An insight into the current state of Canon USA and its partners
- Thread starter Canon Rumors
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Don\'t ask me where I got this, but this is footage from inside Canon\'s board of directors after reading the CR article.
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A very interesting read. Though there is a lot of speculation.
It does seem like Canon puts retailers in a s****y situation.
OTOH, as a consumer (and someone whose photography isn't my primary income), I enjoy the refurb sales. I've bought many things from Apple, Canon, Dyson, and others refurb'd. Partially, as a consumer I find Canon's standard pricing ridiculous--especially given how easy it is to find things on sale unless you need them immediately...
It's really hard to judge how demand might shift if they priced things a little lower. Then again, there's clearly enough demand at the beginning cycle of a new product that commands current prices. It feels to me that manufacturing + stock management haven't really gotten in sync with the real world demand.
It does seem like Canon puts retailers in a s****y situation.
OTOH, as a consumer (and someone whose photography isn't my primary income), I enjoy the refurb sales. I've bought many things from Apple, Canon, Dyson, and others refurb'd. Partially, as a consumer I find Canon's standard pricing ridiculous--especially given how easy it is to find things on sale unless you need them immediately...
It's really hard to judge how demand might shift if they priced things a little lower. Then again, there's clearly enough demand at the beginning cycle of a new product that commands current prices. It feels to me that manufacturing + stock management haven't really gotten in sync with the real world demand.
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All the OEM rebates I have seen have been back to the OEM and not from the reseller. >100% of claims are made.
The term "instant rebate" is really a price discount with the reseller making the claim back to the OEM and this would be 100% of the time. Payment terms aside, the reseller should not be making a loss.
A better reseller cash flow method would be to use the rebate as a credit against future purchases as OEMs hate to pay out cash.
Rebate schemes also apply in B2B transactions for volume purchase agreements but (in my experience) only exist within the US and not other countries. They are also messy to apply back to individual departments if there are multiple budgets making the original purchases.
The term "instant rebate" is really a price discount with the reseller making the claim back to the OEM and this would be 100% of the time. Payment terms aside, the reseller should not be making a loss.
A better reseller cash flow method would be to use the rebate as a credit against future purchases as OEMs hate to pay out cash.
Rebate schemes also apply in B2B transactions for volume purchase agreements but (in my experience) only exist within the US and not other countries. They are also messy to apply back to individual departments if there are multiple budgets making the original purchases.
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Canon Europe seem to make a lot more profit there with forum dwellers discussing higher prices (ex-VAT) and grey market benefits.
Canon USA could do the same if they wanted to.
Maybe it is better for US buyers to buy in Australia and ship to the US ex-GST. The pricing is about the same and has our world famous 5 year local warranty!
Just need to ship it back or visit to claim it
FYI... I am visiting the US over Christmas if you want me to bring something over to avoid Canon USA
Canon USA could do the same if they wanted to.
Maybe it is better for US buyers to buy in Australia and ship to the US ex-GST. The pricing is about the same and has our world famous 5 year local warranty!
Just need to ship it back or visit to claim it
FYI... I am visiting the US over Christmas if you want me to bring something over to avoid Canon USA
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Corporate musing.... Marketing was definitely my worst subject in my MBA!
CEO empire building/pet projects gets you big buildings/signage (even if part of the office space is subleased), halo products and acquisitions.
People remember these things and not the average selling price or number of headcount hence CEOs get long term incentive plans.
Most CEOs generally have a shortish tenure in the US although there are clear exceptions. Bad decisions are mostly felt a long time after they are gone.
Without sales, CEO's get no revenue or a going concern.
Sales staff are driven by commissions skewed towards whatever incentive plan is put in front of them despite what is best for the customer.
Marketing costs are generally nebulous (events, sponsorship, advertising etc) and are the easiest to cut but tend to affect long term sales trajectory and only for short term P&L results.
Rebates are the quick & dirty option for more sales with less profit without dropping list price.
Increasing productivity using genAI as the next corporate savior is the current drum beat.
CEO empire building/pet projects gets you big buildings/signage (even if part of the office space is subleased), halo products and acquisitions.
People remember these things and not the average selling price or number of headcount hence CEOs get long term incentive plans.
Most CEOs generally have a shortish tenure in the US although there are clear exceptions. Bad decisions are mostly felt a long time after they are gone.
Without sales, CEO's get no revenue or a going concern.
Sales staff are driven by commissions skewed towards whatever incentive plan is put in front of them despite what is best for the customer.
Marketing costs are generally nebulous (events, sponsorship, advertising etc) and are the easiest to cut but tend to affect long term sales trajectory and only for short term P&L results.
Rebates are the quick & dirty option for more sales with less profit without dropping list price.
Increasing productivity using genAI as the next corporate savior is the current drum beat.
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In their financial documents, Canon forecasts that the company will have an Operating Profit of 465.0 billion yen this year, an increase of +23.9% compared to last year.
Canon has 169,151 employees.
Canon is clearly doomed.
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why wouldn't they? how do you think they normally do refurbished gear? I would think that taking a unit out of a box and putting it into a different box does not take a significant amount of time. Repairing cameras and certifying them for sale I would imagine takes a lot more time.
There is a TON of inventory out there - we can't mention who but we did have some pretty deep conversations with retailers in the USA.
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Thanks for the rare insight behind the curtain of photography retail, which is hardly as glamorous as no one imagines it to be, but is still unbelievably depressing
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I would also guess that the quality of the packaging could be dodgy for returns and that wouldn't look good for a "new" sale of a refurbed unit.
I am not sure how widespread the excess inventory has been although Australian pricing has been keeping track of US pricing so indicative of inventory levels.
Definitely weird how so many products are on back order but also having so much excess stock.
Canon's report did say that they reduced their inventory.... but it depends on how they define it. If the stock at the retailer is on consignment then the sale revenue isn't recorded until the reseller sells it. If Canon USA sells to the retailer then the sale revenue can be recorded and the finished goods decreased.
How they manage the refurb process from an accounting perspective would be interesting.
I didn't dig deeply into the financial report but did they split out the raw material inventory vs work-in-progress vs finished goods?
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yeah I'm not sure either. that was the part that was going to be a "Richard hit piece"
are those marketshare numbers accurate? if Canon USA calls it a sale and it sits on a retailers shelf for 6 months .... but Canon USA goes - hey that's a sale.
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And I'm still waiting f
r two cute littles R5 IIs...to definitely replace my 5 D IV and EOS R.And yet, the 5 D IV was a superb camera. Not one single issue in 10 (?) years, no freezing, no water damage despite it being exposed to heavy rain...
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You have missed out on 4 years with the R5.And I'm still waiting f
And yet, the 5 D IV was a superb camera. Not one single issue in 10 (?) years, no freezing, no water damage despite it being exposed to heavy rain...
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This is right.You have missed out on 4 years with the R5.
I almost bought one, but then came the R3 with Eye Control AF, and the first rumors about its implementation into a future R5 II. My carrying system excludes the use of gripped bodies, so I decided to wait, meanwhile "amortising" the EOS R.
I wanted Eye AF, my thumb, middle finger and index having grown insensitive! Thanks to hand surgery, they are now cured.
But my R5 II time is coming!
PS: just waiting for Panamoz to start selling them.
PPS: RF 2,8/15-35 Panamoz - Euro 1700
Regular dealers F/D: Euro 2650
Guess from whom I bought mine...
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