What is the profit margin for an ave lens from Cathay/John 3:16 etc?

[dingaroo]

Some of us are curious about how much a retailer makes for any item they sell to us.

Consider this, if they can't make enough, how to pay wages to guys who are knowledgeable in the products they carry? Would they allow us to try the items on display and yet not buy? Please consider that they have dependents (staff) who have dependents, and they need to answer to owners, shareholders.

Yes, there are some black sheep out there who will be out to chop newbies or people who never did their homework. But the majority of the retailers like CP, OP, John, etc, would want more people to take up photography too, cos they believe in it, else why would they go into the business of selling photographic equipment.

Think of it this way, would you rather work for your company at rate? Don't you want to go on holidays and buy camera gears?

But if you are really keen, read the company statements.

Cheers.

 

[chngpe01]

As Ian mentioned, different manufacturers provide different margins...



But I can tell you definitely that the item that gives the most margin is those UV/protective filters (margins on these filters can be 100% - yes, they sell them for double what they get them for). That's why they are so keen to get you to buy those filters with your lens, as it increases their profit margin on the overall sale.

Yeap just look at the amount of mass sales competition in CS.

 

[cichlid]

Hi Guys... Don't quote me :sweat:

To give you a rough indication, the difference between RRP and the price the retailer got for their stuff is almost 45%

For a camera that cost S$3000 in the street, the retailer would have got it for around S$1650. So after giving you a special 20% discount for VIPs. The retailer would still laugh all the way to the bank. Don't believe what I say, then how come they are still around if their claimed profit is only less than 10 bucks they made out of you.

Think about it?:bigeyes:

I believe u totally cos that's what i think too.

 

[chngpe01]

Hi Guys... Don't quote me :sweat:

To give you a rough indication, the difference between RRP and the price the retailer got for their stuff is almost 45%

For a camera that cost S$3000 in the street, the retailer would have got it for around S$1650. So after giving you a special 20% discount for VIPs. The retailer would still laugh all the way to the bank. Don't believe what I say, then how come they are still around if their claimed profit is only less than 10 bucks they made out of you.

Think about it?:bigeyes:

I believe you - cos I believe the world is flat :bsmilie::bsmilie:

Since so lucrative why not you open a shop and sell camera and laugh your way to the bank - better stlll register yourself here as advertiser and sell online, sure make big bucks selling cameras lol

 

[scubagolfer]

Haha, but if you undercut too low, the suppliers dont supply to you for online business ....

 

[jnet6]

I believe you - cos I believe the world is flat :bsmilie::bsmilie:

Since so lucrative why not you open a shop and sell camera and laugh your way to the bank - better stlll register yourself here as advertiser and sell online, sure make big bucks selling cameras lol

:bsmilie: i also agreed with you on opening a shop and see how much can the profit be...

 

[magicdragon]

40 - 45% margin sounds about right. That is if the RRP is $1400 then the cost to the retailer is about $1,000. But the $400 difference is not net profit is gross profit ( deduct salaries, rental, pilferage, etc and then the customer asks for discount off the RRP and the net profit for the shop (ie boss) is way way less. I think thats fair for risk, investment, and trouble. The more fast moving a consumer segment is the lower the margin. So luxury watches will have a higher margin than say Casio watches. Panasonic TVs will have lower margins than Lowe TVs.

 

[sabee]

As someone in the retail/reseller business, I can say for for the goods I deal with (consumer electronics related), 30-40% off the SRP is the norm.

Some manufacturers also offer tiered discounts for large order quantities.

Of course when it comes to cameras it might be different, but honestly I cannot see it being far off. The overheads are immense in retail and anything less would not be good for business.

As someone else also mentioned, when it comes to "accessories", the profit margins are easily 100% or more.

 

[Blur Shadow]

As long as they survive till tomorrow and still offer competitive prices, as a consumer, I'm not too concerned with their profit margin.

