[LargeFormat] cost of LF cameras

[Michael Briggs]

On 19-Jun-2003 Dan Kalish wrote:
> Now for the economics question.  Why are large format cameras, such as the
> Linhof Kardam M and the Gandolfi Varian L1A I have, so much more expensive
> than point and shoot cameras (which I don't have)?  The large format cameras
> don't have bells and whistles, they are merely ways of positioning a lens
> and film with respect to each other.  The p&s s have lots of bells and
> whistles: automatic focussing, automatic exposure, film advance, etc.


Mass production.   Wild-guesses: World-wide production of LF cameras might be
measured in units of 10,000 or perhaps thousands; world-wide production of
point-and-shoots might be measured in units of 10,000,000.   If we guess that a
billion (1,000,000,000) people can afford a p&s and that 1 out of 20 do so per
year, that is 50,000,000 cameras.

Besides less automation in the manufacture of LF cameras increasing the cost,
the costs that don't depend on the number of units (design of camera, design of
manufactuering process, distribution, etc.) are spread out over fewer units.

Try to imagine how much a $20,000 car would cost if only 1,000 were made per
year....   The very high design costs spread over only 1,000, too few units to
justify designing extensive custom machinery or an elaborate production line, so
instead almost custom machining of some parts....   The price would be
staggering.

LF cameras tend to be made in high-wage countries, p&s's tend to be designed in
high-wage countries and made in low-wage countries.   For the p&s the design
costs, while high, are negligible per unit.

The amount of material in the p&s is less.   It tends to be plastic instead of
metal, the plastic formed in a mold rather than machined.   The mold costs a
lot of money, but makes the part cost very low, but the mold is only cost
effective when the number of parts to be made is very high.  The "bells &
whistles" are semiconductor electronics -- no industry is more competitive and
has lower costs (esp. in large quantities) for amazing functionality.  On top
of that the semiconductor industry has continually decreasing prices for the
same functionality.

--Michael