aluncrockford
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- Nov 19, 2008
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Wonder how much silver they use and what percent of the final cost it makes up.
...Wonder how much silver they use and what percent of the final cost it makes up.
Here is a link to a thread that discussed this question.
(there was a url link here which no longer exists)
Here is a post I made in that thread in an attempt to try to estimate the likely price rise.
"Based on the current price of silver (about $1 per gram) and the amount of surface area in a roll of 35mm film (I estimate about 0.055 square meter) and about 6.5 grams of silver per square meter (midpoint of the estimates given in earlier post) I estimate a roll of film contains about $0.36 worth of silver. This represents something like a $0.14 increase over the previous year average price, and perhaps a $0.18 increase over the five year average. If we assume that the markup over the cost of raw materials is perhaps threefold (please supply a better number if you have one) then one might expect the cost of film to increase by about $0.50 per roll. If the markup is six fold then one might expect an increase of about $1 per roll..."
I think the announced price rise is within this estimated range, near the high end, or perhaps just a bit outside the high end of the estimated range.
If the increase is 30 percent, it would raise the price of a $4.39 roll of HP5 by $1.31. This is 31 percent beyond even your sixfold markup scenario, if all your numbers are correct.
Call me a pessimist, but I guess that the steady and significant (huge here in the States) Ilford price increases since the company was "rescued" are due to lack of demand for analog products. No company increases its prices that much in such a short period of time unless they are looking at failure.
Didn't we just have this conversation?
Also, for Ilford, I'd imagine that the continuing weakness of the pound makes it worse.
Let's see, at B&H today, a roll of FP4+ is $3.69. A roll of Plus-X is $4.99.
It would be very interesting to see data relating the exchange rates for UK currency (vs US$, CDN$ and AUS$, for instance) and the prices for Ilford product in those three countries.
This is one of the sad things about Kodak's retreat from much of the market. Otherwise, with the relative weakness of the US$, Kodak could have benefitted.
If silver goes up they can't help but raise they're prices.
Jeff
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