15% off..
Break even $$-wise for a year..or lose.. and write off at tax time..
But..
Sell a lot more cameras..and popularize them..
But even at 15% off..I would think they are still making a good profit..
Dont really know what electronic wholesale is on something like this...but would think its 5x's to 10x's manufacturer cost to retail..
I worked for a hardware company for many years and have some, if not a lot of, familiarity with the costs and profitability of manufacturing consumer electronic devices.
😉
Well, gross margin is calculated as "Revenue minus Cost of Good Sold (COGS)". Consumer Electronics Industry standard is approximately 56% across the board, but marketing expenses, staff costs, and other operating expenses are not included in COGS, and neither is the cost of product development. All of those factors add in to calculate net margin, the bottom line of profitability.
Pixii.fr is manufacturing and selling directly to consumers, eliminating the cost of distribution and wholesalers, so they get a little more of the gross margin as profit than someone like Nikon or Canon, but they're not a volume manufacturer and are basically building "on demand" as orders come in. Their COGS is much higher on a per unit basis due to this factor. I doubt they are seeing a net margin of anything greater than 18% or so, that's what a lot of big, slick volume manufacturing outfits make.
So giving a 15% discount would be almost giving the product away. "
Lose a nickel on every one, but make it up in the volume" doesn't actually work as a manufacturing business paradigm in general, but there's not a huge market for $2500-$3000 rangefinder camera bodies in particular. It's a niche product in a niche market ... Even if they could make a lot of them, there's not a huge audience out there that will buy one, so you're never going to make the "volume" to make it up in, regardless of how many people in RFF who bought one ballyhoo how wonderful a camera it is. It's just not going to happen that way.
...
But actually..the bigger problem is..
If this war escalates..and sanctions continue..
Where are we gonna get batteries from..w/no nickle coming in from Russia..
Making all our diggy cams..moot..
Back to film guys...lol..
Eh. There are probably enough NP-FW50 Li-Ion batteries (not Nickel-Metal-Hydride) in the world already manufactured to supply all Pixii owners with a half a dozen of them, and they'll last a decade with normal use. The supply of good quality film stock is probably more at risk than NP-FW50 batteries...! And that said, I hope we're not looking at yet another stupid Forever War.
Enough digression. I was curious how quickly my order would ship so I sent a query ... I just got a note from David at Pixii.fr. They have received my order as of this morning. Assembly start should begin next week, with completion likely within the week (calibration/qa testing nominated as about two days of that time). Add a few days for the usual production operations (packaging, etc) and the estimate of two weeks to ship time seems about right. It's kinda like buying a bespoke camera, that is, a camera that is individually made for you on your order. I like that, and was delighted to receive a personal response to my query so quickly. Can't say as I've had that kind of response from any other camera manufacturer in recent memory.
It'll be great when it arrives.
🙂
G