----- Original Message ----- 
From: "P. J. Alling"
Subject: Re: The JCO survey


>I assume that as with most electronic equipment there's a 40 point
> profit margin built in initially.  That may have changed since I last
> had anything to do with a company that owned their entire pipeline 
> from
> production to sales but I doubt it.  The whole reason to concentrate 
> on
> DSLR's is that they aren't commodity items, like P&S cameras, which is
> where margins are razor thin.  Assuming 40% markup over cost I'd say
> they'll be making money when the price drops to $599-699. levels in
> about 6 months if they follow the model used in most of the 
> electronics
> industry these days.  By then most of the new R&D should be recovered
> and the cost basis will be lower as well.

When I was selling cameras, there was almost no profit at all in SLR 
cameras, from manufacturing right through to the seller.
I don't see how anything has changed that way in the last 20 years.

William Robb 



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