Jessops in the news

[Wild-Woman]

Perhaps Jessops need to be told. They are just too expensive for many would be buyers.
Real shame, as the peeps in our one in Bluewater are really nice and very helpful.

[matt_xyz]

It's sad, but it is hard to see how Jessops can ever compete with internet traders. The overheads associated with having 300+ stores, many in high street locations, must be astronomical. Plus they have historically received a large chunk of their income from film processing which is obviously a dwindling market.

They offer price matches rather than across the board price reductions because they know that not all buyers will take up the price-match option. They obviously couldn't afford to sell all of their Canon 400Ds, for example, at the price offered by an internet trader.

Presumably in the long run Jessops will retreat to a handful of large out-of-town stores. It would be a great shame to see them disappear altogether as it is nice to be able to actually see and hold photography kit.

Matt

[eeyore]

Originally Posted by matt_xyz

It's sad, but it is hard to see how Jessops can ever compete with internet traders. The overheads associated with having 300+ stores, many in high street locations, must be astronomical. Plus they have historically received a large chunk of their income from film processing which is obviously a dwindling market.

They offer price matches rather than across the board price reductions because they know that not all buyers will take up the price-match option. They obviously couldn't afford to sell all of their Canon 400Ds, for example, at the price offered by an internet trader.

Presumably in the long run Jessops will retreat to a handful of large out-of-town stores. It would be a great shame to see them disappear altogether as it is nice to be able to actually see and hold photography kit.

Matt

i'm not sure about that - internet traders generally offer a good price because they are bringing in cameras from over seas , but some vendors only have a fraction of the purchasing power that jessops have and i would be supprised if the price jessops pay for a 400D whole sale is more than what other pay in the states

anyway jessops are more expensive than a lot of other camera shops including currys , and digital depot, and on memory cards and such they are outpriced by pc world, staples, and office world as well.

even jessops online is expensive by comparison with other comparable sites (that is other shops sites , not ebay traders)

[matt_xyz]

but even if they pay the same wholesale price, Jessops then has to add on its operating costs and overheads before it can even think about making a profit. Presumably a one-man-band internet trader only has minimal overheads. Virtually every penny they charge above the wholesale price is profit. That clearly isn't the case for Jessops.

I would also add that a company like Jessops has to go through all the appropriate legal channels when buying and selling their goods. Not all internet traders do this which enhances their price advantage still further.

But I've no idea how the wholesale price Jessops pays compares to what an internet trader pays. It would be interesting to know.

Matt

[eeyore]

of course another point is that jessops wont price match with some traders anyway - they will only price match with company websites - who also have to go through the legal channels on import tax , vat etc

and i see your point regarding the overheads of running the shops , but that doesnt explain why a 400D in a jessops shop is 45 quid more than it is in a currys on the same industrial estate (which presumably has the same overheads etc) or why jessops online are more expensive than a comparable concern such as say warehouse express.

[matt_xyz]

Originally Posted by eeyore

and i see your point regarding the overheads of running the shops , but that doesnt explain why a 400D in a jessops shop is 45 quid more than it is in a currys on the same industrial estate (which presumably has the same overheads etc) or why jessops online are more expensive than a comparable concern such as say warehouse express.

other electrical traders such as Currys shift a lot more stock (in total, not just cameras) than Jessops and so their costs, per item, are generally smaller. There is also a lot of cross-subsidisation going on so that profit margins might be lower on one item (e.g. cameras) if it is offset by higher profits on another. Also, Currys face less internet competition in markets for washing machines, TVs etc which raises their overall competitiveness. If Currys had to make their livelihood from selling cameras alone I think their prices would be fairly similar (and their prices are not actually that disimilar much of the time).

Jessops online is obviously part of the overall company and so cannot divorce itself from the company's overheads and other costs. Its online activities presumably help to subsidise their high street activities so they would probably be even more expensive without this

Matt

[HowlinWolf]

Jessops only have themselves to blame. They are claiming that competition from the internet and supermarkets are responsible for their financial predicament, but if that's the case, why doesn't their online service balance things out? Recently, I bought a Nikkor 300 mm f/2.8 VR AF-S lens and a Lowepro Nature Trekker AW II bag from an online (UK) source and saved myself £391, compared to Jessops prices. Although the Jessops site advised me I could pick up the bag the next day from my local shop, the lens was cited as 28 day delivery. As it turned out, the source I bought the lens from had it delivered within 18 hours of ordering. How Jessops hope to be competitive with that kind of turnaround and pricing is beyond me.
No, it's the fact that they over-price somewhat, and are staffed by people with little or no knowledge of photography. 81 shops and 550 jobs will go. I feel sorry for the few staff that actually cared, and will loose their livelyhood. They had already lost my custom.

HW

[eeyore]

Originally Posted by HowlinWolf

No, it's the fact that they over-price somewhat, and are staffed by people with little or no knowledge of photography. 81 shops and 550 jobs will go. I feel sorry for the few staff that actually cared, and will loose their livelyhood. They had already lost my custom.

HW

thats the key point IMO - as matt pointed out it isnt reasonable to expect a shop to compete with tinternet sites on price so if they are to survive they need to compete on other factors such as service.

therefore if a shop is to survive it needs staff who actually know about photography , who have a good attitude , and are able to quickly order stuff in if they dont have it in stock - with the exception of a few stores jessops fail on all three.

[Tormentil]

I was surprised when Jessops opened a shop on our High Street, and I am not surprised that after only 2 years its one of the ones that is closing. They made a mistake and the business they expected obviously did n't materialise. I wonder how much market research they did before they opened it.

[Paul mabbott]

Going around and coming around. Am I the only person who remembers the original Jessops shop in Leicester? Really quite small and jam-packed with stacks of photographic stuff with a few employees who could tell you anything you wanted to know. I think they made most of their profits from postal trade ....
I suspect that if Jessops is to stay alive they will do it by becoming an internet provider!

Also, has anyone noticed how '81' has apparently become a magical number for closures by troubled firms. Kwiksave is going to close 81 stores, some chemist chain is going to close 81 dispensaries ..... Bankruptcy threatens, consultants response, "Close 81 outlets".