 

[strmmr]

not sure about camera bodies, but a recent search to find the cheapest Sigma 30mm f1.4 (canon mount) available online has proven to be enlightening - i've settled on getting the lens (new) on ebay from a seller based in hk. costs US$418 and free shipping to SG. with gst it'll come up to a little more than $600.

reliability (of delivery and product performance) is undoubtedly a moot point, but ebay has a strict system that vastly minimises scams/dishonest sellers. also, i only buy from the online stores within ebay (vs. individuals), whose sellers usually have 99%+ positive feedback after hundreds of international transactions. also, should there be an inherent manufacturer defect, my int'l warranty allows me to bring it to the sigma service centre in singapore (at e-commerce hub along jln bukit merah, for those who are wondering).

but i digress; for argument's sake, let's say the cheapest ebay seller is making a $50 profit (any less and his free worldwide shipping will make him run a loss). that would put the cost price of my sigma at SGD$550 (which i suspect is even lower!). The cheapest i've found in sg is $700 (AP). but most are in the $750 range, with some topping $800! similarly, a quick search within the buy/sell forums reveal that used 30mm 1.4's go for $550-$700.

and the kicker? sigma's official site has the suggested retail price at a hefty US$650 (SGD$914 before gst).

 

[geraldkhoo]

Is TS going to open shop or be an advertiser at CS? Pls remember to sell me at a markup at $10 only, ok? I will be your greatest supporter

 

[Cartman2000]

$10 is what those students selling laptops at IT fairs earn per unit sold :bsmilie:

 

[papajanggo33]

Since so lucrative why not you open a shop and sell camera and laugh your way to the bank - better stlll register yourself here as advertiser and sell online, sure make big bucks selling cameras lol

second that. in any industry, you have to mark up the selling price for you to keep your accounting in the black. whatever that profit margin may be, you decide it so you can wake up and run the business tomorrow and the day after.

oh btw, i love our CS BnS:bigeyes:

 

[soeypixels]

basically it depends on lots of factor

1) min order qty
2) total order qty
3) purchasing power and etc ..

for mid - top range model
should be 300-500$, shop's gross profit and thats before the YEN appreciation sometime back

a classic example is why the shop A always ask $$$ from customer first before gg to other shop B to 'take' camera ABC and sell to customer.

Shop B is a big dealer to brand ABC. Got a better comparative advantage than A, so is cheaper for shop A to take / buy the camera from shoop B rather than from its supplier.

So on the other hand shop B will have a better C.A in brand xyx
So this is economics 101, both shops are better off .. :bsmilie:

 

[dronell]

one time i went to a shop @ penisula to sell my 24-70 2.8 lens... market rate is $1.7 - $1.8... but they only willing to buy it for $1000 after few shops highest was $1200 only...

gosh... they are earning $500 / 50% of the lens... if they manage to sell it at $1.7k...

Yes, indeed i think the profit margin for a brand new camera might be 20-30%, but need to minus with all the expenses etc...

 

[nikkie]

Don't forget singapore has GST. Importer has to pay 7%. Then, when the product is sold to you, another 7% is taxed. effective rate will be around 15% if only 1 level of distributorship.

you're certainly not tax nor accounts trained. :bsmilie:

 

[nikkie]

truth is after the discounts and rock bottom prices, the retailer still maintain about 10~15% margin (up to 20%).
it's really very tight. don't forget the rent, the display furniture, staff salaries, utilities etc..

 

[CompactRod]

truth is after the discounts and rock bottom prices, the retailer still maintain about 10~15% margin (up to 20%).
it's really very tight. don't forget the rent, the display furniture, staff salaries, utilities etc..

Agreed.
Bonus comes from filters, screen protectors, tripod, bags
Maybe more bonuses from sales target and quantity discounts from distributors:bsmilie:.
Also some shops have a big section on acessories, bags.. bigger margin i supposed

 

[hotwork77]

I believe you - cos I believe the world is flat :bsmilie::bsmilie:

Since so lucrative why not you open a shop and sell camera and laugh your way to the bank - better stlll register yourself here as advertiser and sell online, sure make big bucks selling cameras lol

:bsmilie: i also agreed with you on opening a shop and see how much can the profit be...

Who knows...there's a possibility I am already laughing at the bank with all the money I make selling cameras to you and your friends. :bsmilie:

I am already 80 years old and I am a retired old hack. Selling camera and accessories is not 100% lucrative but you sure don't go hungry as my past and present employees do attest.

Cheers!!!

 

[sabee]

Don't forget singapore has GST. Importer has to pay 7%. Then, when the product is sold to you, another 7% is taxed. effective rate will be around 15% if only 1 level of distributorship.

Does not work like that, the GST can be claimed back at each step all the way until retail during which the consumers bears the cost.