Canon USA Addresses the Gray Market

Canon try this out here in Aussie too. So why does my canon cost more than yours? Same warranty, made in the same factory and packed and shipped the same way. And as for those bad reports please name 20 of each that you know about. You will have equally as many "faults" with official canon purchases. It is price gouging at its worst. The reason canon whinge is they are losing "high profit" sales. No more no less. And canon make a fantastic product but that doesn't mean I can't whinge about their practice either. I love my canon gear and am not about to change. JMHO
 
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Welcome to the global economy.

Most CF cards are made in China, but they cost 4 times as much to buy in Asia as they do in the US.

Last time I bought CF cards, they were made in China, shipped to the U.S., put on promotion at B&H, sent by UPS from the U.S. to Hong Kong and all for cheaper than I could buy them locally!!

Crazy times we live in.
 
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And from another perspective, Canon USA products are popular gray market here in Europe. Obvious caveats are a shorter one-year US-only warranty, American-style power cords, and noticeable import duty. Documentation in our native languages is available online from Canon, so that's not a problem. For lenses, focus distance units are given in both feet and meters, so that's no problem either :P
 
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The real issue is this. After a year, I got my 5D3 for 2499$ and at the time I could literally stab the sensor with a screwdriver, send it in for a new sensor and when I got it back, it would still be cheaper than B&h photo. It's now going on three years since release and the price I paid then is now becoming the normal price for the 5D3. CPS will fix the camera but just don't expect a warranty repair.

So no canon, just sell me a product and don't be artificially making boundaries to push up prices. It will end up with my wallet taking the path of least resistance.
 
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This cross-border price gouging has gone on for a long time. It is particularly prevalent in the UK.

For your amusement, I will list the best price I can find in Tokyo for today (in Yen of course, you can do your own conversion) Body only:

70D ¥ 95,107
6D ¥ 150,939
7DMkII ¥ 182,989
5DMkIII ¥ 268,482

Some items are, however, more expensive in Japan than in the rest of the world.
 
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dak723 said:
AvTvM said:
So ... up yours, Canon!
So, why are still here? Go Sony or go Nikon. We'll be glad if you do.
dak723, please only speak for yourself and not for others. Because they might have different opinions.

I have a different opinion much closer to AvTvM.

We live in a globalized world. That also means today I have to work/live here tomorrow there.
When I buy an original Canon camera say in Germany from an authorized retailer (in Germany) and I havt to move say to the US then I don't want to send it back to Germany, when I want it repaired or have warranty issues. Because an original Canon product is original in all countries of the world.

But Canon decides to separate the world into different markets and tries to milk them as much as possible.
And if someone is smart enough to buy an original Canon product somewhere else cheaper ( my definition of "parallel" or "gray market") it is up to Canon Global to handle the point if a service is done in a different country.

Of course different countries have different laws about product warranties and this is the only argument against me.

And of course it is something completely different, if someone is offering a product labeled as original that is not.
That is nothing I call "parallel" or "gray market" but fraud and an issue for the prosecutor.
 
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expatinasia said:
Welcome to the global economy.

Most CF cards are made in China, but they cost 4 times as much to buy in Asia as they do in the US.

Last time I bought CF cards, they were made in China, shipped to the U.S., put on promotion at B&H, sent by UPS from the U.S. to Hong Kong and all for cheaper than I could buy them locally!!

Crazy times we live in.
+1
The companies try to milk the customers as much as possible.

And that has nothing to do with local warranties and laws. As I suppose they are better in the US than in some countries where the products are more expensive.
 
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There is hardly anything surprising here.

Canon USA, UK, etc are their own P&L centres. Why should they cross subsidise via way of a warranty an item bought from another country. The interesting point is they leave the door open by saying the warranty might not be honoured?

The other issue, not so relevant to Canon is why its cheaper in many cases. The answer in many cases is that tax hasn't been paid. You can hardly blame the in country retailers who play by the rules for being "more expensive".
 
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aardvark said:
Canon USA, UK, etc are their own P&L centres. Why should they cross subsidise via way of a warranty an item bought from another country.

Simple answer: ONE company. ONE world. ONE global economy. Not only for Canon, companies, makers, sellers of products. But also for us, buyers, customers. 8)

We don't tell Canon in what countries to manufacture their products. Canon is in no position to tell us, their customers, where to buy their products - as long as they come from their factories. They should be grateful when we spend our money on their products rather than on those from competitors. It would be in Canon's own best interest to keep us, their customers as happy as they possibly can. That includes the very best aftersales service they can possible pony up and offer to us. For all their products, for all their customers, no matter where we live, work and purchase Canon products.

Fair is fair.
 
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Canikon et all are just a bunch of hypocrites. Gray market imports into EU and elsewhere are propelled by Hong Kong and Singapore Exporters, which, most of the times, are somewhat tied to manufacturers. Canikon gives to official Asian distributors monthly targets, or price promotions based on volumes sold. Official distributors to meet those targets dump quantities of camera and lenses to brokers in HK/SG, which export them to lucrative markets in countries like Europe and USA. Everybody has his cut and inventories are sold.
Canon USA complaint is just simply ridiculous.

> Poor photocopies of the original manual
wtf
 
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G3VBL said:
This cross-border price gouging has gone on for a long time. It is particularly prevalent in the UK.

