High camera prices aren’t proof that camera makers are greedy

Almost every time a camera maker announces a new model, I spot a few comments that follow a familiar script: someone sees the price, winces, and declares the company “greedy.”

It’s not just cameras. The same charge gets thrown at smartphone makers, appliance manufacturers, and even app developers who choose to charge a subscription. I see it far more often today than I did ten years ago, and in most cases, I think it’s misguided.

Don’t get me wrong. I understand sticker shock, and I feel it too. My colleague Richard Butler has done a great job explaining why your sense of camera prices might be out of date and why launch prices always seem high. Even with that perspective, though, we still feel the sting of higher prices. But a price that makes us cringe isn’t evidence of greed.

Camera prices have risen dramatically in the past few years. But a price that makes us cringe isn’t evidence of greed.Mitchell Clark

Few people start a business to give something away, and camera companies aren’t charities. Like most companies, their goal is to make money, ideally as much as they can. That’s not wrong – it’s business.

Consider what that means. Camera makers want the highest price they can get today. But they wanted the same thing five years ago, and ten years before that. Their appetite for profit didn’t suddenly appear when prices went up, and that appetite always has to be tempered by what people are willing or able to pay. What has changed is what it costs to design and build a camera, and what we’re comparing new prices against.

In fact, it can be in our interest for camera companies to be profitable. Profit keeps them in business and pays for R&D. And let’s be honest – making cameras isn’t exactly a gold mine. Olympus sold off its camera business, and Samsung walked away from the market entirely, just as it was emerging as a more serious player.

Additionally, we always want more. I’ve never seen a camera launch where everyone said, “That’s it. This camera is perfect. It’s all we’ll ever need.” There’s always a “but.” But if it only had this one feature… The catch is that nobody agrees on what that feature is, so manufacturers have to keep developing. That requires money.

Am I suggesting that manufacturers never overreach? Of course not. We’ve all seen a company swing for the fences on price, sometimes to the point of being laughable. As Richard pointed out, launch prices in particular are essentially an opening bid, the most a company will ever get for a product, and they’re often optimistic.

However, consumers have power too: we can choose not to buy. If a camera sits on shelves, its price will come down. It almost always does. And if it sells out at full price, that tells us something too, even if we don’t like what it says.

The Sony RX10 V may look much more expensive than its predecessor, but its price has risen roughly in line with US consumer prices over the nine years between them.Richard Butler

Is the system perfect? No. A handful of brands dominate the camera market, and once you’re invested in a system, switching is neither easy nor inexpensive. Companies do have real leverage over pricing, and it tends to show up where you’re locked in: proprietary batteries, pricey accessories, or even mounts that restrict the use of third-party lenses. Those are fair targets for criticism. But it’s a much more specific complaint than “this camera costs more than I want to pay, so the manufacturer must be greedy.” And when it comes to the cameras themselves, you have alternatives.

The next time a new camera’s price makes you cringe, try asking a different question. Instead of “why are they so greedy?”, ask “is this worth it to me?” If the answer is no, don’t buy it. It’s the most effective message a camera buyer can send.

That message has its limits, though. Holding off on buying might bring an optimistic launch price down, but it can’t make a camera cheaper to manufacture. If enough people decide the answer is yes, that price may simply be the new normal. If enough decide it’s no, we’re more likely to get a cheaper camera than the same camera for less.