Pricing policy for Canon XH G1 / A1 at DVinfo.net

Hse Kha · August 7th, 2006, 03:59 AM

Will the XH G1 / A1 be fixed in price (forcefully by Canon) at $4K/7K like the XL H1?

Or will dealers have the freedom to choose whatever price and discount to offer to clients like the XL1s?

Tom Hardwick · August 7th, 2006, 06:55 AM

In England it's now illegal for an importer or manufacturer to have a 'reccommended price'. The shops haggle over quantities and buy them in, then try to sell them to you or me at a price we'll pay. Make a dealer an offer - I did with my FX1 and was quite surprised to have it accepted.

tom.

Hse Kha · August 7th, 2006, 09:14 AM

Well it is also Illegal in the USA! The attorney general would be more than interested in any such price fixing!

And furthermore, this sort of thing was never done for camcorders until Canon brought out the XL-H1. With that particular camera, for some reason they made the dealers stick absolutely to $8999. Some dealers that didn't were punished! I have heard of a couple of dealers walking in cruthces the day after they discounted the XL-H1... ;)

Anyway I hope the XH-A1 can be had for a "street" price of about $3K. Can't wait to get one! :)

Pete Bauer · August 7th, 2006, 09:27 AM

At least within the US, neither setting an MSRP nor stipulating in dealership contracts that a product be sold at a certain price point constitute "price fixing." Both practices are routine in many, if not most, retail distribution chains. This was explained in this thread:

http://www.dvinfo.net/conf/showthread.php?t=56839

But feel free to call your state attorney general if you believe otherwise.

Miguel Lombana · August 8th, 2006, 12:04 AM

It's not illegal for a manufacturer to "suggest" to a dealer that if they drop the price below MSRP they will cut them off as a dealer, actually most manufacturers have it in writing as part of the dealer agreement. The most obvious example of this method is Sony, go from one dealer to another and you'll find the same gear at the same price.

Typically after a few months, someone that is a very large purchaser of goods from that company will deem it acceptable to drop the price to push sales. Since the markup on this product is 20 to 40 percent, many vendors start by dropping 5% off list and blowing out a few boxes. The next step is for someone to start at cost and mark up 10% or even 5% from cost and at that point the manufacturer knows that the war is on.

Since the vendor held out for a reasonable amount of time and they are such a high dollar dealer, the rep might just not take the owner out to lunch that week to punish them, but all this is perfectly legal and goes on all the time. It keeps the playing field fair.

Want to get a new Canon, wait till Christmas or better yet, just after, you'll see below list prices really quick. Oh and about Canon being the only one, sorry, wrong, check out the prices on the Sony 2000 and 2100 for the first few months of their lives, list price all the way.

Miguel

August 7th, 2006, 03:59 AM	#1
Hse Kha Regular Crew Join Date: Nov 2003 Location: New England Posts: 195	Pricing policy for Canon XH G1 / A1 Will the XH G1 / A1 be fixed in price (forcefully by Canon) at $4K/7K like the XL H1? Or will dealers have the freedom to choose whatever price and discount to offer to clients like the XL1s?

August 7th, 2006, 09:27 AM	#4
Pete Bauer Wrangler Join Date: May 2003 Location: Eagle River, AK Posts: 4,100	At least within the US, neither setting an MSRP nor stipulating in dealership contracts that a product be sold at a certain price point constitute "price fixing." Both practices are routine in many, if not most, retail distribution chains. This was explained in this thread: http://www.dvinfo.net/conf/showthread.php?t=56839 But feel free to call your state attorney general if you believe otherwise. __________________ Pete Bauer The most beautiful thing we can experience is the mysterious. It is the source of all true art and science. Albert Einstein Trying to solve a DV mystery? You may find the answer behind the SEARCH function ... or be able to join a discussion already in progress!

August 8th, 2006, 12:04 AM	#5
Miguel Lombana Major Player Join Date: Mar 2004 Location: Litchfield Park, AZ (W/of Phoenix) Posts: 502	It's not illegal for a manufacturer to "suggest" to a dealer that if they drop the price below MSRP they will cut them off as a dealer, actually most manufacturers have it in writing as part of the dealer agreement. The most obvious example of this method is Sony, go from one dealer to another and you'll find the same gear at the same price. Typically after a few months, someone that is a very large purchaser of goods from that company will deem it acceptable to drop the price to push sales. Since the markup on this product is 20 to 40 percent, many vendors start by dropping 5% off list and blowing out a few boxes. The next step is for someone to start at cost and mark up 10% or even 5% from cost and at that point the manufacturer knows that the war is on. Since the vendor held out for a reasonable amount of time and they are such a high dollar dealer, the rep might just not take the owner out to lunch that week to punish them, but all this is perfectly legal and goes on all the time. It keeps the playing field fair. Want to get a new Canon, wait till Christmas or better yet, just after, you'll see below list prices really quick. Oh and about Canon being the only one, sorry, wrong, check out the prices on the Sony 2000 and 2100 for the first few months of their lives, list price all the way. Miguel __________________ Miguel Lombana http://www.miguellombana.com & http://www.phoenixhamradio.com

August 7th, 2006, 06:55 AM	#2
Tom Hardwick Inner Circle Join Date: Mar 2003 Location: Billericay, England UK Posts: 4,711	In England it's now illegal for an importer or manufacturer to have a 'reccommended price'. The shops haggle over quantities and buy them in, then try to sell them to you or me at a price we'll pay. Make a dealer an offer - I did with my FX1 and was quite surprised to have it accepted. tom.

August 7th, 2006, 09:14 AM	#3
Hse Kha Regular Crew Join Date: Nov 2003 Location: New England Posts: 195	Well it is also Illegal in the USA! The attorney general would be more than interested in any such price fixing! And furthermore, this sort of thing was never done for camcorders until Canon brought out the XL-H1. With that particular camera, for some reason they made the dealers stick absolutely to $8999. Some dealers that didn't were punished! I have heard of a couple of dealers walking in cruthces the day after they discounted the XL-H1... ;) Anyway I hope the XH-A1 can be had for a "street" price of about $3K. Can't wait to get one! :)