Have you ever wondered how Leica chooses its pricing for its high-end cameras? J Shin has written up a great post over at Leica Rumors that offers a geeky and lengthy explanation of the economics behind the company’s pricing decisions:
Every time there is any kind of a product-related announcement here and elsewhere, there are a number of invariable comments complaining about and/or defending Leica’s price strategy. In making these comments, people make references to various economic and noneconomic reasons why Leicas are priced the way they are. This essay is an attempt to show that, basically, almost everybody is right, at least when it comes to Leica’s profit motives. Rather than nefarious greed, devious psychological warfare, and, as some often mention, Dr. Kaufmann’s ignorance of Leica fandom, Leica prices are basically a function of mathematical inevitability.
The Mystery of Leica Pricing Explained [Leica Rumors]
Adobe is currently holding the launch event for the highly anticipated Creative Suite 6 in San Francisco today, making it a big day for Photoshop enthusiasts everywhere. Official release will be coming “within 30 days” according to Adobe, but the event has revealed enough to whet our appetites and give us some pricing options we can chew over.
We now know the price of the Fujifilm X-Pro1 for US residents: $1,700. One week after become available for preorders over on Amazon Japan for roughly $1,743, the camera is now listed on Amazon’s US site for the price of $1,699.95 for the body only. The system’s lenses are also available, and cost between $600 and $650 a pop.
Yesterday we shared that some impressive sample photos taken by the camera are now available for pixel-peepers to feast their eyes on.
A clearer picture is emerging of what the Fujifilm X-Pro1 will cost when it’s finally on store shelves. The camera is now available for preorder over on Amazon Japan for the price of ¥135,000 (~$1,743). This suggests that the US price will be in the range of $1,600-$1,700. The lenses will likely be in the range of $600-$700 each. A PDF version of the owner’s manual has also been released, and should be interesting to anyone who wants a closer look at how the camera works.
(via Photo Rumors)
Apparently there’s a camera shop in Houston, Texas called Houston Camera Exchange that’s taking preorders for the upcoming — but yet unannounced — Nikon D800 for $2,699.99. While photos and specs of the 36MP camera have been leaking for some time now, there hasn’t been much information about the camera’s price.
(via Nikonistas via Nikon Rumors)
Update: A commenter reports that the shop is currently taking a $500 deposit for what they expect will be a $3500-$4000 camera.
Adobe caused a stir last November after changing its upgrade policy to only cover one version back instead of three. This meant that only Photoshop CS5 owners would qualify for the upgrade price on CS6 when it’s launched, leaving CS3 and CS4 owners the not-so-nice option of buying the CS5 upgrade before buying the CS6 one. Perhaps in response to the angry customer response, Adobe announced a “special offer” for CS3 and CS4 owners today:
[...] we want to make sure our customers have plenty of time to determine which offering is best for them. Therefore, we’re pleased to announce that we will offer special introductory upgrade pricing on Creative Suite 6 to customers who own CS3 or CS4. This offer will be available from the time CS6 is released until December 31, 2012.
We’ll find out just how much of a discount those users will receive once CS6 is released. It also appears that Adobe isn’t planning to restore the old upgrade policy — today’s announcement is more of a one-time fix for angry customers.
(via Adobe via John Nack)
Image credit: Adobe Creative Sweet CS5 by pcfishhk
Ashley Ambirge of the middle finger project on pricing your services the right way on your website:
[...] there’s wiggle room. Most of the time, there’s wiggle room. And most of the time when people tell you they don’t have the money, they’re lying–they just don’t think it’s worth the money.
Your job is to show them that it is.
She also warns against being secretive about your fees. Research has found that if no price is listed on the website, most people click away assuming that the fees are too expensive for them.
List Your Prices (THE RIGHT WAY) (via APhotoEditor)
Image credit: Price tags by jamesks
Last week we reported that starting with Adobe CS6, only people who own the previous major release of the software (i.e. CS5 and above) will be eligible for upgrade pricing. Needless to say, Photoshop users are’t too happy about the changes, and now National Association of Photoshop Professionals president Scott Kelby is weighing in. In an open letter to Adobe, he writes,
While I understand that Adobe needs to make business decisions based on how it sees market conditions, I feel the timing of this new pricing structure is patently unfair to your customers (and our members). Here’s why: You didn’t tell us up front. You didn’t tell us until nearly the end of the product’s life cycle, and now you’re making us buy CS5.5 for just a few months on the chance that we might want to buy CS6 at a discount when it’s released. Otherwise, we have to pay the full price as if we were never Adobe customers at all.
Kelby also makes a plea for Adobe to either start the new policy with CS7 or to offer a tiered upgrade structure in which upgrade price is based on how recent your version is. That definitely makes more sense than having CS4 users pay full price to upgrade to CS6.
An Open Letter To Adobe Systems [Scott Kelby]
If you’ve been waiting to upgrade Photoshop CS3 or CS4 to CS6 when it’s released sometime next year, here’s some bad news: the upgrade price won’t apply to you. Starting with CS6, Adobe will be enforcing a new upgrade policy:
[...] we are changing our policy for perpetual license customers. In order to qualify for upgrade pricing when CS6 releases, customers will need to be on the latest version of our software (either CS5 or CS5.5 editions). If our customers are not yet on those versions, we’re offering a 20% discount through December 31, 2011 which will qualify them for upgrade pricing when we release CS6.
The existing policy is that customers with software from three versions back quality for upgrade pricing. For example, owners of CS2, CS3, and CS4 and upgrade to CS5. Buying the full version of Photoshop CS5 right now costs nearly $500, while the upgrade is only priced at ~$150.
(via Adobe via PhotoWalkthrough)
Image credit: Adobe CS5 nude by pcsiteuk
Photographer Zack Arias has an interesting piece on why he doesn’t think photographers should feel threatened by others who offer their services for absurdly low prices:
Think of the brides out there who don’t have a budget but want some photos of their weddings. Maybe there are young couples getting married who don’t have the parents to pay for a big event or they don’t want to start their young family in debt but they would like someone to come take some pictures. Are you saying that if they can’t afford a $3,000+ photographer then they don’t deserve photos? Are you saying that if they can’t afford a Mercedes then they shouldn’t be allowed to drive? Shame on you. Not everyone can afford pro level prices. That doesn’t mean they can’t have some level of photographic services available to them.
[...] I’ve laid this all out to make the point that cheap photography has its place. It has its place for clients who can’t afford much and it has its place for photographers trying to build something from nothing. It’s part of becoming a full time working photographer in an age when so many want to become a photographer.
Cheap Photographers Only Kill Themselves, Not The Industry [Zack Arias]