For your amusement, I will list the best price I can find in Tokyo for today (in Yen of course, you can do your own conversion) Body only:

70D ¥ 95,107
6D ¥ 150,939
7DMkII ¥ 182,989
5DMkIII ¥ 268,482

Some items are, however, more expensive in Japan than in the rest of the world.

GBP prices for the same cameras.

70D £ 799 (146,875)
6D £1299 (238,786)
7DMkII £1599 (293,933)
5DMkIII £2299 (422,610)

Pre-tax

70D ¥ 88,032
6D ¥ 139,759
7DMkII ¥ 169,434
5DMkIII ¥ 248,595

70D £ 666 (122,651)
6D £1083 (199,447)
7DMkII £1333 (245,488)
5DMkIII £1916 (352,854)
 
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Some really good points and a consensus that one world should mean one basic price (tax differences apart). So how can this moaning actually make a difference, given price of this stuff we are pretty trapped as customers and these guys know it - I don't think enough of us would only purchase through the grey market to force a leveling of the price - not sure that would do it anyway.

I'm from the UK and just bought the new 100-400mm lens through the US Amazon site. They are an authorised dealer, they include all import duties and local taxes and I'm still £260 ($400) better off. So will Canon UK not support my lens?

You know if enough disgruntled customers got together and said they were not buying any of their products for say 6 mths unless this differential pricing issue was addressed I bet that would have an effect. How often have we delayed a purchase for some reason or other. So for most of us putting off a purchase is not too big an issue, potentially trashing a 6 mth revenue stream for a corporate might just make them listen to their customers.

Never thought I was so radical and a brit to boot !
 
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Hi,
I'm not surprise and don't understand why people here upset about it. Canon had many offices and service centers in many country and all of them are local company that need $$ to operate, so why you expect the local Canon company to service your under warranty Canon product FOC when you live here but buy from another country?? It's simple, if you decided to buy a gray product, you also must accept the risk of not having a local warranty.

Anyway, just be careful when buying a gray product as not all Canon product had the same specification... For example, Canon 6D(WG) had Wifi and GPS, but Canon 6D (N) do not.

By the way, Canon product in USA are a lot cheaper than in my country, but I usually don't buy expensive products with electronics and motor in it without a local warranty.

Have a nice day.
 
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rambarra said:
You have to take UK +20% VAT into account though. Japan sales tax is how much? 5%? 8%?

He did take tax into account by quoting pre-tax prices too.

I recently bought the new 24mm f/2.8 EFS pancake lens. Here in the UK it cost me £179 including 20%VAT, or £149 without tax. In Europe I could have bought the same lens for €149 plus VAT; in the USA I could have bought it for $149 + tax (except in those states that don't charge tax). The dollar price of my purchase was $282...

Since I'm forever being told 'you get what you pay for' I have to assume that my lens is nearly twice as good as the lens I could have bought in the USA.

Correct me if I'm wrong, but it seems to me that part of the problem is that Canon USA is not the same company as Canon Japan, or Canon UK. The various local companies are effectively franchises, operating as separate companies. And Canon UK resent having to give warranty repair to customers who didn't buy their equipment from them. This business model works well for Canon Japan - they can set higher retail prices in markets that they think will stand it - and milk markets such as the UK and Europe. And we have to assume it's legal for them to operate that way - but I suggest it's far from ethical. And why can't all the regional sales companies operate a reciprocal scheme - I'll honour your warranty if you honour mine? That way Canon UK would service a few cameras bought in Hong Kong, and Canon Hong Kong would service a few cameras bought in the UK. If they tried this they would soon realise the need to equalise the prices around the world!
 
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I am sure the issue is there is a minimum advertise price(MAP) that the authorized dealers in each region must sell the cameras and lenses for if they want to stay as an authorized dealer with Canon. If they try to advertise for a lower price than MAP online without authorization they may be removed as an authorized dealer.

I am sure Canon sets different MAP pricing and purchase cost to the dealers depending on the region. Given the authorized dealers have to follow the MAP pricing any gray market goods would seek to take sales away from the Canon's authorized dealers following the rules.

This could be one reason why Canon lowers the pricing on a few items given the dealers may had complained about not being able to compete.

I have 10 years experience in selling and purchasing car parts for a local speed shop. I know the manufacturers we would deal with would remove you as an authorized dealer if you tried to sell online below MAP. The manufactures create a list of MAP violators and tell the distributors not to sell to those MAP violators. Any distributor found to be selling to an MAP violators may have their discounted purchasing price removed.

a few manufactures would go as far as saying the invoice price for the customer has to be at MAP. That we could not quote a customer a lower price over the phone.

I understand Canon is trying to stop the gray market goods from taking sales away from their authorized dealers. I am sure the authorized dealers are complaining about loosing sells and having customers asking them to match an unauthorized dealers price.

I am not sure if I 100% agree with Canon not offering a warranty on the product they made regardless what region it was from. It is still a Canon product. The only reason they are doing that again is to control the pricing to help the dealers that are required to allow the rules.

I think it is unfair how many things in UK are overpriced.

I am considering about buying a gray market 1D X since it is $4,664 vs 5999. I am holding off since I think the camera will be replaced and the price will drop more. I am not 100% sure I want to pay that much given my 5D3 has been working fine for me.
 
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