Why camera price increase when yen going down ?


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May 22, 2009
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#1
checked a couple of sites this week and found price of 6D, 7D, Sony RX100 price going up while yen is going down ? anyone knows why ? logically, the price should be going down since SGD is strengthening against the yen. for example 1 sgd = 70 yen in january 2013 and today its 78 yen. sgd is up 12% so why is price of cameras not going down ???
 

edutilos-

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#2
checked a couple of sites this week and found price of 6D, 7D, Sony RX100 price going up while yen is going down ? anyone knows why ? logically, the price should be going down since SGD is strengthening against the yen. for example 1 sgd = 70 yen in january 2013 and today its 78 yen. sgd is up 12% so why is price of cameras not going down ???
I won't know but there are millions of factors affecting the camera price, not just the Japanese yen. For example, the camera does not teleport from the factory to Singapore. It does not appear magically in your hands when you want to buy one. It has to be stored, it has to be held, it has to be retailed.

Besides the various contributory factors to the actual cost to businesses, there is also the factor of demand. If there are 800 cameras available but 4000 people want it, being a smart businessman, I would happily adjust the price upwards so that I can still sell 800 cameras and earn even more profit.

Just linking camera prices to the strength of the yen (or any other prices for that matter) is perhaps oversimplistic?
 

Rashkae

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Nov 28, 2005
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#3
checked a couple of sites this week and found price of 6D, 7D, Sony RX100 price going up while yen is going down ? anyone knows why ? logically, the price should be going down since SGD is strengthening against the yen. for example 1 sgd = 70 yen in january 2013 and today its 78 yen. sgd is up 12% so why is price of cameras not going down ???
And shipping costs? Fuel costs? When were these units shipped to singapore? You think that because today the exchange rate is good, it should affect the cost of goods purchased months ago? That the high demand around CNY didn't push up costs?

I think you really need to get a basic grasp of economics and business processes before saying anything.

If you want a stable price, just go buy rrp.
 

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An drew

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May 27, 2005
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checked a couple of sites this week and found price of 6D, 7D, Sony RX100 price going up while yen is going down ? anyone knows why ? logically, the price should be going down since SGD is strengthening against the yen. for example 1 sgd = 70 yen in january 2013 and today its 78 yen. sgd is up 12% so why is price of cameras not going down ???
Maybe you can find some answers here:
Yen falling - camera price too?: Open Talk Forum: Digital Photography Review
 

May 22, 2009
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thanks Andrew and others with constructive comments. lots of good info. of course there are many factors. but if yen falls, you would think at least price should hold firm, and not go up. did transport, retail and labor cost suddenly go up 12% ? is demand stronger than when the camera was first launched ?

one option perhaps is to buy in Japan if you or a friend happens to be there for business, etc and take advantage of strong SGD.



 

UncleFai

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Mar 10, 2010
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#8
First Law of Capitalism:

The price of a product is determined entirely by how much the consumer is willing to pay.
 

An drew

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May 27, 2005
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thanks Andrew and others with constructive comments. lots of good info. of course there are many factors. but if yen falls, you would think at least price should hold firm, and not go up. did transport, retail and labor cost suddenly go up 12% ? is demand stronger than when the camera was first launched ?

one option perhaps is to buy in Japan if you or a friend happens to be there for business, etc and take advantage of strong SGD.
The prices of things in Singapore are affected by inflation and costs in Singapore (price of housing, COE etc.) Many people feel that since we import everything a strong singdollar will solve this problem but the fact is that much of the costs are incurred locally and having a strong singdollar just help to make our products and services less competitive.
 

TWmilkteaTW

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May 30, 2011
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#11
checked a couple of sites this week and found price of 6D, 7D, Sony RX100 price going up while yen is going down ? anyone knows why ? logically, the price should be going down since SGD is strengthening against the yen. for example 1 sgd = 70 yen in january 2013 and today its 78 yen. sgd is up 12% so why is price of cameras not going down ???
like many mention.. i guess u fail to see the big picture. apparently things aren't so simple. ;)
 

UncleFai

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Mar 10, 2010
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#12
like many mention.. i guess u fail to see the big picture. apparently things aren't so simple. ;)
On the other hand, that's what they say about petrol pump prices also... oil prices go up, pump prices go up; oil prices go down, pump prices stay... "you don't see the big picture."
 

edutilos-

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Dec 28, 2010
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#13
thanks Andrew and others with constructive comments. lots of good info. of course there are many factors. but if yen falls, you would think at least price should hold firm, and not go up. did transport, retail and labor cost suddenly go up 12% ? is demand stronger than when the camera was first launched ?

one option perhaps is to buy in Japan if you or a friend happens to be there for business, etc and take advantage of strong SGD.
I think unless you ask the retailers, no one here can give you the correct answer if that's what you're looking for. The intention for most of the responses was to correct the expressed impression that camera prices are directly correlated with the strength of the Yen.

