Originally Posted by
Michael Kadillak
...I continue to wonder why if you have the best product in the market why Aleris would not drop the price 35-40% for a short time because the increase in revenue would easily make up the margin discount...
In addition to manufacturing RA-4 paper itself, Kodak Alaris is a British marketing/distribution entity for film manufactured by Eastman Kodak Company in the latter company's Rochester, New York Building 38 facility. Volume of Kodak film sales is a miniscule fraction of what it once was, but the coating line in Building 38 is sized for "the good old days." None of us are privy to Kodak Alaris' supply agreement with Eastman Kodak, but I strongly suspect there are two problems with dropping the price as you suggest. First, wholesale cost may already be so high and margins so low that any price reductions are not viable. Second, any resulting percentage increase in revenue is likely to be calculated on a baseline that's already vanishingly small. It's a tough business case to make.
Last Thursday, Kodak Alaris' new CEO, Ralf Gebershagen, posted this video:
In it, he asks for questions and comments. On Saturday I emailed him the following message:
Dear Mr. Gerbershagen,
You asked for questions -- here are mine.
- What contractual commitment do you have from Eastman Kodak Company to continue producing the current range of Kodak still camera films?
- Is it connected to sales volume?
- Does it relate to the manufacturing of motion picture film, which Eastman Kodak can reasonably expect to plummet when existing contracts end next year?
- Is there some date after which or sales volume floor below which Eastman Kodak is no longer obligated to coat films for Kodak Alaris?
- In the event that Eastman Kodak Company, for one or more of the reasons listed above, ceases to be a Kodak Alaris supplier of still camera films, does your agreement with it include any provision for transitioning production of existing Kodak-branded still films from Building 38 in Rochester, New York to your facility at Harrow?
- Would associated engineering/manufacturing personnel and intellectual property be transferred to Kodak Alaris?
- Can your coating line at Harrow be switched back and forth between RA-4 paper and the film products without undue disruption?
- If neither Eastman Kodak supply nor relocated production in Harrow are available, does your agreement permit Kodak Alaris to source still camera films elsewhere and use the Kodak brand on them?
Thank you in advance for your answers. Photography forums around the world are abuzz with rumor and speculation, none of which is based on facts or knowledge. This situation cannot be positive for Kodak Alaris. In my opinion, sharing factual information is the only way you can prevent customers from fleeing to other film sources in the face of uncertainty.
Best regards,
Sal Santamaura
Perhaps Mr. Gerbershagen's response (if any ) will offer some insight concerning future availability and prices of Kodak-branded films, TMY in particular. Or not.
Bookmarks