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Sony US set minimum prices for Alpha products

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Old 04-06-2008, 12:16 PM   #1
loz loz is offline
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Sony US set minimum prices for Alpha products

Not sure how it will affect the UK in the long term - Sony's EU prices are high enough in the first place - but I notice that Sony is pursuing a "price setting" strategy in the USA that is removing discounted prices by insisting that all "premium product" dealers comply with their SURE (Sony Unified Resale Execution program) that sets minimum pricing and penalties for non-compliance. And all Alpha items fall into the "premium products" category

see http://www.twice.com/article/CA6557414.html
also discussion at http://forums.dpreview.com/forums/re...ssage=28163007

One consequence is that well-known retailers like Adorama and B&H have now raised their prices to the same as Sony Style.
Another consequence is that Best Buy have decided to stop selling Alpha.

So it looks like the retail prices you see on Sony Style are the prices you will find everywhere in the US.

Quote:
(Sony) said retailers are free to do what ever they want, "but our unilateral announcement says, 'Here, this is what our product is worth and what we think you should sell it for, and if you choose not to do that there is a three-step enforcement process that says you will lose those products for 60 days on the first offense, six months on the second or one year on the third.' "


God forbid such practices should come to the UK...

Last edited by loz; 04-06-2008 at 12:19 PM.
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Old 04-06-2008, 12:24 PM   #2
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Re: Sony US set minimum prices for Alpha products

I think it's illegal over here. It's reminiscent of the now-defunct Net Book Agreement.

MSRP is one thing, but this is a surefire way of turning retailers and buyers towards Canon, Nikon, Pentax, Olympus et al.
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Old 04-06-2008, 12:29 PM   #3
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Re: Sony US set minimum prices for Alpha products

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Originally Posted by Radiohead View Post
I think it's illegal over here. It's reminiscent of the now-defunct Net Book Agreement.

MSRP is one thing, but this is a surefire way of turning retailers and buyers towards Canon, Nikon, Pentax, Olympus et al.
Well it was illegal in the states too, until a supreme court ruling made it easier for manufacturers to force dealers to stick to retail prices. Though I can't see the EU doing that.
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Old 04-06-2008, 12:31 PM   #4
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Re: Sony US set minimum prices for Alpha products

Yes, I think so too. I'd hazard a guess that it's actually not entirely legal in the US either, certainly from the standpoint of terminating a retailer (for example) for refusing to sell goods at a minimum price. I'm not sure how this can be enforced in the way they propose - I'm sure there will be backlash against it.

In any event, I don't see how this is in Sony's favour - surely they need to get market share, and they're not going to get that by alienating resellers and charging more for products which are (imo) already seen as second fiddle to Nikon and Canon.
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Old 04-06-2008, 1:25 PM   #5
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Re: Sony US set minimum prices for Alpha products

I see as the price of Sony products have dropped in the UK this week (lenses), and they've now jumped in the US.

I guess the reason why all of those 'Best Buy deals' happened was due to this fact they were clearing out their stock, and sticking their fingers up at Sony at the same time (A700 were selling for £400)

Not great for us Sony users, and don't think it's the best move for Sony either if it wants market share. I guess they think they are another 'Apple'

Good news is that it's illegal in the UK, although they are still getting away with it.

In my mind, the more they do this the more goods get sold through the 'grey import' channels.

Anyway, I guess we'll have to wait and see how much difference this makes to the US prices and maybe UK prices also.
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Old 07-06-2008, 2:13 PM   #6
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Re: Sony US set minimum prices for Alpha products

I think that Sony have a problem (as they all do) that the dollar is very weak at the moment and they need to push up prices to improve profit margins back in Japan. As has been said, compulsory price setting by manufacturers can't be done in the EU, they can only set a recommended retail price AFAIK.

I can understand how consumers in the US would be angered by this, but they will still pay far less than we do. Of course we pay a lot more tax on new products, but even taking this into account, I'm sure that kit is significantly cheaper over there. It would be interesting to know the per unit margin from US and EU body and lens sales is.

I wonder if the other manufacturers will follow suit?
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Old 07-06-2008, 2:40 PM   #7
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Re: Sony US set minimum prices for Alpha products

Quote:
Originally Posted by Ikki View Post
I think that Sony have a problem (as they all do) that the dollar is very weak at the moment and they need to push up prices to improve profit margins back in Japan.
But in that case, they could simply raise their wholesale prices. And still leave retailers to set their own retail price.
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Old 07-06-2008, 3:11 PM   #8
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Re: Sony US set minimum prices for Alpha products

Loz . . . are you OK in the Canon camp . . no regrets? All I want now is the SAL 70-300G SSM and I'm sorted lens-wise I think. As for the prices . . always a deal somewhere.
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Old 07-06-2008, 3:31 PM   #9
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Re: Sony US set minimum prices for Alpha products

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Originally Posted by Pirate!! View Post
Loz . . . are you OK in the Canon camp . . no regrets?
None whatsoever.

Whilst it would be nice to have in-body IS and not finding I am constraining myself to looking only at IS lenses, at the same time the benefit of seeing a stabilized view in the viewfinder with an IS lens is actually very nice, especially with a long telephoto. Meanwhile, when I actually look at the shutter spead of my pics, there aren't that many that would demand IS anyway - in body or lens...

Sigma's new range of OS lenses adds another source as well.
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