Take for example the GST raising a few years back - it was from 5 to 7% but some stores raised the price of chicken rice from $2.50 to $3.00 correspondingly. That's a 20% increase. What I can tell you is that , as long as people pay the $3.00, the $3.00 will stay, it doesn't matter if this is justified or not. Same goes for cameras.

Yes, one option is to buy in Japan, or do the math and ship from Amazon Japan, it may still be cheaper, though it won't be exactly the same, e.g. different plug, manual may not be in English, need to check for warranty coverage.. etc.
 

Shizuma

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Mar 19, 2012
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#14
is there a Camera Futures available??

can we trade on this?
anyone who went long USD yen yesterday would have made a tidy profit. very . tidy .

anyway why does our camera price go up is because SGD is pegged to USD. when USD strengthened against yen, our SGD purchasing power in USD terms fell and now we must pay more.

78 yen to the dollar was ages ago. today it is around 95
 

edutilos-

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#15
anyone who went long USD yen yesterday would have made a tidy profit. very . tidy .

anyway why does our camera price go up is because SGD is pegged to USD. when USD strengthened against yen, our SGD purchasing power in USD terms fell and now we must pay more.

78 yen to the dollar was ages ago. today it is around 95
Since when was the SGD pegged to USD in recent times? MYR was pegged in the past, but the peg was removed.

I don't even know what you are talking about on the "purchasing power in USD terms". Assuming that SGD *is* pegged to USD (it is not) --> USD strengthen against Yen --> SGD (pegged to USD) should strengthen against Yen --> Pay less, not more.

1 SGD = 78 Yen
1 USD = 95 Yen

I believe you are referring to USD when person above is talking about SGD.
 

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UncleFai

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#16
Since when was the SGD pegged to USD? MYR was pegged in the past, but the peg was removed.

I don't even know what you are talking about on the "purchasing power in USD terms".
Wow! CAT FIGHT!
 

edutilos-

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#17
For your reading pleasure:

Monetary Policy

There are three main features of the exchange rate system in Singapore.

1.The Singapore dollar is managed against a basket of currencies of our major trading partners.
2.MAS operates a managed float regime for the Singapore dollar with the trade-weighted exchange rate allowed to fluctuate within a policy band.
3.The exchange rate policy band is periodically reviewed to ensure that it remains consistent with the underlying fundamentals of the economy.
 

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Shizuma

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Mar 19, 2012
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#18
not pegged in the strictest sense but MAS does control or moderate the trading range.

my bad i saw the wrong counter currency.

i am curious if you have extensive trading experience . i would love to learn more from you
 

Yutaka Go

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May 22, 2010
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#19
I think the import duties from different countries affect the price more than the currency.

Australians complain their camera and lens are the most expensive.

Sony USA web site - SEL 18-55mm price = US$299.99 = SGD$371.78

Alpha E-mount Lenses | Sony | Sony Store USA

Sony Singapore web site - SEL 18-55 mm price = SGD$399 ( include GST )

Sony NEX Lens (E-mount) : Sony Singapore

Sony Australia web site - SEL 18-55mm price = AUS$349 = SGD$450.98

NEX Lens (E-mount) : Interchangeable Lens Cameras : Sony Australia

If you are in Australia, die die don't buy or it will make you cry :(
 

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ricohflex

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Feb 24, 2005
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#20
Shizuma explained it well. The Nikkei is at a 4 year high and Yen at 4 year low. This is due to great efforts by the newly minted Chairman of BOJ, Mr. Kuroda. He wants to double the volume of money supply in Japan. Abe-nomics in action. Japan has been in a 20 year decline and deflation. But doomed to fail and Japan economy will drop into a bottomless pit later.
 

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