Business Opportunity
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Business Opportunity
Digital photography is gaining popularity, and the Digital Interchangeable Lens Cameras (DILC) are becoming increasingly popular among novice users. These types of cameras include Digital Single Lens Reflex (DSLR), and Compact Interchangeable Lens Cameras (CILC). One issue that may restrict some novice and even semi-professional photographers are the price of the camera bodies and lenses. The price of camera bodies and lenses range from a few hundred to a few thousand dollars, having a large selection to choose from, and variety of uses can become expensive for consumers who want to get into digital photography. Theses costs can deter consumers from purchasing them because consumers may not want to spend that much money on a product and be unhappy with the product. According to “Global Digital Camera Industry Outlook To 2017 – Emerging Markets, Next Big Destination For Dsc Manufacturers” (2013), ” demand for digital camera is reaching maturity stage with high ownership level of digital cameras among the consumers”.
Business Idea
My business idea is to rent DILC camera bodies and lenses to consumers who want to try these products prior to making such a major purchase. Despite the popularity of using smartphones to take pictures, DSLR sales have been on the rise (“Dslr Sales Surging Despite Onslaught From Camera Phones”, 2012). With an increase in DSLR sales, one can expect an increase in sales with the newer CILC as well. Offering a variety of cameras and lenses would help appeal to a larger number of consumers. Everyone looks for something different from a camera, and giving customers a variety to choose from makes their decision for a final purchase much easier.
This business is not to persuade consumers one way or the other, this business is to offer consumers a chance to try a digital camera and its lenses prior to making a large purchase. As for the consumers that already have a DSLR or a different DILC, those consumers can try a $1,000 lens to see if it fits their needs prior to spending so much money. This business ultimately serves to help consumers make a final decision.
Competition
A Google search shows that there are already businesses that offer camera and lens rentals. The majority of these businesses require the consumer to pick up and drop off the product at a physical location, there are a few that will mail the product to the consumer with strict guidelines on when the charge per day begins and when the product is required to be in the mail. With such limitations as physical location, and strict guidelines with product receipt and return, a business more convenient than a physical location and less strict with return of the product seems that it would do well. A good example of an online lessor and their policies can be found here
Pricing
Most companies have daily rates with others having weekly rates as well. The prices seem to be fairly similar and vary depending on model of camera or lens, with the higher end models rates priced higher. For this business to be competitive, it is advantageous to offer lower prices using similar pricing strategies.
Products
No business offers a full selection of digital cameras so consumers may have to rent from several businesses to try every type of digital camera and lens that they want. This limits the number of customers