I'm asking is if anyone know what the wholesale price is? What's the typical markup in that industry? I'm sure a lot of people here wonder the same thing.

One retailer here in the UK told me that they can make 10% on popular models, dropping to 5% if they have to compete with big chains who have more buying power. He was selling SD9's at a loss and has refused to stock the SD10, so they don't win on everything. They do not have a lot to play with and they have to make a living.

[thomascanty]

The same applies to canon lenses.

I was talking with someone who works at a local camera store and he mentioned their markup on the 100-400L lens was a paltry $40. If my math is correct, that's just 3%. I don't know if the profit margin on their cameras is the same, though.

[tpinchback]

You would be suprised on how much they make on the 300d and the 10d. Can't say though because i could be fired. :x

[cgratti]

You would be suprised on how much they make on the 300d and the 10d. Can't say though because i could be fired. :x

You could always PM the whole board and let us in on the secret!!!!


:evil: :twisted:

[DaisyHead]

Can't say though because i could be fired. :x

Aren't we all anonymous here? :shock:

[westgorge]

Retailers really don't have much of a mark-up on Camera bodies. It's the accessories where they make their money. I use to work in the camera department for a retailer. Our mark-up on a camera body was only about 5%-10%. But, for example, a camera bag had about a 400% mark-up. A good salesperson will always ask you to purchase accessories to go with your camera body.

[PhotosGuy]

I paid $901US in January for the 300D kit (including lens); $157 for 512 CF Ultra II ; $138 for 512 CF (not includung $70 rebates total on the cards). The best discount was on the "extended Warranty", $94 for 4 years after the first year.
I think that the word "City" may have been in the name of the store.
:wink:

[defordphoto]

Say if B&H sells a 10D for $1500, how much do they pocket? I guess what I'm asking is if anyone know what the wholesale price is? What's the typical markup in that industry? I'm sure a lot of people here wonder the same thing.

$96.32

[DaisyHead]

I just bought one from B&H for $1399 - did they lose money?

[ssim]

Can't say though because i could be fired. :x

Aren't we all anonymous here? :shock:

Actually no. There are lots of us that offer full disclosure. I'm not sure why so many maintain anonymity on such a friendly board.

[defordphoto]

I just bought one from B&H for $1399 - did they lose money?

Nope. Still made $96.32.

Heheh...Actually I have no clue and could care less! :D

[Belmondo]

Retailers really don't have much of a mark-up on Camera bodies. It's the accessories where they make their money. I use to work in the camera department for a retailer. Our mark-up on a camera body was only about 5%-10%. But, for example, a camera bag had about a 400% mark-up. A good salesperson will always ask you to purchase accessories to go with your camera body.

I believe your statement to be true. It does somewhat beg the question, though, as to why some of the big chains like Best Buy stock so little in the way of accessories. They have the generic stuff like CF cards, crappy bags, and cheesy tripods, etc., but nothing else to speak of.

It seems to me that they're missing the boat on this. At least they could sell it online if they don't want to stock it in their stores.

[ron chappel]

From the various prices i've seen by normal retailers,big chain retailers,online shops(good ones ) and slashed-to-the-bone 'your camera is sent direct from canon office in hong kong' ebay sellers...it's obvious that the 300D kit has about us$100 profit on it,perhaps a little more

[stevelew]

Some of the smaller camera dealers in town can't compete against the mail order houses. The price of cameras are basically the same from a camera store and mail order but for lens there is a difference. I priced the 70-200 IS at local shop at it was $1899 plus tax. The price I paid was around $1650. The shop said they couldn't come close because they actually paid more than $1650 wholesale. Places like B&H get deals from Canon because they buy tons more of lens. Their markup must be lower because they sell in such quantities. If I was rich maybe I could promote the locals, but I really can't.

Steve

[agwright]

Canon 70 - 200 F4 L

Jessops = CANON EF 70-200mm f/4.0 L USM £609.90
Warehouseexpress = CANON EF 70-200mm f/4.0 L USM £499

:!:

[MarkH]

Here in NZ things are considerably different.

In the US there seems to be very little variation in price, but here there are huge differences!

All prices are in NZ$:

When I bought my 10D mid '03 I came across:
$4000 in a camera store, main street Auckland.
$4500 in a branch of a camera store chain in a mall, this was the only one with a 10D on display, at that price they could keep it.
$3400 in the shop I bought my camera.
in good traffic I could drive past all 3 stores within 10 minutes, I would have to be a fool to not shop around. I would guess that all 3 stores buy the camera at the same price, the store that I purchased from probably only made $200-$300 at best, the other 2 would do quite well when they actually make a sale.

Accessories are the same:
For the 70-200 f2.8L IS I was quoted over $5000 at the store on the main street, but it is $3900 at my favourite store. To spend that kind of money without shopping around, you would have to have plenty of money and no sense with money, not a common combination.


For anyone in NZ:
The good store is Auckland Camera Centre on New North Road in Morningside.
http://www.aucklandcamera.com/
Their site has prices on most of their stock, handy for comparing to anywhere else.

[fox1]

Canon 70 - 200 F4 L

Jessops = CANON EF 70-200mm f/4.0 L USM £609.90
Warehouseexpress = CANON EF 70-200mm f/4.0 L USM £499

:!:

Interesting to note that Jessops will price match.?

[Mark Kemp]

It may not be relevant, but the basic calculation for mark up that small businesses are generally advised to use as a starting point is 40% gross margin i.e 60% of the sale price is what it cost you to make it or buy the bits. 40% is for overhead, staff costs and profits.

That is the simple calculation i.e. you only take into account the parts costs. The 40% is meant to include overhead like rent and heating and also the staff wages. If you calculate these costs as well and add them to the basic price then a good margin is about 20%

I just bought a lens for £530 at a show that would normally be about £590 and srp £640 ish. The retailer must be making something even at £530 so the higher price makes a better profit. But of course the costs at a show are lower and the lenses were selling in quantity.

The argument goes that if a retailer has an item in stock and someone offers him less than the usual price, but still enough to make some profit, he will usually sell as long as he can get another one. Essentially he may as well sell what he has for a small profit and quickly replace it, then hope to sell that one too.