Did a quick look and saw that the usd/jpy and sgd/jpy seems to have been behaving about same the last 3 months ... the average goods & services tax rate in the US is about 5%+ ... so these does not seem the strong supporting reasons. If market size wise is the reason (as you said), then the pricing method are simply discouraging people from buying in this part of the world rite?
Thoughts on Price of OMD :)
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Did a quick look and saw that the usd/jpy and sgd/jpy seems to have been behaving about same the last 3 months ... the average goods & services tax rate in the US is about 5%+ ... so these does not seem the strong supporting reasons. If market size wise is the reason (as you said), then the pricing method are simply discouraging people from buying in this part of the world rite?
esoeij
Senior Member
I said it is one possible reason, perhaps a big one, but not the only reason. Like I mentioned, I agree that there are many other possible factors. Not just exchange rate, GST/VAT, but also tariffs, transportation and shipping charges, level of competition (esp from online retailers), cost structures of each market etc.
Hi, I am not a expert in retail but some of facts simply does not "gel" (at least for me) e.g.
tariffs, cost structure - SG have low tax rate and wages according to world competitive index comparatively speaking
transportation and shipping charges - SG are closer to China as compare to the US
level of competition (esp from online retailers) - this could one reason but isn't it ultimately limited by oly?
Again, I am no guru and do appreciate your thoughtful feedback and thanks for chatting
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geikou
New Member
Hi, I am not a expert in retail but some of facts simply does not "gel" (at least for me) e.g.
tariffs, cost structure - SG have low and tax rate and wages according to world competitive index comparatively speaking
transportation and shipping charges - SG are closer to china as compare to the US
level of competition (esp from online retailers) - this could one reason but isn't it ultimately limited by oly?
Again, I am no guru and do appreciate your thoughtful feedback
I'm no expert also, and have also wondered about this myself. Usually, electronics in USA is cheaper, not just cameras and not just the OMD.
I believe all the above reasons are valid. eg. market size and income. USA is the largest economy in the world. I googled and some EU pple also say the same thing, usually the same made-in-china stuff are cheaper in USA compared to Europe.
Ultimately, I think it has to do with "convention". Which is why logic or facts will not "gel" if we think it through. It could have very well begun (early days of international trade) with USA as the largest market, so the importers and suppliers simply get better discounts, which translate to lower retail prices. Then as MNCs like camera companies or whatnot form offices in all parts of the world, they pretty much follow the same pricing as has always been set by convention. So an Olympus camera is set to be say, RRP USD$500 in USA, will be set at USD$500 x exchange rate + a few hundred local currency in Asia.
esoeij
Senior Member
Heh, I also no expert. Just throwing up some guesses, that's all.
Hi, I am not a expert in retail but some of facts simply does not "gel" (at least for me) e.g.
tariffs, cost structure - SG have low tax rate and wages according to world competitive index comparatively speaking
transportation and shipping charges - SG are closer to China as compare to the US
level of competition (esp from online retailers) - this could one reason but isn't it ultimately limited by oly?
Again, I am no guru and do appreciate your thoughtful feedback and thanks for chatting
hanzohattori
Senior Member
Its simply market at work. A company will try to maximize their profit from you, taking competing products and services into account.
Hi, I am not a expert in retail but some of facts simply does not "gel" (at least for me) e.g.
tariffs, cost structure - SG have low tax rate and wages according to world competitive index comparatively speaking
transportation and shipping charges - SG are closer to China as compare to the US
level of competition (esp from online retailers) - this could one reason but isn't it ultimately limited by oly?
Again, I am no guru and do appreciate your thoughtful feedback and thanks for chatting
Well, buying in other countries is mostly striped naked, and the retailers there make money from SD cards and cases.
Would you rather get at a higher price with the accessories, or get a cheaper price without all of them?
If a substantial number of consumers start petitioning for cheaper pricing or price parity with the other countries and are willing to let go of premiums, then the power of collective strength might reach to the brands.
Otherwise we just have to get base on local pricing brands offer to dealers =\
Would you rather get at a higher price with the accessories, or get a cheaper price without all of them?
