Canon Lens Mark-up

Does anybody know Canon's mark-up for their lenses? Just curious.
My guess is around 30%.

i.e. Nike's mark-up is doubled on their merchandise (know a guy that is head of baseball design).

It would be nice to have an answer that is confirmed, but guesses are OK too

My guess is 50% for Canon.

The explanation I got from Nike is that in retail everything is doubled. So the factory that bought the sole of the shoe to complete the upper will then double what they bought both for and then sell it to Nike.

Now that I think about it though, if Canon makes most of the stuff for their lenses by themselves (I assume they don't outsource), then they could technically be making more than 50%...

any Canon rep. want to help us out

Apparel retail and electronics retail are two totally different things. Also, if Nike states everything is doubled, then why do they only have a 50% markup? The cost structure of shoes is also completely different from what goes into manufacturing a lens which is much much more intensive. I'm as curious as the next guy, but would be surprised if anybody from Canon would share. However, I'm sure someone who works in retail can at least tell us the wholesale price they pay?... anyone?

BradJohnsen wrote in post #13265468
Also, if Nike states everything is doubled, then why do they only have a 50% markup?

I meant doubled, not 50% sorry (typed one thing, thought another).

I've been told that margins on entry and mid-level bodies are razor thin and the money is in lenses...

same here.... been told the exact same thing as flyingphotog

FlyingPhotog wrote in post #13265533
I've been told that margins on entry and mid-level bodies are razor thin and the money is in lenses...

Yes, bodies are the carrot...

rick_reno wrote in post #13267301
Yes, bodies are the carrot...

Just like printers are to ink cartridges. Ha Ha.

This is barely related but it is interesting in that Canon also sells direct and has similar prices to their resellers/retailers.

I have a pretty close friend who works for a major electronic company in the TV department. While his company obviously makes money on their televisions the retail world makes barely anything on the sets themselves.

If you buy a LCD tv from best buy there is a good chance that they made $1 on it, which is also why they try and get you to buy the $100 HDMI cable that you can get on Amazon for $6.

I would like to know how canons direct sales decision affects markups, if retailers are making almost the same margin as canon or if they only get to make a fraction...

tats wrote in post #13267352
This is barely related but it is interesting in that Canon also sells direct and has similar prices to their resellers/retailers.

Its good business not to undercut your own retailers. Yes canon is making more margin selling directly to the customer, but then they also have more overhead because of packing smaller orders, shipping, invoicing, etc. Its far more cost effective to ship large orders to retailers than selling directly to customers.

jcox10 wrote in post #13267385
Its good business not to undercut your own retailers. Yes canon is making more margin selling directly to the customer, but then they also have more overhead because of packing smaller orders, shipping, invoicing, etc. Its far more cost effective to ship large orders to retailers than selling directly to customers.

Very true, I was just saying that maybe with the exception of Sony - I can't think of another manufacturer in the TV business (because that's as far as my limited info goes) that sells direct.

I doubt samsung and others make $1 on a tv, but I do know that sometimes best buy, walmart etc sell their sets at cost.

Just wondering how their direct sales model affects their margin (if at all)

jcox10 wrote in post #13267385
Its good business not to undercut your own retailers. Yes canon is making more margin selling directly to the customer, but then they also have more overhead because of packing smaller orders, shipping, invoicing, etc. Its far more cost effective to ship large orders to retailers than selling directly to customers.

i agree. retailers dont pay too much less than what they sell them for. that is why you never really see sales or great deals for lenses unless there is a rebate or it becomes obsolete.

tats wrote in post #13267425
Just wondering how their direct sales model affects their margin (if at all)

Seems like if they are able to execute a direct-sales program well, then they may make a little money...but I bet its not huge. I think most manufacturers stick to what they know (making things) and don't even try to dip their toe in the direct-sales world.

Even the mfgs that sell direct, I wonder if it is the same company, or if they contract it out to some sales/marketing company?

Depends on the country, global company with different regional policies.