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Discussion in 'Panasonic Cameras' started by thebigham, Nov 30, 2012.
I'm just curious why they have gone in price very quickly compared to the Olympus camera.
The G3 I'd imagine is because of the G5, GX1 does seem to have dropped, I'm looking to pickup another compact system after getting rid of all my camera gear but as much as I'd like another EM5 I'm too skint right now so I've been looking at the EP3 or GX1 but the G3 could be a contender too.
Mass market electronics, big markup at launch, latest and greatest just round the corner ... price drops. In some ways I prefer this to the Oly strategy which seems to be artificially keeping things inflated and hard to get hold of.
With Panasonic I can pay my £££ to be an early adopter or wait a bit and get a "bargain".
1. A G5 has already been out on the market for a while, so it is natural that the G3 price has dropped substantially. As for the GX1, a GX2 will be coming out soon;
2. Panasonic has been loosing market share in the mirrorless camera segment, so they need to boost sales volume with reduced price;
3. Panasonic seems to be caught in a viscous cycle in which their products are not selling as well as they expected, so they reverted to discount strategies. Now people expect Panasonic product price to drop quickly soon after its launch, and choose to wait for the price drop to pick one up, so new product sales decline further...
I think this point of view may only taken by those who exclusively wait/buy at the price drop.
Olympus have been doing their own discounting though, plenty of bundles and offers seemingly every (at least) 2 months. There are also refurbs through official distributors.
This issue has actually been discussed extensively at another thread, and here's an article about the whole discount pricing strategy:
The JC Penney Problem, Only Worse | Sans Mirror â€” mirrorless, interchangeable lens cameras | Thom Hogan
From my point of view the GX1 was a missed opportunity by Panasonic to use the GH2 sensor in a smaller body. It also would have helped to justify the relatively high launch price.
Capital is finite resource and Panasonic needs to squeeze out all sales right now to develop other more capital intensive-uber TECH. It's extremely difficult to build a truly robust heated eyelash curler.
Panasonic Beauty at Panasonic
It's simple. Because they aren't selling. If they were, the price wouldn't go down. Just because a new model comes out, doesn't mean the old model has to plummet in price. If it's in demand, the price will stay up. For example, the iPad 2 is now 2 generations old. Yet it still sells at a lofty price. Not as high as when it was introduced, but still higher than a 2 generation old product should sell for. The GX1 doesn't even have that excuse. It is the current model. It's simple supply and demand. There's supply but no demand.
Imagine if your factory is churning out 1000 GX-1 per day.. and they only sell 100 a day (being converted to cash and profit), while the 900 piles up in your inventory... and you know their value goes down by the day... you will be having cashflow issues soon if you don't do something with the inventory...
It's sad that they can't scale it down because "this year's have to be better than last year" isn't it
I do wonder at the overproduction. Olympus is still selling the E-PL1, now for $140. How many did they make? The price has put it near the top of the Amazon Bestsellers for a while now.
I think the GX1 is an example of price being ridiculous at launch, and quickly falling closer to where it belonged in the first place.
The GX1, from my point of view, was a huge disappointment. Nice camera, but after reading many people say that we finally had a successor to the GF1, and considering the price, I was really expecting something special.
I would agree with this. The price was quite stratospheric , especially if you wanted to get it with the viewfinder and the nifty new zoom.