Canon cuts Australian camera prices

Canon has lowered the prices of many of its imaging products as part of an ongoing campaign to monitor camera pricing in the Australian market.

Canon Australia has not published recommended retail prices for consumers since 2012, a move designed to encourage customers to head into stores to see what value is available. It does, however, provide guidance for local retailers in order for them to price stock.

"Our role is to grow the Australian market by offering consumers a great imaging experience and good value," said Andrew Giles, manager, communications and PR, Consumer Imaging.

"This means helping people get the right gear for their needs, and working with retail partners to help them offer competitive pricing, strong service and after sales support. This year alone we've invested millions in assisting local retailers, so consumers will benefit from some very competitive pricing in local stores."

At the time of writing, websites of several Canon authorised retailers reflect the price repositioning. For example, the EOS 6D SLR (body only) is listed in the region of AU$1949-$2199 on several sites — it is AU$2498.99 on the official Canon site, which reflects the previous price positioning.

Canon's move puts local pricing in a very competitive stead against overseas options, especially once shipping and import tax has been taken into account. The same camera configuration on US retailer B&H costs US$1899, which does not include shipping to Australia, or duty and GST when the product enters the country.

The new prices are also reasonably favourable, though not directly comparable, against parallel importers. Online retailer Kogan sells the same camera for AU$1759, excluding delivery, and Digital World International for AU$1541. Both these examples come with the retailer's own warranty rather than Canon Australia's local warranty.

"We're monitoring the market closely, and have been taking price action since mid-2010 on a case-by case basis across the imaging products range. The latest was in late April, and we'll keep acting as the market shifts continue," said Giles.

Canon Australia previously made a public announcement about dropping prices on 95 products in its portfolio in 2011.

Authorised Canon retailers have welcomed the price adjustments. "Snappit is very optimistic about the consumer reaction to this very positive price realignment strategy from Canon," said online retailer Snappit's eCommerce sales and operations manager, Grant Tildsley.

"We're very pleased that Canon has taken the initiative," said Peter Michael, managing director of Michaels Camera. "The closer we get to world pricing, the better, and it seems that all the manufacturers are working towards that. Canon is spearheading that."

In response to an increasingly competitive market where buyers have the choice between parallel import goods and locally-sourced stock, retailer David Jones cut prices on a range of products at the end of 2012 up to 50 per cent. This included stock from Canon and was the result of negotiations between international suppliers to make prices more competitive.

Parity pricing has long been a contentious topic in Australia, leading to the IT Pricing Inquiry, which has so far heard submissions from companies like Adobe, Apple and Microsoft.

Canon is not the only camera company who is working towards more competitive local pricing. Pentax and its Australian distributor CR Kennedy have a price parity policy, so consumers will find products sold in Australia at the same price as overseas.

Updated at 8.56am, 7 May: added comment from Peter Michael of Michaels Camera.