If a substantial number of consumers start petitioning for cheaper pricing or price parity with the other countries and are willing to let go of premiums, then the power of collective strength might reach to the brands.
Otherwise we just have to get base on local pricing brands offer to dealers =\
keiser said:Again, I am no guru and do appreciate your thoughtful feedback and thanks for chatting
You forget that the countries you do comparison with can do volume sales, hence they can get better costing.
Economies of scale don't kick in for us as we're a small country with a lot of first movers who want to try the newest, and also, higher cost charged to us may be transferred to other countries which need better cost to move the products.
Interesting thks ... But like that feel a bit like "vegetable head" here leh ... kekeke
hanzohattori
Senior Member
I'm not sure I can follow your logic. Economies of scale don't have much impact on distribution cost, which should be on par with other countries.
The production itself only take place in 1 or 2 factories maybe :dunno:
Not sure if everyone agrees ... the hopefully the discussion help members to b more informed consumers and making informed decisions / purchases Etc.
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a look @ first page of this thread you will find more info. that's rrp, street price is lower depending where you go.
st3v4nt
New Member
Since people discussing about the price disparity of Oly product between Asia and USA, and the fact that SEA region must pay a higher price and without full accessories option. I also a bit curious why for product that sold globally with international warranty can not have the same price and bonus? Why Oly can't have the same price policy as Apple do with their product? I don't buy the reason that USA market is that big so that they deserve to have more competitive product and bonus...while I have taste that price when buying EPL-1 with added bonus when in N.Y couple of years ago. I see the fact that Oly less popular in USA thus Olympus sold unit should be less than Asia...Oly consumer should asking this price policy to Oly sales manager when they have chance to interview....
NazgulKing
Senior Member
st3v4nt said:Since people discussing about the price disparity of Oly product between Asia and USA, and the fact that SEA region must pay a higher price and without full accessories option. I also a bit curious why for product that sold globally with international warranty can not have the same price and bonus? Why Oly can't have the same price policy as Apple do with their product? I don't buy the reason that USA market is that big so that they deserve to have more competitive product and bonus...while I have taste that price when buying EPL-1 with added bonus when in N.Y couple of years ago. I see the fact that Oly less popular in USA thus Olympus sold unit should be less than Asia...Oly consumer should asking this price policy to Oly sales manager when they have chance to interview....
Singapore as a market has always been screwed over. From overpriced clothes (branded goods like Gap get at least 20% mark up), to overpriced electronics, it has always been bad. Makes me laugh when someone describes Singapore as a shopper's paradise. It does not help that there is an oligarchy of sorts going on. Don't get me started on labor costs. Labour is dirt cheap compared to the US.
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geikou
New Member
Since people discussing about the price disparity of Oly product between Asia and USA, and the fact that SEA region must pay a higher price and without full accessories option. I also a bit curious why for product that sold globally with international warranty can not have the same price and bonus? Why Oly can't have the same price policy as Apple do with their product? I don't buy the reason that USA market is that big so that they deserve to have more competitive product and bonus...while I have taste that price when buying EPL-1 with added bonus when in N.Y couple of years ago. I see the fact that Oly less popular in USA thus Olympus sold unit should be less than Asia...Oly consumer should asking this price policy to Oly sales manager when they have chance to interview....
It's the same with Apple isn't it? iPhone and iPad costs less in USA than in Asia too rite? It's even more ironic that in Shenzhen, where the Apple products are made, it's more expensive than in USA, HK etc, so that pple smuggle iphones from HK to Shenzhen to make a profit.
USA is the largest economy in the world, so whenever any electronic product is created, made, and meant to be sold, USA is considered the primary market. Even if Olympus is not as well known there, I believe their sales will still beat Asia. Usually when launching a global product, the largest markets are USA, Japan, EU, then rest of the world (Asia-Pacific and SEA).
I do agree that even so, there is no real reason why they can't price the products the same everywhere. We do know that for the corporations, they prefer to have price discrimination and market control over different territories (think DVD Codes) to get the best profits/market control. But perhaps with more and more information through the Internet, ease of shipping and lowering of freight, Asian consumers will have more and more power, so as to force down our regional prices (slowly).
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