Hi Marco,
You're comments about margins at the store make sense if the mark-up is 50%. I own a retail store. The mark-up on film and paper is not near 50%. The only items in the film industry with near this type of mark-up are filters... and that's because I stock some weird IR and Infrared Filters in weird sizes for rangefinder lenses... and they still don't cost that much. Film, paper and chemicals don't have a mark-up near 50%. At least not around here.
-Rob
Back when I worked at the camera store, mark-up on film and paper averaged between 20-25%. However, a number of people had 10% off due to art classes, photo club memberships, etc which is off the retail price. In the end, the average mark-up was 10-15%; remember that that 10-15% has to cover shipping, marketing, labour (the person at the counter), rent of the store, heat/power/water, dead loss, etc. Asking photo stores to reduce their mark-up is unrealistic, especially as any unsold, out-dated product is the stores responsibility and not the manufacturer.
I realize my 50% markup may not have been realistic. But still... this doesn't change anything about what I wanted to say:
A percentage is a percentage. It means when the product is twice as expensive when its sold, the shop owner will get twice the money.
Now 5 years ago or so, it used to be that shop owners were able to cover all of their costs and the risks you pose (rent of the store, heat, power), by maybe earning $0.50 on each roll sold, and $10,- on each pack of photo paper sold.
Today, these same sales get you $1,- and $20,-, as the percentage markup is fixed, but prices of products sold have doubled in these five years.
Five years ago, the $0,50 and $10,- were enough to keep your business running, otherwise you wouldn't have been able to run your shop at all back than...
So, here is the question: why isn't it today, considering inflation, salaries and others "shop operating costs" haven't gone up by 100%???
Of course, I am well aware business has dwindled, but this is part of the point I am trying to make. Shops are probably trying to keep their business running and profits going by maintaining the same markup for much more expensive products (whether this is 10 or 50% doesn't matter). Some of this extra income may be warranted, as you are right the risks also increase (the potentially unsold products are also more expensive, maintaining stock is riskier), but is it all?
Anyway, the strategy is a two bladed sword, and comes at the cost of risking to lose business altogether, as the consumers to sell to are not always able to keep up with the rising cost.
Anyway, I am well aware most shops probably have little choice, and I am glad I still have a very well stocked shop relatively close by, but I sure can tell you I felt like "uhmpfffff" :confused:, when I saw the bill of 100 Euro for 10 sheets of Ilford Multigrade IV FB 50x60 cm (20x24") paper. I knew this was going to be expensive when I bought it, 50x60 cm is of course a big sheet of paper, but this price was again some 30% above what I expected before the price appeared on the cash...






