New Prices for Sony Cams?
 

Just heard from well informed parties in the net that Sony dealers in NZ and UK) those two I know, others unknown) recently sent letters to costumers to inform them about rising prices for pro gear pretty soon. Pana is said to have similar plans. Any related news here? P.

I received such letter from my dealer in NYC USA.

It' says:
"Sony Announces 2% to 7% Price Increase! Effective November 26, 2008."

and the detail exactly from the letter

Due to the weakening of the dollar and the resulting negative affect on exchange rates, Sony Broadcast & Production Systems will be increasing prices on select professional audio and video products from 2% to 7% effective November 26, 2008.

Product Categories Affected by the Price Increase:
Storage VTRs Optical & System Products
HDCAM VTRs XDCAM HD Recorders
SRW VTRs XDCAM Cart
DVW VTRs
Professional Video
Acquisition Products EX Camcorders & Recorders
SD Studio Cameras DXC Cameras
BVP Portable Cameras DVCAM Camcorders & VTRs
HD Studio Cameras J-series VTRs
HDCAM PVW/UVW/Umatic VTRs
HD POV Cameras Luma Professional Monitors
DVW
Professional Audio
Switcher Products Mixers
MVS Switchers Wired Microphones
DVS Switchers Wireless Mics
MVE Effects Headphones
HD / SD Processing Equipment
HD / SD Routing Equipment
All BPSD Accessories


Don't forget to ask us about Sony's super low 2.88% finance lease options!

ahh! so I should probably place my order before the 26th huh???

I was told by a sales man in Canada in July 2008 when i bought the EX1 that the prices will rise someday and that the current price was sort of an introductory price........
I paid $6700 CAN when the list price was $8000 CAN (if memory serves me well)
edited to add: Correct price is $8200 Can.

This seems like a lame excuse, since the exchange rate $-€ has reached it's highest point in 4 years and has a significant POSITIVE effect (mind you not affect) on the margins in yens and the yen has not suffered significantly in comparison to the $ either. IMO this is an excuse to raise prices without a sensible argument to compensate for declining consumer sales.

Considering the jujuflop situation the world economy is in and the lack of spending on, well, anything, it seems a price increase would be counterproductive.

I keep getting e-mails from UK Sony dealers urging me to buy now before a 10% price rise at the end of this month.

Guys,

Bear in mind a lot of the material and parts for Sony products will not come just from Japan. The prices of these are being increased dramatically. We have seen the Chinese RMB go from 14.5 to the pound in january to around 10 now. In effect sourcing from China is almost 1/3 more expensive. I'm sure that where ever Sony get there plastics, metals, glass etc will be getting more expensive too.

Dan

This makes sense. If material costs are going up a manufacturer might actually cut raw or source material purchases and layoff workers to cut production costs. To make up for the lower productivity, they raise prices to keep up profits.

The idea is to cut expenses but increase prices to make up some of the margin from lower sales due to lower productivity.

In other words during an economic downturn prices might actually go up.

Yep. And I just picked up my EX-1 wide angle convertor and noticed the words 'made in China' stamped on it. That's the problem with globalized production and falling currencies.

Dan

they just bumped prices in July as well. I really wish Canon had a solid state camera
that could match the EX1's picture quality, cuz if they did, i would dump my Sony
gear in an instant. CMOS sucks!

Sorry Craig, to me that does not make sense at all. Sony and the likes do not buy parts from suppliers one by one. They contract the suppliers and get a fixed price based on the quantity they order. The first delivery for the same price per item like the last one. So this prize hike "due to exchange rate bumps" is nothing but a bad excuse.

Or they sit on piles of stock and hope to sell some of it before the date when the prizes are to go up. That whole story stinks.

And when the market goes down, you squeeze prizes to get at least some merchandise go over the counter. Because without cash flow a company goes faster belly up then you might say "my last offer".

Boy, Scott, don't know what kind of problems you're having, but I don't know why you make such a broad, sweeping statement. From what I've seen so far, it looks pretty darn good.

EDIT: flubbed post... sorry... ignore.