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Online Camera Stores Compete and Sometimes Beat Big Box Store Prices

Last April I was in the market for a new digital camcorder; I did hours of web research, talked with a repair technician and chose the Panasonic PV-GS320, a 3-chip miniDV digital camcorder available from PanasonicDirect for $449.95 .

Surely I could do better than the manufacturer's retail price.

My first stop was the local Best Buy. I found the camcorder on display, asked for assistance, and employees pointed to the only salesman who knew the details. He was busy with another customer so I waited.

Finally my turn came, the sales guru answered all my questions, then he suggested I should buy one of the latest (and much more expensive) hi-def camcorders, cautioning that I was looking at a discontinued model.

"Could you take the camcorder off the security tether so I can hold it in my hand?" I asked. The salesman got a pained look on his face, "Sorry my boss has the keys and he doesn't like to do that." Best Buy's price was $400.

I've bought a lot of stuff at Best Buy, from DVDs to laptops, but they didn't make this sale. I left the store empty-handed.


Next stop the web - I checked our advertisers first. B&H Photo Video was selling the camcorder for $344.95; Beach Camera in New Jersey was within $5 of B&H's price. Wow!

Buying from either camera store, I would save more than $50 compared to Best Buy's price. And I'd be spending $100 less than if I ordered my camcorder direct from the manufacturer. (Tip, buying direct from the camera manufacturer will almost never save you money.)

But wait, my savings were actually greater. B&H Photo in Manhattan doesn't collect sales tax on mail orders shipped outside New York State. The same is true for Beach Camera in New Jersey, for NYC's 42nd Street Photo and for other retailers with operations in a single state.

No sales tax makes a big difference.
Big box stores online such as Best Buy, Target, Walmart, Sears, Circuit City, and Costco must charge sales tax on mail orders because they have retail outlets or warehouses in all states. Considering an 8.9% state sales tax, buying from these chains adds $36 to a $400 purchase.

Shipping and handling? Reputable camera stores don't jack up the S&H to increase their profit margin. Shipping costs are based on weight, size, destination and insurance to cover loss in transit. Be sure to check the web store for free shipping specials on selected items. Uncomfortable with ordering online? These dealers have toll free order lines.

The bottom line - I saved a lot of money buying my new digital camcorder from a reputable camera store. Camera dealer prices won't beat big box stores on every item, but when you consider the no sales tax savings, you'll find big box stores are not always cheaper. Had a similar experience? Let me know.

While waiting for that Best Buy salesman, I noticed the in-store prices for consumables like blank miniDV tapes are more than a dollar higher per tape than some online camera stores. Some online price checking shows many photo accessories at Best Buy are sold at manufacturers list price, such as Canon, Nikon and pricey Sony lens filters, lens caps and other items.

Dealer Reputation Far More Important Than Best Price
Buying from a retailer you've never heard of because they have the lowest price is a formula for headaches and certain grief.

How do you know which online camera dealers are reputable and which are not? If you've never heard of a retailer, check their reputation on photo.net where thousands of members have reported positive and negative experiences on hundreds of camera shops, custom photo labs, photography workshops and more. (If this link changes, select "Community" then "Neighbor Recommendations".) Always check the Better Business Bureau BBB-New York or the BBB Nearest You By Zip Code and enter the business name.

Warning! Beware of shills offering glowing too-good-to-be-true reviews on Reseller Ratings - don't read just one consumer's rating, read many. Reseller Ratings has damaged their credibility by allowing this practice.

As reported elsewhere on the web, be especially wary of online camera dealers with Brooklyn addresses and alphabet soup names like AAA, Discount, Best, Broadway, Tri-State and more.

So if you're ready for a new digital camera, camcorder, photo accessories, memory cards or any photo equipment, don't buy it from a big box dealer until you've checked prices at reputable online camera stores.

Scott Kilborn
 

B&H Photo Video and Pro Audio

Beach Camera film and digital cameras since 1983

KEH-com buys and sells new used cameras

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Revised November 15, 2008